Alliance Knit Composite Ltd (AKCL), a garment factory specializing in exports located in Ashulia, has terminated the employment of 565 workers due to a significant decline in business attributed to both global and local economic challenges.
The decision was communicated through an official notification issued by the factory’s Human Resources and Administration Department on August 6.
As outlined in the announcement, AKCL has been grappling with a substantial decrease in purchase orders and insufficient financial backing from banks, leading to substantial disruptions in production. The management emphasized that the reduction in workforce was essential to sustain the factory’s operations and uphold business continuity.
The notice specified that the layoffs, effective from August 8, were executed in compliance with Section 20 of the Bangladesh Labour Act, 2006.
Additionally, it assured that all impacted employees would be duly compensated in accordance with the stipulated timeline outlined in Section 20(2) of the law.
Furthermore, the factory assured that the dismissed workers would be given priority for rehiring in case of production expansion or the need for new recruitment.
Md Mominul Islam, the Human Resources and Administration Manager at AKCL, highlighted that the factory, which currently employs approximately 3,000 individuals, has been encountering financial hardships due to the global economic slowdown in recent months.
Islam explained, “Due to a drop in purchase orders, we have been compelled to halt production by early afternoon on most days over the past months. Given the circumstances, the management opted to release 565 workers.”
He confirmed that all employees would receive their entitled dues by August 10.
One affected worker, Md Jiarul Haque, a sewing operator, shared his dismay upon receiving the news while at his residence in Dinajpur. He expressed confusion over the layoff and disclosed that he discovered the decision through text messages from the company on Thursday evening.
“I was taken aback by the layoff news. It was distressing to find out. I only hope this situation improves soon,” Haque remarked to The Daily Star.
Rafiqul Islam, the president of the Bangladesh Garments and Shilpa Shramik Federation, disputed the factory’s reasoning for the mass layoffs, dismissing claims of business downturn or insufficient work orders as mere pretexts.
Islam asserted, “Terminating such a large number of employees is unethical. We demand an immediate withdrawal of the notice and reinstatement of all affected workers.”
