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Keya Group has laid off 739 workers and employees from four of its factories in Jarun, Konabari, Gazipur, in a second round of job cuts.
A notice announcing the layoffs was displayed at the factories’ main gate at around 10:30pm on Monday (October 19).
The affected units are Keya Group’s Knit Composite Division, Spinning Division, Cotton Division and Keya Yarn Mills Ltd.
According to the management, the factories have remained under lay-off since June 6 due to banking complications and unpaid gas bills. The lay-off period has since been extended several times.
A notice signed by the company’s managing director and chairman said the decision to reduce production and administrative costs was taken because of banking difficulties, the disconnection of gas supplies over unpaid bills and excess manpower. Some positions across different sections, departments and divisions have consequently been abolished.
The notice said the workers and employees identified as redundant would be laid off from Tuesday (October 20) under Section 20 of the Bangladesh Labour Act, 2006. Their legal dues will be paid, it added.
Workers gathered outside the factory on Tuesday morning to check the list of those affected, with many expressing frustration and uncertainty about their livelihoods.
Yasmin Begum, an operator in the sewing section who has worked at the factory for 18 years, said she was worried about how she would support her family after losing her job.
Abeda Begum, who had worked as a cleaner for nearly 19 years, broke down in tears outside the factory gate. “After working for so many years, I am being forced to leave empty-handed,” she said.
The company said skilled workers who have been laid off would receive priority if new recruitment becomes necessary, in accordance with Section 21 of the Labour Act. Employees who remain on the payroll will continue under the lay-off arrangement and receive benefits as provided by law.
Mohammad Ashrafuzzaman, organising secretary of the central committee of the Jatiya Garments Sramik Jote Bangladesh, condemned the layoffs, saying 739 workers of Keya Knit Composite had been dismissed through a single notice after five rounds of lay-offs. He demanded immediate payment of outstanding dues and fair compensation.
Sabina Yasmin, manager of Keya Group’s human resources department, said all workers affected by the layoffs would receive their dues in accordance with labour law.
Gazipur Industrial Police Superintendent Mohammad Amzad Hossain confirmed that 739 officers and employees had been laid off from the four establishments. Police have been deployed at the main gate to maintain law and order, he added.