Bangladesh’s garment industry has been hit by escalating unrest as thousands of workers took to the streets for the third consecutive day on Monday, demanding higher minimum wages amid rising inflation and growing economic uncertainty. The demonstrations turned violent in several areas, with protesters blocking major highways, vandalising vehicles, clashing with police and setting fire to a warehouse.
The unrest has disrupted operations across parts of the country’s vital garment manufacturing sector, raising concerns about the potential impact on industrial production, exports and the wider economy. Several vehicles, including police cars, were reportedly damaged during the clashes, while factories and other properties also came under attack.
Workers have been demanding better wages and improved financial conditions, arguing that their existing earnings are insufficient to cope with the rising cost of living. With inflation putting increasing pressure on household budgets, dissatisfaction among garment workers has grown, adding to tensions between employees, factory management and the authorities.
The protests come at a difficult time for Bangladesh, which is facing a prolonged economic slowdown. The garment industry is one of the country’s most important economic sectors, employing millions and contributing significantly to export revenues. Any prolonged disruption to factory operations could therefore have wider consequences for the country’s economic stability and international trade.
The World Bank has projected Bangladesh’s GDP growth at just 3.4 per cent for the 2025-26 fiscal year. If the forecast materialises, it would mark the slowest annual economic growth since the COVID-19 pandemic in 2020. The subdued outlook has added to concerns about employment, purchasing power and the financial security of workers.
Amid the growing unrest, the government has accused supporters of former prime minister Sheikh Hasina’s Awami League party of attempting to instigate violence. Officials have also alleged the involvement of several individuals from across the border, although the accusations would require independent verification.
The political dimension of the protests has attracted additional attention because of reports surrounding Hasina’s possible return to Bangladesh from India, where she has been living in exile. Her reported return plans come at a sensitive moment for the country, which continues to navigate political uncertainty following the dramatic changes in its leadership.
The Government’s allegations have further complicated an already tense situation, with economic grievances and political tensions unfolding at the same time. However, workers’ demands for higher wages remain at the centre of the demonstrations.
The garment sector plays a crucial role in Bangladesh’s economic development, particularly through its contribution to exports and employment. Continued unrest could affect production schedules, factory operations and the confidence of international buyers who depend on the country’s manufacturing network.
Authorities now face the challenge of containing the violence while addressing the economic concerns driving workers onto the streets. A prolonged confrontation could deepen industrial instability at a time when Bangladesh is already dealing with weak growth prospects and political uncertainty.
With protests entering their third day, attention is increasingly focused on whether the Government and industry representatives can resolve the wage dispute before further disruption spreads across the country’s garment manufacturing hubs.