Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan on Tuesday expressed frustration over the failure to meet Chief Adviser Prof Muhammad Yunus despite repeated requests over the past four months to discuss critical issues facing the readymade garment (RMG) industry.

“We have been seeking an appointment with the chief adviser for four months but have not received one. Yet, when a vice president from SpaceX’s Starlink, who plans to invest only $100 million, comes, he meets with him. But he doesn’t meet with the representative of a sector worth over $40 billion,” Mahmud told a press conference at the BGMEA headquarters in Dhaka.

“To negotiate, you have to sit down together. If he doesn’t give us time, how can we negotiate?” he added.

Labour law amendment draws criticism

Mahmud said the RMG and manufacturing sectors are facing “unprecedented challenges” both domestically and internationally.

He criticised the government for approving the Bangladesh Labour (Amendment) Ordinance 2025 without accommodating the recommendations of the Tripartite Consultative Council (TCC).

“In the draft proposal, a trade union could be formed with the consent of 50 workers in factories employing 50 to 500 workers. But this was later changed unilaterally to allow union formation with just 20 workers, and the implementation was split into five phases,” he said.

“This decision is unrealistic. If unions can be formed with only 20 workers, even outsiders such as scrap traders or landlords could lead them. This will cause internal conflict, disrupt production and discourage investment,” he warned.

Mahmud stressed that BGMEA supports workers’ welfare and improved factory standards but called for balanced and practical labour laws.

“We urge the government to review the ordinance and ensure the law supports sustainable industrial growth rather than undermining competitiveness,” he said.

Port charges, energy supply major concerns

Mahmud also slammed the recent 41% increase in service charges at Chittagong Port, terming it “illogical” given the growing operational costs of the apparel sector.

“The industry is already under pressure from high-interest loans, a 56% wage hike effective from December 2024, rising fuel prices and a 60% reduction in export incentives since 2023,” he said.

He urged the government to improve port efficiency, reduce Dhaka-Chattogram transport time from 7-8 hours to 3-4 hours and ensure uninterrupted gas and electricity supply to factories.

Call to delay LDC graduation

The BGMEA chief urged the government to seek an extension of Bangladesh’s graduation from the Least Developed Country (LDC) status to 2032, citing a lack of preparedness.

“There’s no readiness for graduation – no FTA, PTA, or EPA arrangements to ensure market access after the transition. Industries will be at serious risk if we graduate without preparation,” he cautioned.

Factory closures reflect crisis

Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said there are currently 1,414 trade unions in the country, of which 905 are inactive.

He added that 258 factories have shut down in the past year, reflecting the industry’s severe crisis.

Bangladesh Chamber of Industries (BCI) President Anwar-ul-Alam Chowdhury said about 45% of factories in the manufacturing sector have closed in recent years due to high operating costs, energy shortages, soaring bank interest rates, and persistent inflation.