Alliance Knit Composite Ltd (AKCL), a garment factory focused on exports located in Ashulia, has terminated the employment of 565 workers due to a significant decline in business attributed to global and local economic conditions. The decision was communicated through a notification released by the factory’s Human Resources and Administration Department on August 6.
The factory management highlighted challenges arising from a substantial reduction in purchase orders and insufficient banking assistance, leading to disruptions in production operations. To ensure the sustainability of the factory and ongoing business operations, the management found it necessary to downsize the workforce.
The official notice mentioned that the layoff, effective from August 8, was executed under Section 20 of the Bangladesh Labour Act, 2006. The communication assured that the affected employees would receive their entitled payments and compensations within the specified timeframe outlined in Section 20(2) of the law.
Furthermore, the factory expressed intentions to give priority to the laid-off workers for potential re-employment in case of production expansion or the need for new hires. Md Mominul Islam, the Human Resources and Administration manager at AKCL, disclosed that the factory currently employs approximately 3,000 workers but has been encountering financial challenges due to the global economic slowdown in recent months.
Islam explained that due to a decrease in purchase orders, the factory had to halt production early almost daily. Consequently, the management made the difficult decision to lay off 565 workers to address the financial strain. He confirmed that all outstanding dues for the workers would be settled by August 10.
One of the affected workers, Md Jiarul Haque, a sewing operator at the factory, shared his experience of being informed about the layoff through company text messages while he was away in Dinajpur, expressing his concerns and worries about losing his job.
Rafiqul Islam, the president of the Bangladesh Garments and Shilpa Shramik Federation, criticized the factory’s justification of a business downturn or work order scarcity as mere excuses. He condemned the mass layoff as inhumane and demanded an immediate withdrawal of the notice, advocating for the reinstatement of all dismissed workers.