RMG exporters seek release of Tk4,000cr incentives before Eid to pay workers

Readymade garment entrepreneurs are concerned about potential unrest as they encounter difficulties in clearing wages and bonuses before the upcoming Eid-ul-Fitr. This is because the government has not released funds, despite their pending cash incentives, amounting to nearly Tk4,000 crore, against exports.

The leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) met on Sunday with the Prime Minister's Principal Secretary Mohammad Tofazzel Hossain Miah regarding the issue and requested that an initiative be taken to release the funds immediately.

According to sources, the newly elected President of BGMEA SM Mannan Kochi, Director Rajiv Chowdhury, and BKMEA Executive President Mohammad Hatem were present at the meeting.

After the meeting, Mohammad Hatem told The Business Standard, "The exporters were entitled to Tk6,000 crore in cash incentives from the government. Of this, Tk2,000 crore was released last Thursday."

"We have requested the authorities release the remaining Tk4,000 crore before Eid," he said, adding that "there is a lot of trouble in various factories right now. It will be difficult for many factories to pay wages and allowances to their workers if the funds are not received before Eid."

'In that case, there may be labour unrest," he expressed his concerns.

However, the source of the meeting said no specific assurance has been received from the principal secretary regarding the release of the fund before Eid.

BGMEA Director Rajiv Chowdhury told TBS, "We have brought up our existing issues with him. He told us that he would talk to the government authorities concerned regarding the matter."

Last week, the Industrial Police released a list of factories that may have problems paying wages and bonuses. According to the list, at least 416 factories may encounter issues with salaries and bonuses before Eid.

According to that list, the Bangladesh Textile Mill Association (BTMA) has 29 member factories, in addition to 171 member factories of BGMEA and 71 member factories of BKMEA. The rest of the factories belong to other sectors.

Meanwhile, there have been reports of labour unrest in some factories over salaries and bonuses in different parts of the country.

Rajiv Chowdhury said, "As you already know, 416 factories are in trouble over bonus payments. If the fund is not received before Eid, there is a risk of unrest in the factories."

According to sources in the finance ministry, they are unable to release the cash incentives, mainly due to a shortage of funds.

A senior official of the division concerned at the ministry told TBS on condition of anonymity, "Not only the RMG sector or exporters, but other sectors also have pending funds. Tk30,000 crore of the power sector is due. That is why we have to ration the release of money."

He added, "If we receive instructions from the division concerned, then we will implement them accordingly."

Currently, there are about 3,000 active export-oriented garment factories in the country. The new wages for this sector have been implemented since last December.

Garment owners claim that despite the new cost of production, most foreign buyers have not increased the price of garment products.