46.32% factories yet to pay Eid bonus to workers amid 'fund crunch'

Some 46.32% of 9,915 factories in seven industrial areas, including Ashulia, Gazipur, Narayanganj, and Chattogram, are yet to pay Eid bonuses to their workers until Sunday, according to the Industrial Police.

Of those, 303 factories haven't even cleared the wages for the previous month of May, violating the labour act which stipulates that wages need to be cleared within the first seven working days of the next month.

Factory owners say depleted earnings have resulted in this situation, but assured that the dues would be paid on time.

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

Despite this, to avoid traffic congestion, many factories are set to close on 27 June. 

Meanwhile, the BGMEA has claimed that nearly 98.5% of its members paid the wages for May and above 70% paid the festival bonus till 25 June. 

The apex body is also working to clear the rest of the dues before the holiday.
 
Shahidullah Azim, vice president of the BGMEA, said, "Due to low export earnings owing to the global economic crisis, manufacturers are in a severe financial crisis. That is why our payment [from buyers] is being delayed.

"We have set up four teams to monitor the situation and are also working to arrange the cash. We believe most of the factories will clear all dues within 27 June," he added.

He said most funds are borrowing from banks or from personal connections to meet the crisis and maintain their reputation.

Mohammad Hatem, executive president of the BKMEA, said, "We asked our members to pay their workers the Eid bonus and salaries at any cost before the Eid vacation." 

He said exporters received only Tk1,400 crore as cash incentive against export out of the Tk3,000 crore they claimed. 

Hatem said he wrote a letter to the senior secretary at the finance ministry to clear the remaining incentive amount, adding, "If the ministry releases the rest of the incentives, that would help in paying the workers."

He expressed hope that all the dues  – last month's salaries and bonuses before vacations – would be cleared on time.

Monsoor Ahmed, secretary general (In Charge) at BTMA, said this year was very unique for textile millers as their business was almost dry. 

Most of the mills are running at 30% to 45% capacity. 

Despite this, entrepreneurs are trying to pay their workers, he said, adding that they are committed to pay workers before Eid vacation begins.

Zahir Uddin Ahmed, second vice president of the Bangladesh Cement Manufacturers Association and managing director of Confidence Cement, said there has never been problems with salaries or bonuses in cement factories of the country.

There are 34 cement factories in the country, employing more than 35,000 workers.

During this year's Eid-ul-Adha too, cement companies have given bonuses and salaries to officials, workers, employees.

On the other hand, Safar Ali, vice-president of the Jatiya Sramik League Central Committee, said most of the re-rolling of the steel sector in Chattogram has not yet been given to the workers. 

He said four-five factory steel re-rolling factory owners have given full Eid bonus to workers, while a few have given a lump sum amount – less than they were supposed. Most were yet to give any bonus. 

Abul Kalam Azad, president of the Shipbreaking Works Welfare Association, said since most of the workers in the shipbreaking sector were temporary, they were not given any festival allowances or Eid bonuses. 

Employers give some bonuses to those who are permanent employees. 

The Industrial Police data shows that of the total factories in operation in the country, excluding the Dhaka Metropolitan area, 1,624 are Bangladesh Garment Manufacturers and Exporters Association (BGMEA) members, 699 are Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) members, 359 Bangladesh Textile Mills Association (BTMA), 392 Bangladesh Export Processing Zone Authority (Bepza), 90 Bangladesh Jute Mills Association (BJMA) and 6,751 are members of other associations. 

Among them, 661 BGMEA member factories, 282 BKMEA, 153 BTMA, 100 BEPZA, 40 BJMA and 3,357 other factories are yet to pay festival bonuses. 

Besides, 69 BGMEA factories, 32 BKMEA factories, 18 BTMA factories, 3 BEPZA factories and 181 other factories did not pay the May wages. 

On the other hand, 984 factories, including 82 BGMEA members, 52 BKMEA members, 30 BTMA, 51 Bepza and 15 BJMA members paid 15-days salary for June, even though it is not mandatory.