They also requested Bangladesh Export Processing Zones Authority (Bepza) to declare DEPZ closed indefinitely to allow cooling off of the situation.

Chairman of Bangladesh Export Processing Zone Investors Association (Bepzia) Kihak Sung said a number of elements, who are mainly rent-seekers, from outside the zone orchestrated a series of attacks on the industries inside the DEPZ. The attacks were not the results of any discontent among the workers.

The Bepza, on the other hand, requested the investors to keep the industries open on the plea that the ministers for labour and commerce would mediate a meeting between the workers and investors this morning for resolving the problem. But the investors remained firm on their decision.

The Bepzia in a letter to the prime minister yesterday said, "If the current state of lawlessness is not controlled immediately, the investors in DEPZ will probably be forced to cease its operations and DEPZ will bear permanent and irrevocable damage and not be able to support the economic progress of the workers and the nation."

The letter said the situation at the DEPZ worsened dramatically since May 22. About 38 factories have been attacked from outside, vandalised and looted, and their officers and management, including foreigners, assaulted.

"Inherent in the setting up of EPZs by Bepza is the fact that local and foreign investors would establish export-oriented production units in a safe environment. Ensuring security of life and property of investors is government's solemn commitment to investors. Sadly, the recent events have proven otherwise, with or without the presence of adequate security forces," said the letter signed by Kihak Sung.

"Workers should address their grievances, if any, to Bepza. Therefore, Bepza should take up these issues with investors. Any act by workers or their representatives to force financial demands exploiting lawlessness in the area upon their employers is unlawful, and any agreement or commitment extracted under duress, would not only be in violation of law, but also be null and void," the letter said.

Earlier on the day, the investors were holding a meeting at Uttara in the capital, where a few members of the press including one from The Daily Star were invited. "We are forced to shut down our industries," Sung said from South Korea through a video conferencing arrangement.

"At different times in the last one decade, outsiders had tried to create anarchy inside the Depz. But none of those efforts had been so devastating like the present one."

The investors said if the situation remains so uncertain, they can move out to other countries where security is not a problem.

Sung went on, "The minimum wage of workers inside the zone is 30 dollars and all of them get 10 percent annual increment besides a host of benefits, including weekly holidays as determined by Bepza. All factories in the zone have to strictly comply with the regulations of Bepza."

Sung, also chief of Youngone group, the largest foreign investor at the special zone, said, "Bepza rules are very favourable for workers."

He however added, "There are always rooms for us to improve."

The DEPZ employs 70,000 workers while it exports goods worth over $300 million a year. This year, with over 90 percent of the factories related to garments sector, it has targeted export of goods worth $350 million. The DEPZ is the second largest of its kind in the country with Chittagong EPZ exporting goods worth over $1 billion a year.

"These people are outsiders. They trespassed into the zone in plain clothes and lungis (not workers' uniform)," he said.

"These people are trying to destroy jobs and the country's economy," he said. "We are counting many millions in loss and we do not know how to calculate the loss right away."

The investors alleged that the security officials and staffs remained silent spectators when unruly people attacked the factories. "We hear that instead of urging the attackers to stop, they instigated them to attack further. Twenty officers were beaten while the police watched silently," said Sung.

"We are left with only two options now: appealing to the workers through the media not to be misled by any vested interest quarters and appealing to the government to protect our investment and properties."

"We have no force on our side. We obey laws, regulations and procedures. The government must protect properties," Sung said at the video conference where other investors also gathered.

The investors also demanded the government form a high powered committee to probe the incidents, and to frame plans and guidelines for the present and the future and install an intense security system at the DEPZ.

They told Bepza that it must pay for the losses and damage incurred by them due to the attacks between May 22 and yesterday.

‘OUTSIDE’ ELEMENTS
Regarding the ‘outside’ elements, Sung said there are some people who have been using trade unionism as their business. In addition, there are local politicians who want to increase their dominance. "None of them really mean or bother about long term benefit of the workers," he said.

He mentioned that he established his first factory at the DEPZ in 1993, and has seen many 'dangerous elements' trying to destabilise the zone. Citing an instance, he said a few years ago a European non-government organisation visited the zone aggressively and made videos of the working condition. "But since they found nothing wrong there, they did not air the video. Instead they spread lies."

Sung said, "This violence and wage issues are separate and there have been no dialogues but threats to life of the investors. It is a very well coordinated mayhem, which took place strategically for the last several days. For instance, they did not attack two factories side by side but attacked sparsely one day and then returned to the untouched factories on the next day."

Ravi Asrani of Geebee Garments Industries at the DEPZ said he set up his factory just two months ago. "I do not know how the employees' grievance over wage can grow within two months of the life of my factory. A couple of days ago, some of my employees came and placed their demands. I told them I cannot afford these demands and that if they can find better wage elsewhere, they were free to go. Then they withdrew. And the leader of the group then told me that she was asked to raise these demands with me and that she did not raise the demand on her own."

"This shows that the whole thing is instigated from outside," Asrani told The Daily Star.

THE WAGE DEBATE
The minimum wage for an employee at the DEPZ was set at $30 (equivalent amount) back in 1989. This figure was never updated. The factories annually determine the dollar-taka conversion rate. Once a worker is recruited, his/her wage is fixed on the basis of dollar-taka conversion rate of the year of employment. This means, if a worker is employed in 1995, his/her base wage is fixed on the conversion rate of that year. Then onwards, he or she will get an annual increment of 10 percent plus other facilities.

Bepza Chairman Brig (retd) Zakir Hossain echoed the investors regarding 'outside influence' in the labour unrest.

"There is a debate over this," Zakir said. "There are some issues at the zone. But none of those is serious enough to prompt workers to resort to attacking the factories," he told The Daily Star.

"Some workers believe that when taka is being depreciated, their wages should go up. But that is not how the wages were fixed. We had talked to the investors about fixing conversion rate every six months, instead of a year," he added.

Sung said he had proposed to Bepza a new minimum wage structure for the DEPZ more than a year ago.

But Zakir Hossain said there is no specific proposal with Bepza for a new minimum wage structure. But talks are on about some allowances.

Referring to the recent sharp rise of inflation, Sung said, "The government should work on increasing the minimum wage for the country and the EPZ considering the inflation and taka devaluation in the recent times."

"Regarding any grievances about wages, there should be a process. We are not ignoring inflation. We are sensitive to grievances. But any wage restructuring should be made lawfully," he said. "If some one wants to convince us to increase the pay, we are open to be convinced."

But instead of procedural dialogues, unruly people were seen shouting 'strike', 'shoot you', 'we will beat you', Sung said. "If they keep on talking like that our attitude to Bangladesh will automatically change. "

He continued, "If there is grievance among the workers, they should follow the appropriate process to let us address that."

BEPZIA PRESS BRIEFING
In the evening, Bepzia formally announced shutdown of all factories at the DEPZ till the heat cools off.

"The government has failed to ensure the security and proper environment in the EPZ area, so we became bound to close our factories," said Kaiser Rahman, vice president of Bepzia.

The closure should be on 'no work, no pay' basis, the investors said. They also announced cancellation of all agreements signed under duress and coercion since May 22 and till formation of Workers Association in any factory in November this year.

Bepzia leaders said they will only sit with Bepza and none else in the present situation because Bepza laws do not permit negotiation with any one else.

They would sit with the Bepza authorities today to tackle the problem, the press meet said. They however denied allegations of misbehaving with the workers and committed to address the issue very seriously.

Owners of nearly 45 garment units at the DEPZ were present at the press meet.

Meanwhile, intelligence sources said it is Bepza which should take the blame for the situation. Bepza officials were not attending to grievances of the workers for long and therefore lost credibility both with workers and investors. The workers on the other hand refused to sit with Bepza to find solutions to their problems, the sources mentioned.

State Minister for Home Lutfozzaman Babar held a meeting with various law enforcing agencies last night to discuss security issues and share intelligence information on the labour unrest issue, sources said.

He later went to meet the prime minister to share his findings and suggestions, the sources added.