The central fund for the country’s readymade garment (RMG) sector will come into effect from July 1 with money received from each export receipt at 0.03 per cent, officials said. The disclosure came at the first meeting of the board of the fund that was formed last month determining contributions and their realisation procedure and provisions for utilisation of the money for welfare of beneficiaries in the RMG sector. State minister for labour Mujibul Haque presided over the meeting while labour secretary Mikail Shipar, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md Siddiqur Rahman and its vice presidents Mahmud Hasan Khan and Mohammed Nasir were present. President of Jatiya Sramik League Sukkur Mahmud, president of Sammilito Garment Sramik Federation Nazma Akter and general secretary of Garment Tailors Workers League Badrudozza Nizam were also present. The board was formed more than six months after the rules were published in line with a provision of the amended labour law 2013 that incorporated that sector-wise separate welfare funds would be established for the workers of the country’s export-oriented sectors. According to the labour rules that came into effect on September 15 last year, the export-oriented factories would have to contribute 0.03 per cent of their freight on board (FoB) price to the fund while the contributions from the government and buyers would be voluntary. “The ministry will send a letter to the central bank shortly requesting it to take necessary measures in this connection,” a meeting source said. There would be two bank accounts for the fund — beneficiary and contingency – where the money would be deposited equally. 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. The meeting also emphasised the formation of the workers’ database through BGMEA and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), sources said.
