Payment of salaries, allowances, and festival bonuses for workers in the ready-made garment industry ahead of the upcoming Eid-ul-Fitr has been nearly completed, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan.
He shared this information during a press briefing organised at the BGMEA Building conference room in Uttara, capital, on Wednesday.
The BGMEA president stated that the country’s garment industry is currently going through a challenging time due to the ongoing global economic downturn, geopolitical instability, and increased competition in the international market. Export earnings have decreased by 3.73 percent in the first eight months of the current fiscal year.
During the same period, the rate of back-to-back LCs opened for importing raw materials has decreased by 6.79 percent, and the average unit price of garments has decreased by 1.76 percent.
He further stated that instability in the international energy market, increased transportation costs, and uncertainty in the global supply chain have further complicated the situation. Additionally, increased gas and electricity prices in the country, high interest rates, and the liquidity crisis in the banking sector have created extra pressure on entrepreneurs.
However, he informed that despite these challenges, factory owners have made utmost efforts to pay workers’ dues.
Mahmud Hasan Khan said, “According to our information, there is no BGMEA member factory with unresolved issues regarding February’s salaries. 99.91 percent of factories have paid February salaries; processes are ongoing in the remaining two factories. 99.81 percent of factories have paid Eid bonuses; processes are still ongoing in 4 factories. 64.03 percent of factories have paid partial advance salaries for March.”
He also informed that staggered holidays are being given to reduce the pressure of people heading home for Eid. About 50 percent of factories had given holidays until 17 March, and the remaining factories will give holidays on Wednesday and Thursday.
Referring to government assistance, the BGMEA president said, “Loan facilities on easy terms for paying workers’ salaries and a cash incentive of Tk2,500 crore have played an important role in tackling the industry’s liquidity crisis.”
