The proposed move has raised fresh concerns about instability in Bangladesh’s ready-made garment (RMG) industry, particularly the potential impact on workers’ livelihoods and the country’s export commitments.
Industry sources said production had to be suspended at 143 garment factories in Ashulia, Jamgora and Hemayetpur on Wednesday. Although workers entered factory premises, many refused to resume their duties. Some reportedly marked their attendance before leaving, while incidents of vandalism were also reported at several factories.
The disruption has continued for days in some establishments, with production reportedly remaining suspended for 11 consecutive days. Factory owners say the situation has made it increasingly difficult to maintain normal operations and meet production schedules.
Shovon Islam, managing director of Sparrow Group, said the leaders present at Wednesday’s meeting had agreed in principle to close 210 garment factories indefinitely in Ashulia and other areas experiencing labour unrest.
He said the final decision would be announced following a meeting with all members on Saturday.
Mohammad Rashed, vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said factory owners were facing a difficult situation as workers in some establishments were refusing to work, while vandalism had been reported elsewhere. Discussions over wages were also continuing, adding to the uncertainty.
He said some factories had been unable to resume production for 11 days, leaving owners concerned about how they would meet their wage obligations if operations remained suspended.
Workers’ livelihoods at risk
Ashulia and Savar are among Bangladesh’s important garment manufacturing hubs, hosting major companies such as Ha-Meem, New Age, Ananta Garments, Sterling, Envoy, Islam and Dekko. According to sources at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), around 300,000 workers are employed in factories across these areas.
An indefinite shutdown of 210 factories could therefore have serious consequences for a large number of workers and their families. Those dependent on regular wages may face financial uncertainty if production stops for an extended period.
Some factory owners have already issued closure notices under Section 13(1) of the Bangladesh Labour Act. The provision allows employers to close an establishment, either partially or entirely, in circumstances involving an illegal strike. However, workers’ entitlement to wages during such closures is governed by specific legal conditions and limitations.
Export orders face uncertainty
The possible shutdown has also raised concerns over the garment industry’s export commitments. Factories unable to operate normally may struggle to complete existing orders and deliver finished products within deadlines.
Transferring production to other factories is not a straightforward solution. Many garment manufacturers are already operating under considerable production pressure, leaving limited spare capacity to accommodate additional orders at short notice.
International buyers also impose requirements concerning designated factories, production processes and quality-control standards. These conditions can make it difficult for manufacturers to move orders to alternative facilities or arrange subcontracting elsewhere without prior approval.
Shovon Islam said production could not simply be shifted to another factory through subcontracting. If shipments were delayed, manufacturers might have to resort to air freight, significantly increasing delivery costs. There was also a risk that buyers could cancel orders if products failed to reach them within the agreed timeframe.
Such disruptions could affect not only individual manufacturers but also the wider supply chain, particularly as Bangladesh’s garment sector relies heavily on maintaining reliable production schedules and meeting international buyers’ delivery requirements.
Unrest continues despite wage developments
This is not the first time garment industry leaders have considered shutting factories because of labour unrest. The BGMEA had previously taken an initiative to close factories amid growing tensions, but owners kept their establishments open following a government request.
Meanwhile, a meeting of the new wage board announced that the revised wages for garment workers would come into effect from December. Following the announcement, workers returned to their jobs in several industrial areas, including Gazipur, Mirpur in Dhaka and Narayanganj.
However, unrest has continued in parts of Ashulia and Savar, where production disruptions and disagreements between workers and factory management have remained a concern.
Industry owners warn that prolonged factory closures would create losses across the sector. Workers could lose their regular income, manufacturers could struggle to fulfil export orders, and overseas buyers might begin questioning the reliability of production in Bangladesh.
With the garment industry playing a central role in the country’s export earnings and employment, a prolonged disruption in major manufacturing zones could have wider economic implications. Industry stakeholders say resolving the labour unrest quickly and restoring normal production are essential to protecting workers’ livelihoods, maintaining buyer confidence and safeguarding export performance.
