Textiles and Jute Minister Golam Dastagir Gazi made the announcement during a virtual press briefing on Sunday
The government has decided to send 25,000 workers of state-owned jute mills into early voluntary retirement in a bid to curb the losses incurred over the past years.
Textiles and Jute Minister Golam Dastagir Gazi made the announcement during a virtual press briefing on Sunday.
The workers will be sent into retirement through the golden handshake scheme, the provision in an employment agreement that states that the employer will provide a significant severance package if the employee is laid off.
“Due to mounting losses of BJMC (Bangladesh Jute Mills Corporation), the (state-owned jute) mills will be modernized in line with the native and global demands after a golden handshake process of the workers,” BSS quoted Minister Gazi saying during the online media call.
Underscoring the need for modernization of the BJMC-operated mills, he said productivity at the factories, run with 60 to 70 years old machines, are almost zero now, the report said quoting an official release.
The government will set aside Tk 5,000 crore for severance packages of the workers sent to retirement through the golden handshake scheme, said the minister.
“After the voluntary retirement, initiatives will be taken to run the mills in PPP or joint venture or G to G or lease model under the control of the government”, the BSS report quoted him saying.
The workers, who will be sent into early retirement, will get priority of jobs in the mills, when they reopen, according to the minister.