Lack of supply orders has forced many medium and small factories in Bangladesh to shut down in the last 34 months. These factories are facing acute hardships with western buyers refusing to buy from them due to safety concerns. Another problem is the failure of several factory owners to pay workers’ wages on time. This has caused periodic unrests at small and medium factories.

Since the collapse of Rana Plaza in 2013, over 300 apparel factories housed in shared buildings were closed due to buyers’ refusal to place supply orders. Owners of over 400 factories are keen to relocate from shared and converted buildings but they are unable to do so due to scarcity of land and moratoriums on extending power and gas connections and non-availability of money.

Business uncertainties facing apparel factories housed in shared buildings could cost the jobs of 1.2 million workers as it would be difficult to provide them alternative employments. Some factory owners say they have no interest in fixing safety issues as they do not get orders from signatory buyers and factory remediation requires huge expenditures. The net result is that jobs of about a million apparel workers have become uncertain.