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Experts in Bangladesh suggest incentives for subcontract firms

Sep 22, 2021
Experts in Bangladesh suggest incentives for subcontract firms


Experts in Bangladesh have recommended plans to bring small and well-functioning ready-made garment (RMG) factories under the facilities of the government incentives. 

The speakers made the recommendation at the Media Cafe, organized by Shojag Coalition and Prothom Alo on Saturday. It was the third and final round of the virtual discussion session titled “Challenges of the Garment Industry in Coronation and Safety of Workers.” The Shojag coalition consists of five organisations - Naripokkho, Christian Aid, BRAC, Bangladesh Legal Aid and Services Trust (BLAST) and SNV.

The government gave special incentives for garment factories in two phases to offset the losses incurred by the Covid-19 pandemic. But small factories, which are basically run on a subcontract basis, did not get any incentive facility.  

As a result, the factory was closed without retrenchment of workers’ wages and other allowances. In order to protect the interests of the workers, experts recommended bringing the factories under the incentive facility.

The speakers at the program also demanded that information on how much incentive a factory has received needs to be made available to everyone on the website.

Professor of Economics at Dhaka University and Research Director of the South Asian Network for Economic Models (SANEM) Saima Haque Bidisha presented survey data at the program. She said that 52-53% of garment factories have received loans from the incentive package. But the factories working on contract remained out of incentives.

Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said that, there is no fear of workers losing their jobs at the time. He added that, Bangladesh is getting lots of purchase orders and that there were no allegations regarding the incentive money not reaching the workers. About the repayment instalments, he said that they already applied to the government asking for more time.  

Firoz Chowdhury, assistant editor of Prothom Alo conducted the online program.

Source: Dhaka Tribune

Image Source: Google Images

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