Small factories and home-based workers in crisis due to rising fuel prices and power shortages

Name: Mehedi (pseudonym)  
Profession: Small factory owner 
Location: Ashulia, Dhaka, Bangladesh 

Mehedi is a small factory owner from Ashulia, Savar, who takes subcontracted work from large  factories and gets the work done by home-based workers, while also working himself. Around 40 home-based workers are connected to his factory, who earn their livelihoods by working from home on various stages of T-shirt production, sweater tagging, and button-related tasks. Before Eid, he received several important orders, which were extremely important for him to  deliver within the scheduled time. 

Beginning of the crisis:

During the production period, fuel prices suddenly increased, and a severe electricity crisis  emerged. Long power outages began to occur both during the day and night. Due to the rise in fuel prices,  running generators became expensive, causing production activities to be severely disrupted. This crisis was not limited to the factory; rather, its impact directly affected the home-based  workers as well. 

Impact on home-based workers: 

Due to the fuel crisis and power outages, work opportunities for home-based workers  significantly decreased. Since they could not regularly submit completed work, factories  became unwilling to assign tasks to them. As a result, their income decreased. The timing of  submitting work also became uncertain. In many cases, work stopped completely. 

Workers’ adaptation efforts: 

In response to the situation, workers are trying to adapt in various ways. They are trying to  complete as much work as possible during the daytime and make maximum use of the limited  hours of electricity. At the same time, they are trying to balance family and work. However,  despite these efforts, their productivity has significantly decreased.

Factory owner’s initiatives: 

To cope with the situation, Mehedi arranged for workers to come to his factory and attempted  to continue production using a generator. However, due to the high cost of fuel, it was not  possible to procure sufficient fuel, and it was also not possible to run the generator for long  periods. Mehedi stated:  

Outcome:

As a result of this crisis, production targets were not met. It was not possible to deliver orders on time. Mehedi faced financial losses. It was not possible to pay full wages to the workers (partial payments were made). The income of home-based workers also decreased  significantly, due to which home-based workers faced frequent challenges  in meeting their daily expenses.

Lack of support: 

According to Mehedi, in the current situation, no significant direct support has been received  from the local government or relevant authorities for workers in the informal sector. As a  result, small entrepreneurs and home-based workers are facing greater vulnerability. 

Current situation: 

Mehedi is currently under extreme financial and mental pressure. He fears that if fuel prices  increase and the electricity crisis continues, it will become difficult for him to bear the burden of loans and pay workers’ dues. This will make it uncertain for him to sustain his factory, and  the livelihoods of the home-based workers connected to him will also be at risk. 

Key challenges:

• Increase in fuel prices 
• Unreliable electricity supply 
• Reduced work opportunities for home-based workers 
• Balancing family and professional pressures 
• Lack of government support in the informal sector 

Conclusion:

Mehedi’s experience clearly highlights that rising fuel prices and electricity shortages not only  affect the production of small factories but also deeply impact the lives and livelihoods of the home-based workers associated with them. To address this crisis, it is crucial to ensure a sustainable energy supply, increase policy support for small entrepreneurs, and strengthen  social protection systems for workers in the informal sector.