Over 300 Bangladeshi garment factories producing goods for retailers like Wal-Mart, Tesco, Gap, H&M, and Carrefour have been indefinitely shut down following wage disputes.

The factories, based in the country’s key industrial hub of Ashulia, which employs roughly half a million garment makers, were closed on Saturday following protests beginning on June 11.

Tens of thousands of workers have clashed with police, vandalised plants and blocked a key highway following union claims of unfulfilled wage promises.

But industry body, BGMEA, which represents all 4500 of the garment factories across Bangladesh, is denying it promised to hike wages.

“It’sa lie, total lie. We raised workers salaries by 82 per cent just 18months ago. It’s impossible to raise salaries again,” said itspresident, Shafiul Islam Mohiuddin.

Those pay rises were alsosubject to heavy violence, with months of protests in 2010 eventuallyleading to wages being increased to a minimum of $37 a month.

Despite this, the vast majority of Bangladeshi textile makers still take home the lowest garment sector wages in the world, for shifts of 10 to 16 hour days, six days a week.

Fresh union demands include raising wages 50 per cent and subsidising food to cope with the rising cost of living.

Tensions have been increasing in recent months after a top garment union leader was abducted and murdered in April, with the subsequent union speculation of a government conspiracy.

US Secretary of State Hillary Clinton demanded an independent probe into the incident when she visited Bangladesh last month.

Sixty per cent of the region’s garment workers have left Ashulia amid frustration over the closures, said Sirajul Islam Rony, coordinator of Bangladesh Garment Workers’ Unity Council.