Impact of COVID-19 on the Workers of the Leather Tanning Industry of Bangladesh
Summary
COVID-19 has been causing unprecedented disruptions by affecting both production and trade of goods around the world. Like all the other manufacturing sectors of Bangladesh, production and employment in the leather tanning industry has been affected by the advent of COVID-19 since March 2020. It is worth noting that the leather production and export, due to various bottlenecks, had already been showing negative signs of growth after the relocation of tanneries from Hazaribagh to Savar in early 2017. Hence, the government’s order for the shutdown of all businesses on 26 March 2020 to contain the COVID-19 pandemic nationally and the simultaneous crisis in the global economy has allegedly worsened the conditions of the leather tanning business in Bangladesh. On this backdrop, this study seeks to examine the impact of COVID-19 pandemic on the lives and livelihoods of the tannery workers by taking an explorative approach.
Given the worrying scenario of the leather tanning industry since COVID-19 has unleashed more pressure on the tanning business on top of the post-relocation challenges, the tannery owners have asked for leather sector specific extensive financial support from the government. Most of the tanneries could not avail the benefits of stimulus package for not fulfilling the conditions set by the government following Bank- Client relationship. Hence, leather sector specific new financial support at subsidized interest rate and exemption of the interest rate on the bank loans since early 2017 to late 2021 can be helpful for most of the tannery owners to resume operation in Savar. To fight with the compliance issues as well as with the COVID-19 pandemic, separate stimulus package for leather sector may help the tannery owners to invest on the environmental as well as social compliance at the tanneries. Moreover, technical support from the relevant government agencies to successfully operate and maintain the CETP in the TIE is also crucial for the growth of the industry. Furthermore, registration of the allocated land to the tannery owners in Savar and the clearance of the lands of older tanneries in Hazaribagh for further development need to be accomplished urgently so that the tannery owners can leverage the lands for bank loans.
For the tannery workers, on the other hand, several key issues related to the welfare of the tannery workers have remained unsolved for the last few years after the relocation of tanneries. The issues of accommodation, transportation, and medical facilities are some of the longstanding demands of the tannery workers which are yet to fulfilled. Implementation of the annual increment to the wages of tannery workers in this crucial time when the total income of the workers has decreased in many cases is crucial. Furthermore, ensuring formal job recruitment, retention, and termination along with the implementation of the minimum wage have now become more crucial for the welfare of tannery workers than ever.
Dialogue Event
On January 23, 2021, The Asia Foundation, in collaboration with the Research and Policy Integration for Development (RAPID) and Tannery Workers’ Union (TWU), organised a dialogue on ‘Impact of COVID-19 on the Workers of the Leather Tanning Industry in Bangladesh’. The event took place at the Economic Reporters’ Forum Auditorium. Begum Monnujan Sufian, Honourable State Minister, Ministry of Labour and Employment, was the Chief Guest of the event. She appreciated the rich discussion that took place during the dialogue and expressed her support to overcome the bottlenecks impeding the welfare of the workers in the leather tanning industry. She also mentioned that a comprehensive database of workers employed in the sector should be prepared immediately to devise appropriate policy responses targeting the beneficiaries. She urged the government officials, entrepreneurs, and tannery workers’ union to closely work together to address the challenges of the workers.
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