346 factories have not paid Eid bonuses till Tuesday

As many as 346 factories in seven industrial zones located in Ashulia, Gazipur, Narayanganj, Mymensingh, Khulna, Chattogram, Cumilla and Sylhet, have not paid Eid bonuses to their workers until Tuesday, according to data collected by industrial police.

Of those 346 factories, 103 have not even cleared the wages for the month of May, violating the Labour Act, which stipulates that monthly wages need to be cleared within the first seven working days of the following month.

A total of 3,164 factories are listed under the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), Bangladesh Textile Mills Association (BTMA), Bangladesh Export Processing Zone Authority (Bepza) and Bangladesh Jute Mills Association (BJMA). 

Industrial police data show that of the total, 3,061 factories paid May wages and 2,818 paid Eid bonuses till Tuesday noon. In addition, 1,684 factories paid salaries for the 15 days of June.

Factory owners said depleted earnings have created this situation, but assured that the dues would be paid by 28 June, a day before Eid-ul-Azha even though many factories are set to close on 27 June. 

Bangladesh National Garments Workers Employees League (BNGWEL) President Sirajul Islam Rony told The Business Standard (TBS), "This year, many mid-size factory workers are facing uncertainty over the payment of salaries and Eid bonuses."

"About 98% of export-oriented factories have cleared salaries and bonuses. But those factories which are non-compliant and exporting without BGMEA and BKMEA membership have not paid May's full salary. They also paid a lump sum amount as an Eid bonus," he added.

Meanwhile, the BGMEA has claimed that nearly 99.95% of its members paid the wages for May and above 99.03% paid the festival bonus till 27 June. The apex body is also working to clear the rest of the dues by 28 June.

To ensure that wages are cleared on time, the Bangladesh Bank declared that branches of scheduled banks in the readymade garments (RMG) industrial areas will remain open on 27 and 28 June.

Of the total number of factories, 1,566 are members of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and 671 are members of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Industrial police data show that 58 BGMEA member factories and 28 BKMEA member factories are yet to pay wages for the previous month of May, and 212 BGMEA member factories and 53 BKMEA member factories were yet to pay Eid bonuses to their workers until Tuesday afternoon.

On the other hand, Bangladesh Textile Mills Association (BTMA) has 359 factories in operation, where 15 factories did not pay May wages and 45 factories have Eid bonuses due. 

Of the total 392 factories under the Bangladesh Export Processing Zone Authority (Bepza), two did not pay May wages and 12 did not pay bonuses yet.

Meanwhile, all 90 Bangladesh Jute Mills Association (BJMA) member factories paid May wages despite their dwindling export performance, though 24 factories are yet to pay bonuses.

BGMEA top officials also mentioned that their 12 member factories are already facing a severe crisis, and their workers have postponed production. The association is working to solve the issue.

Shahidullah Azim, vice president of the BGMEA, said, "Despite many challenges, garment factory owners have tried to pay their workers on time. We are working with those factories that have not yet paid salaries and bonuses yet. We believe they will be able to clear all dues within 28 June."

Shahidullah also said factory owners are trying to manage fund borrowing from banks or from personal connections to meet the crisis and maintain their reputation.

On 6 June, State Minister for Labour and Employment Mannujan Sufian called upon RMG factory owners to pay workers their wages for the first 15 days of June and festival allowances before the Eid holidays.