Concern grows over salary, bonus in RMG sector

Staff Reporter :
The entrepreneurs of the apparel sector want Tk 1600 crore as special cash incentive before Eid-ul-Adha, the second largest festival of the Muslim Community, for paying salaries and bonus to the workers.
The Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) recently sent a letter to the Finance Ministry seeking the additional cash incentive.
The letter signed by BKMEA Executive President of Mohammad Hatem said it will be very difficult to pay salaries and bonus to the workers, if the special cash incentive is not approved.
“The most of the factories of the export-oriented sector are running with 50 to 60 per cent of their capacities due to the lack of shipment orders amid the slowed economic activities across the developed nations. On the other hand, buyers are not paying the export value on time,” it said.
“Besides, there is also another pressure on the factory owners of paying salaries and bonus of the workers this month, which is very sensitive. If the factories fail to pay it on time, there is a chance of eruption of unexpected labour unrest,” the letter said.

“Under the circumstance, it will be very difficult to face the pressure without the special assistance of the finance division. We are able to know that the ministry approved Tk 1400 crore as cash incentive in the fourth installment for the sector, which is insufficient at the moment. So, more Tk 1600 crore with the fourth installment is urgently needed before the Eid,” the BKMEA said.
BKMEA sources said that the ministry is yet to be decided whether the additional amount will be approved or not till on Tuesday.
Meanwhile, 8455 out of around 10000 factories have paid salaries of last month (May) and the workers of the rest 1460 factories are yet to be received the salaries of the month as of Monday.
Out of the 1,624 factories belonging to BGMEA, the salaries of 1,443 factories have been paid and the workers of the rest 181 factories have not yet received their salaries till the date.
And 580 out of 699 BKMEA member factories have paid salaries of last month, while 301
out of 359 member factories of BTMA have paid salaries till the date.
BGMEA, BKMEA and BTMA, however, said they are paying salaries and bonus gradually.
They said some factories, especially the small and sub-contracting factories, are in trouble as their financial strength is not as strong as the bigger ones.