Permanent solution crucial for resolving wage and bonus crisis of factory workers

Every year, before Eid, factory workers take to the streets over their unpaid wages and bonuses. In many factories in Gazipur, Ashulia, and Savar, workers' wages and bonuses are not paid before Eid. As a result, they protest on the streets. This is an issue we witness every year in one form or another. Some years the problem is slightly more severe, and some years it is less, but if we observe closely, workers are always engaged in protests to get their due wages or they are waiting for their dues to be paid. This issue becomes more visible during Eid. Many workers have even been imprisoned while protesting for their rightful demands. Currently, 35 workers are still imprisoned in Kashimpur jail, and their families have not experienced the joy of Eid. Imagine the situation of those workers' families.

It is believed that business owners may face financial uncertainty due to opening letters of credit (LC), shipments, and receiving payments, and they may be facing a financial crisis. However, in reality, most garment entrepreneurs take loans to run their businesses. Their funds are continuously flowing. Many entrepreneurs also run multiple businesses outside of the garment industry. They may earn money by exporting or marketing products, but the owners tend to invest that money quickly in other projects. The problem arises when it is time to pay workers' wages. In such cases, they delay the payment to workers or ask for assistance from the government. Entrepreneurs often want to show that they do not have the money to pay workers’ wages.

The issue of wage and bonus payment before Eid raises an important lesson for us. When workers protest for their wages and bonuses, a perception is created among the general public that the business owners are the ones running the business, so why are workers asking the government for wages? This is a misconception propagated by the media. Workers are not asking the government for money; they are merely bringing their issues to the government and seeking solutions. Recently, the government imposed a ban on business owners traveling abroad. The government has taken some initiatives to show that they are doing something, but these measures are meaningless. Such initiatives are not solving the workers' problems.

Some business owners live abroad and have set up management committees locally to run their factories. They take the profits and when it is time to pay the workers’ wages, they make excuses, saying that the owners are abroad and they do not know how to pay the wages. The ban on factory owners traveling abroad is a kind of deception. These owners are always abroad, so whether or not they flee the country does not affect the workers receiving their wages. If there are cases in court against factory owners for failing to pay wages on time, a ban on their foreign travel could be imposed.

The government has announced that factory owners are selling their vehicles to pay workers’ dues. The public has been informed that workers' wages and bonuses have been paid. However, the real situation has not been revealed. Some workers have been given 5,000 or 9,000 Taka, but their total dues may be Tk 50,000 or 70,000. This is a deceptive tactic. Seizing the factory owner's property indiscriminately is not a permanent solution. Workers never want their factory owner to be arrested or for the factory to shut down. They always want the factory to run smoothly and their wages and bonuses to be paid regularly.

There needs to be a regulation ensuring that workers' wages and bonuses are paid on time. The interim government has shown its weakness in resolving the workers' issues. The next political government that will take charge of the state will also face this problem. When the government changes through a mass movement, the public wants to have trust in the new government, but if the government takes such actions, people will lose trust in it. If the government does not take effective steps to handle the situation, chaos could increase further. Workers may come out on the streets in even larger numbers. If the government wants to stop workers from taking to the streets, it must move toward permanent solutions.

There are some paths for a permanent solution to the issue of wage and bonus payments to workers. First, it is important to have accurate statistics on how many factories did not pay their workers' wages and bonuses before Eid. If we do not know who has not received their wages, how can a solution be found? There is a discrepancy between the information provided by the industrial police and the BGMEA regarding wage payment and protests. Two authorities are giving conflicting information, which is misleading. The government needs to set up a cell to provide accurate information to the public.

The government should establish a cell that ensures within three months before Eid that the factory owners are able to pay their workers' wages and bonuses. Eid is a major festival, and everyone wants to enjoy it with their families. Therefore, it is inhumane to deprive workers of their rightful wages before Eid. There is a difference between Eid and other times of the year. The demand for money is higher during Eid. The government must monitor whether factories can run their normal operations and pay workers' wages and bonuses at least three months before Eid. If a factory is unable to pay workers' wages and bonuses due to financial problems, the government can arrange for bank loans for that factory.

Another way to achieve a permanent solution is for the BGMEA to form a fund. Factory owners facing financial difficulties can borrow from this fund in urgent situations, either interest-free or at low interest. The fund could collect money monthly from the factories that are producing. If a factory does not repay the loan on time, the BGMEA can take measures such as stopping their LC. Before creating such a fund, there must be accurate information about the factories and workers. Without accurate information, it is impossible to devise a proper plan. Another approach could be to require business owners to deposit a portion of the workers' annual wages (two or three months' worth) as a fixed deposit in the bank when they take loans. This money can be used for wage payment during uncertain times.

The government needs to ensure that the workers' issues are addressed before they take to the streets over wage and bonus demands. We expect the interim government to adopt reforms that are worker-friendly and provide sustainable solutions for factories. When the issue of regular wage payments comes up, it is often suggested that the factory should be shut down. This is not a solution. A permanent solution must be found by understanding the advantages and disadvantages for both sides.

Dr. Moshahida Sultana: Renowned Economist, Associate Professor, Department of Accounting and Information Systems, University of Dhaka.

Transcribe: M A Khaleque