Novartis Bangladesh employees protest over compensation package amid exit plans

The employees of Novartis Bangladesh staged a demonstration on Tuesday, demanding a fair compensation package for all staff, as the company decided to close its operations in the country.

The employees expressed shock and disappointment over the way they have been treated by their employer, especially in light of the company's recent attempts to sell its shares to a local company and exit the Bangladesh market altogether.

They held a protest in front of the company's office in Dhaka.

Novartis International AG, the parent company, is a publicly traded Swiss holding company that operates through the Novartis Group and owns all subsidiary companies worldwide. It is consistently ranked among the top five global pharmaceutical companies and was the fourth-largest by revenue in 2022.

"We categorically state that we do not wish to hinder or restrict Novartis’s business decision to leave Bangladesh, a decision that has been spearheaded from its administrative center in India. However, we have serious concerns about the manner in which we, as associates of Novartis AG, have been treated," the employees said in a statement.

"We have been suddenly informed of the upcoming transfer of shares, effective from December 5, 2024, leaving us with little clarity or certainty about our future within the company. On that date, employees were given two options: either accept an unfamiliar employment framework under new management or resign before or at the transaction closing date," the statement continued.

If employees choose to remain, they are bound by a new plan that enforces retention for at least three years under a different compensation structure, but no clear details of the new compensation scheme have been provided.

The company has promised only three months’ basic salary as compensation, which the employees deemed far below acceptable industry standards.

They also noted that they were told the final position on this matter would be communicated by early January 2025. However, as of mid-January, no updates have been provided, leaving employees with unresolved questions and growing concerns.

The employees claimed the compensation package is unacceptable, especially when compared to other multinational pharmaceutical companies that have exited Bangladesh.

They pointed out that Novartis offers severance benefits to employees' families and relatives in other countries, but in Bangladesh, the company has been negligent and discriminatory.

The employees demanded written confirmation from Novartis’s parent company in Switzerland and its management about the compensation package.

"Despite our repeated efforts to seek clarification and raise our concerns, the company has not responded with meaningful written communication or engaged in proper negotiations," the statement added.

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