Developing a national employment injury insurance (EII) scheme for the Bangladesh ready-made garment sector

The project builds on the lessons from the Rana Plaza Compensation Arrangement which had to be organised on an ad hoc basis to look after the dire needs for income support and access to medical and rehabilitation services for victims.

It is not realistic or beneficial to repeat such a complex ad hoc exercise whenever accidents occur. ILO is therefore working with the government of Bangladesh to establish a permanent national employment injury insurance (EII) scheme, initially for the Bangladesh Ready Made Garment (RMG) sector.

Such a scheme would see workers receive compensation and medical and rehabilitation services in the event of an accident. Employers benefit by having risk from accidents spread across all RMG enterprises. An EII scheme would also enhance the reputation of the industry with foreign buyers.

Initially, as noted, it will be sought to establish an EII scheme for the RMG Sector. The project intends to support the adoption of a national and institutional legal framework and the establishment of the new public administration capacity that will extend coverage gradually to wage earners in the whole of Bangladesh. Specifically, the project foresees three distinct outcomes as follows:

(1) a sound legal framework for Bangladesh EII scheme is developed,
(2) a sustainable, affordable and self-financed EII scheme is designed, and
(3) a competent EII administrative capacity is built up.