BGMEA election likely in 3rd week of April: Sources

The next Bangladesh Garment Manufacturers and Exporters Association (BGMEA) election is expected to be held in the third week of April this year, according to sources in the trade body.

Prior to that, BGMEA will form an election board on 26 January, said association officials.

Requesting anonymity, officials mentioned that a proposal has already been submitted to the Director of Trade Organizations (DTO) at the Ministry of Commerce to form this board, which was previously handled by the association itself.

Talking to The Business Standard, BGMEA Administrator Md Anwar Hossain said, "We are committed to conducting a free and fair election to hand over the charge of the association to an elected body."

He further mentioned that an updated voter list would also be published by the end of January.

"If all stakeholders cooperate with us, we will be able to hold the election on schedule as planned," said Anwar Hossain, who is also vice chairman of the Export Promotion Bureau (EPB).

The BGMEA administrator urged members to submit their documents by 31 January to help create a fair voter list. 

As per the decision made during a recent meeting with BGMEA leaders, only exporters based on Utilisation Declaration (UD) data and subcontract manufacturers with updated factory licences will be eligible to vote in the BGMEA biannual elections for 2025-2026.

Former BGMEA president Anwar-Ul-Alam Chowdhury Parvez, who attended the meeting, stated that leaders from both panels — Sammilita Parishad and Forum — agreed to hold the election in April to address ongoing challenges in the apparel sector.

Parvez emphasised that an elected leadership is crucial to address labour issues, especially with the upcoming Eid festival and other industry concerns that the administrator cannot manage effectively.

Former BGMEA presidents Quazi Moniruzzaman and SM Fazlul Haque, along with Sammilita Parishad panel leader Abul Kalam and Forum panel leader Mahmud Hasan Khan Babu, were also present at the meeting.

Voter documentation requirements

BGMEA officials stated that to qualify as voters, members must submit updated trade licences, factory licenses, and tax return proof as per DTO rules and the BGMEA Articles of Association.

However, both panels agreed to relax the requirement for Department of Inspection for Factories and Establishments (DIFE) licences for a year. As per the meeting's decision, factory licences updated within the last two years will be included in the voter list.

Background on BGMEA leadership transition

The trade body's last election was held on 9 March last year. However, the board was reconstituted on 5 August following the fall of the Awami League government, and an administrator was appointed to manage the association.

Initially, the BGMEA administrator was instructed to hold an election within 90 days of his appointment, but it did not occur within the stipulated timeframe, leading to an extension of the administrator's tenure.

Proposed reforms

Hafizur Rahman Khan, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), told TBS that they recently submitted a 12-point proposal to amend trade organisation rules.

The proposals included prioritising members who can demonstrate active business operations, directly electing the BGMEA president without the involvement of panels, limiting the president to two consecutive terms, and reducing the number of directors in trade bodies.

Currently, Sammilita Parishad and Forum will compete for 35 director posts in the BGMEA election, and the president will be selected from among the elected directors for a two-year term.

BGMEA membership and factory statistics

BGMEA officials reported that membership exceeds 4,500, while the number of registered voters surpasses 3,375. The current number of active garment factories under BGMEA is approximately 2,100.

According to a report by Hoda Vasi Chowdhury (HVC), the total number of BGMEA members stands at 3,375, including 123 factories located in Export Processing Zones (EPZs). 

The report shows that 2,780 factories are registered under BGMEA's Dhaka office, and 595 under its Chattogram office.

Analysis revealed that only 1,535 factories regularly receive UD certificates for export operations, with 1,333 from the Dhaka office and 202 from the Chattogram office. 

The report noted that 1,766 factories had updated trade licences for FY 2023-24, down from 2,059 in FY 2022-23.

A total of 2,390 factories submitted tax return documents in 2022-23, but this number fell to 2,202 the following year.

Legal challenges

A group of garment factory owners accused the BGMEA administrator of not following Trade Organizations Act regulations and the association's constitution. 

Ten factory owners filed a writ petition seeking to revoke the membership audit and verification process and challenging the appointment of the auditor without due process as per section 18 (2) of the Trade Organization Act 2022.

BGMEA officials noted that most petitioners have not been involved in exports for the past four years.

Former BGMEA senior vice president SM Nurul Haque said the administrator's main responsibility is to conduct the election within 90 days. 

He urged the renewal of memberships for factories that were granted voting rights in the last election.

Haque argued that requiring a DIFE licence for membership renewal would negatively impact small and medium-sized enterprises (SMEs) and their ability to participate in BGMEA activities.