BGMEA election row calms as non-exporting factories likely to keep voting rights

The dispute over voting rights for closed factories ahead of the next election of the BGMEA appears to be moving towards a resolution, with members agreeing that factories currently without exports but with existing facilities and machinery may retain voting rights.

The development came after discussions among BGMEA leaders over a recent notice issued by the organisation on voter eligibility for the election, according to sources.

Sources said the current board of directors has indicated that it may move away from its earlier strict position after discussions on how to resolve the issue.

Under the possible revised approach, factories that do not currently have export activities or utility declaration (UD) facilities but still have factory structures and machinery would be allowed to retain voting rights.

The matter is expected to be placed as a proposal at the extraordinary general meeting (EGM) scheduled for 20 June, where members may vote on the issue, sources said.

A BGMEA leader, speaking to The Business Standard on condition of anonymity, also said, "Those who currently do not have production or exports for any reason, but have factories and machinery, have received agreement from all sides on retaining their voting rights."

Based on the understanding, the current board of directors is likely to call a board meeting soon to approve the revised proposal and issue a fresh notice, the leader added.

Earlier, a BGMEA notice issued on 20 May stated that the organisation's EGM would be held on 20 June. One of the agenda items was a proposal on members' voting rights.

The proposal stated that "a member who is not engaged in export activities, or who does not exclusively avail UD services from BGMEA, shall not be eligible to be included in the voter list or to exercise voting rights in the board of director election of the association."

The proposal triggered reactions from a section of members, with some arguing that the move was inconsistent with the government's efforts to reopen closed factories.

Amid the controversy, senior BGMEA members held a meeting at a hotel in Dhaka on Sunday, where the current board agreed to soften its position. However, both sides agreed that members who currently have no factory, infrastructure or machinery should not retain voting rights.

When contacted, BGMEA President Mahmud Hasan Khan Babu confirmed the development, saying, "We have all agreed that those who have factories and machinery should have voting rights."

Two panels usually compete in BGMEA elections – Sammilito Parishad and Forum.

Except for three members, the remaining members of the current 35-member board were elected from the Forum panel, which is led by Babu. Before that, the Sammilito Parishad panel had led the organisation for nearly 15 years.

Forum members have argued that some members who no longer have businesses or exports were kept as members only for electoral purposes.

After the fall of the Awami League government in August 2024, the voting rights of around 250 members who were no longer active in business were cancelled. But a renewed initiative to remove voting rights faced opposition.

Abul Kalam, managing director of Chaity Group and a current member of parliament, who led the Sammilito Parishad panel in the previous BGMEA election, told TBS that the government had taken initiatives to reopen closed factories.

"In that case, a decision not to give voting rights to members of these factories would go against the government's initiative," he said.

"However, we had a meeting where we agreed that those who currently do not have exports or UD facilities, but have factories and machinery, may retain their voting rights. So, we hope the complication over this issue will be resolved," he added.