42pc RMG workers did not get aid during pandemic: Report

About 42 percent out of 3.3 million readymade garment (RMG) workers did not receive support from the government’s stimulus package allocated to pay workers’ wages, according to Transparency International Bangladesh (TIB) latest report.

A total of Tk 628.79 billion has been allocated for the country’s RMG sector as loan and financial supports by government, development partners, countries, and buyers’ organisation.

Some 98.57 percent of the fund was allocated by the government while 1.40 percent and 0.03 percent announced by development partners and buyers’ organisation respectively. 

Majority or 84 percent of the Tk 628.79 billion incentives are given to the factory owners to deal with the business crisis while rest 16 percent has been allocated for workers, TIB report said.

Though as of April - July, the estimated salary and allowance of RMG workers was around Tk 126.92 billion, the incentive amount in this package paid by the government was Tk 91.88 billion. This is 27.6 percent less than the requirement.

This package for workers’ wage payment was given to a total of 1790 RMG factories --1,370 BGMEA and 420 BKMEA members. 

“As a result, about 42.02 percent (about 1.4 million) of the total workers working in the ready-made garment sector did not receive or be deprived from government incentives,” the report read. 

The large factories got priority in receiving incentive funds. In some cases, large factory owners have been accused of using political influence and lobbying for getting incentives, it added.

TIB launched the report titled “RMG sector in Covid-19 crisis: Governance Challenges & Way Forward” at a virtual press conference held on Thursday.

TIB executive director Dr Iftekharuzzaman and its programme managers Nazmul Huda Mina Mohammad Nure Alam Milton, among others, were present at the virtual conference.