Innovision Consulting has released Digest 7, focusing on the Readymade Garments (RMG) sector. The impact of COVID-19 has been devastating for workers, who earn an average of BDT 11,632 and are almost entirely dependent on factory wages. With 80% of workers having no savings, the shutdown left millions in "grave danger." By early April 2020, at least 1 million workers had lost their jobs. Even with a US$588 million government stimulus package, workers were left with an average of only BDT 3,686 in cash, which was barely enough to cover family expenses for 16 days.
The survey highlights that 79% of RMG workers utilize mobile wallets, which became a critical tool when the government mandated digital wage payments to ensure stimulus transparency. Innovision’s research found that readymade garment workers reduced food expenditure by 27% to survive.
Innovision recommends a multi-pronged "Way Forward" that includes mandatory digital payments and a co-funded emergency savings scheme for garment workers. Furthermore, establishing COVID-19 testing booths within RMG clusters is essential to maintain a healthy workforce. By rethinking production and ensuring long-term financial security, the sector can recover its global standing despite the pandemic’s disruptions.
Read the full report here: Link
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