The Metropolitan Chamber of Commerce and Industry (MCCI) has estimated that nearly three weeks of nationwide labour unrest in multiple industries have resulted in a staggering loss of around Tk5,000 crore.
Farooq Ahmed, the Secretary General of MCCI, revealed this information during the release of the Purchasing Managers’ Index (PMI) at the MCCI office in Gulshan today. The event was attended by MCCI Director Tareque Md Ali and Hasnat Alam, Senior Manager of Policy Exchange.
The unrest, which has disrupted sectors such as garment manufacturing, has been marked by incidents of vandalism and arson. Despite most garment factories in Ashulia reopening, protests continued, forcing the closure of at least 30 factories.
Farooq explained that the labour unrest has intensified since the new interim government assumed power in August, spreading to industrial hubs like Narayanganj, Savar, and Ashulia. He noted that more than 100 factories have been either vandalized or set ablaze, resulting in the shutdown of nearly 200 factories. The financial loss estimate of Tk5,000 crore is based on discussions with factory owners, and Farooq suggested the actual figure could be even higher.
Additionally, he warned that non-workers are also participating in the protests, which could further escalate tensions. He called on the home affairs adviser and other authorities to step in to safeguard factories.
Farooq urged the government to act swiftly to stabilize the situation and called on factory owners to address the legitimate demands of workers to avoid further turmoil, which could hinder economic recovery.
Economic Indicators Show Slight Improvement but Remain Contractionary
While the interim government under Dr. Yunus, which took office on 8 August, initially brought brief stability, unrest and natural disasters soon dampened hopes of recovery.
MCCI reported a slight uptick in the PMI index in August, compared to July, but labour unrest and flooding in key districts prevented a stronger recovery. The economy remains in contraction, particularly in the industrial sector. According to MCCI, the August PMI showed a 6.6% increase, reaching 43.5 points. However, the previous month had seen a sharp decline, with the index dropping from 63.9 points in June to 36.9 in July.
Despite the slight recovery in August, the MCCI warned that if labour protests and other issues aren’t resolved soon, economic recovery could be delayed. The PMI readings for agriculture, manufacturing, construction, and services showed mixed trends, with some sectors improving while others struggled.
