The garment factory owners do not have any contribution to the Labours Welfare Foundation Fund of the Labour and Employment Ministry that has now a total of Tk50 crore deposited in its account.
They are not interested in contributing their profit shares to the fund, Labour and Employment Secretary Mikail Shipar said yesterday.
“We failed to draw their attention after communicating with them several times. Which is why the government has decided to create an independent fund for welfare of garment workers,” he said at a press briefing on the occasion of May Day held at the secretariat.
He said seven organisations agreed to donate Tk8 crore to the fund. Prime Minister Sheikh Hasina will receive the cheques at a discussion meeting marking the May Day at the Osmani Memorial Auditorium.
The seven companies are British American Tobacco Bangladesh, Lafarge Surma Cement Ltd, Nestle Bangladesh Ltd, Linday Bangladesh Ltd, Crown Cement Ltd, Singer Bangladesh Ltd and Coats Bangladesh Ltd, Shipar said.
The secretary said, the fund was founded in 2006 while it was functional in 2008. But unfortunately neither local nor foreign garment factories showed any interest to deposit only 0.5% of their profit share to this fund.
A total of Tk50 crore was deposited by 19 industrial units excepting readymade garment (RMG) factories since its inception in 2008, the secretary said.
“As per the law it is mandatory for an industrial unit to deposit 5% of their profit share from the net annual profit of Tk1 crore or more than that to the Labour Welfare Foundation Fund.
“From the fund, the factory owner will distribute 4% of the money directly to their factory workers and 0.5% will be deposited in the factory Labour Welfare Fund while the remaining 0.5% to the Labour Welfare Foundation Fund of the Labour Employment Ministry to be used for the security of workers,” Shipar said.
Replying to a query the secretary said: “We will compel the owners of the industrial units to deposit the said profit share. Each industrial unit will have to pay a fine of Tk5, 000 for one day. Moreover, cases will be filed against those who fail to deposit the money in time.”
About the fixation of salaries, the secretary said they had identified 42 sectors including the RMG and “the government is planning to form a minimum wage board to fix salaries of three crore workers in the country. The board will fix the salaries of the workers every five year”.
On the May Day programme the secretary said a colourful rally will be brought out from the Srama Bhaban at 7am and a discussion meeting will be held at the Osmani Memorial Auditorium at 10am to mark the day.
State Minister for Labour and Employment Mojibul Haque Chunnu and Chairman of Parliamentary Standing Committee on the Labour and Employment Ministry Munnujan Sufian will attend the functions.
