Bangladesh shuts jute mills, lays off 25,000 workers

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Bangladeshi officials say the shutdowns were not caused by the coronavirus, but due to huge losses incurred over the years.

The 24,866 workers were given"golden handshake" payouts totaling $590 million, the Bangladesh prime minister's principal secretary, Ahmad Kaikaus, said.

"I once again request our Prime Minister, don't kill us this way," another union leader, Zahid Hossain, added. Dozens of big jute factories were set up in the 1960s, when the country was still part of Pakistan, as part of a major push to industrialize the agrarian economy.In 2002, the then-government shut the country's largest state-run jute mill, which was loss-making.Exports – mostly from private factories – include raw jute fibers and jute products such as bags, carpets, and sacks.

 

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