Pacific Casuals Ltd announced the closure of its two factories at the Chattogram Export Processing Zone (CEPZ) for an indefinite period last night following workers' unrest demanding higher allowances.

The factory management issued a notice yesterday after workers stopped working and began demonstrating inside the factory premises, demanding an increase in food and other allowances, said CEPZ sources.

Following the workers' protest in several factories early last month, Pacific Casuals had voluntarily increased various allowances before any demands were raised, said Golam Dostogir, manager (HR and Admin) of the factory.

He said the food allowance was raised to Tk 400 from Tk 250 last month.

However, after the payment of January wages, a group of workers began demonstrating yesterday, demanding an additional Tk 200 in food allowance, citing a similar increase in a neighbouring factory, he added.

Terming the demand "illogical," the manager claimed that a group of workers might have been "instigated" to create unrest, though most employees were satisfied with the raise.