The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) claims that a total of 353 garment factories have shut down across Savar, Gazipur, Chattogram, Narayanganj, and Narsingdi over the last 14 months, rendering 119,842 workers jobless.
Factory Closures and Job Losses
According to the apparel industry owners' association, Savar has been hit the hardest, with 214 factories closing (122 permanently, 92 temporarily).
Nearly 31,000 workers have lost their jobs there, including those from major facilities like Chain Apparels, Generation Next Fashions, and Safwan Outerwear.
In Gazipur, 72 factories have closed, leaving over 73,000 workers unemployed. The permanent closure of 13 garment factories belonging to the Beximco Group has been cited as a significant factor in this area.
Export Trends and Economic Context
Despite the factory closures, data from the Export Promotion Bureau (EPB) shows that the country’s overall export earnings in July, the start of the new fiscal year, increased by 25% compared to the same period last year.
However, this has been followed by three consecutive months of negative growth.
- In October, export growth fell by more than 7%.
- Export revenue dropped by $510 million (approximately BDT 6,120 crore) compared to October last year.
- Exports in October this year totaled $3.62 billion, down from $4.13 billion in October last year.
- However, overall export growth for the first four months of the fiscal year remains positive at 2%.
Reaction to Labor Law Amendments
The government recently gave policy and final approval to the Bangladesh Labor Law (Amendment) Ordinance, 2025. Owners, however, are displeased with some of the changes.
Chief Adviser's Press Secretary Shafiqul Alam commented that the closure of some factories is not necessarily a bad thing, stating, "The closure of non-compliant factories is not a bad thing. It is a necessary step for the sound and sustainable development of the industry."
BGMEA President Mahmud Hasan Babu told the media, "We are actually going through a kind of uncertainty... We had the opportunity to do much better over these 14 months, especially with the additional tariffs imposed by the US on China and India, but we missed that opportunity."
ABM Shamsuddin, former Vice-President of BGMEA, said, "Honestly speaking, the garment owners in Bangladesh are not doing well... Small factories cannot survive; they are closing down. The government has created another problem by amending the labor law. In reality, we have no guardian here. The sector is surviving like an orphan."
Dr. Khondaker Golam Moazzem, a Distinguished Fellow at the Centre for Policy Dialogue (CPD), stated, "The situation is not as bad as the owners are claiming... The export index does not match what the garment owners are saying. Owners claim factories are closing, orders are scarce, and workers are losing jobs. But our export index remains in the double digits. It only dropped to single digits last month. This suggests our exports are generally stable. Perhaps large factories are exporting more, while smaller ones are suffering. The right investment does not happen without an elected government."
Concerns Over Labor Ordinance
BGMEA President Mahmud Hasan Khan warned that the unilaterally amended labor law will increase industrial unrest, reduce foreign investment, harm the export sector, and weaken the national economy.
He called the ordinance "unbalanced" and "unreasonable," highlighting a provision that allows the formation of a trade union with the consent of only 20 workers.
He argued that this provision is "divorced from reality" and will allow non-industry-related individuals to form unions, creating internal conflict and instability, which will reduce investor confidence.
The BGMEA President urged the government to reconsider the labor ordinance and enact a new law based on the practical needs of the industry, workers, and the economy to support sustainable development.
Workers' Perspective
Kalpana Akter, Founder and Executive Director of the Bangladesh Center for Worker Solidarity, noted that workers participated in the July-August upheaval, but the demands for addressing disparity have not been met. "On the contrary, workers are becoming jobless after losing work. The fate of the workers is not changing," she said.
Jolly Talukder, Vice-President of the Bangladesh Garments Workers Trade Union Centre, claimed that two to three lakh workers have become unemployed during the current administration. She also mentioned that four workers have been shot dead during this period and criticized the government's attempt to curtail trade union rights, noting that workers were shot during protests for better wages and benefits.
Broader Economic Impact
Fazlul Hoque, former President of BKMEA, believes the crisis is having a severe impact on the entire economy. He cited recession in the American market, low demand, and political uncertainty as reasons for the decline in exports. He suggested that "big buyers will not place orders amid uncertainty. The situation might change if an elected government comes into power."
