Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) has partnered with the Guardian Life Insurance Limited to provide affordable welfare and health-accident coverage for workers of its member factories.
In this connection, BKMEA and Guardian Life Insurance signed a memorandum of understanding (MoU) on Thursday at an event held at a city hotel.
Labour and Employment Minister Ariful Hoque Chowdhury was present at the signing event as the chief guest.
Labour Secretary Abdur Rahman Tarafder, Guardian Life Insurance's sponsor and patron Tapan Chowdhury its founding director Syed Nasim Manzur, chief executive officer Sheikh Rakibul Karim, BKMEA President Mohammad Hatem and Bangladesh Institute of Labour Studies Syed Sultan Uddin Ahmed, among others, spoke on the occasion.
Under the MoU, the workers will get substantial financial coverage for a minimal annual premium of only Tk 250 and enrolled workers are eligible for up to Tk 77,000 in financial and medical benefits.
The partnership aims to improve social safety nets, health security, and financial inclusion for low-income apparel sector workers in the country, it was learnt.
Speaking on the occasion, the minister said the government is working with the private sector to ensure healthcare, life insurance and overall welfare of workers.
He assured of taking quick decisions to reduce red tape and adopt a coordinated action plan with the relevant parties within this month.
Guardian Life Insurance founding director Syed Nasim Manzur said studies showed that productivity in factories can be increased by at least 10 per cent if congenial working environment, mental well-being and overall well-being of workers are ensured.
He said spending on the welfare of workers should not be seen as just an expense, rather it should be considered as investment.
After the LDC graduation, Bangladesh would not be able to compete in the global market as a 'country of cheap labour', rather it will be required to compete through enhancing productivity and skilled human resources.
He said the country's knitwear sector is not only limited to garment factories, but also the livelihood of about 12 million people depends on the entire ecosystem including spinning, knitting, dyeing and packaging.
Therefore, ensuring the welfare of workers in this sector is very important for the country's economy.
Citing the World Health Organization, he further said depression and mental health problems cost the global economy nearly a trillion dollars a year.
He also stressed the need for paying focus more on producing high-value products instead of increasing the production volume.
At present, the average price of Bangladesh's exportable garment products is about 40 per cent lower than that of Vietnam, which is unacceptable, he noted.
Referring to the crisis of public trust in the life insurance, he said: "Many people think that insurance companies do not pay claims on time even after taking premiums."
However, efforts are being made to restore that trust through transparency and speedy claim settlement, he added.
