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Monday, 10 May 2021 12:56

Government stimulus fails to prevent job losses in Bangladesh garment sector

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As per a study by the Centre for Policy Dialogue (CPD), government stimulus does not prevent 25 per cent of Bangladesh garment factories from shedding jobs. The government distributed Tk 105 billion in March last year to RMG factories for paying workers’ wages and allowances, reports Textile Today. Disappointingly, the survey discovered the amongst the workers who lost jobs, 59 per cent received only their salaries while 18 per cent were laid off without any wages. The survey was conducted amongst 102 employers, 301 employed workers, and 100 unemployed workers from the RMG industry of Dhaka and Gazipur districts.

The survey discovered normal income for workers deteriorated by 37 per cent. It was 39.9 percent for jobless female workers. While household income for employed workers declined by 0.7 per cent. However, during the pandemic uncertainty, 62.7 per cent factories received government support for four months, 25 per cent of them still sacked their employees.

However, 82 per cent of RMG factories said they have a set of guiding principles to operate. The report also said more than 67 per cent factories applied, and 62.7 per cent received subsidized credit for four months. 42 per cent received the help of late payment for utility bills.

A small section of non-member factories also received credit for a breach of the conditions. Such deviation, however, allowed a section of factories to pay wages to workers, the study said. The CPD said the oversight functions of authorities need to ensure that factories do not benefit by depriving their workers. While the labor and employment ministry, the Bangladesh Bank, the BGMEA, and the BKMEA, which were involved in scrutinizing and finalizing the list of workers, have responsibilities in this regard.