Keya Group announces permanent closure of 4 factories in Gazipur from 1 May
Yesterday, following labour unrest, the factories had reopened and resumed production after owners agreed to the workers’ demands
Keya Group has announced that four of its factories, located in the Jarun area of Konabari in Gazipur, will be closed permanently from 1 May this year.
In a notice dated 31 December, the company said that all dues of the workers, officers, and employees would be paid in line with the labour law within 30 working days following the closure of the factories. The notice has been posted on the main gate of the factories.
The factories that will close their doors on 1 May are Keya Cosmetics Limited (Knit Composite Garments Division, Knitting Division, Spinning Division, and Cotton Division) and Keya Yarn Mills Limited.
Keep updated, follow The Business Standard's Google news channel
Previously, the factories were declared indefinitely closed on 29 December due to labour unrest. Yesterday (1 January), the factories reopened and resumed production after the owners and workers reached an understanding through mediation efforts by law enforcement officials.
Amid the situation, the notice dated 31 December has been issued. Currently, the factories are operating as usual and will continue to do so until 30 April if there are no further issues, said the group's Assistant Manager Md Masud Kamal confirming the developments.
He assured that the workers, officers, and employees would receive their dues on time after the factories closed down permanently on 1 May.
In the notice, the company cited current market instability, discrepancies in bank accounts, insufficient raw materials, and inadequate production capacity as the reasons for permanently shutting down the factories.
Earlier, on 29 December, the workers of Keya Group factories had protested and observed work abstention demanding their overdue November salaries. Several thousand workers had blocked the Kashimpur regional road in front of the factory at Konabari, pushing for a 10-point charter of demands.
That day, the company declared the factory closed indefinitely without paying the workers their overdue salaries. The management, however, promised to pay the workers within 15 January.
Later, through negotiations between the owners and the workers, with the assistance of law enforcement, the company agreed to the workers' demands and the closed factories were reopened on 1 January.
