RMG turmoil takes Tk 1,500cr toll

The labour unrest sweeping Bangladesh's readymade garment (RMG) sector has already cost the industry more than Tk1,500 crore, disrupting production at over 500 factories and raising fears of a much wider economic fallout. With factory owners warning of order cancellations, shipment delays and declining export earnings, the crisis is threatening not only millions of workers' livelihoods but also the country's principal source of foreign currency.

The unrest, fuelled by workers' demand for a minimum monthly wage of Tk30,000, has intensified in several industrial areas despite the government's Minimum Wage Board beginning work on revising the existing pay structure.

Industry sources warn that prolonged disruptions could put the entire economy under pressure. A sustained decline in garment production could reduce export receipts, disrupt foreign currency inflows, affect  bank loan repayments and weaken revenue collection. Thousands of supporting industries and millions of workers and their dependent family members could also face serious financial hardship.

Factory owners fear that continued instability may prompt international buyers to shift orders to competing countries, jeopardising Bangladesh's export markets and long-term competitiveness.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the country's apex trade body, has questioned the nature of the protests, saying the pattern of the movement and incidents of violence do not appear to reflect a spontaneous expression of workers' grievances.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has also urged workers to return to their workplaces and allow the wage-setting process to continue.

BGMEA President Mahmud Hasan Khan Babu said the situation had improved somewhat but had yet to return to normal, according to industry reports.

Prof Dr Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said the unrest could further weaken Bangladesh's already fragile economy. He warned that factory disruptions were harmful to production, workers and exports, with adverse consequences for the broader economy.

However, he welcomed the government's initiative to form a minimum wage board, stressing that other legitimate demands should also be addressed through dialogue.

NBR investigation
Amid the unrest, the National Board of Revenue (NBR) has launched an investigation into the financial transactions of individuals and companies associated with seven major industrial groups over allegations of providing financial and logistical support to the protests.

According to NBR sources, around 225 individuals and entities have been identified, while the tax authorities have sought detailed bank transaction records of 125 companies. Banks and financial institutions have also been instructed to freeze the accounts of around 100 individuals.

The Central Intelligence Cell (CIC) issued an urgent directive to banks on Thursday. However, the NBR has reportedly refrained from freezing company accounts at this stage to avoid disrupting business operations and workers' salary payments.

The seven groups under scrutiny are Envoy, Mondol, Givenchy, Standard, Nipa, Well and Tusuka. Together, they have 57 companies and entities on the investigation list, including garment, textile, packaging, spinning, food and other businesses.

Those reportedly named in the investigation include Envoy Group Managing Director and former lawmaker Abdus Salam Murshedy, his wife and daughter; Mondol Group Managing Director and CEO Abdul Momin Mondol and family members; and Givenchy Group Chairman and Managing Director Khatib Abdul Zahid Mukul and director Masuma Khatun Lipa.

The list also includes Standard Group's AKM Mosharraf Hossain and engineer Md Atikur Rahman, Nipa Group Managing Director Khasru Chowdhury, Well Group Chairman Abdus Salam, a former Awami League lawmaker, and Tusuka Group Chairman Arshad Jamal and Managing Director Faizur Rahman.

Former BGMEA president SM Abdullah and family members, former lawmaker Elias Mollah and his relatives, former commerce minister Tipu Munshi, founder of Sipal Group, and Salman F Rahman, owner of Beximco Group and a former adviser to ousted prime minister Sheikh Hasina, have also reportedly been named.

An NBR official, speaking on condition of anonymity, said the list was being updated regularly and the number of individuals and entities under scrutiny could increase.

The allegations have yet to be established through a completed investigation. Neither the companies nor the individuals concerned have been found guilty of financing the unrest.

Home Minister Salahuddin Ahmed recently alleged that former ministers, state ministers and lawmakers associated with the banned political organisation had instigated the unrest. He also claimed that the government had information and evidence indicating the involvement of some industrialists.