Union leaders in Bangladesh’s garment sector have urged the government to establish an emergency fund to support laid-off workers. They are highlighting the plight of over 40,000 workers from 16 Beximco factories who were terminated amid financial struggles.

At a meeting with the Labour Reform Commission in Dhaka, leaders emphasized that such a fund, jointly financed by the government and factory owners, is essential as uncertainty over service benefits looms large for workers laid off during economic downturns.

The leaders criticized the central fund’s ineffectiveness in addressing workers’ welfare, which was created in 2016 with contributions of 0.03% of export proceeds from apparel makers. They also called for labor law reforms to ensure timely payments, job security for union members, better working conditions, and a rationing system.

Labour Reform Commission Chairman Syed Sultan Uddin Ahmed acknowledged the concerns and emphasized the need for reforms to protect workers’ rights. The commission is conducting 60 meetings with various sectors to draft recommendations for legal protections and a national minimum wage.

Ahmed warned against opportunistic layoffs by factory owners seeking loan waivers and stressed the importance of maintaining operational factories. Union leaders reiterated the urgency of addressing workers’ financial insecurity, especially as factory closures in the current economic climate may increase.