565 workers lose jobs at Ashulia garment factory as management cites order slump

Alliance Knit Composite Ltd (AKCL), an export-oriented garment factory in Ashulia, has laid off 565 workers, citing a severe business downturn driven by both global and domestic factors.

The decision was announced in a notice issued by the factory’s Human Resources and Administration Department on August 6.

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According to the notice, the factory has been struggling due to a sharp decline in purchase orders and inadequate banking support, which have significantly disrupted production. The management said it was forced to reduce its workforce to ensure the factory's survival and maintain business continuity.

The notice said the layoff, effective from August 8, was carried out under Section 20 of the Bangladesh Labour Act, 2006.

It added that all affected workers would receive their legal dues and compensation within the timeframe stipulated in Section 20(2) of the law.

The factory also said the laid-off workers would be given priority for re-employment if production expands or new recruitment becomes necessary.

Speaking to The Daily Star, Md Mominul Islam, manager (Human Resources and Administration) at the factory, said AKCL employs around 3,000 workers but has been facing financial difficulties for the past several months due to the global economic slowdown.

"Because of a shortage of purchase orders, we have had to stop production by around 2:00pm or 3:00pm almost every day over the past few months. Under the circumstances, the management decided to lay off 565 workers," he said.

He added that the workers would receive all their dues on August 10.

Md Jiarul Haque, a sewing operator at the factory, said he had travelled to his home in Dinajpur. He first learned of the decision via text messages from the company on Thursday night.

"I don't know why I was laid off. Later, I learned that the notice had also been posted at the factory's main gate. Losing my job has left me deeply worried," he told The Daily Star.

Rafiqul Islam, president of the Bangladesh Garments and Shilpa Shramik Federation, alleged that the claim of a business downturn or shortage of work orders was merely an excuse.

"Laying off such a large number of workers is inhumane. We demand that the notice be withdrawn immediately and that all laid-off workers be reinstated," he said.