Textile workers warn of job losses as mill shutdown looms

Textile industry employees have urged joint efforts by the government and factory owners to keep spinning mills operational.
They expressed deep concern over job security following the Bangladesh Textile Mills Association’s (BTMA) announcement that all spinning factories may shut down from 1 February.
They made the appeal at a press conference titled “Appeal to Protect Bangladesh’s Spinning Sector” held at a hotel in the capital on Wednesday.
Earlier, BTMA had threatened to shut down all spinning mills from 1 February over delays in implementing the withdrawal of duty-free imports of 10-30 count yarn.
At the press conference, officers and workers strongly urged BTMA, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) to engage in dialogue to resolve the ongoing crisis.
They also called on the interim government and relevant ministries to take immediate measures to protect the spinning sector and ensure the long-term sustainability of the textile and apparel industry.
The speakers warned that failure to act promptly could result in massive job losses and irreversible damage to one of the country’s key export-earning sectors. 
Around 10 lakh officials and workers are employed in the spinning sector, of whom about eight lakh are workers.
Reading out a written statement on behalf of the employees, Mohammad Shahinul Haque said the bonded warehouse facility was introduced to support industries at an early stage, but its prolonged continuation has created dependency and weakened local supply chains. 
He said the facility should be phased out gradually.
“The Free of Cost (FOC) facility should not exceed 15%-20%, but it currently stands at 50%. Excessive FOC will destroy all textile sub-sectors,” he said. 
However, to keep yarn prices competitive with neighbouring countries, he demanded a 10% incentive for the next two years.
Earlier, the commerce ministry had recommended suspending the bonded facility on imports of 10-30 count yarn to protect local spinning mills and conveyed the decision to the National Board of Revenue (NBR) in a letter on 12 January.
Following the move, BGMEA and BKMEA leaders jointly called for the decision to be withdrawn on 19 January, warning that it would push the readymade garment industry into crisis. 
Later, on 22 January, BTMA leaders threatened to shut down all spinning mills from 1 February.