95 factories shut down in 7 months, leaving around 62,000 jobless

Over the past seven months, 95 factories in Gazipur, Savar, Narayanganj, and Narsingdi have permanently shut down, while several others have temporarily ceased operations.

As a result, around 62,000 workers have lost their jobs, with most yet to receive their outstanding wages and service benefits, which include financial compensation after termination of employment.

There are three primary reasons behind these closures. First, many factories shut down due to financial crises and a lack of purchase orders. Second, factories owned by individuals associated with Awami League politics were vandalised and set on fire, forcing them to close. Third, some factories fell into disrepair as their owners—businessmen with ties to the ousted Awami League government—went into hiding.

According to the Industrial Police, of the 95 closed factories, 54 were in Gazipur, 23 in Narayanganj-Narsingdi, and 18 in Savar-Ashulia. These factories collectively employed 61,881 workers and employees.

In response to job losses and unpaid wages, unemployed workers frequently take to the streets to protest, demanding the reopening of factories and the settlement of outstanding dues. These demonstrations have increasingly disrupted daily life for the general public.

Speaking to Prothom Alo, Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), acknowledged the workers’ struggles in claiming their due wages.

He confirmed that compensation remains unpaid in nearly all closed factories. In response to a question, he added that while some unemployed workers have managed to find new jobs, others have returned to their villages, and many remain jobless.

The districts of Narayanganj, Narsingdi, and Munshiganj, located near the capital, are home to approximately 2,000 industrial establishments. Of these, 23 factories have permanently shut down, resulting in the loss of around 6,000 jobs.

According to Industrial Police-4, 21 factories—including Green Bangla Home Tex Industries, Asian Falcon Garments, GL Fashion, Master Textile, West Best Attire, and Star Cutting and Engineering—have closed in the past seven months. These were primarily small and medium-sized factories, forced to shut down due to financial crises and a lack of purchase orders.

Additionally, several units of two factories belonging to Gazi Group, owned by Golam Dastagir Gazi, former Textile and Jute Minister under the ousted Awami League government, have also been closed.

Before the collapse of the Awami League administration in the July mass uprising, these two factories in Narayanganj employed 4,000 workers. However, following the arrest of Golam Dastagir Gazi, the factories were ransacked and set ablaze in two separate phases, leaving them in ruins.

Gazipur, home to 2,176 registered factories, has been particularly affected. Of these, 1,154 are ready-made garment (RMG) factories. Since last August, 54 factories—mostly from the RMG and textile sector—have shut down, leading to 45,732 job losses.

Notable closures include TMS Apparels, Niagara Textile, Mahmud Jeans, Hardy to Excel, Polycon Limited, Apparel Plus, TRZ, and The Delta Knit.

Shahin Alam, a former worker at Mahmud Jeans Apparels, told Prothom Alo: "I have been unemployed since the factory closed. I can’t find a new job, so I sometimes drive an auto-rickshaw."

The most significant blow came on 28 February, when Beximco Industrial Park in Sarabo and Kashimpur, Gazipur, shut down 14 factories, rendering 33,244 workers jobless.

To address the crisis, the government will begin disbursing Tk 5.25 billion in outstanding dues to Beximco workers starting 9 March.

In the Savar, Ashulia, and Dhamrai industrial zones—home to 1,863 factories, including 745 RMG factories—18 garment factories have permanently closed in the past seven months. This has left 10,127 workers unemployed.

According to Industrial Police-1, key factory closures in this region include Generation Next Fashion, Best One Sweater, MS Sweater, Savar Sportswear, Barda Group, Rams Fashion and Embroidery, Priyanka Fashion, and Javan Tex Knitwear.

Generation Next Fashion, located in Ashulia, shut down last August, displacing 4,500 workers. When a Prothom Alo correspondent visited the site last Thursday, a notice was posted on the locked gate, stating that service benefits will be paid in six instalments until November. The first instalment, amounting to Tk 32 million, is scheduled for payment on 20 March.

Labour leader Babul Akhter has stressed the urgent need for government intervention to ensure that workers who have lost their jobs receive proper compensation.

Speaking to Prothom Alo, he pointed out that most of the workers affected by factory closures in the past seven months have yet to receive any financial settlements, while those who have been compensated received only meager amounts.

He noted that Beximco workers may receive fair compensation because of direct government involvement. To extend similar support to workers from other factories, Akhter has called for the formation of a tripartite committee at the highest level of government, bringing together government representatives, factory owners, and labour leaders to ensure that affected workers receive their rightful dues.

(Prothom Alo's Savar correspondent and staff correspondent, Gazipur and Narayanganj correspondent helped preparing the report)