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Stimulus package brings relief to RMG sector

Apparel makers want to keep factories open


Published : 26 Mar 2020 08:40 PM | Updated : 06 Sep 2020 10:01 PM

The garment factory owners, who earlier thought to keep their units shut due to coronavirus-resultant order cancellations, are not planning to continue their operation after the mandatory shutdown period, as the government has announced a big incentive for the export-based sector.

“Many factory owners thought to be keeping their operation suspended for months fearing that they cannot even earn the wage amid the order cancellations. But after the announcement of the incentive package, they have changed their mind,” said BGMEA vice-president SM Mannan (Kochi).

While talking to Bangladesh Post on Wednesday, he said the announcement made by Prime Minister Sheikh Hasina has brought a big relief for the apparel industry. “It will inspire us more to do more from our side.” The prime minister on Thursday announced a stimulus package of Tk 5,000 crore (50 billion) for export-oriented industries to fight the impact of coronavirus on the country’s economy.

The money will be used only to provide salaries and wages of workers and employees. “I’m declaring a stimulus package of Tk 5,000 crore for export-oriented industries which could only be used for paying salaries and allowances of their workers and employees,” she said.
BGMEA (Bangladesh Garment Manufacturers and Exporters Association) President Rubana Huq expressed heartfelt gratitude to the prime minister for declaring the package.

In an instant reaction, she said the ‘timely announcement’ made at a time when the country’s readymade garment industry is going through a tough time will save the lives of workers and employees of the sector. Rubana, however, said, if anyone wants, they can suspend operation of their factories through abiding by the labour laws.

“If an employer wants to close his factory temporarily, he must have to follow the rules. The employer has to pay workers current month's salary now, and every month's salary has to be paid within 7 business days of the following month,” she said. BGMEA vice-president Kochi said foreign buyers until now have canceled export orders worth $2.25 billion due to the spread of pandemic coronavirus.

According to BGMEA, various steps have been taken to ensure the health protection and raise awareness among the workers in the areas of the labour-intensive garment units. Factories are continuing their production following proper health directions. There are 4,621 garment factories in the country. Of them, around 2,500 factories are directly involved with export processing.

Meanwhile, some labour leaders support shutting down factories considering the health risk amid coronavirus. Labour leader Mosharefa Mishu told the media, “To halt the spread of coronavirus, the government suspended all means of transports, shut down markets and shops. In this situation, workers should be sent on leave after being paid salaries.”