Twenty-five per cent of garment factories that received loans from the taxpayer-backed stimulus package retrenched workers in a breach of conditions. A study conducted by Centre for Policy Dialogue (CPD) revealed that the downsizing indicates that the stimulus package could not guarantee jobs of workers. The government has allocated Tk 10,500 crore to the garment industry as stimulus package to help them pay wages and allowances to their workers since the crisis hit the country in March last year.
The impact of Covid-19 was comparatively higher on the workers who lost jobs and remained unemployed. In case of job loss, 59 per cent of the workers received salary only, while 18 per cent got nothing from their employers. Unemployed workers tried to survive by engaging in different temporary and low-paid jobs. Only a fifth of the unemployed workers received a limited amount of support from the government and NGOs. Unemployed female workers received less support from the government and NGOs. A lack of proper planning in the disbursement of support deprived the female unemployed more. In the absence of unemployment insurance, cash and kind support helped the unemployed to survive. But such supports are inadequate for workers to survive for a longer period. The study found that the average income of workers declined by 37 per cent. It was 39.9 per cent for the unemployed female workers. The decline in household income for employed workers was 0.7 per cent.
Borrowings rose for 53 per cent unemployed workers, compared to 37 per cent employed workers. Sixty per cent of workers sold assets or used savings despite retaining jobs, while 88 per cent borrowed from others and cut expenditures. The situation is worse for the unemployed workers. The government and corporates should come up with support for the workers and generate new employment in this second wave of Coronavirus and its multifaceted impacts.
