Garment factories open even on holidays to recover losses

Garment industry production has been severely disrupted over the past three months due to nationwide protests and curfews in July-August, the resignation of the Awami League government and recent labor unrest in key industrial areas. Many companies have lost orders. Garment exporters have started a massive effort to overcome the shock. More than 150 garment factories are open in Ashulia Industrial Area on Friday (September 27) to compensate for the loss.

In this situation, industrial police are working to ensure the safety of factories and workers. Garment workers have been protesting and striking for various demands in Ashulia industrial area for quite some time, although it is expected that the unstable situation will be brought under control in July-August after the interim government takes over. Recently, when the owners announced to accept several demands of the workers, the situation began to normalize.

Managers said the pressure to export products on time is increasing. Therefore, factories are kept open even on holidays to compensate for the loss of production stoppage. Several factories are also open in Gazipur industrial area. Not just holidays; Many garment factories have been kept open for 24 hours. Because exporters are looking to secure Western orders ahead of Christmas and upcoming autumn and winter export orders.

Also, the country's garment exporters are turning to sub-contractors to maintain long-standing business relationships. They are requesting to extend the export period to the foreign sellers.

According to Indian rating agency CareAge Ratings, if the crisis continues for more than one to two years, around 10 percent of Bangladesh's ready-made garment (RMG) export orders could go to countries like India and Vietnam.

Currently, many exporters fear that they will have to pay large discounts or ship products by air due to production delays. This will increase the cost of transportation of goods. There are even fears of cancellation of some export orders.

In this situation, they say, foreign retailers and brands can avoid adverse effects if they consider labor unrest and political changes and allow extensions.

Meanwhile, Bangladesh Made Garments Manufacturers and Exporters Association (BGMEA) president Khandaker Rafiqul Islam said on Wednesday that the garment sector has suffered a loss of more than 100 million dollars due to the recent labor unrest. Because many factories could not produce the products and deliver them on time. Even buyers could not visit the factory. But since normalcy has returned to the apparel sector, they will hold meetings with major retailers and brands on Sunday or Monday to discuss the overall situation.