BGMEA dispels confusion over job cut comment
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) yesterday vehemently denied it has announced any job cut in the apparel sector amid a slump in work orders because of the coronavirus pandemic.
The clarification comes as much had thought that BGMEA President Rubana Huq on Thursday had announced job cuts in the sector while addressing a virtual event for the inauguration of a coronavirus testing laboratory for garment workers.
It prompted the Garment Sramik Odhikar Andolan, a workers' rights platform, plus a few other labour rights bodies and left-wing political parties to call a press conference on Friday to protest the work cuts.
"The news had not been presented correctly. The BGMEA, as an organisation, has no scope to make this announcement," it said in a statement.
What the BGMEA president had articulated was her deep concern and apprehension of possible job losses as a result of the fallout of the coronavirus pandemic.
The global pandemic has badly impacted Bangladesh's apparel shipments and inflow of work orders. For instance, apparel shipments fetched just $378.40 million in April, down from $2.26 billion in March.
Industrial output in the garment sector saw the largest decline, by 55.7 % between May 1 and could 20.
Work orders worth a lot more than $3 billion were either cancelled or put on hold by international retailers and brands from March, the statement said.
Many renowned Western retailers have already been filing for bankruptcy and factories are running at 55 % production capacity due to the dearth of work orders, the BGMEA also said.
Apparel sales income worldwide would decline 30 per cent in 2020 from last year as a result of the pandemic, said the association citing a report of the McKinsey and Company.
That means, the export of garment items from Bangladesh would be $10 billion less this season.
Management would need to run factories at below capacity if the task order will not accelerate. Due to this fact, job creation would become difficult in every sectors and not merely the garment, the statement said.
The employment of workers might reduce somewhat in that situation.
The association suggested factory owners follow labour laws strictly in cases of job losses.
Some 348 factories faced closure over the last 8 weeks and 1,926 factories are actually operational.
