Textile manufacturer Apex Spinning & Knitting Mills resumed factory operations fully on Saturday after a four-day suspension triggered by labour unrest over service benefits.
In a disclosure to the Dhaka Stock Exchange (DSE) on Sunday, the company said its board of directors and management had decided to restart operations as the situation at the factory had returned to normal.
The factory resumed operations following constructive discussions with the stakeholders concerned, which helped restore a stable and conducive work environment, the company said.
The company announced an indefinite shutdown on June 23 after laying off around 5,000 workers under Section 13(1) of the Bangladesh Labour Act, 2006.
It said a section of workers had demanded service benefits beyond the provisions of existing labour laws, including benefits equivalent to seven months' basic wages after five years of service and 15 months' basic wages after 10 years of service.Bangladesh business directory
Discussions involving representatives of the Department of Labour, worker representatives, and company management failed to resolve the dispute after a tripartite meeting on June 15 ended without an agreement. Workers continued their demonstrations from June 22, prompting the company to suspend operations.
Media reports said the board of directors and protesting workers later reached a compromise, allowing the factory in Gazipur's Kaliakoir to reopen on Saturday and preventing the loss of around 5,000 jobs. Company officials said an agreement had been reached on key issues, while the remaining matters would be resolved through further discussions.
The resumption of operations is expected to ease investor concerns over possible disruptions to production schedules, export commitments, and overall business performance.
Following Sunday's disclosure, the company's share price rose 2.34 per cent to Tk 363.70 on the Dhaka Stock Exchange.
The company did not disclose the financial impact of the temporary shutdown or provide further details of the settlement with workers. However, it confirmed that factory operations have fully resumed.
Apex Spinning has been facing business challenges. The company reported a 9 per cent year-on-year decline in export earnings to Tk 3.83 billion during the nine months ended March this year, while profit fell 15 per cent to Tk 21.5 million in the same period.
Apex Spinning had posted an annual profit of Tk 30.24 million for FY25, almost unchanged from the previous year. The company has maintained a consistent dividend payout, distributing a 20 per cent cash dividend for each of the past five years.
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