Bangladesh
Dird Composite Textiles failed to pay Tk 7 crore in employee dues, despite receiving a Tk 13 crore loan facilitated by the Ministry of Labor and Employment.
The Department of Factories and Establishments Inspection, an autonomous government agency responsible for health and safety inspection in factories and industries in the country, has issued a show-cause notice to the the factory authorities, demanding a response within three working days.
While Tk 6 crore from the loan was used to clear workers’ salaries and legal dues on December 24, 2024, no payments were made toward staff salaries, said the notice signed by Md Romenul Islam, labour inspector (General) of the Office of the Deputy Inspector General of the Department of Factories and Establishments Inspection (Gazipur) today.
“The authorities have been ordered to provide all relevant information and evidence to this department and other concerned departments within three working days, explaining why the unpaid loan amount should not be refunded,” Romenul added.
The government arranged a Tk 13 crore loan from Standard Chartered Bank’s Gulshan branch on December 10, 2024, specifically to clear employee dues, according to the show-cause notice.
The loan was granted based on the factory’s application and with the intervention of the Ministry of Labour and Employment.
While the factory used part of the funds to pay workers, the remaining dues, including those of the staff, remain unpaid.
The notice further said that the situation could lead to protests, including road blockades, and held the factory responsible for any ensuing public disruption.
The factory authorities have been directed to explain the non-payment and provide evidence within three days, failing which legal action will be initiated, as per the notice.
“We have received the notice and will respond accordingly. So far, we have paid Tk 8.65 crore to the workers and will clear the remaining dues soon,” said Faiz Ahmed, chief financial officer of Dird Group, to The Daily Star.
Meanwhile, Shafiul Alam, president of the Gazipur Metropolitan chapter of the Bangladesh Garments and Industrial Workers Federation, mentioned that the factory was declared permanently closed on November 22, 2023, leaving around 8,000 workers unemployed.
A tripartite agreement was signed on November 28, 2023, to settle worker benefits and salaries, under which the government arranged the Tk 13 crore loan to cover dues.
However, even after utilising the loan, Dird Composite still owes Tk 14 crore to its workers and staff.
