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A leading apparel maker shuts four factories following ‘labour unrest’

Chaity Group, a leading apparel exporter, shut four of its units Sunday in the wake of “labour unrests” in the last couple of months.

The factories are -Ashique Dress Design Ltd, Ashique Jeans Apparels Ltd, Nice Apparels Ltd, and Ashique Dress Design (Printing).

apparel maker shuts four factories
Figure: Chaity Group, a leading apparel exporter, shut four of its units Sunday in the wake of “labour unrests” in the last couple of months.

“All the 2,500 workers of the factories will be laid off on 8 December with November salaries,” says a closure notice signed by the group Director (administration) Brigadier General (retd) Mesbahul Alam Chowdhury.

The terminated workers will get all benefits mentioned in the labour law, including notice pay, service benefits, annual earned leave, and other benefits, on 29 December from the factories, reads the notice, which has been forwarded to the public offices concerned and exporters’ association.

According to BGMEA officials, the group will have to pay Tk18 crore in compensation to the terminated workers.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said it will be a glaring example of disturbances by the trade union that the owner had to shutter business even after sitting on export orders.

Labour leaders said the factory closure notice is “abrupt and unacceptable”, and they will stage demonstrations against it.

According to the factory authorities and workers, the “chaos” that led to the factory closure comprised of an auto-promotion demand by labourers and a reported sexual harassment of a female worker.

At the factories, workers with already a three-year of experience have been demanding an auto job promotion. The owners recently fulfilled the demand in the face of an increasing protest.

On Thursday last week, a female worker reported sexual harassment by a cutting manager.

Subsequently, a probe committee was formed that found the allegation false after analyzing the closed-circuit camera (CCTV) footage.

But the trade union leaders demanded the termination of 39 managerial staff following the reported harassment.

BGMEA Vice-President Nasir Uddin said the group had been facing labour issues for the past two years, but the owners were “very cordial” in meeting workers’ demands.

Joly Talukder, secretary of Bangladesh Garment Workers Trade Union Centre, said the abrupt factory closure will portray a negative image of Bangladesh’s ready-made garment sector to foreign buyers.

She said the termination is unacceptable, and they will stage demonstrations in front of the factories on Monday.

Muhammad Morshed Alam, deputy commissioner of Dhaka Metropolitan Police (Uttara Division), told The Business Standard, “We are already aware of the factory closure. Now it is up to the owners since they said they will act as per the labour law.”

With about $175 million annual turnover and 13,500 jobs, Chaity Group has textiles, spinning, garments, accessories, restaurant, and commercial development businesses.


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