Garment owners again seek stimulus for workers salary


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Garment owners again seek stimulus for workers salary

Garments exporters again beg government support to continue pay workers wages for next three months although it has allegation of misuse previous package.

This time BGMEA along with BKMEA applied before the government for loan package with two-year repayment facility so that the factories can meet their  payment of workers’ salaries and allowances.

President of BGMEA Rubana Huq and BKMEA Salim Osman in a joint letter placed to the Finance Minister AHM Mostafa Kamal last week so that they can overcome the negative impact of coronavirus pandemic.

Meanwhile, the government earlier allocated Tk 5000 crore incentive package to RMG sectors but the factory owners retrenched many workers. This time the two association presidents in the letter not provided any assurance that there would be no firing of workers in the apparel industry. Besides, they haven’t mentioned the heads where they spent incentives money in the letter.

A large number of garment factories have shut down due to coronavirus pandemic during last couple of months.

In the plea the garment manufacturers claimed that work order worth $ 3 billion has been cancelled/suspended due to coronavirus pandemic which is also growing.

Besides, it said, the payment from existing shipments will not be made for next six to eight months. Local export-oriented garment industries are in deep financial crisis due to cancellation and suspension of work orders along with delay in payment of shipment of existing export items.

Letter also mentioned the many countries across the globe are providing different kinds of incentive packages to keep their export sector capacity during pandemic.

Finance division official in the immediate response, who didn’t want to be mentioned, said three is no option for any fresh incentives package within the next fiscal year budget waiting for approval from parliament.

We may consider to taking new incentives package in the revised budget, the official said.




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