Labour Protests amid Deepening Crisis in Bangladesh

Weeks of mass protests led to the downfall of the Sheikh Hasina government in Bangladesh on August 5, 2024. The ‘new reality’ that emerged since has been called Bangladesh 2.0. Some media outlets described it as the country’s ‘second independence.’ The mood was euphoric when the interim government headed by Mohammad Yunus, a Nobel Laureate in Economics, took over. People saw it as an opportunity to correct past misdeeds and start a new journey for a better future.

However, the initial euphoria has gradually dissipated as the interim government reckons with deepening political and economic instability. Soon after the interim government took over, there was almost no police administration. People formed volunteer groups to secure their neighbourhoods.

The social unrest has intensified over the last several months because of the rising pressure from different social groups to fulfil their unmet demands under the interim government. Social forces, ranging from civil servants to rickshaw pullers, now see the interim government’s weakness as an opportunity to raise their demands. The fulfilment of the demands of the elite civil service cadres — Bangladesh Civil Service (BCS) — in terms of quick promotions has encouraged others to mobilise street pressure to support their demands.

Since August 2024, worker protests have gripped the country. Garment workers have taken the chance to push for their demands, protesting against low wages, non-payment of wages, unbearable workloads, and absence of participation in industrial relations and trade union rights.

 

The Garment Industry Disrupted

 

Bangladesh’s ready-made garments (RMG) industry, considered the lifeblood of Bangladesh’s economy, contributes $47 billion annually, amounting to 82% of the country’s total export earnings. The sector employs 4.4 million workers, the majority of whom are women. For years, this vital sector of the economy has been plagued by widespread violations of basic labour rights.

The two-month-long demonstrations, curfews, internet shutdowns and ongoing energy crisis have led to significant economic losses in the RMG sector, especially from July to September 2024, the peak seasons for Christmas shipments and orders for the following summer and spring seasons. According to owners, some orders have already been cancelled, causing significant losses to the industry.

The Bangladesh RMG sector specialises in producing low-cost products and has struggled to shift towards high-value and higher-margin products, leading to declining competitiveness. With factory closures, which employers allege are due to lower orders, many workers have not been paid wages and their benefits, leading to a larger crisis brewing in the industry.

On August 29, the crisis intensified as factories in industrial areas began to close following worker protests and vandalism. The government deployed the military to restore law and order in industrial areas. While the army’s intervention led to the resumption of operations in some factories, the situation is yet to be fully resolved. As the production targets have not been met, orders have not been shipped on time. According to the Bangladesh Garment Manufacturer and Exporters Association (BGMEA), labour unrest caused a $400 million loss in the sector. Factories are expected to face challenges in paying wages on time.

 

Labour Mobilisations

 

The RMG industry is concentrated in four major industrial areas: Savar-Ashulia, Gazipur, Naraynganj, and Chattogram. The demands of the workers are localised and factory-based. Each area has their own set of demands. Workers have demanded fair treatment, including equal opportunities for men and women, higher wages, better benefits, and lighter workloads. They are also pushing to resolve issues like delays in wage payments, the alleged blacklisting of dismissed workers, and conflicts over unionisation, all of which have fueled frustration and anger.

There are also allegations that vested interests from the previous government are adding fuel to the fire by supporting the unrest and destabilising the interim government. A significant number of the factories are owned by the ousted Awami League leaders and MPs. Following the Sheikh Hasina government’s fall, most left the country, leading to confusion as to how the factories would continue to operate. Workers are worried about their wages, leading to protests and escalating tensions.

In addition, many factory owners and trade union organisers claim that external forces are stirring up protests, particularly with the objective of establishing dominance over the ‘Jhoot (textile waste) Business’. The subsidiary businesses of ‘Jhoot’, food and transportation supply, historically have been controlled by local goons with the ruling party’s support. These businesses and the RMG sector depend on each other to maintain the political economy of the garment sector in Bangladesh. Historically, those controlling these subsidiary businesses have supported the factory owners in suppressing worker discontent and strikes.

With the fall of the Awami League government, the power dynamics have changed. New groups, allegedly backed by the Bangladesh Nationalist Party (BNP), have emerged and are taking control of the area. The clash between the old and the new groups, in addition to the internal conflicts within the groups, is leading to escalating tensions and unrest. The Kishor Gang (Youth Gangs) have been hired to create increased instability. The Kishore gang is composed of young people, mostly from lower and middle-income groups, who, under the patronage of the ruling elite, offer their services to create disruption.

The leaders of trade union federations in the RMG sectors are largely alienated from workers, and some are simply dysfunctional yellow unions rather than the authentic representatives of the workers. The government has brutally repressed the agitated workers, citing outsiders’ influence to deny the workers’ legitimate demands. Many workers were laid off, and three workers have already died since September. Two of them have been shot and killed by law enforcement agencies.

 

Government and Business Responses

 

In the face of continued workers’ protests, the labour ministry, factory owners, and labour leaders compiled an 18-point demand based on the demands of the agitating workers from different garment factories. On September 24, the garment industry owners agreed to meet almost all the 18-point demands of the workers, including an increase in attendance bonuses, tiffin and night allowances, payment of outstanding wages, and the implementation of the latest wage board award for workers of all factories.

At a press conference held at the Bangladesh Secretariat, labour adviser Mr Asif Mahmud Shojib Bhuiyan urged the protesting workers to return to work, stating that all their demands had been addressed. During the press conference, the Labour Secretary AHM Shafiquzzaman announced that garment factory owners had agreed to increase the attendance bonus and the minimum night allowance. He said that factory owners agreed that the minimum wage would be implemented in all factories by October 2024 and all the units would pay dues by October 10.

 

Unmet Demands Fuel More Protests

 

Yet the labour protests continue unabated. Unmet demands are fueling the ongoing labour protests. On September 30, 11 factories were closed under (13)1 of the labour law, meaning “no work, no pay,” at Ashulia, and six more declared a general holiday to avoid labour protests.

According to Mr Babul Akhter, the General Secretary of Bangladesh Garments and Industrial Workers Federation, the protests have not yet stopped because the 18-point agreed-upon demands have not been made.

He said, “The majority of the demands have been fulfilled only in the Ashulia industrial area; there is no sign of progress in other areas. It has also been observed that there are no effective initiatives from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), and the government to materialise the 18-point demands.

Sporadic protests are still happening: around 40 thousand workers of BEXIMCO Industrial Park have been demonstrating recently for their unpaid wages. The owner,  a close ally of the Awami league government and was the advisor of Prime Minister Sheikh Hasina, is in jail. The government was unprepared to address workers’ demands when the owner was in jail or fled the country.

 

Deepening Social Crisis

 

The downfall of the Sheikh Hasina government has not fundamentally resolved the social crisis in Bangladesh. The interim government, which came into power through the people’s movement loaded with high expectations from all sections of society, is far from meeting the social expectations. Garment workers, in particular, have carried forward the movement by pushing for their long-standing demands, and the social crisis in Bangladesh continues to deepen.


The author would like to thank Manoranjan Pegu for his feedback and editorial assistance.

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Mohammad Shahid Ullah is a labour activist and researcher. He has been working as a freelance development consultant in Bangladesh for the last 15 years.