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BJMC buys Tk 435cr savings tools to pay workers

Hasan Arif
05 Nov 2021 00:00:00 | Update: 05 Nov 2021 09:40:22
BJMC buys Tk 435cr savings tools to pay workers

Bangladesh Jute Mills Corporation (BJMC) has bought out from the government the savings certificates worth around Tk 435 crore entitled for the workers of jute mills that had their shutters down.

A 50 per cent of the amount of golden handshake was given to the laid off and retired workers in the form of savings instruments. The total number of workers that got the savings tools was 7,775.

Of the amount, Tk 112.38 crore has been spent on 2,118 workers of Bangladesh Jute Mills while Tk 104.61 crore on 1,881 workers of Hafiz Jute Mill, Tk 98.19 crore on 1,886 workers of UMC Jute Mill and Tk 119.58 crore on 1,890 workers of Amin Jute Mill.

Sources said there was no promise of support from the government for BJMC as the former witnessed a negative impact on revenue collection in the last fiscal year.

As a result, it was decided that half the golden handshake amount would be given in cash and the rest through savings certificates to the terminated and retired workers of the jute mill closed in 2020.

As per the decision of the government, the workers who were entitled to get not over Tk 2 lakh were paid in cash at a time.

The rest of the workers were paid 50 per cent in cash and the remaining 50 per cent in the form of profit-based savings tools every three months to ensure future livelihood.

With this, the government is relieved of some cash pressure; however, an 11 per cent interest rate has to be paid for savings certificates.

Considering the revenue situation, it is much comforting for the government.

Asked about the issue, Mohammad Abul Kalam, additional secretary (Administration) to the Ministry of Textiles and Jute, said as per the policy, 50 per cent of the cash was to be given along with the savings certificates, but there are some rules while giving away the savings certificates that caused a slight delay.