By Elishya Perera
DHAKA, Bangladesh (CWBN)_Germany and the European Union will contribute €113 million (US$137 million) to aid “unemployed, distressed workers” in the garments, leather goods and footwear industries of Bangladesh, who are affected by pay cuts and job losses owing to the pandemic.
Under the social security programme, Bangladeshi workers from the aforementioned industries will initially receive a monthly cash aid of 3,000 taka ($35.30) for three months.
“By providing income support to workers in key export sectors who lost their job, (the) programme for unemployed and distressed workers responds to an immediate need to protect livelihoods,” EU Ambassador to Bangladesh, Rensje Teerink, said.
The EU is the largest market for clothing exporters in Bangladesh, and the industry experienced billions in orders cancelled or put on hold amidst the pandemic, which took a heavy toll on the Asian country’s garment industry.
Accordingly, about 4 million people who are involved in Bangladesh’s garment sector sustained wage losses of up to $5.8 billion as a result of the cancelled orders.
The Bangladeshi government has been criticised for not having long-term state policies in place to protect workers. However, an official said the government intends to continue the social protection programme, even after the EU funding exhausts.
“This financial support is the first phase of the social safety programme. We have plans to continue this programme with other development partners and our own funding,” Mizanur Rahman from the Department of Labour said.