The Ministry of Labour and Employment has directed the state-owned National Tea Company (NTC) to immediately auction 22 lakh kilograms of tea to cover unpaid wages for its workers and employees. Additionally, the company has been instructed to submit a proposal to the Finance Division, through the Bangladesh Bank, to increase its single-borrower exposure limit with Bangladesh Krishi Bank. This move aims to provide the company with better access to financial resources, helping stabilise operations and ensure timely wage payments.
The decision was made during a meeting, chaired by Labour and Employment Adviser Brigadier General (retd) M Sakhawat Hossain at the secretariat on 28 November.
Following the meeting’s decision, the company will promptly auction 22 lakh kilograms of tea. Once the sale is completed, the company is required to report back to the ministry by 16 December.
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Additionally, the company must take steps to increase the government’s stake in the company within the next three months.
On Tuesday, the company’s share price closed at Tk200.5 on the Dhaka Stock Exchange.
Syed Mahmood Hasan, managing director (in charge) of National Tea Company, told TBS that the factory is currently closed due to worker unrest over unpaid wages. Tea sales were disrupted because of the unrest.
Mentioning that the wage issue is expected to be resolved this week, he said, “We hope to receive an NOC from the central bank on Wednesday [4 December] to secure Tk8 crore from Krishi Bank. If we receive the funds, we will be able to pay the wages on Thursday,” he said.
Mahmood added that the factory could reopen next week but clarified, “It is not possible to settle all due payments at this time. However, we are working to this end.”
NTC officials, on condition of anonymity, said the company has 11,273 workers and 350 employees, with outstanding dues totalling Tk16.50 crore. However, Krishi Bank is expected to provide only Tk8 crore, leaving the remaining amount unpaid.
One official alleged that the current management lacks an understanding of the company’s operations and has repeatedly avoided addressing the wage issue during board meetings, leading to the current crisis.
A large stock of tea has been unsold for around two months, risking a decline in quality and the likelihood of fetching lower prices in the auction market, he added.
Workers in dire straits
In Sylhet, workers at the National Tea Gardens, including those at the Daldali and Lakkatura tea estates, are facing a severe financial crisis as wages remain unpaid.
Subal Nayek, a worker at the estate, said, “I don’t have money to buy rice. I couldn’t buy any vegetables in the past month because I didn’t have the money. And I haven’t eaten fish for a long time.”
Although the tea garden authorities provide some flour each week, it is barely enough to sustain families, Subal said.
BSEC committee formed
Earlier in October, the Bangladesh Securities and Exchange Commission (BSEC) formed a three-member inquiry committee to investigate various issues concerning the placement shares and financial dealings of the NTC.
The investigation focuses on the company’s placement share issuance, government shareholding, fund utilisation, and overall financial management to ensure regulatory compliance.
The BSEC also decided to extend the subscription period for National Tea Company’s placement shares until 31 March 2025. The extension depends on the government maintaining at least a 51% share in the company and will only be allowed to utilise the funds if this condition is met, the regulator said.