25 Factories Shut Down Amid Widespread Labor Strikes in Bangladesh Pharma

The pharmaceutical industry in Bangladesh is facing significant unrest, with production halted at 25 major manufacturing plants due to labor disputes, raising concerns about a potential medicine shortage if the issues aren’t resolved promptly. Despite these disruptions, reports indicate that the overall drug supply remains stable for now.

Several pharmaceutical factories are set to resume operations following negotiations with workers, but uncertainty lingers regarding the reopening of some facilities. Abdul Muktadir, the president of the Bangladesh Association of Pharmaceutical Industries (BAPI), commented to Prothom Alo that the sector has yet to stabilize.

Bangladesh hosts over 300 pharmaceutical companies, with approximately 200 currently operational, producing over 98% of the nation’s medicines. Some of these companies export pharmaceuticals to more than 150 countries.

The unrest began on August 25 when workers at Popular Pharmaceuticals in Tongi, Gazipur, blocked the Dhaka-Mymensingh highway demanding fair wages, an increased attendance bonus, and better working conditions. Protests soon spread to other companies, including General Pharmaceuticals, Square Pharmaceuticals, and Incepta Pharmaceuticals, resulting in the closure of 25 factories when the situation escalated.

Workers presented a range of demands, including a minimum wage increase to between Tk 15,000 and Tk 25,000, annual pay raises of 20 to 25%, promotions every two years, extended holiday breaks, the right to form unions through elections, and allowances for mobile phone use on the production floor.

Pharmaceutical executives noted that while some legitimate requests were being addressed, new demands kept emerging, complicating negotiations. They expressed concerns that meeting certain requests could disrupt the operational hierarchy within the plants.

In response to the protests, Square Pharmaceuticals announced that one of its facilities in Kaliakoir would close for a week but planned to resume production following discussions with the workers. According to the Export Promotion Bureau (EPB), pharmaceutical exports reached USD 175 million in the 2022–23 fiscal year, and during the first ten months of the 2023-24 fiscal year, exports amounted to USD 169.2 million, reflecting a 17% increase compared to the same period last year.