Business · India Bureau
Bangladesh factory closures threaten garment exports as wage protests escalate
Over 500 garment factories in Bangladesh have shut down as workers demand a more than doubling of minimum wages. The industrial action risks disrupting export orders for a sector critical to the country's economy.
LSN India ·
Approximately 529 garment factories across Bangladesh have ceased operations amid intensifying labour unrest in the textile manufacturing sector. Workers are pressing demands for a minimum monthly wage of Tk 30,000, representing a sharp increase from the current statutory minimum of Tk 12,500.
The wage dispute reflects growing pressure from garment workers seeking improved compensation amid rising living costs. The proposed increase of approximately 140 per cent would mark the first significant wage revision in the sector in several years, with workers arguing that existing wages have failed to keep pace with inflation and basic living expenses.
The factory closures pose a significant risk to Bangladesh's garment export orders, with the sector accounting for a substantial portion of the nation's foreign exchange earnings. Buyers and manufacturers are reportedly concerned about potential delays in fulfilling international orders, which could impact both supply chains and the country's trade performance.
Bangladesh's garment industry, one of the world's largest exporters of ready-made clothing, employs millions of workers. The current standoff highlights ongoing tensions between labour demands for better working conditions and wage improvements, and industry pressures to maintain competitiveness in global markets.