BGMEA: 353 garment factories close, more than 100,000 workers jobless

Over the last 14 months, a total of 353 garment factories have been shut down across Savar, Gazipur, Chattogram, Narayanganj and Narsingdi, rendering 119,842 workers jobless as per the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Savar has been severely hit, with 214 factories closing (122 permanently, 92 temporarily), according to the clothing sector owners’ association. Almost 31,000 employees have lost their jobs there, including those from large companies like Safwan Outerwear, Generation Next Fashions and Chain Apparels.

Over 73,000 workers are unemployed in Gazipur as a result of the closure of 72 industries. One important element in this area has been identified as the permanent closure of 13 clothing factories owned by the Beximco Group.

The country’s total export earnings in July, the beginning of the new fiscal year, rose by 25% over the same month last year, according to figures from the Export Promotion Bureau (EPB), despite the industrial closures.

Recently, policy and final approval to the Bangladesh Labour Law (Amendment) Ordinance 2025 was given by the government, although owners are dissatisfied with few changes.

Chief Adviser’s Press Secretary Shafiqul Alam commented that the closure of some factories is not necessarily a bad thing, stating, “The closure of non-compliant factories is not a bad thing. It is a necessary step for the sound and sustainable development of the industry.”

BGMEA President Mahmud Hasan Babu told the media, “We are actually going through a kind of uncertainty. We had the opportunity to do much better over these 14 months, especially with the additional tariffs imposed by the US on China and India, but we missed that opportunity.”

Former BGMEA Vice-President ABM Shamsuddin stated, “To be honest, Bangladeshi clothing owners are struggling. Small factories are closing because they are unable to continue. By changing the labour legislation, the government has created yet another issue. We don’t actually have a guardian here. The industry is barely making ends meet.”

The Bangladesh Centre for Worker Solidarity’s Founder and Executive Director, Kalpana Akter, pointed out that although workers took part in the July–August uprising, the demands for resolving inequality have not been fulfilled. Conversely, workers are losing their jobs and becoming unemployed.

Two to three lakh workers have lost their jobs under the current regime, according to Jolly Talukder, Vice-President of the Bangladesh Garments Workers Trade Union Centre. Along with criticising the government’s attempt to restrict trade union rights, she also highlighted that four workers had been shot dead during this time. She pointed out that workers had been slain during protests for improved pay and benefits.

Former BKMEA President Fazlul Hoque thinks the crisis is seriously affecting the economy as a whole. He attributed the drop in exports to poor demand, political unpredictability and the recession in the US market. “Big buyers won’t place orders amidst uncertainty,” he said. “If an elected administration takes office, things could change.”