Co-funded by the European Union

Bangladesh Employers’ Federation (BEF) Assessing the Impact of the Crisis

  • BEF published a study on possible scenarios, impact of COVID-19 and the consequences on the Bangladeshi labour market and economy.
  • BEF also produced an “Aide-Mémoire” to serve as a checklist for employers, managers, supervisors and workers when the factories reopen post COVID-19.   
  • On the basis of the study and the consequences on the Bangladeshi labour market and economy, BEF advocated for realistic assessment in support of enterprises and business to allow them to create jobs.

On 24 March 2020, Bangladesh Rating Agency Limited (BRAL) in collaboration with BEF published a “Possible scenarios and impact of COVID-19” study. It presents three possible scenarios of recovery (quick, delayed, prolonged), followed by an analysis of the consequences for the main sectors affected – the garment sector, leather, hotel and tourism and food industry. Recommendations are made for business to protect workers, keep liquidity and stabilise the supply chain.

The study highlighted that the “garment industry plays a significant role for Bangladesh economy be it for revenue earning or employment generation. Keeping this sector operating is critical from economic, business as well as social point of view”. It also highlighted that the Bangladeshi economy is “double trapped”, as it depends on Chinese activities for raw materials acquisition, as well as the western economies to export its production.

Due to the cancellation of orders up to March 2020 amounting to about USD $2.85 billion, BEF advocated for diverting technical assistance and cooperation programmes from the global institutions towards “fuelling economic vibrancy and stimulating employment for at least the next three years instead of utilising scarce resources in other less essential areas at this time of urgency”.

According to BEF Secretary-General, Farooq Ahmed, "sustainability of enterprises should be recognised as the topmost priority followed by reemployment of the retrenched workers due to COVID-19”.

He also emphasised that vital steps should be resumption of the supply chain, appropriate measures to increase consumer demand, promoting investment for employment creation, re-skilling of workers, especially returnee migrant workers, and introducing innovative measures for ensuring social protection for workers and employees. With this purpose, he highlighted how the “one size fits all” formula is not suitable, since “higher standards from more developed systems sought to be imposed may not help those who need help the most in these times of real crisis. The current need is to perhaps concentrate more on economic prescriptions”, “with realistic assessments, so that enterprises and businesses can create new jobs, make investments and offer opportunities for materialising the SDG goals”.

In addition, BEF and Metropolitan Chamber of Commerce and Industry (MCCI), jointly produced an ‘Aide-Memoire’, which formulates a set of helpful guidelines for various stakeholders’ employers, managers, supervisors, workers and employees to take as factories and industrial establishments reopen post COVID-19.