Pacific Jeans Ltd plans to demolish a 34-year-old factory building at its Unit-1 facility in the Chattogram Export Processing Zone (CEPZ) after the RMG Sustainability Council (RSC) identified structural safety risks, and build a modern factory at the site that could create around 10,000 jobs.
The company has decided to suspend production at the building following a special structural safety inspection and a subsequent Detailed Engineering Assessment conducted by the RSC.
In a statement issued on Sunday, Pacific Jeans said the assessment found a risk of possible structural failure. The company said it had decided to stop production to prioritise workers’ safety.
The decision applies only to the building concerned. Production at the company’s other units and factories under the Pacific Jeans Group will continue as usual, the statement said.
The process of gradually terminating the employment of workers at the affected building began on 31 October under the Bangladesh EPZ Labour Act, 2019.
Pacific Jeans said it was ensuring that all affected workers received their full legal compensation and other benefits, including outstanding wages, overtime and other allowances, payment for unused earned leave, notice pay, service benefits and maternity benefits, where applicable.
The company said each worker’s final dues were being transferred to their respective bank accounts on the date of termination. Workers would also receive payslips detailing their payments, along with experience certificates and testimonials to help them find future employment.
After production is suspended and the termination process is completed, the company plans to demolish the building in line with RSC instructions and subject to approval from the relevant authorities.
It plans to build a new, environmentally friendly, modern multi-storey factory at the same site once the demolition is complete and the necessary approvals are obtained.
The proposed facility is expected to create around 10,000 jobs when it becomes operational. The company also said workers currently employed at the building would be given priority in recruitment at the new factory.##
