Home Apparel B’desh garment factories to get funds for workers’ residences

B’desh garment factories to get funds for workers’ residences

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‘It is a good start, which is necessary for the sector. I think it will give a better living opportunity for the workers’ A total of 13 apparel manufacturers have recently got approval from Bangladesh Bank for low-cost funds to construct dormitories for their workers in order to provide them with better living facilities, said a BGMEA high official. According to an agreement signed between Bangladesh Bank and Bangladesh Garment Manufactures and Exporters Association, the central bank will provide loans at 1.5% interest. The loan will be repaid in 15 years. Of the construction cost, BB will provide 60%, which would be calculated on the basis of land price and construction cost. If the land prices amount to 40% of the total cost, the factory owners would not have to pay any amount while Bangladesh Bank will pay the full construction cost. The dormitories have to be built on the land owned by the factory owners. “Currently, RMG workers are living near their workplaces. Providing them with transport facility to bring them to workstations is time-consuming and expensive. The housing will give the workers a better living solution as it will incorporate sanitation and other living facilities,” Shah Golam Rahman Biplob, general manager (Finance) of Horizon Fashion Limited, told the Dhaka Tribune. He said his factory has got the approval of low cost loan. It will definitely increase workers’ productivity as they will be able to easily turn up at their workplace, even walking down the way, besides reducing workers’ migration from one factory to another, a common scenario witnessed in the RMG industry, said Biplob. “It is a good start, which is necessary for the sector. I think it will give a better living opportunity for the workers,” BGMEA Vice-President Mahmud Hasan Khan Babu told the Dhaka Tribune. He urged the government to allocate more funds for the sector so that each and every factory owner can erect hostel for their workers with the low-cost fund. “It is a good initiative for the apparel workers as housing is a big problem for them because they have to spend a lion’s share of their wages on house rent,” Nazma Akter, president of Sommilito Garments Sramik Federation, told the Dhaka Tribune. The facilities should be free of cost, and if not possible, there should be a minimal charge, suggested Nazma. But the housing facilities should be entitled not only to the single workers but also those living with their family members, she said. The dormitory must include all the facilities including entertainment, eduction for children and healthcare, Nazma said, urging the authorities to ensure safety and take measures to avert untoward incidents. According to the BGMEA, the $28 billion RMG industry employs 40 lakh workers, of which 80% are women, mostly from rural areas. According to trade union leaders, workers have to spend about 25% of their wages on house rent. Now, they are compelled to live in unhygienic slums or in houses far away from their factories. The single male and female workers find it hard to rent a house while the cost is higher for them. Most of the single workers live sharing their rooms with their fellow colleagues to minimise cost.