Workers, employers wary of RMG pension plan

Staff Reporter :

Nearly 99 per cent of surveyed RMG workers expressed disinterest in the Universal Pension Scheme (UPS), primarily due to financial constraints, according to a recent study.

The majority – 90.6 per cent – cited financial difficulties as the main reason, while 6.7 per cent raised concerns about the scheme’s long-term sustainability. Additionally, 2.7 per cent of workers were found to be unaware of the UPS, the study revealed.

The research found that only 1.3 per cent of surveyed workers have enrolled in the garment sector pension scheme, Progoti, which was introduced in August 2023. The survey was conducted by Md. Monirul Islam, Deputy Director of the Bangladesh Institute of Labour Studies (BILS).

Supported by the Netherlands-based organisation Mondiaal FNV, BILS is implementing a project titled “Ensuring Decent Work in the Ready-Made Garment (RMG) Sector through Social Dialogue.”

As part of this initiative, BILS conducted a study between September and December 2024 titled “Universal Pension Scheme: Exploration of Potential Scopes for RMG Workers’ Social Protection in Bangladesh.” The findings, based on a survey of 200 garment workers, were presented by Monirul Islam at an event held on Monday at Srama Bhaban in Dhaka.

The government has introduced four types of Universal Pension Schemes, among which the Progoti scheme allows for the inclusion of RMG workers. Under this scheme, contributions are shared equally, with 50 per cent paid by workers and 50 per cent by employers.

The study focused on the RMG sector with key objectives, including evaluating the government-declared Universal Pension Scheme (UPS) in Bangladesh. It also analysed the potential benefits, structure, and mechanisms of the scheme to ensure social protection for RMG workers while identifying existing gaps.

Additionally, the study reviewed national and international policies and best practices regarding employer contributions to social protection for garment workers. It proposed reducing the minimum premium amount and making it mandatory for factory owners to participate in the scheme.

Abul Kalam Azad, Joint Secretary of the Bangladesh Trade Union Centre (UTC), questioned employer reliability, stating: “When employers themselves are becoming bank defaulters, how can workers have confidence in them? There is a fundamental issue of trust.”

Saidur Rahman, Deputy Secretary of the Labour Ministry, acknowledged the lack of job security in Bangladesh and suggested that the UPS could help address this issue. “We should provide support to make it popular among workers,” he added.

Sakiun Nahar Begum, Additional Secretary of the Department of Labour, noted that over 70 per cent of workers are unwilling to participate due to a lack of trust.

“I don’t think there is any evidence to suggest that this is the outcome of a government study,” she said, emphasising the need to identify gaps that could be addressed in the future.