Bangladesh garment factories reopen, fresh clashes keep industry on edge

Bangladesh's garment factories reopened on Monday, but fresh clashes between police and workers demanding higher wages broke out in Dhaka and nearby industrial hubs, keeping manufacturers on edge after Sunday's widespread closures. More unrest erupted across Dhaka and key ‌industrial areas on Monday, police said, adding that they used tear gas to disperse garment workers trying to block roads in the capital after protesters hurled bricks and stones.

The ready-made garment sector accounts for more than 80% of Bangladesh's export earnings. It employs about 4 million workers and accounts for about 10% of the country's economic output. The latest unrest disrupted ‌operations in key manufacturing hubs and raised concerns over export shipments and buyer confidence in Bangladesh, the world's second-largest apparel exporter after China and a major supplier to ‌global brands such as H&M, Zara, Walmart and Primark, as workers demanded a minimum monthly wage of 30,000 taka ($243), up from 12,500 taka.

The government formed a six-member minimum wage board on Sunday to review the demand, which reflects mounting pressure from living costs and persistent inflation. VIOLENCE CONTINUES

In Ashulia and Gazipur, on the outskirts of the capital, workers tried to block major highways. Police fired tear gas and water cannon in ⁠Ashulia, and authorities ​deployed Border Guard Bangladesh personnel in Gazipur. The clashes ⁠follow Sunday's protests and factory closures, with workers continuing to demand higher wages and the resolution of employment grievances.

"Bangladesh has among the lowest garment wages in the world," said Babul Akhter, general secretary of ⁠the Bangladesh Garment and Industrial Workers Federation and a workers' representative on the wage board. "If factory owners cannot pay workers properly, they should negotiate better prices with international buyers. They cannot build a business ​on the backs of underpaid workers."

'NO WORK, NO PAY' PROVISION Factory owners said the industry faces higher costs, energy market uncertainty linked to conflict in the ⁠Middle East and slowing demand in key export markets.

The Bangladesh Garment Manufacturers and Exporters Association said demonstrations in multiple cities disrupted operations at 529 factories on Sunday and affected nearly 1 million workers. BGMEA President Mahmud Hasan Khan ⁠said ​workers should let the government's wage board carry out its review.

"If protests break out later in the day and we are forced to shut factories, we will have no option but to invoke the 'no work, no pay' provision," he said. Home Affairs Minister Salahuddin Ahmed warned of firm action against those orchestrating the violence after a meeting ⁠with garment industry leaders.

"Those acting against workers' interests under the guise of labour protests and attempting to destabilise the country will be dealt with firmly," he said. Selim Raihan, ⁠an economics professor at the University of Dhaka, ⁠said that workers' demands were understandable given high inflation and that there could be further unrest.

On the other hand, he said a substantial wage increase could raise production costs, squeeze exporters' profit margins and weaken Bangladesh's price competitiveness. "A phased wage adjustment, improved productivity ‌and fairer pricing from international ‌buyers are essential to balancing workers’ welfare with industrial sustainability," he said.

($1 = 123.30 taka) (Reporting ​by Ruma Paul; Editing by Hugh Lawson)