Bangladesh drops lawsuits against 48,000 garment workers

The interim government of Bangladesh has withdrawn criminal charges against more than 48,000 garment workers. The sweeping decision was hailed by labor rights groups as a historic moment for the country’s struggling garment industry. The cases were often initiated during the violent wage protests in late 2023 and have long been criticized as factory owners and police used them as intimidation tools to suppress demands for higher wages.

The ready-to-wear (RMG) sector, which according to the World Bank employs over four million people and accounts for around 85 percent of Bangladesh’s exports, has been under intense scrutiny since the protests on the outskirts of Dhaka. The demonstrations were sparked by inflation and stagnant wages. Four people were killed and dozens were injured. Hundreds of factories supplying global brands such as H&M, Zara, Gap and Levi’s were forced to temporarily close.

At that time, workers demanded an increase in the national minimum wage from 8,000 taka (BDT; around 70 euros) to 23,000 taka (around 200 euros) per month. They argued that the rising cost of living made the existing rate unsustainable. After weeks of unrest, the government approved a new minimum wage of 12,500 taka (around 106 euros). The unions described this increase as “a step forward, but not a living wage”.

Two years later, the mass withdrawal of the lawsuits is described as a rare gesture of reconciliation between the state, factory owners and labor rights representatives. “This is a huge victory for workers in Bangladesh, for unions around the world and for international solidarity,” said Kalpona Akter, trade union leader and executive director of the Bangladesh Center for Worker Solidarity.

Backlash from factories and complicity from brands

Human rights groups estimate that around 130 workers were initially arrested. However, factory owners later filed mass criminal complaints against tens of thousands of their employees, often without evidence. The Clean Clothes Campaign (CCC), the Worker Rights Consortium and the Solidarity Center say they have identified more than 40 international brands associated with suppliers accused of filing such complaints. The allegations in the advertisements range from vandalism to murder.

“The intimidation of workers has a chilling effect on any form of organizing in the industry. Despite repeated warnings from unions and NGOs, international brands have done nothing to support workers’ demands or protect them from severe repression,” CCC said in a statement.

The decision to clear the backlog of cases comes amid a broader overhaul of Bangladesh’s garment industry. The industry is under pressure to demonstrate better compliance with labor and environmental standards from both the EU’s Green Deal legislation and the upcoming Corporate Sustainability Due Diligence Directive (CSDDD).

For global fashion leaders, this incident is a stark reminder of the fragility of ethical sourcing commitments when economic interests collide with workers’ rights. Bangladesh is the world’s second largest clothing exporter after China. The sector’s success is based on cheap labor. However, as brands come under increasing scrutiny from regulators and consumers, the space between affordability and accountability is narrowing.

Dropping the charges may ease tensions in the short term. However, the more fundamental question remains unresolved: Can Bangladesh’s garment economy evolve beyond its reliance on cheap labor? For many in the fashion industry, this is a moment to reflect not only on compliance, but also on conscience.