The Covid- 19 pandemic has triggered job losses of thousands of garment workers in Bangladesh, the world’s second largest clothing manufacturers after China, by destabilising global supply chair and declining in demand. The sector has also been heavily impacted by a large number of order cancellations and the temporary closure of many retail shops resulting in shutdown of many factories.
According to a news report published in this newspaper on Friday, at least 70,000 people are estimated to have been laid off after $3.5 billion worth of clothing orders were cancelled or suspended, and exports plummeted by 84 per cent in April. Most of the country’s 4,000 clothing factories, which employ about 4 million people, 80 per cent of them women, reopened in April after a month-long break to stem the spread of pandemic. The factories have seen a recent up tick with 90 per cent of cancelled orders reinstated and is hiring again the fired workers. However, inside sources said for every 10 workers who lost their jobs, only one is being hired, thus putting the lives of the fired workers and their families at risk.
Meanwhile, the Thomson Reuters Foundation spoke to 20 people who lost their garment industry jobs between April and August. Three of them said they have been rehired but most are unemployed and struggling to survive. Sajida Foundation, which has partnered with British clothing app Mallzee to raise money by selling off unwanted stock, said it had distributed about $250,000 among 10,500 garment workers.
It is to be noted that despite proving financial package of Tk 5,000 crore for workers’ wages from the government for export-oriented garment industries, many of the owners are making layoffs using the pandemic as a pretext.
Although the industry has staged a recovery lately with exports reaching $2.9 billion in August after falling to $520 million in April, the factory owners said the expected orders were down by two-thirds and that brands were demanding 10-15 per cent price cuts.
Since the garment factory functions as significant employer, representing a total 4 million workers, more attention should be attached to this vital sector of national economy. Skills development training would likewise be arranged to help the youths return to this job market.
