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Injury insurance scheme on the anvil for B'desh RMG sector
07
Oct '15
The International Labour Organization (ILO), Germany and the Government of Bangladesh will collaborate in the development of an Employment Injury Insurance (EII) Scheme for Bangladesh for the readymade garment (RMG) sector.

In a press release, the ILO said a Letter of Intent was signed in Dhaka on October 6 by Dr. Gerd Müller, Germany's Minister for Economic Cooperation and Development, Mikail Shipar, Secretary in the Ministry of Labour and Employment of Bangladesh and Srinivas Reddy, ILO Country Director for Bangladesh.

In the initial stages, the three signatories will work together on the design of a suitable EII scheme for the RMG sector. Legislative issues will be addressed and national institutional capacities to implement such a scheme developed. In later stages, a pilot scheme will be launched before being scaled up to run nationwide and extended to other industrial sectors.

“The Government of Bangladesh is committed to enhancing the safety and welfare of all workers in Bangladesh. By joining hands with the ILO and Germany our goal is to develop an Employment Injury Insurance Scheme that will benefit the lives of millions, support business and enhance the reputation of our industry worldwide,” Shipar said.

Srinivas Reddy, ILO Country Director for Bangladesh said, “A universal Employment Injury Insurance Scheme will benefit employees and employers alike. The support of Germany reflects the importance the international community places on developing social protection for workers and we encourage other partners to join us in this undertaking.”

ILO actively promotes policies and provides assistance to countries to help extend adequate levels of social protection to all members of society. The experience of setting up a mechanism to deliver compensation in the aftermath of the Rana Plaza tragedy highlighted the need for an Employment Injury Insurance (EII) Scheme to be established. Workers will receive payment in case of injury while employers will benefit from low-cost and no-fault accident compensation insurance for workers, the release said.

The ILO said an initial workshop was held in Dhaka in January 2015 to present the concept and principles of EII scheme to stakeholders. This was followed by an ILO mission to Dhaka in May and June 2015 to launch a feasibility study, the preliminary report of which has been completed. In July 2015, the Government formally requested the ILO Country Office in Bangladesh to directly coordinate any donor initiatives for establishment of an EII and to design a combined scheme for this purpose. As a result, ILO is cooperating closely with German organisations German Social Accident Insurance (DGUV) and GIZ in this regard. (SH)

 

Fibre2Fashion News Desk – India

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