Govt, ILO, Germany to develop Employment Injury Insurance Scheme for Bangladesh

The government, the UN labour agency ILO and Germany together will develop an Employment Injury Insurance (EII) Scheme for Bangladesh.

Once implemented, workers would receive payment in case of injury while employers would benefit from low-cost and no-fault accident compensation insurance for workers.

ILO said a ‘Letter of Intent’ was signed on Tuesday in Dhaka.

Visiting German Economic Cooperation and Development Minister Gerd Müller, Labour and Employment Secretary Mikail Shipar, and ILO Country Director Srinivas Reddy signed the paper at a hotel.

Initially, the three signatories would work together on the design of a suitable EII scheme for the clothing industry.

Gerd Müller (Middle)

Legislative issues will be addressed and national institutional capacities to implement such a scheme will be developed.

In later stages, a pilot scheme will be launched before being scaled up to run nationwide and extended to other industrial sectors.

ILO said the experience of setting up a mechanism to deliver compensation in the aftermath of the Rana Plaza disaster highlighted the need for such a scheme to be established.
The concept was developed at a workshop in Dhaka in January this year.

Later, an ILO mission in May and June came to Dhaka to launch a feasibility study, the preliminary report of which has been completed.

In July, the government formally requested the ILO to directly coordinate any donor initiatives for establishment of an EII and to design a combined scheme for this purpose.

German development arm, GIZ, came forward.

“By joining hands with the ILO and Germany, our goal is to develop an Employment Injury Insurance Scheme that will benefit the lives of millions, support business and enhance the reputation of our industry worldwide,” Secretary Shipar was quoted as saying in the statement.

The ILO country director said such a universal scheme would benefit employees and employers alike.

“The support of Germany reflects the importance the international community places on developing social protection for workers and we encourage other partners to join us in this undertaking.”

Bangladesh’s main export industry, apparels, witnessed a series of initiatives by buyers and development partners for its workers rights and safety after the worst ever disaster of Rana Plaza building collapse in April 2013.