GAZIPUR, Bangladesh — A total of 627 workers and employees have been laid off from four establishments of Keya Group in Gazipur amid financial and operational difficulties at the company.
The affected establishments are Keya Group’s Knit Composite Division, Spinning Division, Cotton Division and Keya Yarn Mills Limited, located in the Jarun area of Konabari.
Authorities posted a list of the workers facing layoffs at the main factory gate on Monday evening, prompting a gathering of workers outside the premises. Tensions were reportedly visible among those affected.
Gazipur Industrial Police Superintendent Mohammad Amzad Hossain confirmed the layoffs on Tuesday morning. He said the company had issued notices to 627 workers and employees and that additional police personnel had been deployed at the factory to maintain law and order.
According to a notice signed by the company’s managing director and chairman, the decision to reduce production and administrative costs was taken because of banking complications, disconnection of gas supplies over unpaid bills and a workforce larger than required.
The notice said certain positions in various sections, departments and divisions had been abolished as part of the cost-cutting measures.
The company said the layoffs would take effect from September 8 under Section 20 of the Bangladesh Labour Act, 2006, and that the affected workers would receive all legally mandated dues. If the factories require new workers in the future, skilled workers who were laid off will be given priority in accordance with Section 21 of the law.
Keya Group’s Human Resources Manager Sabina Yasmin said all dues owed to the laid-off workers would be paid within 30 working days in accordance with labour law.
She added that several specified sections and departments would continue operating as usual, including finance and accounts, commercial, merchandising, core planning, sales and marketing, internal audit, compliance, payroll and administration, medical services, nursery, workshop, civil, security, firefighting, ETP and certain mechanical operations.
The factory has been under a lay-off since June 6 because of banking difficulties and the disconnection of gas supplies over unpaid bills, according to the Industrial Police.
The lay-off period, initially declared under Section 12 of the labour law, has been extended several times. The latest extension will remain in effect until September 18.
Police have deployed personnel from both the Industrial Police and Gazipur Metropolitan Police at the factory premises as a precautionary measure.
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