As per a Reuters report, EU countries will contribute over €100 million to a Bangladeshi welfare program to aid thousands of garment workers hit by job losses and pay cuts during the coronavirus pandemic.

The EU is the biggest market for clothing made in Bangladesh, which saw billions of dollars in orders cancelled or put on hold as fashion brands shuttered stores earlier this year - taking a heavy toll on garment factory employees.

Under Bangladesh’s new social protection program, workers in the garment, leather and footwear industries will initially be given monthly cash aid of 3,000 taka ($35.30) for three months. Germany and the EU - which provided emergency aid to garment workers in Myanmar earlier this year – will provide €13 million to the Bangladeshi scheme. Cancelled clothing orders have caused wage losses of up to $5.8 billion among garment workers worldwide, according to pressure group Clean Clothes Campaign.

Bangladesh - the world’s second largest clothing exporter - has recovered some orders in recent months, but factory bosses have said the second wave of COVID-19 infections in many key markets is slowing orders and leading some brands to defer payments.

About four million people work in Bangladesh’s garment industry, most of them women, and the sector is a motor of the national economy.