Press release
Launching of a web portal for eligible textile and garment sector employers to register and participate in a job retention programme
ADDIS ABABA, Ethiopia (ILO News) – Domestic textile and garment factories affected by the COVID-19 pandemic can now apply through a web portal to obtain wage subsidies for their workers in a job retention programme covering up to 45,000 workers.
ADDIS ABABA, Ethiopia (ILO News) – Domestic textile and garment factories affected by the COVID-19 pandemic can now apply through a web portal to obtain wage subsidies for their workers in a job retention programme covering up to 45,000 workers.
The Ministry of Labour and Social Affairs (MoLSA) today announced the launch of a web portal where eligible textile and garment sector employers can register to participate in a job retention programme.
The programme will provide short-term relief that will help retain workers, protect incomes, and support business continuity, as well as longer-term solutions by developing a sustainable social protection system.
Funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), and developed with technical support from the International Labour Organization (ILO), the US$4.5 million initiative was officially launched with MOLSA and social partners in February 2021.
“This online portal and the follow up system not only benefits textile and garment workers and factories, but also facilitates resource mobilization to support other sectors which are affected by COVID-19. The tripartite collaboration and social dialogue throughout the process will facilitate the development of a sustainable social protection mechanism to deal with similar crises in the future.” said Ergogie Tesfaye, Minister, Ministry of Labour and Social Affairs, FDRE.
The programme will last for up to 3 months, depending on budget available. Eligible factories will need to prove they can retain workers for the duration of the programme and for a subsequent three months. Workers will receive an initial one month of their net salary by the end of May, while their income taxes and social security contributions will be transferred directly to the tax authority and the Private Organizations Employees’ Social Security Agency (POESSA).
With ILO support, the programme has been developed in line with international social protection principles including national ownership, joint oversight by government, employers and workers as well as transparent and accountable administration. The web portal embodies these principles, providing a cost-effective, transparent, and rapid registration, claims, and delivery mechanism that can be adapted for future programmes.
“This programme will help to reduce the vulnerability of textile & garment factory workers and contribute to sustaining the livelihood of workers in this difficult time. It will also support the government of Ethiopia to develop a more complete and sustainable social protection system in order to deal with future crises. I am confident that the programme will provide an opportunity to learn how to establish an effective and resilient social protection system.” said Christof Weigelmeier, Deputy Head of Development Cooperation, German Embassy
Employers have been able to pre-register on the portal since March 27th, and will now be able to upload the necessary documents. A tripartite working group of government, employers’, and workers’ representatives will review applicants’ eligibility, together with the ILO.
The job retention programme will also build synergies with other ILO projects developing Ethiopia’s national social protection system. The COVID-19; Action in the Global Garment Industry and the Social Protection and Public Finance Management programmes aim to provide long-term sustainable solutions through fostering social dialogue, strengthening administrative capacity, and costing an unemployment insurance system.
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* https://www.ilo.org/wcmsp5/groups/public/---africa/---ro-abidjan/---sro-addis_ababa/documents/publication/wcms_737627.pdf
The Ministry of Labour and Social Affairs (MoLSA) today announced the launch of a web portal where eligible textile and garment sector employers can register to participate in a job retention programme.
The programme will provide short-term relief that will help retain workers, protect incomes, and support business continuity, as well as longer-term solutions by developing a sustainable social protection system.
Funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), and developed with technical support from the International Labour Organization (ILO), the US$4.5 million initiative was officially launched with MOLSA and social partners in February 2021.
“This online portal and the follow up system not only benefits textile and garment workers and factories, but also facilitates resource mobilization to support other sectors which are affected by COVID-19. The tripartite collaboration and social dialogue throughout the process will facilitate the development of a sustainable social protection mechanism to deal with similar crises in the future.” said Ergogie Tesfaye, Minister, Ministry of Labour and Social Affairs, FDRE.
The programme will last for up to 3 months, depending on budget available. Eligible factories will need to prove they can retain workers for the duration of the programme and for a subsequent three months. Workers will receive an initial one month of their net salary by the end of May, while their income taxes and social security contributions will be transferred directly to the tax authority and the Private Organizations Employees’ Social Security Agency (POESSA).
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| The Minister of Labour and Social Affairs and Representative of the German Embassy making a speech during the launch. Head table from Left to right, ILO Director, State Minister of MOLSA, Minister of MOLSA, Deputy of Confederation of Employers Associations, President of IFTLGWTU |
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The Ethiopian garment sector employs some 62,000 workers*, of whom over 60 per cent are women. It has been hit hard by the COVID-19 pandemic with many factories scaling back production, releasing staff and in some cases closing their doors.
With ILO support, the programme has been developed in line with international social protection principles including national ownership, joint oversight by government, employers and workers as well as transparent and accountable administration. The web portal embodies these principles, providing a cost-effective, transparent, and rapid registration, claims, and delivery mechanism that can be adapted for future programmes.
“This programme will help to reduce the vulnerability of textile & garment factory workers and contribute to sustaining the livelihood of workers in this difficult time. It will also support the government of Ethiopia to develop a more complete and sustainable social protection system in order to deal with future crises. I am confident that the programme will provide an opportunity to learn how to establish an effective and resilient social protection system.” said Christof Weigelmeier, Deputy Head of Development Cooperation, German Embassy
Employers have been able to pre-register on the portal since March 27th, and will now be able to upload the necessary documents. A tripartite working group of government, employers’, and workers’ representatives will review applicants’ eligibility, together with the ILO.
The job retention programme will also build synergies with other ILO projects developing Ethiopia’s national social protection system. The COVID-19; Action in the Global Garment Industry and the Social Protection and Public Finance Management programmes aim to provide long-term sustainable solutions through fostering social dialogue, strengthening administrative capacity, and costing an unemployment insurance system.
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* https://www.ilo.org/wcmsp5/groups/public/---africa/---ro-abidjan/---sro-addis_ababa/documents/publication/wcms_737627.pdf