Bangladesh garment protests shut factories, threatening global supply chains

Bangladesh established a wage review board Sunday as escalating labor protests forced 529 garment factories to suspend operations, raising concerns about disruptions to clothing shipments for major international retailers.

Nearly 987,200 workers have been affected by the shutdowns, according to the Bangladesh Garment Manufacturers and Exporters Association, Reuters reported.

Garment workers are demanding an increase in the monthly minimum wage to 30,000 taka ($245), compared with the current 12,500 taka, citing rising food, housing, transportation and healthcare expenses.

For investors, prolonged disruptions could threaten apparel supply chains, delay merchandise deliveries and increase sourcing costs for Western retailers. Bangladesh is the world's second-largest garment exporter after China, with the industry employing approximately 4 million people and accounting for more than 80% of national export earnings.

Thousands of workers demonstrated Sunday in Dhaka and nearby industrial districts, blocking roads and disrupting transportation. Police deployed tear gas and water cannon after clashes with protesters, while security forces were mobilized to restore order.

Labour and Employment Minister Ariful Haque Choudhury announced the formation of a six-member wage board comprising representatives of workers, employers and the government, alongside an independent member.

Choudhury urged employees to resume production, warning that extended factory closures could delay international shipments and payments from overseas buyers.

Manufacturers oppose the proposed wage increase, arguing that higher labor costs would further squeeze profit margins amid rising energy expenses, electricity shortages and competition from other apparel-producing countries.

The garment sector contributes approximately 10% of Bangladesh's gross domestic product, making a prolonged shutdown a significant threat to the country's economy and international clothing supply chains.