Corporate Accountability on Labour and Human Rights Case of Financial Stimulus Package Funds

Corporate Accountability on Labour and Human Rights
Case of Financial Stimulus Package Funds

Corporate accountability of the apparel sector enterprises of Bangladesh can be scrutinised based on their actions/inactions during COVID-19. The export-oriented apparel sector of Bangladesh has received various fiscal and monetary policy supports from the government to address the liquidity shortfall during the pandemic period. A number of relevant issues which could be examined in this regard include workers’ jobs, wage payments, entitled benefits, workplace safety and security and workers’ rights. One crucial policy support from the government has been the availability of a BDT 10,500 crore stimulus package for export-oriented sectors as subsidised credit to pay their workers’ wages. According to the latest available information, the package is almost utilised for providing credit to the apparel enterprises during April–July 2020. From the corporate accountability perspective, this stimulus package can be examined from a number of angles: (a) Has the credit support been fully utilised for workers’ wages? (b) Did the eligible and deserving enterprises avail the package support? (c) Did the credit support ensure workers’ wages as per the labour law? (d) Did enterprises availing the credit support adhere to the policy of not laying off workers? (e) Did the companies comply with the labour laws and rules in case of laying off or retrenchment of workers? (f) How did workers survive during COVID-19 with or without work, and what was the pandemic’s impact on workers’ livelihoods? (g) How did the female workers cope with the livelihood related challenges during the pandemic? and (h) Has there been any example of apparel enterprises initiating to address workers’ livelihood related challenges? Against this backdrop, the study examines the practice of accountability of the apparel enterprises of Bangladesh from the perspective of ensuring labour and human rights during this critical time. This research is the first of its kind which examines the crisis considering a rights-based approach in the context of the global apparel value chain operating in Bangladesh.

Authors: Khondaker Golam Moazzem and Tamim Ahmed

Publication period: December 2021

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