Started by the Government to compensate workers or their children in case of injuries or death at the workplace, the central fund for the RMG sector or the Bangladesh Labour Welfare Foundation Fund has stopped receiving contributions from many companies, including manufacturing units located within the Export Processing Zones (EPZs), reportedly maintained Labour Ministry officials recently.
It may be mentioned here that the central fund under the Labour and Employment Ministry has been created with 0.03% of the export volume of the industries under Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) for welfare of the workers of the export oriented RMG sector.
The officials further reportedly underlined that they received BDT 100 crore in last two financial years, which was BDT47.68 crore less than the expected amount. As per them, the contribution to the RMG sector central fund in the financial years 2016-17 and 2017-18 ought to have been BDT 147.68 crore considering the fact that export earnings from the readymade garment sector totalled US $ 58.76 billion in the two fiscal years.
“We received at least Taka 20-22 crore less than the legally binding amount per year as lien banks of the export-oriented garment companies didn’t properly deduct the amount meant for the fund from the exporters,” said the Director General of the Bangladesh Labour Welfare Foundation Fund AMM Anisul Awal, adding further that units located within EPZs were not contributing to the fund.
The Director General of the Bangladesh Labour Welfare Foundation Fund was, however, hopeful of a better show in the current fiscal year (2018-19) as Bangladesh Bank has reportedly instructed all the concerned banks to deduct the amount meant for the fund from the export value properly.
