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Friday, February 23, 2024

Buyers withhold orders on RMG workers protest as 150 factories closed

A total of 3,000 people have been accused in 12 cases filed in connection with the attacks and vandalism in various factories in Ashulia, Dhaka amid the ongoing movement of RMG workers demanding an increase in minimum wages. Five people have been arrested so far in these cases, On Saturday, November 11, the RMG factory owners closed 150 factories fearing violence from the workers.

Bangladesh’s 3500 garment factories account for 85 percent of its annual export of $55 billion. Being the second largest apparel exporter in the world it is a major supplier to almost all leading global brands.  Foreign buyers are concerned about the ongoing unrest in the readymade garments (RMG) sector and they are not placing new orders for the time being, revealed Faruque Hassan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Addressing a press conference in Dhaka he said the damage that has been done as the buyers are holding orders. He warned that they would not be placing new orders if the situation continued. He said exporters are trying to reassure buyers that the situation would soon come under control as only 5 percent of factories are affected by the unrest. He said the new wage board will be effective before the general election so that it does not emerge as an election issue.

The imposition of tariffs on Bangladeshi clothing, following its transition from the list of Least Developed Countries (LDC) status, has the potential to elevate apparel prices in the global market, Mohammad Adbur Razzaque, chairman of the Research and Policy Integration for Development (RAPID) Bangladesh, said on Sunday.

Razzaque underscored Bangladesh’s significant shares in the apparel markets of the European Union and the UK, standing at 22% and 18%, respectively.

He said any disruption in Bangladesh’s garment exports could hinder the immediate increase in supply to the global market. Consequently, the imposition of tariffs on Bangladeshi products post-LDC graduation is anticipated to escalate clothing prices globally

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