Trade
6 years ago

RMG workers’ welfare fund mobilisation score poor

AP file photo used for representation
AP file photo used for representation

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Updated :

The central fund on the ready-made garment (RMG) sector received 33 per cent, or Tk 476.80 million, less than the expected amount in the last two fiscal years.

Labour ministry officials said the fund was expected to receive about Tk 1.476 billion from export earnings during the period.

Sources said the fund was set up on July 01, 2016, for the welfare of RMG workers as per a provision of the amended labour law 2013.

All the export-oriented garment factories are stipulated to contribute 0.03 per cent of their freight on board (FoB) prices to the fund, they added.

The factories in the export processing zones (EPZs) are not chipping in with their respective shares.

Even many of their lien banks are reportedly not deducting the amount, they added.

However, the Bangladesh Export Processing Zones Authority (BEPZA) said the EPZ-based factories are operated under the Prime Minister's Office (PMO).

They are yet to receive any instruction to contribute to the fund, the BEPZA added.

Bangladesh fetched $28.14 billion in FY 2016-17 and $30.61 billion in FY 2017-18 from apparel exports, according to the Export Promotion Bureau data.

Labour ministry officials said only Tk 1.0 billion was deposited during the period.

When asked, AMM Anisul Awwal, director general of the Central Fund Board, said, "Annually, we received some Tk 220 million less than expected."

This was because the lien banks did not duly deduct the amounts and contribute the money to the fund, he added.

Moreover, the EPZ factories were also not contributing to the fund, Mr Awwal told the FE.

Maybe the units that are unaffiliated with Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) are also not contributing.

When asked, Nazma Binte Alamgir, general manager (public relations) at BEPZA, said the authorities have their own funds for workers' welfare.

"Moreover, we didn't get any instruction from the PMO to contribute to the central fund," she said on Monday.

In May, labour secretary Afroza Khan wrote to the central bank, mentioning that several banks were not deducting part of the export value for the fund.

To this end, she sought necessary measures to ensure deductions and provide required documents to the director general of the board of the central fund.

Later on May 19, the Bangladesh Bank asked the relevant banks to ensure 0.03 per cent deduction from each garment export receipt.

Ministry officials said some 1,336 families of the injured or dead workers of different factories have so far received Tk 263.90 million from the fund.

More than Tk 1.0 million has been disbursed among the workers of a garment factory as their outstanding wages, they added.

The BGMEA received about Tk 500 million from the central fund to disburse insurance claims of the workers of its member factories, the officials stated.

The money was supposed to be deposited equally in two accounts-one is beneficiary account and the other is contingency account.

RMG workers or their family members receive grants from the beneficiary account.

The contingency account is supposed to be used for paying workers dues if any closed factory fails to pay.

The insurance claims were also directed to be paid from the second account, according to the labour rules.

But one account has been opened and all the issues are met from the single account, ministry officials added.

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