Bangladesh's garment workers are facing a deepening crisis as their protests over wages and inflation are being conflated with activities of the banned Awami League, leading to police detentions and a chilling effect on labour organising, according to a report published in The Diplomat.

How the ban is being applied

Following the change of government in October 2024, the Mohammed Yunus-led interim administration banned the Bangladesh Chhatra League — the Awami League's student wing — under the Anti-Terrorism Act (ATA). On 12 May 2025, a 'temporary' ban was extended to the Awami League itself under a newly amended version of the same law. Critics now argue that the ATA's broad sweep is being turned against ordinary workers with no political affiliation.

What happened on 31 October

Hundreds of thousands of garment workers staged protests across several parts of Bangladesh on 31 October, demanding a minimum wage of 30,000 Bangladeshi taka (approximately $241). Police detained 21 individuals, labelling them Awami League activists rather than genuine workers. Thousands more unidentified individuals were also reportedly detained under the ATA. Workers, however, have consistently said that rising food prices, inflation, and energy costs drove them into the streets — not political allegiance.

Bangladesh Home Minister Salahuddin Ahmed reportedly blamed supporters of former Prime Minister Sheikh Hasina for instigating the protests. Videos and images circulating on social media appeared to show workers being beaten and police raiding slums to round up protesters on the grounds of alleged links with the banned party, according to the report.

The economic toll on the sector

The broader instability has exacted a heavy toll. Between August 2024 and June 2026, 457 garment and textile factories closed and more than 240,000 jobs were lost, the report stated. The majority of those who lost employment are women, many of whom have no other access to formal work. Additionally, some employers are reportedly screening new hires for union ties.

The damage extends to trade relationships. According to the report, the share of US buyers sourcing from Bangladesh fell to roughly 78 per cent from 88 per cent a year earlier — a significant erosion of market trust.

The wage dispute and industry pushback

The Bangladesh Nationalist Party (BNP)-led government is caught in what analyst Sangita Gazi describes in The Diplomat as a 'real bind': factory owners warn that meeting the 30,000 taka wage demand will raise production costs and drive buyers toward Vietnam, India, or Cambodia. One manufacturer's representative reportedly called the demand one with 'no logical or mathematical basis'.

Warning on civil liberties and what comes next

Gazi cautioned that the conflation of worker protests with political opposition sets a troubling precedent. 'Now it is being turned on garment workers striking for a wage they can live on. That is bad for democracy, and worse for an economy that cannot afford another crisis of trust,' she wrote. She further warned: 'Today that label is being used against workers asking for a wage that covers rent and rice. Tomorrow it could be students, journalists, or the BNP's own critics.'

The detention of labour leaders has pushed many into hiding, further weakening organised representation for one of Bangladesh's most economically vital workforces. How the government navigates the tension between political security concerns and labour rights will likely determine whether the garment sector can stabilise — or faces a deeper exodus of buyers.