The unanimous decision by the EIS Governance Board, comprising employers, government officials, and worker representatives, also agreed that around 75 workers who filed commuting accident claims since the pilot's June 2022 launch will have their claims compensated retroactively.
“It was important to get commuting accidents included in the injury scheme, if any incident happens then it must be compensated for,” said Towhidur Rahman, IndustriALL Bangladesh Council's representative on the EIS Board.
More than 50 brands have signed on to the EIS pilot, making voluntary top-up payments equating to just 0.019% of their Bangladesh export value – a small sum ensuring decent protections for supply chain workers and mitigating legal risks from emerging due diligence legislation.
“We urge brands and retailers to continue their financial contributions to the scheme as part of their responsibility for the workers in their supply chains,” added Christina Hajagos-Clausen, IndustriALL's textile director.
Hajagos-Clausen further explained how crucial it was for brands operating business in Bangladesh to join the EIS pilot. She added: “This time-bound, bridging solution addresses a pressing need in the RMG sector, and although social protection is a government function, the shared responsibility of other stakeholders has been, and will be, crucial to the initiative’s success.”
Launched in 2022 by Bangladesh's labour ministry and the ILO, the three-year EIS pilot provides medical treatment, rehabilitation services, and income protection for occupational injuries and illnesses.
It covers export-oriented RMG factories from two major manufacturing associations the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association.
The pilot has two components: data gathering on accidents/diseases for capacity building, and a risk-sharing programme providing ILO-compliant compensation for permanent disability or death across the export RMG sector.
In 2023, global fashion brands and retailers were told to expect to see increased prices on readymade clothing sourced from Bangladesh after factories received official direction to increase worker wages to TK12,500 ($114) a month, the first wage hike in five years.
