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The deteriorating law and order situation and ongoing labor unrest in Bangladesh’s foreign manufacturing and industrial units have raised serious concerns among investors, shaking their confidence. A significant factor is the low presence of industrial police, which has further contributed to investor apprehension. Companies are currently negotiating with their Collective Bargaining Agents (CBAs) to prevent production disruptions.
NZ Dairies’ head expressed relief, stating that good relations with their CBAs have helped avoid disruptions. Bata also faced protests but addressed concerns through discussions with 600 permanent and 800 outsourced workers. However, the impact is evident in some sectors. An apparel company working with EU clients reported sudden changes in orders, and Mastercard’s country manager revealed a significant decline in payment gateway business, with a drop of 40% in July and 35% in August. Labor leaders attribute the unrest to demands for converting contractual jobs into permanent positions, though they remain hopeful that the situation can be managed through dialogue.
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