TBT Desk: A recent survey has revealed that 99% of workers in Bangladesh's ready-made garment (RMG) sector are not interested in the universal pension scheme. The primary reason cited by 90.6% of respondents is financial constraints, while 6.7% believe the scheme is not a sustainable long-term solution. Additionally, 2.7% of workers admitted to having no knowledge of the scheme.
The survey findings were presented at a roundtable discussion organised by the Bangladesh Institute of Labour Studies (BILS) at the Labour Building in Dhaka on Monday. The survey was conducted by BILS Deputy Director Md Monirul Islam as part of a project titled Ensuring Decent Work in the Ready-Made Garment (RMG) Sector through Social Dialogue, supported by the Netherlands-based organisation Mondiaal FNV. The survey, carried out between September and December 2024, aimed to assess the feasibility of the universal pension scheme for RMG workers.
Findings indicate that since the scheme was introduced in August 2023, only 1.3% of garment workers have enrolled in it. The study also examined challenges in the RMG sector, the scheme's benefits, its structure, and the enrolment process.
The report proposed a model for implementing the universal pension scheme for garment workers, along with recommendations for a sustainable system.
Speaking at the roundtable, Razequzzaman Ratan, assistant general secretary of the Socialist Party of Bangladesh (BASOD), stated that financial capacity is the key issue. "Garment workers are struggling financially and do not have the luxury of thinking about their future," he said.
He added that if the proposed model is successfully implemented, a fund worth Tk 4,048 crore could be generated annually.
Advocate AKM Nasim emphasised the need for transparency in fund management, warning that without it, only fund managers would benefit while workers would remain disadvantaged. "A major concern is how interested workers are in this scheme. In some cases, nearly one-fifth of their wages might need to be contributed," he added.
To build workers' confidence, he suggested that the scheme initially be funded by contributions from both the government and employers.
Abul Kalam Azad, joint general secretary of the Bangladesh Trade Union Centre (TUC), questioned how workers could trust employers when many of them are defaulting on bank loans. "This is fundamentally a trust issue," he remarked.
Saedur Rahman, Deputy Secretary of the Ministry of Labour and Employment, acknowledged the lack of job security in Bangladesh and said that the universal pension scheme could help address this problem. "We need to support efforts to make this scheme more popular among workers," he stated.
Sakion Nahar Begum, additional secretary at the Ministry of Labour and Employment, pointed out that over 70% of workers are unwilling to participate due to a lack of trust. "I don't believe there is sufficient evidence to claim that this scheme is based on solid government data. We need to identify gaps and work on solutions," she said.
She also mentioned that despite multiple attempts, the European Union's post-COVID social protection fund for RMG workers remained unused due to a lack of proper documentation. Similarly, proper paperwork will be essential for the universal pension scheme.
The universal pension scheme consists of four categories: Probash - for expatriates; Pragati - for private sector employees; Suraksha - for informal sector workers; Samata - for underprivileged individuals. Garment sector workers are covered under the Pragati scheme.