The government has issued a strong warning to factory owners who have failed to repay the interest-free loans provided to them for clearing workers’ arrears, said Labour and Employment adviser M Shakhawat Hossain.Â
He also said that they would take strict legal action against defaulters. He was speaking at a high-level meeting at the Bangladesh Secretariat on Wednesday.Â
M Sakhawat said that several leading industrial groups — including Beximco Group, Birds Group, TNZ Group, Dird Group, Niagara Textiles Ltd., Roar Fashion Ltd., Mahmud Jeans Ltd., Style Craft Ltd., and Goldstar Garments Ltd. — had received interest-free loans from the Finance Division and the Labour and Employment Ministry’s Central Fund to settle unpaid wages and prevent labour unrest.Â
‘However, many of these companies have failed to make repayments as per their agreements,’ he added.
He also said that all dues must be cleared by December, and there would be no leniency.
The adviser warned that the government would confiscate passports of defaulting owners and top executives, adding that steps are already underway to issue Interpol notices against absconding owners.
Earlier, on September 2, the ministry decided to take initiative to issue Interpol red notice against the chairmen and managing directors of TNZ Group, Dird Group, and Roar Fashion Ltd.
The ministry sent the application to the interpol to issue red notice though Police Headquarters, stating they violated labour law by staying abroad for a long time without paying the workers of their factories.
He also instructed factory owners to engage with their lien banks to repay the loans by selling land, factories, or machinery if necessary.Â
Moreover, he called on BGMEA and BKMEA to act as mediators to ensure the funds were recovered in a timely manner.
Senior officials from the finance ministry attended the meeting, including the Financial Institutions Division, Bangladesh Bank, the president of Bangladesh Garment Manufacturers and Exporters Association, and owners of the concerned factories.
