Readymade garment workers in Bangladesh will soon benefit from the added security of insurance. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has directed its member factories to institute worker insurance or face export embargoes.

The country’s central garment sector organisation has also said it would cancel a facility’s membership for denying insurance. BGMEA is prioritising secure work environments and worker safety. Factories that are non-compliant with the direction would be spared from all kinds of facilities BGMEA provides. The organisation would be monitoring insurance implementation closely.

It isn’t uncommon for factory owners to forego insurance installments in favor of pocketing it for profit. Factories opting out of providing insurance won’t be able to export goods without the necessary documentation that only BGMEA can provide. Two of the major services BGMEA provides are issuance of utilisation declaration, a record of raw materials imported duty free, and utilisation permission, a written consent from customs mandatory for the sale of duty-free goods.

BGMEA is one of the largest trade associations in the country representing the readymade garment industry, particularly the woven garment, knitwear and sweater sub-sectors. Started in 1983, BGMEA takes care of an industry that is the backbone of Bangladesh’s economy. The association is dedicated to promoting and facilitating the apparel industry through policy advocacy to the government, services to members, ensuring workers’ rights and social compliance at factories.