Amid scores of deaths, vandalism and violence to have swept over the country on Sunday - BGMEA (Bangladesh Garment Manufacturers and Exporters Association) has instructed all factory owners to keep their manufacturing units shut until further notice. The apex RMG platform circulated the instruction among the members through the social media Whattsapp on Sunday.
However, though we are in full agreement with the BGMEA directive for factory closure fearing attacks and vandalism, but this closure would undeniably serve a blow to the country's most important export industry.
Needs be mentioned, most RMG factories were shut down for at least 5 days during the first round of violence two weeks ago amid July-August being the peak season for Christmas shipments and receiving work orders for next summer and spring seasons. That said - it is not only the flow of apparel production which is hampered, but also the entire supply chain to shipment which would be critically affected. Even worse is that our RMG exporters also could not communicate, hold meetings and seal business deals with their business partners abroad due to an indefinite period of internet blackout late last month. And least to say, shutting down of broadband and mobile internet service from yesterday continues to disrupt communicating with foreign buyers.
BGMEA authorities have already officially stated to have incurred losses equivalent of Tk 6,400 crore because of the shutdown and internet blackout. Concurrently, BTMC (Bangladesh Textile Mills Association) has also incurred losses near $ 60 million. Moreover, from last year's July till this year's month of May RMG exports perilously fell by 5.2 percent.
The sector is manifestly struggling and we fear if the political crisis in the shape of a students' led movement continues further it will be difficult for factory owners to pay workers their due salary and wages.
Barely a week ago had international retailers and brands expressed grave concern at a meeting with BGMEA high-ups, flagging the difficulties in communication with their headquarters and local suppliers.
As direct fallout, work orders worth millions to even a billion dollars could be lost and get diverted to our competitor countries. Plenty of mid range to smaller sub-contracting factories could well be shut down for good. In the process raw material importers and suppliers would also be badly hit.
The government must take immediate stock of the grim reality. Hold urgent dialogue with all stakeholders including protest co-ordinators. If necessary, provide extra security measures to ensure workers' safety and safeguard factories from attacks and vandalism.
As it will be time consuming and not easy to recover quickly, we urge the government to take urgent steps to stop the situation from getting bad to worse.
We are worried.
