The government has moved to form the central fund for the readymade garment sector with contributions from owners, buyers, government and other sources as stipulated in the amended labour act for the export-oriented sectors. As per the amended labour act, formation of sector-wise central fund is mandatory for 100 per cent export-oriented industrial sectors or for any industry which has made its investment only in foreign currencies. The labour ministry on March 27 formed a 10-member board to set up the fund, determine contributions and their realisation procedure and provisions for utilisations of the money for welfare of beneficiaries in the RMG sector. According to the labour rules that came into effect on September 15, 2015, the export-oriented factories would have to contribute 0.03 per cent of their freight on board price to the fund while the contributions from the government and buyers would be voluntary.State minister for labour Mujibul Haque has been made chairman (ex-officio) of the board while labour secretary Mikail Shipar and Bangladesh Garment Manufacturers and Exporters Association president Siddiqur Rahman vice-chairmen (ex-officio). The members of the board are Bangladesh Knitwear Manufacturers and Exporters Association president AKM Salim Osman, BGMEA vice-presidents Mohammad Nasir and Mahmud Hassan Khan, Jatio Sramik League president Shukkur Mahmud, Combined Garment Workers Federation president Nazma Akter and Garments Tailors Workers League secretary Badrudozza Nizam. As per the rules, there was an obligation to form the sector-wise central fund within six months of the formulation of rules. According to the rules, the lien banks of the export-oriented companies would pay the amount to the fund as automatic claim over the FoB prices that would come in bank’s possession. ‘At first, we have formed executive board for the RMG sector as the sector is the highest export earner. The executive board for other sectors will be formed gradually,’ labour secretary Mikail Shipar told New Age on Thursday. He said that the first meeting of the board would be held soon and they would send a letter to Bangladesh Bank requesting the central bank to open bank accounts for maintaining the fund. There would be two bank accounts for the fund –– one will be beneficiary account and the other will be contingency account. The money would be deposited equally in the two accounts as per the rules.Grants for workers or their family members would be taken from the beneficiary account while amount deposited in the contingency account would be used to meet the dues of workers of any closed factory if its owner is unable to pay the workers. According to the labour rules, the premium of group insurance and health insurance would be paid from the contingency account.
