Central Fund for garment workers’ welfare in Bangladesh, established in 2016, is at risk due to a lack of transparency in how the funds have been handled, according to AHM Shafiquzzaman, secretary to the Ministry of Labour and Employment. Garment manufacturers contribute 0.03 percent of their export earnings to the fund, which has accumulated nearly Tk 1,000 crore. However, mismanagement and improper use of the funds may have contributed to recent unrest in the garment sector.
The fund was intended to support workers with medical expenses, education, and job loss, but has reportedly not been utilized effectively. Shafiquzzaman noted plans to amend the Labour Act 2006 and establish a new department to address employment challenges in the country. Additionally, he suggested improving worker rights and reducing discrimination between workers in export processing zones (EPZs) and those outside them.
During a debate organized by Debate for Democracy, suggestions were made to investigate potential outside instigators of the unrest and improve communication between workers and factory owners.
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