RMG owners least bothered to enforce the binding law
Sunday, 23 December 2012
Badrul Ahsan
Over 1200 export-oriented garment (RMG) factories of the country are running their operations without having any group insurance for their workers, bothering the least about the country's labour laws and posing threat to the lives of the said workers.
Industry leaders and the administration appear to be reluctant to bring the workers of these factories under insurance coverage.
According to the Compensation Act-2005, it is binding on the factory owners to bring all of their workers under group insurance coverage.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in a circular in 2005 made group insurance mandatory for all of its member-factories.
But till November 2012, only around 2200 garment factories out of its over 3400 active members have come under the insurance coverage, BGMEA statistics showed.
"The factories that will not comply with the circular would not be provided with any facilities such as issuance of UD and UT (certifications needed for export of RMGs under GSP facilities) from the association office," the BGMEA circular said.
BGMEA president Shafiul Islam Mohiuddin told the FE that the association does not have any special force to compel the factory owners to bring their workers under insurance coverage.
Mr Mohiuddin also said that the association has on several occasions requested the government to force the factory owners into bringing their workers under group insurance facilities, but it is yet to see any activities of the government on the issue.
"We have stopped issuing UD, UT and any other services to the non-compliant member-factories since we made it compulsory for them in 2005. Also, if any factory does not export apparel to the destinations where our certifications are needed, then we cannot do anything except requesting the government to compel them to introduce group insurance," Mr Mohiuddin added.
"If any incidence occurs, then all the parties including the government, politicians and labour organisations will blame us. But we can only be strict in providing facilities, and build awareness, but it is only the government which can impose the obligatory law."
However, an owner of a garment factory preferring anonymity, said as they did not need any certification from the BGMEA and no government agencies had also pushed them into accepting the provision of insurance coverage for their workers, they were reluctant to do that.
Under the group insurance policy, each of the garment workers is entitled to have Tk 1,00,000 and 1,25,000 respectively for their deaths or 'disabilities while at work'.
To bring the workers under the insurance coverage, every owner has to pay Tk 12,500 to Tk1,00,000 as yearly premium to the insurance companies depending on the number of workers.
However, a top official at the Chief Inspector of Factories and Establishment under the labour ministry said that due to shortage of manpower they can not visit factories and check whether the factories were running in accordance with the law of the land.
"We have only fifty-two inspectors against the requirement of over one thousand. So how can we check whether workers have been covered with insurance facilities and the other facilities are also ensured?," the official wondered.
He also said that his office has placed a proposal to the ministry concerned for recruitment of 2,300 staff in different categories for the relevant offices across the country with a view to ensuring that the factories are running in accordance with the labour laws and other prerequisites.
However, neither the minister nor the secretary of the labour ministry could be contacted despite several attempts to have their comments on the issue.
Over 1200 export-oriented garment (RMG) factories of the country are running their operations without having any group insurance for their workers, bothering the least about the country's labour laws and posing threat to the lives of the said workers.
Industry leaders and the administration appear to be reluctant to bring the workers of these factories under insurance coverage.
According to the Compensation Act-2005, it is binding on the factory owners to bring all of their workers under group insurance coverage.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) in a circular in 2005 made group insurance mandatory for all of its member-factories.
But till November 2012, only around 2200 garment factories out of its over 3400 active members have come under the insurance coverage, BGMEA statistics showed.
"The factories that will not comply with the circular would not be provided with any facilities such as issuance of UD and UT (certifications needed for export of RMGs under GSP facilities) from the association office," the BGMEA circular said.
BGMEA president Shafiul Islam Mohiuddin told the FE that the association does not have any special force to compel the factory owners to bring their workers under insurance coverage.
Mr Mohiuddin also said that the association has on several occasions requested the government to force the factory owners into bringing their workers under group insurance facilities, but it is yet to see any activities of the government on the issue.
"We have stopped issuing UD, UT and any other services to the non-compliant member-factories since we made it compulsory for them in 2005. Also, if any factory does not export apparel to the destinations where our certifications are needed, then we cannot do anything except requesting the government to compel them to introduce group insurance," Mr Mohiuddin added.
"If any incidence occurs, then all the parties including the government, politicians and labour organisations will blame us. But we can only be strict in providing facilities, and build awareness, but it is only the government which can impose the obligatory law."
However, an owner of a garment factory preferring anonymity, said as they did not need any certification from the BGMEA and no government agencies had also pushed them into accepting the provision of insurance coverage for their workers, they were reluctant to do that.
Under the group insurance policy, each of the garment workers is entitled to have Tk 1,00,000 and 1,25,000 respectively for their deaths or 'disabilities while at work'.
To bring the workers under the insurance coverage, every owner has to pay Tk 12,500 to Tk1,00,000 as yearly premium to the insurance companies depending on the number of workers.
However, a top official at the Chief Inspector of Factories and Establishment under the labour ministry said that due to shortage of manpower they can not visit factories and check whether the factories were running in accordance with the law of the land.
"We have only fifty-two inspectors against the requirement of over one thousand. So how can we check whether workers have been covered with insurance facilities and the other facilities are also ensured?," the official wondered.
He also said that his office has placed a proposal to the ministry concerned for recruitment of 2,300 staff in different categories for the relevant offices across the country with a view to ensuring that the factories are running in accordance with the labour laws and other prerequisites.
However, neither the minister nor the secretary of the labour ministry could be contacted despite several attempts to have their comments on the issue.