To assist export-oriented factory workers with foreign aid during any disaster a workers welfare fund is being set up. It is the first development partner assistance scheme in the history of the country.
The assistance scheme fund will be launched in collaboration with the European Union (EU).
Following EU's consent to form the fund in response to the government's proposal, work is now underway to develop a module or policy framework.
After Eid, Economic Relations Division (ERD) of Ministry of Finance, Ministry of Labor and EU Bangladesh Mission will meet.
Relevant sources have confirmed the matter.
The EU offered financial support to set up a fund in co-operation with garment workers affected by the coronavirus pandemic.
Disagreeing with the proposal, ERD proposed to bring workers from all export-oriented sectors under the fund. The EU agreed to ERD's proposal after repeated letters on the matter.
Work is now underway on the method by which the workers will be selected.
According to ERD sources, the EU's proposal was to set up a fund to pay three months' salary to garment workers who have been laid off in Covid-19. But now it will be applicable to all kinds of export-oriented industries.
However, it will be a one-time collaboration.
ERD EU Wing Chief and Additional Secretary Gouranga Chandra Mohanty said a meeting on the issue would be held in the first week of next month (August).
The government wanted to set up a Workers Welfare Fund, and EU agreed. Now a policy will be made in coordination with the Ministry of Labor. It will have details including labor selection system, he said.
Another ERD official, speaking on condition of anonymity, said it was a start. The financial assistance will be provided from this fund if the workers are affected in any disaster. ERD will try to add other organizations and countries to this fund.
On May 20, the EU Bangladesh Mission said in a statement that the EU would provide €334 million to Bangladesh as assistance in combating the Covid-19 epidemic.
Of this, €273 million will be spent on improving the socio-economic condition of the people.
Besides, €113 million will be spent for garment workers. Of this, €113 million, €20 million includes a grant from the German government.
But in the wake of the ERD's proposal, the amount of financial assistance has remained unchanged, but the type and scope of worker selection is increasing.
However, Bangladesh Trade Union Federation President Feizul Hakim has raised concern on how will concerned authorities find the workers who retrenched from their factories to provide EU allowances Scheme.
He also said there is a structural corruption lies in the state organization as a result actual workers do not the allowance.
Major portion those allowance goes to the corrupt civil servants, he said.
Contacting EU Bangladesh Mission on the issue, an official, who did not want to be named, said EU agreed to the Bangladesh government's proposal to set up such a fund. Now its proper implementation will be a landmark step for Bangladesh.
