Researsh & Study
Timeline: 2020
Exports and remittances have historically driven Bangladesh’s growth. The leather and leather goods sector, contributing about 4% to exports and 0.5% to GDP in 2019. However, the COVID-19 pandemic has severely disrupted global trade, impact on the leather sector has been particularly harsh, with export cancellations and significant financial losses. Bangladesh has implemented lockdowns, crippling businesses and the workforce in leather sector during covid-19. The economic consequences include halted global supply chains, stalled economic activities, declines in remittance inflows, export earnings, and industrial production. The leather sector has been especially hard hit, with exports to China-its largest market plummeting. The Bangladesh Tanners Association reports financial losses exceeding USD 300 million, with many export orders canceled and finished goods languishing in storage. Most tanneries lack adequate storage, exacerbating the crisis. The sector, which earned $1 billion last fiscal year, faces potential shutdowns and mass job losses without immediate government intervention. Amid this crisis, workers are exploring alternative livelihoods, underscoring the urgent need for support.
Objectives: The objectives of these series analysis are to explore the experience of the Tannery Industry in Bangladesh due to the pandemic. Parallelly, it also intends to explore the socio-economic consequences of the Tannery Workers amidst the COVID 19 crisis and so on.
Methodology: This study collected data from desk reviews, online-based observations, content analysis, and telephone interviews with key informants. We have conducted telephone interviews with both male-female, temporary-permanent workers from Tannery Industry from in Savar. Additionally telephonic conversations were also taken place with all relevant stakeholders.
Findings: Tannery Industries in Bangladesh resumed operations on May 2020. Despite challenges, majority of permanent workers have returned to work, while smaller factories have resumed with temporary workers. However, a significant number of temporary workers have yet to return, facing uncertainty regarding job security due to potential losses in both domestic and international markets. Though associations are lobbying for government grants to support worker salaries, many workers, especially temporary ones, await payment confirmation, exacerbating financial insecurity. Despite government incentives, owners express reliance on these grants to meet payroll obligations. Safety measures in factories are lacking, posing a significant risk of COVID-19 transmission. Workers and their families are grappling with food shortages, prompting some to seek alternative employment.
Recommendations:
- Simplify access to finance for the Tannery Owners in the government declared stimulus fund for worker wage and Ensure wages for the workers who joined and who are still to join.
- Ensure proper safety measures for all employees including the workers in and outside of the factories and dedicated medical team for instant medical support.
- Set up COVID-19 testing facilities for the Tannery Workers for immediate identifications and enhance TU role in monitoring and documentation of the implementation of various government provisions.
