Introduce wage insurance, children's education benefits for labour welfare: CPD

Key recommendations

• Gradually moving towards announcing a national minimum wage that will be temporarily applicable to all industries
• Incorporating provisions for children's education into the minimum wage structure
• Creating a sector-wise guideline on how a worker will be promoted against a certain grade
• Increasing basic wage
• Announcing a national minimum wage day officially and celebrate every year intending to increase awareness

The Centre for Policy Dialogue (CPD) has recommended introducing a wage guarantee insurance scheme by the government.

The insurance scheme should be formed with employers' contributions, which would ensure wage payment for the workers in case of failure to do so, said CPD Senior Research Associate Tamim Ahmed.

He put forward the proposal during a discussion titled "Reform in workers' livelihood, workplace safety and rights-related issues: An agenda for the interim government," organised at the CPD office today (12 January) in collaboration with Christian Aid.

Among the recommendations presented at the event, some were long-term, and some were short-term.

In the short term, CPD recommended incorporating provisions for children's education into the minimum wage structure.

On a national level, the CPD recommended gradually moving towards announcing a national minimum wage that will be temporarily applicable to all industries, including those of the informal sector and are still to be covered under minimum wage board (MWB) regulations.

CPD recommended making a major revision to all the sectoral minimum wages set more than 5 years ago within the next 1 year, prioritising the oldest one first. 

Minimum wages should be guaranteed for all types of contract-based workers, including those temporarily hired through third parties with legal provisions, said the think tank.

They also recommended setting all minimum wage structure allowances — such as the housing allowance — as a percentage of the basic salary rather than a fixed amount.

In the long term, all industries should be under the MWB coverage, prioritising sectors with a lower presence of trade unions, recommended CPD.

Some of the other recommendations include introducing a new legal provision requiring an additional amount to pay for each day's delay in wage payment, substantially raising the penalty for not paying the minimum wage, especially deliberately, repeatedly.

Also, they suggested making not paying overtime a punishable offence by law and making brands/buyers accountable in complying with national rules and regulations including those related to minimum wage and wage related payments and making it mandatory for DIFE to publish a wage implementation assessment report within four months of setting a new minimum wage, publicly disclosing non-compliant establishments' names.

Announce a national minimum wage day officially and celebrate every year intending to increase awareness, the think tank also said.

Regarding the payment method of salaries CPD suggested making it mandatory to wage and other financial benefits payment through formal and banking channel and/or MFS/DFS and enabling night banking services for workers near industrial zones.

National minimum wage for all

Tamim presented the keynote paper at the event, where they recommended introducing a national minimum wage for all. 

"There cannot be separate labour laws inside and outside the export processing zones [EPZ]. This is discrimination," he added.

He also proposed creating a sector-wise guideline on how a worker will be promoted against a certain grade.

Syed Sultan Uddin Ahmed, head of the Labour Reform Commission, said, "There are 8 crore workers in our country, 85% of whom are in the informal sector. However, they are not protected much.

"That is why we are also working with the workers in the informal sectors."

He said, "Even after 53 years of independence, it cannot be accepted that workers will take to the streets demanding wages and be shot to quell them. Why is there no talk, no discussion inside the factories?"

He also said universal pension scheme does not include hawkers, labourer and domestic workers.

"We are trying to form a proposal by including everyone by ensuring labour rights. It is essential that everyone has access to wage standards, social protection, and organisational rights. This will establish a fair share in a dynamic economy," he added.

CPD Research Director Dr Khondaker Golam Moazzem said, "We are not saying these recommendations must be actualised within a year. This is a short-term, medium-term and long-term process.

"But we want this year to be declared labour reform year so that these reforms are expedited. The ministries and organisations which deal with labour must work in a coordinated manner."

'Basic wage must be increased'

Taslima Akhter Lima, member of the Labour Reform Commission and president of the Labour Federation, said the Department of Labour and the Department of Inspection for Factories and Establishments have to be strengthened.

"The basic wage must be increased in the new wage structure. We have to make sure the labourers get a decent salary. Laws should be formulated to ensure the rights of life, livelihood and livelihood of workers," she added.

Farooq Ahmed, secretary general of the Bangladesh Employers' Federation (BEF), said, "We have a lack of negotiation and dialogue. As a result, instead of discussions at the table, there is agitation on the streets.

"We need to increase collective negotiations. In this regard, we have asked the government to follow the Malaysian model for the protection of workers. Because we can take lessons from those who have signed the ILO Convention," he added.

He also said the worker-employer relationship needs to be further improved. "We are committed to working on labour reform," he said.