At least 40 readymade garment factories in the Ashulia industrial area have been shut down under the ‘no work, no pay’ rule, while seven other factories have been declared closed for an indefinite period. The development was confirmed on Friday (November 14) amid a deepening order shortage and persistent labor unrest in the region.

Industrial belt faces production halt

Factory authorities have resorted to the International Labour Organization (ILO)-sanctioned ‘no work, no pay’ policy, which allows employers to withhold wages when work is not available. The affected units include both local and multinational-owned factories. Sources indicate that a significant drop in global apparel orders, coupled with recent political instability, has made it financially untenable for owners to continue operations.

Workers face uncertainty

The sudden closure has left tens of thousands of workers in severe financial distress. Labor leaders have expressed deep concern over the lack of prior notice, leaving workers with no clarity on their future. Factory management, however, has assured that production will resume as soon as new orders arrive and the situation normalizes. The same rationale has been cited for the seven factories that have been placed on leave.

Security measures intensified

In response to the volatile situation, industrial police and local administration have ramped up surveillance across the industrial belt. Additional police personnel have been deployed near the closed factories to prevent any untoward incidents. No violent clashes have been reported so far, but officials remain on high alert.

Industry body’s response

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) have described the closures as a reflection of the current market reality. They noted that a decline in global demand and domestic political turmoil have severely disrupted the inflow of new work orders. While acknowledging the hardships faced by workers, they have pledged to seek a swift resolution.

The road ahead

Analysts warn that the shutdown of these 40 factories, along with the leave declared at seven others, could have a long-term impact on the country’s export earnings and employment. All eyes are now on the government and factory owners to see how quickly they can resolve the crisis and restore normalcy in the sector.