Bangladesh’s garment industry is losing an estimated $40 million worth of export production per working day as worker unrest enters its third day, said Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem.
It has already forced nearly 700 factories to suspend operations fully or partly, raising fears of further closures.
“The affected factories represent more than a quarter of the country’s 2,400 operating garment units,” he told TIMES on Monday.
As many were large manufacturers, he estimated that roughly one-third of daily export production could be affected.
The unrest spread across Mirpur, Savar, Ashulia, Kaliakair, Chandra and Gazipur, while four to five factories in Narayanganj also faced disturbances.
Hatem alleged that groups attacked factories, threw stones, damaged gates and forced employees to leave, disrupting production at facilities which opened for work.
The entrepreneur warned that demands to raise the monthly minimum garment wage to Tk30,000 from Tk12,500, a proposed increase of 140 per cent, could force more manufacturers out of business as they struggle to secure orders and margins.
He argued that the workers’ demand for the sharp wage hike was beyond the capacity of many factories already struggling to meet payroll obligations and questioned its justification against entry-level salaries in other professions.
The minimum garment wage rose from Tk5,300 in 2013 to Tk8,000 in 2018 and Tk12,500 in 2023, a cumulative increase of about 136 per cent over the decade.
“Government employees are getting a 100-140 per cent pay hike after a decade,” he said, adding that other industrial sectors except the steel and ship breaking are paying much less.
Hatem estimated that the industry currently employed 30 lakh to 32 lakh workers, compared with an earlier estimate of 40 lakh.
According to the industry estimate, only around 17 per cent of garment workers receive the minimum wage, while experienced machine operators earn Tk20,000-Tk25,000 a month, with overtime and regular increments.
More than 400 garment factories closed over the past three years, partly because they could not afford existing wages and the closures could have affected at least four lakh workers.
BKMEA alleges outsiders behind disruptions
Hatem questioned why demonstrations were continuing after the government formed a wage board, alleging that some disturbances were being orchestrated by outsiders.
“I do not believe this is a movement for higher wages,” he said.
He suggested that those behind the violence might be seeking to either damage Bangladesh’s garment industry or create political difficulties for the government.
BKMEA members were submitting factory surveillance footage to the authorities to help identify people allegedly involved in attacks and forced work stoppages.
While acknowledging workers’ rising living costs, the BKMEA leader argued that wage increases alone might provide limited relief because landlords in garment-producing areas often raised rents after pay revisions.
Hatem warned that prolonged unrest, combined with wage increases beyond manufacturers’ financial capacity, could accelerate factory closures, weaken export competitiveness and put more jobs at risk.
