Lawmaker and Advisor to Prime Minister Salman F Rahman inaugurated the launch ceremony of the pilot programme in presence of MoLE Secretary Md Ehsan-E- Elahi, ILO Country Director Tuomo Poutiainen, and higher officials from the German, Norway and Netherlands Embassy, read an ILO press release on Wednesday. 

Senior representatives from BGMEA, BKMEA, Workers’ Associations, development partners and other national stakeholders also participated in the ceremony held in a hotel in Dhaka.

Employment injury protection is one of the nine branches of Social Protection recognised by ILO for all workers under its Social Security (Minimum Standards) Convention, 1952 (No. 102). It is expected that through this successful pilot, the workers and their families will be under an
improved income protection system, the press release added.

The speakers at the event welcomed the project idea and shared their opinions on the initiative. The Chief Guest Salman F Rahman said, “Social Security is high on the agenda of Hon’ble Prime Minister Sheikh Hasina.”

At the inauguration event, ILO Bangladesh Country Director Tuomo Poutiainen highlighted ILO’s approach towards improved social protection for workers in Bangladesh.

“The launch of ‘Employment Injury Protection’ scheme for RMG Workers in Bangladesh is an important and historic step in strengthening accident protection in the country,” Tuomo said. Speaking at the event, BGMEA President Faruque Hassan said, “The pilot of the ‘Employment
Injury Scheme’ will contribute to the social well-being of workers and employers and above all improvement of the country's social security system.”

The National Coordination Committee for Workers' Education (NCCWE) President Shamim Ara, Embassy of the Kingdom of Netherlands First Secretary Bas Blaauw, and German Embassy Head of Development Cooperation Johannes Schneider also spoke at the event.

The labour ministry in collaboration with the International Labour Organisation on Tuesday launched an employment injury protection scheme in the readymade garment sector to provide income protection to the victims of work-related accidents and occupational diseases.
With the inauguration of the ILO scheme in association with the Netherlands and Germany, RMG workers will get enhanced social security through income protection.
Prime minister’s private industry and investment adviser Salman Fazlur Rahman inaugurated the pilot scheme in an event held at Hotel Intercontinental in the city.
Labour ministry secretary Md Ehsan-E-Elahi, ILO country director for Bangladesh Tuomo Poutiainen, Bangladesh Garment Manufacturers and Exporters Association leaders and labour leaders were present at the ceremony.
ILO country director Tuomo Poutiainen said that the launch of ‘Employment Injury Protection’ scheme for RMG workers in Bangladesh was an important and historic step in strengthening accident protection in the country.
Such a system would promote sustainable business practices and provide right kind of signals to investors as Bangladesh is step by step upgrading its social protection systems for the benefit of all, he said.
In the event, Salman F Rahman said that social security was high on the agenda of prime minister Sheikh Hasina.
BGMEA president Faruque Hassan said that the employment injury protection scheme would contribute to the social well-being of workers and employers and above all improvement of the country’s social security system.
Employment injury protection is one of the nine branches of social protection recognised by the ILO for all workers under its Social Security (Minimum Standards) Convention, 1952.
Bangladesh has already taken this issue as a priority and highlighted the same in the 2nd Phase Action Plan of the National Social Security Strategy.

DHAKA (ILO News) – Workers in the export-oriented ready-made garment (RMG) sector are set to get enhanced social security through income protection following the launch of a new Ministry of Labour and International Labour Organization (ILO) initiative in collaboration with the Netherlands and Germany (GIZ).

Today, the Ministry of Labour and Employment (MoLE) in collaboration with the ILO officially launched the Pilot of an Employment Injury Scheme by way of a Launch Ceremony. Member of Parliament and Hon’ble Advisor to Prime Minister Salman F Rahman inaugurated the event in presence of State Minister, MoLE Begum Monnujan Sufian, Secretary, MoLE Md. Ehsan-E- Elahi, Country Director of ILO Tuomo Poutiainen, and higher officials from the German, Norway and Netherlands Embassy. Senior representatives from BGMEA, BKMEA, Workers’ Associations, development partners and other national stakeholders also participated in the ceremony. 

Keeping in mind that workers in the ready-made garments industry play a remarkable role in the country’s growing GDP, it is important to consider their rights and security on priority. This facility will be expanded to other economic sectors upon success of the EIS-Pilot. Since 2013, ILO and GIZ have been working together with the Government of Bangladesh and industry partners for ensuring workers’ social and financial security. As a continuation of the process, after having several tripartite consultations, the Government of Bangladesh has decided to introduce a periodic payment scheme for occupational injuries, disabilities and deaths in the RMG industry. 

At the inauguration event, Mr Tuomo Poutiainen, Director, ILO-CO-Bangladesh highlighted ILO’s approach towards improved social protection for workers in Bangladesh. In his speech, he mentioned that “The launch of ‘Employment Injury Protection’ scheme for RMG Workers in Bangladesh is an important and historic step in strengthening accident protection in the country. ILOis happy to support this effort and work with the Government, Employers and Workers to create a modern and contemporary compensation system for workers and their families that protect their incomes and living when they need it the most. Such a system also promotes sustainable business practices and provides right kind of signals to investors; as Bangladesh is step by step upgrading its social protection systems for the benefit of all.” 

The speakers at the event welcomed the project idea and shared their opinions on the initiative. TheChief Guest, Mr Salman F Rahman, MP, Advisor to Hon’ble Prime Minister said, “Social Security is high on the agenda of Hon’ble Prime Minister Sheikh Hasina.” 

Mr Md. Ehsan-E-Elahi, Secretary, Ministry of Labour and Employment, Government of Bangladesh, thanked ILO and said, “It is a historical day for as we launch the first-ever social insurance scheme, asenvisioned in the ‘National Social Security Strategy’. We have the privilege to ensure that the pilot is designed in line with the ‘International Labour Standards’, taking the national settings into consideration.” 

Speaking at the event, Mr Faruque Hassan, President, BGMEA said “The ready-made garments industry of Bangladesh has made significant progress in the areas of safety and sustainability, especially workers’ welfare and industrial relations. The pilot of the ‘Employment Injury Scheme’ will contribute to the social well-being of workers and employers and above all improvement of the country’s social security system. As we are committed to ensuring the safety, dignity and well-being of our workers, we look forward to collaborating in initiatives that benefit our industry and workers.”

Ms Shamim Ara, President of NCCWE stated that through this pilot now the workers have taken a step forward to get freedom from accidental nightmares. This step will ensure workers’ safety and prevent their helplessness due to workplace accidents. 

At this event, Mr Bas Blaauw, First Secretary, Embassy of the Kingdom of Netherlands mentioned that “The Netherlands is proud to support the launch of a Pilot on Employment Injury Insurance in Bangladesh, building on the groundwork laid together with partners during the previous years. This Pilot has the potential to be a win-win situation, as social protection and sector competitiveness go hand in hand. The Netherlands looks forward to working with all the relevant stakeholders to make the Pilot a success.” 

Mr Johannes Schneider, Head of Development Cooperation from the German Embassy said “The EIS Pilot can rightly be considered the peak of this reform process: With the addition of the Pilot, we now have, for the first time, an employment injury scheme that meets international standards in terms of compensation and that effectively protects workers and their families from falling into poverty as a result of workplace accidents and occupational diseases.” 

About Employment Injury Scheme (EIS) : Employment injury protection is one of the nine branches ofSocial Protection recognized by ILO for all workers under its Social Security (Minimum Standards) Convention, 1952 (No. 102). With increasing industrial and commercial activities in Bangladesh, the number of work-related accidents are inevitable to increase. For this, on one hand, a number of initiatives are taken to improve preventive measures for reducing accidents – while on the other hand, the Government and ILO have been working to develop a better ‘compensation’ system for victims of work-related accidents. The Government of Bangladesh has already taken this issue as a priority and highlighted the same in 2nd Phase Action Plan of the National Social Security Strategy (NSSS). 

It is expected that through this successful pilot, the workers and their families will be under an improved income protection system. ILO will continue technical assistance to the Government of Bangladesh and industry partners throughout the period of establishing the EIS to make it functionaland sustainable, as well as strengthening the public administration capacity on the EIS. 

/Public Release. This material from the originating organization/author(s) may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s).

DHAKA - Garment workers in Bangladesh are to receive enhanced social security protection in the event of injuries at work following the launch of a new pilot scheme backed by the International Labour Organization (ILO). 

The ILO and German development agency GIZ will support government officials and employers' and workers' organisations in implementing the project which is being funded by by the governments of Netherlands and Germany. 

The Employment Injury Scheme (EIS) project will run for an initial period of three years with the option of being extended for another two. It could also be extended to other sectors of the economy if it proves successful. 

The ILO said it was viewed as particularly important to protect garment workers because of their role in Bangladesh's economy with the sector accounting for more than 80 per cent of the country's exports. 

The EIS project will offer compensation for garment workers and their families in the event of injuries, disabilities and deaths caused by workplace incidents. 

At a launch event, ILO country director Tuomo Poutiainen said: "The launch of the Employment Injury Protection scheme for RMG (readymade garment) workers in Bangladesh is an important and historic step in strengthening accident protection in the country. 

"The ILO is happy to support this effort and work with the government, employers and workers to create a modern and contemporary compensation system for workers and their families that protect their incomes and living when they need it the most. Such a system also promotes sustainable business practices and provides the right kind of signals to investors." 

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the pilot scheme would contribute to the social wellbeing of workers and employers, and improve the country's social security system. 

"As we are committed to ensuring the safety, dignity and well-being of our workers, we look forward to collaborating in initiatives that benefit our industry and workers," he said. 

Johannes Schneider, head of development cooperation at the German embassy in Dhaka, added: "With the addition of the pilot, we now have, for the first time, an employment injury scheme that meets international standards in terms of compensation and that effectively protects workers and their families from falling into poverty as a result of workplace accidents and occupational diseases."

Workers in the export-oriented readymade garment sector are set to get enhanced social security through income protection following the launch of a new International Labour Organisation (ILO) initiative in collaboration with the Netherlands and Germany.
Today, the ILO in collaboration with the Ministry of Labour and Employment (MoLE) officially launched the pilot of an Employment Injury Scheme Project.

Salman F Rahman, an adviser of the prime minister, inaugurated the scheme in presence of Labour Secretary Md Ehsan-E- Elahi and ILO Country Director Tuomo Poutiainen and higher officials from the German, Norway and Netherlands embassies, according to a press release of the ILO.
Keeping in mind that workers in the garment industry play a remarkable role in the country's growing GDP, it is important to consider their rights and security on priority. This facility will be expanded to other economic sectors upon the success of the EIS Pilot, said the ILO in the press release.
Since 2013, the ILO and the GIZ of Germany have been working together with the government of Bangladesh and industry partners for ensuring workers' social and financial security. As a continuation of the process, after having several tripartite consultations, Bangladesh has decided to introduce a periodic payment scheme for occupational injuries, disabilities and deaths in the RMG industry.
At the event, Poutiainen said: "The launch of the Employment Injury Protection scheme for RMG workers in Bangladesh is an important and historic step in strengthening accident protection in the country."
"The ILO is happy to support this effort and work with the government, employers and workers to create a modern and contemporary compensation system for workers and their families that protect their incomes and living when they need it the most. Such a system also promotes sustainable business practices and provides the right kind of signals to investors."
Salman F Rahman said, "Social Security is high on the agenda of Hon'ble Prime Minister Sheikh Hasina."
Ehsan-E-Elahi said, "It is a historical day for as we launched the first-ever social insurance scheme, as envisioned in the National Social Security Strategy. We have the privilege to ensure that the pilot is designed in line with the international labour standards,taking the national settings into consideration."

In the press release, Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, said the pilot scheme will contribute to the social well-being of workers and employers and above all improvement of the country's social security system.

"As we are committed to ensuring the safety, dignity and well-being of our workers, we look forward to collaborating in initiatives that
benefit our industry and workers."
Shamim Ara, president of the National Coordination Committee for Workers' Education, stated that through this pilot, workers have taken a step forward to getting freedom from accidental nightmares.

"This step will ensure workers' safety and prevent their helplessness due to workplace accidents."
Bas Blaauw, first secretary of the Embassy of the Kingdom of Netherlands in Bangladesh, said the pilot scheme has the potential
to be a win-win situation, as social protection and sector competitiveness go hand in hand.
Johannes Schneider, head of development cooperation from the German embassy, said the EIS Pilot can rightly be considered the peak of this reform process.
"With the addition of the pilot, we now have, for the first time, an employment injury scheme that meets international standards in terms of compensation and that effectively protects workers and their families from falling into poverty as a result of workplace accidents and occupational diseases."

The International Labour Organisation (ILO) has launched an employment injury scheme as a pilot project for Bangladesh’s apparel workers.

 Salman F Rahman, Private Industry and Investment Adviser to the Prime Minister Sheikh Hasina, inaugurated the pilot project on Tuesday in Dhaka.

He said the injury scheme is the pillar of social protection for the workers as well as for economic growth.

The project will protect the workers and their families in case of any injury and death, Rahman added. 

The adviser said he is not only cautious about the workers but also about the less privileged people. 

The country director of ILO, Mr. Tuomo, said at the ceremony, “We need to double our efforts to implement the project.”

He said Bangladesh has achieved remarkable success in ensuring workplace safety. 

Regarding economic graduation of the country into a middle income nation, Johannes Schneider, head of development cooperation of the German Embassy, expressed his gladness that Bangladesh has accomplished the status in a shorter period. 

ILO sets the international standard for the minimum benefits for the employment injury compensation. It requires earning related, periodical or monthly payments to victims of employment injury and occupational diseases. In case of disability, the payment should be at least 60 percent of the former wage multiplied by the degree of disability, said the CD of ILO.

In addition, in case of death, dependents like spouses or under-aged children would receive payment in the extension of at least 50 percent of the former wage of the victims.

Bas Blaauw, First Secretary of Netherlands Embassy highlighted the issue of ethical wage for the workers who are toiling to make the businesses sustainable.

Vice President of Bangladesh Knitwear Manufacturers and Exporters Association, Fazle Ehsan Shamim, said throughout the pilot project, it will be tested that the scheme will work for the betterment of the workers, indeed. 

He said, it will take 3 to 5 years to implement the project on a comprehensive scale after the successful piloting. 

The stakeholders of the sector, labour leaders and the officials concerned of ILO also joined the programme.

 Speakers said the event has just created a history of the country’s labour entitlements. Through the scheme, they would also come under a financial safety net.

On 21 June 2022, Bangladesh launched a ground-breaking employment injury scheme – the first of its kind – providing income protection for workers in the country’s ready-made garment sector. 

‘This is a historic day for Bangladesh’, declared Mohammed Eshan Elahi, Secretary of the Ministry of Labour and Employment, as he launched the country’s first st 

employment injury insurance (EIS) scheme in Dhaka on 21 June 2022. This pioneering scheme, named EIS Pilot, will ensure that, for a trial period of three years, all workers in the export-oriented ready-made garment sector are for the first time ever eligible for work-place injury and disability compensation payments in accordance with international standards adopted by the ILO Employment Injury Benefits Convention, 1964 (No. 121). The ready-made garment sector is Bangladesh’s largest manufacturing industry and provides jobs to around four million people. 

The aim of the three-year trial is to provide the proof of concept needed for such a scheme to become permanent and statutory, showing that it can improve manufacturers’ productivity and international competitiveness, provide financial security to workers and their families in the event of a workplace death or injury and help international buyers show that their products were produced under ethically sound conditions. Before the launch, families of workers who died or were injured were legally entitled to a one-off compensation payment of 200,000 Takas (just over 2,000 Euro). Under the EIS Pilot, they will on top of the lump sum now receive a monthly payment of up to 60% of their wage for life, which will protect their families from financial hardship or poverty. 

A collaboration between public and private partners 

As usual in work-related social protection schemes, the EIS Pilot is a carefully crafted collaboration between public and private partners: The Ministry of Labour and Employment will administer it through its existing Central Fund and head a tripartite public-private oversight committee composed of its own representatives as well as employers’ associations (the Bangladesh Employers’ Federation, Bangladesh Garment Manufacturers and Exporters Organisation and Bangladesh Knitwear Manufacturers and Exporters) and workers’ representation (IndustriALL Bangladesh Council, the National Coordination Committee for Workers’ Education and the Jatiya Sramik League). 

Seven international brands, including the H&M Group, Primark, KIK, Fast Retailing, Bestseller and Tchibo, have so far committed to financing the scheme for the trial period, and it is expected other brands will soon follow suit.

ILO and German technical cooperation jointly support the prototype 

This pioneering public-private collaboration is jointly supported by the International Labour Organization (ILO), funded by the Netherlands Ministry of Foreign Trade and Development Cooperation, and the project ‘Social Protection for Workers in the Textile and Leather Sector‘, implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) and henceforth in this article called ‘Bangladeshi-German project’. 

The ILO and the Bangladeshi-German project have worked closely with the government, employers’ and workers’ associations to support the design of the EIS Pilot and to persuade international clothing brands to fund it. They will continue to collaborate throughout the pilot’s duration, with the ILO advising on international standards and policy and the project delivering capacity development, training manufacturers to monitor and improve health and safety in factories and also providing technical support to the Central Fund to ensure that the organisation can cope with the extra demands of administering the scheme in a transparent and efficient way. 

The ILO and the Bangladeshi-German project have common objectives to promote the employment injury scheme in Bangladesh, says Saad Gilani, ILO’s chief technical advisor for the employment injury scheme. The ILO has very strong relationships with the government, employers and workers, the three main partners in any social security scheme, and can help them understand their roles and responsibilities. The organisation also has strong connections with international buyers and retailers in the ready-made garment sector. 

This came in very useful in ‘selling’ the scheme to buyers, says GIZ’s Moazzem Hussain: ‘The ILO and our project jointly used their respective networks and connections to reach out to brands and persuade them to finance the trial of this scheme.’ 

The EIS builds on previous German-supported interventions 

Generally, there are three major elements in any employment injury insurance scheme – income protection, rehabilitation and prevention. The Bangladeshi-German project’s current involvement with the EIS Pilot grew out of two previous German-supported projects to strengthen health and safely in the ship building industry (documented in this GHPC report) and a project working on the prerequisites of employment injury protection with a strong focus on prevention, rehabilitation and return to work in the export-orientated garment manufacturing industry (see this Healthy DEvelopments article). Both these projects worked with Bangladeshi manufacturers to demonstrate that adopting pragmatic prevention, rehabilitation and return to work policies could not only reduce the time lost to accidents and disability but also makes economic sense in that it saves them money and makes them more attractive to overseas buyers. In the case of the second project, for example, participating factories in the ready-made garment industry have been supported voluntarily to establish a Disability Management Committee, set up a proper referral procedure and network for rehabilitative services and ensure that return to work clauses are fully embedded in existing human resources policies. 

‘Previously, we were only looking at the rehabilitation and return to work side of things,’ says GIZ’s Moazzem Hussain. ‘Now, with the launch of the EIS Pilot, this has become part of a grander scheme.’ It is also, he says, a foray into an exciting new sphere of work for German Development Cooperation, looking beyond health insurance

Gathering the evidence needed for the proof of concept

Although the accident rate in the export-oriented ready-made garment sector has improved since the terrible disasters of 2012 and 2013, Bangladesh still has little accurate data on workplace accidents or long-term disabilities. It has therefore been difficult to calculate the exact impact and costs, in terms of lost productivity for manufacturers or the impact on workers and their families. It also means it has been impossible to demonstrate the desirability or viability of implementing a comprehensive EIS. 

Consequently, a vitally important initial stage of the trial period will be to gather accurate data on death and accident rates, as well as average medical and compensation costs for injured workers under the new scheme. A sample of around 150,000 workers from 150 representative factories will be monitored. The database generated will help to demonstrate the viability, feasibility and cost efficiency of adopting a comprehensive and permanent EIS in Bangladesh and ensure that sufficient resources are allocated to meeting the scheme’s future needs. 

Although the EIS Pilot will initially focus primarily on providing employment injury benefits to all workers in the ready-made garment industry, support for prevention, return to work and rehabilitation interventions will also be offered as an incentive to the factories taking part in the pilot’s data collection phase. 

Risk-sharing for long-term benefits 

The employment injury fund will in the first instance be financed by voluntary contributions from the seven international brands and retailers that have signed up to the scheme so far. It is hoped that more will soon be persuaded to participate. Initially, some brands were apprehensive that the costs of a scheme covering some four million workers would be too high, but calculations conducted by the ILO showed that they would amount to a mere 0.019% of their purchases in Bangladesh. ‘0.019% is very little for them – it makes the scheme very affordable. So, when we explained it to them, they were all for it,’says Saad Gilani. 

The next vital step will be to convince Bangladeshi manufacturing companies to contribute to the scheme as well, thus spreading the costs and sharing the risks between international and local enterprises. Although agreed in principle, looking ahead, the ILO’s Saad Gilani thinks this will prove to be a major challenge, but ‘the test of the pudding will be in the eating.’ He believes data collected during the trial phase will help manufacturers to understand that investment in a safe and healthy workforce will help them retain skilled workers and improve access to international markets, by demonstrating to buyers that they are complying with international codes of conduct. 

Transparency and accountability crucial for success 

Given the amount of money involved in any insurance fund, another challenge for the future success of the EIS Pilot will be establishing its credibility and transparency, 
cautions Saad Gilani. He says the ILO and the Bangladeshi-German project have worked closely with the Government of Bangladesh to put financial safeguards in place and obtain iron-clad guarantees that the money will only be used for the welfare of workers and nothing else. In this respect, he says, ensuring that the claims process is totally transparent and reducing the possibility of miscalculations or personal discretion in awarding compensation will be crucial for building future social security systems in Bangladesh: ‘It will all depend on the performance of this pilot.’ 

With this in mind, in addition to the capacity development support and training that will be given to the Central Fund to administer the scheme, the EIS Pilot will be managed using a customised version of the open-source and free-to-use management information system openIMIS (for more information listen to the HealthyDEvelopments podcast here). Supported by the BMZ and already in use for social security schemes in several other countries, including Nepal, the openIMIS team is now adapting the programme for use in Bangladesh and, as this article demonstrates, the two countries are working closely together to share information and experiences. Whilst there are many similarities between them, some customisation will be necessary in Bangladesh, for example, in determining who should be eligible beneficiaries in accordance with different inheritance laws and customs. 

In the initial phase of the EIS Pilot, openIMIS will be run by a local software company, but, once established, it will be hosted by the Ministry of Labour and Employment and based on the existing identity card scheme, in line with the government’s national digital architecture plans. 

A ‘very important first step’ for Bangladesh 

If the EIS Pilot proves successful in the export-oriented garment industry over the next three years, the following two years will be spent building on this prototype to develop an employment injury scheme covering all manufacturing industries in Bangladesh, both export-oriented and domestic. 

It is also hoped the EIS Pilot will be a catalyst for other types of work-related social security schemes in a country where hitherto there have been none. ‘Once this monthly income protection scheme has started, we can gradually introduce other types of social security schemes – such as unemployment and sickness insurance’, says the ILO’s Saad Gilani:‘This work on employment injury is just a start, but it is a very important first step for the textile workers and the people of Bangladesh.’ 

Ruth Evans, August 2022

The Conscious Citizen's Forum, a platform of rights bodies, on Tuesday demanded that compensation for workers killed or injured in any workplace accident be set by
international standards.
International Labour Organisation (ILO) Convention 121 should be followed while setting the compensions, suggested Hameeda Hossain, convener of Sramik Nirapotta Forum, in a discussion on 'Nine Years of Rana Plaza Tragedy: What To Do To Ensure Workers' Compensation'.
 

She said it has become an obligation for citizens to monitor whether government agencies like the fire service department, or the department of inspection for factories and offices responsible for overseeing factories, are doing their duty properly or not.
The amount of compensation for deceased workers was set at Tk2 lakh in the amended labour law in 2018.
Lawmaker and member of the parliamentary standing committee on the labour ministry, Shamsun Nahar Bhuiyan, said compensation of Tk2 lakh for a deceased worker is very insignificant.
If a person loses one of their limbs, this little amount of Tk2 lakh would be used up in treatment alone. The law should be amended to increase the compensation, she added.
Bangladesh Institute of Labour Studies (BILS) Joint Secretary General, Wazedul Islam Khan, said victims of the Rana Plaza tragedy have not received compensation in the last nine years. If there is a set standard for compensation, civil society will not need to talk on the issue.
Bangladesh Legal Aid and Services Trust (BLAST) Deputy Director Advocate Borkot Ali moderated the discussion where Acting Labour Adviser of the Bangladesh Employers Federation Habibur Rahman, Karmojibi Nari Executive Director Rokeya Rafiq Baby, Bangladesh Labour Foundation Executive Director AKM Ashraf Uddin, Awaz Foundation Chairman Momtaz Begum, and BILSDirector Nazma Yasmeen spoke.

The government also has given a nod to such social protection for apparel workers and the labour ministry will soon sign an agreement with the ILO to this end.

The government is likely to introduce an employment injury insurance scheme for all workers of export-oriented garment industries in response to requests from development partners and international agencies.                                                                                                                                                                                                                                                                                                   The German government, the International Labour Organisation (ILO) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) have long been discussing the issue with the Bangladesh government for quite some time.

The government also has given a nod to such social protection for apparel workers and the labour ministry will soon sign an agreement with the ILO to this end.

However, factory owners have questioned the financing for the insurance scheme.
Labour ministry sources said they discussed the issue with the ILO. But the participation cost has not been finalised yet. Before signing the agreement, they will meet with the factory owners.
According to an ILO study, projected insurance costs will be $7.4million annually, of which, $6.5million for long term benefits and $0.9 million for administrative purposes.
The ILO said per worker insurance cost will be $2 on average annually.
According to sources, the ILO has taken an initiative to bring all workers under an umbrella to ensure their all benefits from insurance.
In an estimate by the ILO, the approximate cost will be 0.019% of the export earnings to implement this insurance facility. At present, RMG exporters are paying 0.03% of their export value to the central fund of the government.
The injury insurance scheme will initially run on short- and long-term, which will accommodate 150,000 workers from up to 100 factories under a pilot project.
ILO sources said brands and buyers have agreed to bear the initial cost, while factory owners will have to take responsibility after it is fully operational.
Talking to The Business Standard, with no capacity to bear the additional cost, the industry owners urged to onboard the buyers on the insurance scheme as they are providing a portion of profits to the central fund for workers and the workers' welfare fund.
Industry sources said the Garman government and the ILO have long been advocating for introducing the employment insurance scheme facility for RMG, shrimp and leather workers. They arranged visits for some government officials and apparel industry representatives to some countries, such as South Korea, Malaysia, Vietnam and Cambodia where the injury insurance facility is available.
"We have found the insurance facility in South Korea, run by an independent authority. There are hospitals for workers too," said Rafiqul Islam, additional secretary to the Bangladesh Garment Manufacturers and Exporters Association, who visited South Korea.
But the country has no welfare fund like in Bangladesh, and their entrepreneurs do not take responsibility for providing benefits to their injured workers and heirs of dead workers.

Industry people commented that the injury insurance might run under the central fund in Bangladesh.
"If the government introduces an injury insurance policy, it must take an initiative to onboard buyers on it. Otherwise, it will put additional pressure on us," said Mohammed Hatem, first vice- president of the Bangladesh Knitwear Manufacturers and Exporters Association, who is working on the issue from the very beginning.

He has also visited Malaysia, Cambodia and South Korea to observe the benefits of the insurance policy. Hatem said, "Our central fund has already accommodated such insurance benefits for workers."

However, the ILO said death benefits that workers in Bangladesh get is a very lump sum amount.
According to the labour ministry sources, from the central fund, a garment worker or their heirs will get Tk3 lakh in case of death or grave injuries at workplaces. In case of illness or injury that renders them disabled or death outside workplaces, a worker or their beneficiaries will get Tk2 lakh.
A worker will receive Tk1 lakh if they face any workplace injury, which causes mutilation but not a permanent disability, the sources added.

Besides, the children of workers will get Tk20,000 in stipend if they manage a cumulative grade point average of 4.5 and above in the secondary school certificate examinations.
Female workers are entitled to get Tk25,000 as maternity benefit from the fund.
Labour leader Serajul Islam Rony said after the Rana Plaza tragedy, the introduction of such injury insurance in Bangladesh has become more important.
Brands and buyers should contribute to workers' wellbeing as they also take benefits from those workers not only from factory owners, he also said.
"An independent body should be formed with the participation of representatives from government, brands, entrepreneurs and workers," Serajul added.