Apex Spinning Factory Laid Off Amid Labor Unrest
Collected Photo
The management of Apex Spinning and Knitting Mills, a company listed on the stock market, has decided to lay off operations due to labor unrest. According to Dhaka Stock Exchange (DSE) sources, the company's board of directors verbally made this decision on June 23 at 2:30 PM.
The factory has been declared laid off until further notice in accordance with Section 13(1) of the Bangladesh Labour Act, 2006. The company management stated that they were forced to make this decision due to ongoing labor unrest on the factory premises.
As a result of the layoff, approximately 5,000 employees and workers of the factory will temporarily be suspended from work. The decision came into effect on June 23.
The company further informed that the root cause of the labor unrest is a stalemate created by the workers' illegal and unjustified demands regarding employment benefits. The management stated that the factory layoff will remain in place until the situation returns to normal.
Apex Spinning has been consistently performing well in business and has been paying a 20 percent cash dividend over the past few years. The company's paid-up capital stands at Tk 8.40 crore, with various categories of stock market investors holding a 49.29 percent ownership stake. On Tuesday (June 23), the company's share price stood at Tk 358.70.
