The government has formed a board with representatives from RMG stakeholders to operate a Central Fund designed for the welfare of workers in 100% export-oriented apparel sector.
The fund, apart from ensuring welfare, aims to tackle untoward incidents.
According to the rules of Bangladesh Labour Act 2013, the owners of export-oriented garment industries will contribute 0.03% of export value to the workers’ welfare fund. Of the fund, 50% will be kept for welfare purposes and 50% for tackling unrest, if any. In September last year, the government published the gazette notification of amended Labour Act 2013.
Sate Minister for Labour and Employment Mujibul Haque Chunnu will lead the board as chairman.
Senior Secretary to Labour and Employment Mikail Shipar and BGMEA President Siddiqur Rahman will also be on the board.
The other members of the board include Bangladesh knitwear Manufacturers and Exporters Association (BKMEA) president AKM Salim Osman, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) vice-presidents Mohammed Nasir and Mahmud Hasan Khan Babu, Sammilito Garment Sramik Federation president Nazma Akter, Jatiya Sramik League (JSL) president Sukkur Mahmud and Garments Tailors Workers League general secretary Badruddoza Nizam.
In every four month, the board has to hold at least one meeting and the tenure of board will be three years from the date of its formation.
It will work on managing the fund as per the instruction of labour rules.
“After the first meeting of the board, we will send letter to Bangladesh Bank for taking initiatives to open accounts to deposit the fund contributed by the RMG owners,” Mikail Shipar told the Dhaka Tribune.
According to the rules, there will have two accounts for depositing money. One account is for welfare fund and the other for tackling untoward situation.
Respective banks will cut 0.03% from the export value of the company and deposit that to the accounts.
The owners’ contribution to the welfare fund would be Tk72 crore in line with the current export value of $24.5 billion and this contribution would reach Tk150 crore in 2021 when the export value is expected to stand at $50 billion.
The issue of Labor Act amendment came under spotlight following the suspension of Generalised System of Preference (GSP) by the US government in the wake of Rana Plaza collapse that killed over 1,135 workers in 2013.