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After the government’s fall due to anti-discrimination student movement, instability emerged in the ready-made garment (RMG) sector in Bangladesh. Concerns regarding international buyers shifting their orders to other countries also surfaced during the mass movement as the industry faced many obstacles. However, despite the instability, international buyers did not transfer their orders. During that time, no brands or companies imposed penalties on factory owners. These insights were highlighted in a report published this September by the US-based Business & Human Rights Resource Centre (BHRRC). The report was based on conversations with 20 international buyers and companies. Out of these, 12 companies confirmed they had no plans to relocate their orders, while one company (GAP) did not provide any information on relocation. The remaining seven brands or companies did not respond to the research organization’s inquiries.

The report quoted garment manufacturers who stated that the sector incurred losses of approximately BDT 65 billion during the protests. The reasons cited were delayed product deliveries, increased transportation costs and risks, supply chain disruptions, and prolonged warehouse storage times. As the delivery period extended, factory owners faced the risk of order cancellations. To mitigate this risk, workers worked overtime, and factory owners arranged extra security for workers’ transportation, covered additional transport expenses, and paid for overtime labor, which proved to be challenging for the owners.

The report further mentioned that the US-based research organization posed five questions to 15 top international buyers and five strategic companies. They also reached out to 20 brands, of which 11 brands and two companies responded. These brands included Adidas, Asda, C&A, H&M, Inditex, Marks & Spencer, Next, Puma, PVH Corporation, Tesco, Primark, and two companies—Walmart and Gap. However, seven brands or companies did not respond to the organization. Among the respondents, 12 companies answered all questions and assured BHRRC that they did not relocate their orders from Bangladesh during the period of instability. Additionally, no brands or companies imposed fines on the factory owners during that time. One company responded to all queries but did not disclose information about relocation.

Fazlee Shamim Ehsan, Vice President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), informed BHRRC that several brands demanded discounts on prices due to delayed deliveries. The factory owners obliged and settled for discounts amounting to approximately BDT 10 billion. Additionally, to meet delivery schedules, producers had to bear higher transport costs and expensive air freight charges for urgent shipments. Factory owners continued discussions with buyers to avoid penalties for delayed deliveries.

Meanwhile, to recover losses caused by the instability surrounding the quota reform movement and mass uprising, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has sought a one-year ‘soft loan’ from the government. The interim government has assured assistance.

The quota reform movement began in early July under the call of anti-discrimination student movement. The movement intensified after the killing of a student by police and ruling party members, leading to a one-point demand for the government’s resignation. This movement culminated in the resignation and exile of then Prime Minister Sheikh Hasina on August 5, marking the fall of the government.

Following the government’s fall, the garment sector experienced instability due to the departure of top government officials, many of whom were garment factory owners. As a result, situation at their factories became unstable. Meanwhile, workers began protesting for various demands, further escalating the unrest in the sector. Road transportation across the country was disrupted from July 15 to August 5, the day of the government collapse. After the fall, when the police withdrew from their duties, the country’s security system broke down. Normalcy was gradually restored nationwide with the intervention of the military.