Factory operations disrupted by labor disputes amidst a financial crisis within CEPZ industries.
Labor unrest in the Chattogram Export Processing Zone (CEPZ) has escalated significantly, causing disruptions to production and export activities. The unrest stems from several underlying issues, including severe financial crises in factories, political instability, and economic downturns.
One of the primary drivers behind the recent protests is the financial crises in factories. For instance, workers at Thianis Apparels Ltd and Modiste (CEPZ) Limited have protested over unpaid wages for May 2025. Thianis Apparels, a medium-sized garment factory, has created its own financial woes by challenging Bepza's utility and service charges through a High Court writ and stopping payments.
Political instability has also contributed to the unrest. The political shift and unrest in Bangladesh triggered by mass uprisings last year have destabilized the labor environment in CEPZ, which was previously known for stability and compliance. MNC Apparels, a concern of NASA Group, is reportedly suffering from political fallout. Its owner, Nazrul Islam Mazumder, was arrested on October 2, 2024, in connection with the killing of a youth during the uprising.
The economic downturn and demand shocks have further exacerbated tensions between workers and management. Broader economic slowdowns have contributed to urban grievances and labor unrest in export zones. Operational disruptions due to poor infrastructure, such as dilapidated roads leading to CEPZ, have also added pressure on industrial activities.
The labor unrest has had several negative effects. Production disruption has halted factory operations, directly reducing output. Protests blocking factory premises and CEPZ gates have delayed shipments to Inland Container Depots, risking timely exports and tarnishing CEPZ’s reputation as a reliable export hub. The unrest harms the financial viability of factories already strained by economic conditions and reduces investor confidence in one of Bangladesh's oldest and most significant export processing zones.
Comprehensive solutions are essential to restore stability and growth in CEPZ. Timely wage payments could reduce one of the main triggers of unrest. Improved financial management and support may stabilize operations. Addressing political instability is crucial for long-term labor peace. Infrastructure upgrades, such as repairing and upgrading transport routes leading to CEPZ, would reduce operational bottlenecks and ease logistics pressures. Facilitating continuous dialogue between factory management, workers, and regulatory bodies can help preempt conflicts and build trust.
On June 26, 2025, approximately 700 workers of Thianis Apparels Ltd staged a daylong protest, demanding overdue wages for May 2025. The repeated incidents at Thianis Apparels are disrupting the CEPZ's operations and damaging its long-standing reputation as a hub for compliant and stable industrial practices. The unrest at CEPZ, once known for its labor compliance and stability, is now at an unprecedented level following the political shift triggered by last year's mass uprising.
- The financial crises in factories, such as Thianis Apparels Ltd, have fueled recent protests over unpaid wages, contributing to the escalating labor unrest in the Chattogram Export Processing Zone (CEPZ).
- Political instability, traced back to last year's mass uprisings in Bangladesh, has further destabilized the labor environment in CEPZ by causing problems for concerns like MNC Apparels, where the owner was arrested in connection with a violent incident.
- In the general-news sphere, the crime-and-justice sector has also been impacted by the labor unrest in CEPZ, as delayed factory operations and shipment complications risk undermining its reputation as a reliable export hub, potentially discouraging future investments.
