Dhaka: Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Wednesday announced that nearly all of its member factories have successfully cleared workers' salaries for February along with Eid bonuses. BGMEA President Mahmud Hasan Khan stated that 99.91 percent of factories have settled February salaries, while 99.81 percent have distributed festival bonuses.
According to United News of Bangladesh, Khan highlighted that despite not being legally required, over 64 percent of factories have also issued partial advance wages for March to assist workers with holiday travel expenses. This announcement was made during a press briefing held in the capital, illustrating BGMEA's commitment to worker welfare amidst challenging times.
BGMEA has expressed gratitude towards the government for releasing Tk 2,500 crore in export incentives. However, the garment industry is facing significant challenges, including a 3.73 percent decline in export earnings over the first eight months of the current fiscal year. The sector is under a triple-pressure scenario due to a global economic slowdown, geopolitical instability, particularly in the Middle East, and increased international competition, as explained by Khan.
Critical indicators of the ongoing crisis include a 6.79 percent reduction in the opening of back-to-back LCs for raw materials and a 1.76 percent decrease in the average unit price of garments. Additionally, over the past five years, gas prices have surged by 286 percent and electricity by 33 percent, yet the industry continues to struggle with an inconsistent energy supply, noted the BGMEA president.