CA pledges protection as business leaders warn of export crisis amid factory unrest

Business and industry leaders have expressed increasing concerns as they continue to face unrest and vandalism at their factories despite the launch of a joint army-police operation in key industrial hubs around the capital, Dhaka.

Amid escalating tensions, top business leaders and industrialists held an urgent meeting with Chief Adviser Professor Muhammad Yunus on Tuesday, urging him to ensure the safety of their establishments and protect the garment sector which contributed 85% of the country's total exports in FY2023-24.

Earlier on Monday, after BGMEA's meeting with the Home Adviser, a joint army-police operation started late Monday night in the industrial zones of Savar, Ashulia, and Gazipur to restore order after more than a hundred apparel factories were forced to shut down, some of which were attacked by outsiders and protesting workers over various demands.

Although the situation appeared to return to normal by Tuesday morning, fresh protests erupted by noon, forcing managements of 135 garment factories to declare a shutdown.

President of the International Chamber of Commerce, Bangladesh, Mahbubur Rahman led the business delegation accompanied by Tapan Chowdhury, managing director of Square Pharmaceuticals; AK Azad, former FBCCI president and owner of Ha-Meem Group; Mir Nasir Hossain, former FBCCI president; Khondker Rafiqul Islam, president of the BGMEA; and Naser Ezaz Bijoy, managing director of Standard Chartered Bangladesh.

"Our sole agenda at the meeting with the Chief Adviser was the safety and security of our factories. We urged him to strengthen security measures to prevent export orders from being shifted to other countries," Mir Nasir Hossain told The Business Standard.

He said that once export orders are lost to another country, it will be challenging to recover them.

Tapan Chowdhury said that the country's industrial sectors have been experiencing a wave of unrest in the aftermath of the fall of the government, spreading across the pharmaceutical industry to textile and garment factories.

"Everyone wants change, but what is happening now is unacceptable to anyone," he said.

Industry insiders noted that 26 pharmaceutical factories have been vandalised in recent days, something unprecedented outside the ready-made garments sector.

Businesses and image at risk

Naser Ezaz Bijoy, managing director of Standard Chartered Bangladesh, said if the current trend continues, Bangladesh's image will be at risk, leading to a decline in export orders.

"We can remain patient, but buyers may not," Bijoy said.

He pointed out that in many cases, buyers' representatives need to visit Bangladesh to assist factories in developing products, particularly value-added ones. However, they are unable to come at the moment. If this situation persists, Bangladesh could miss out on crucial orders, he noted.

"We want the safety of our factories, workers, and products, and we aim to retain our export orders," Mahbubur Rahman, President of ICC Bangladesh, told The Business Standard.

He said that law enforcement should be readily available to address these concerns, citing an instance where a factory owner sought help from the industrial police to protect his factory from attacks, only to be told, "forgive me", by the officer.

Business leaders informed the Chief Adviser that they'll resolve the demands of the workers protesting inside the factories through dialogue. However, external forces are fomenting unrest and causing damage outside the factory gates, using threats to force the factory workers to join them. If this continues, the factory owners will be forced to declare layoffs, which would further complicate the situation, they said.

What chief adviser says

Chief Adviser Professor Muhmmad Yunus assured business leaders of all possible support to take Bangladesh's industrial growth to a new height.

"We want to take the industry to a new level," he told the business delegation that met him at the State Guest House Jamuna.

The Chief Adviser said the student-people revolution has ushered in a new era of hope in the country and the interim government is committed to carrying out much needed reforms in industry, finance, and manufacturing.

Prof Yunus told the business delegation that his government is committed to protecting the factories from violence and attacks. "Our first responsibility is to provide protection to the industry," he said.

He also urged the industry leaders to undertake labour reforms in an effort to win more orders from top global brands and retailers.

"We've got a big opportunity to carry out vital reforms. We need to upgrade our labour laws to ILO standards," he said.

Prof Yunus said he has spoken to top business CEOs from across the globe and they were keenly interested in investing in Bangladesh and placing more orders with the country's manufacturers.