97.3% of buyers refused to contribute to the severance pay of dismissed workers, also a legal entitlement in Bangladesh, it added. Additionally, 72.1% of the buyers refused to pay for raw materials including fabric already purchased by the suppliers. According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data, 1,098 apparel factories reported work order cancellations worth $3.01 billion as of Friday. “When orders were canceled, 72.1% of buyers refused to pay for raw materials (fabric and others) already purchased by the supplier, and 91.3% of buyers refused to pay for the cut-make-trim cost (production cost) of the supplier,” said the report findings. The buyers are imposing different types of conditions such as discounts, delayed payments, or payments in phases, he added.

Source: Dhaka Tribune April 04, 2020 12:56 UTC