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Productivity in govt factories low for a lack of skilled employees
Experts have recommended taking prudent steps to control pollution and accelerate efforts to mitigate climate change (CC) impacts, as a recent global report said Bangladesh is losing about US$6.0 billion due to lower labor productivity.
A US-based organization – The Adrienne Arsht-Rockefeller Foundation Resilience Centre (Arsht-Rock) – in the report also said the loss is estimated to be more than 8.0pc of its annual labor output.
This could increase to 10pc by 2050 if immediate initiatives are not taken, it stated.
The report – ‘Hot Cities, Chilled Economies – Dhaka, Bangladesh’ – assessed the social and economic impact of extreme heat in 12 cities around the world, including Dhaka.
It revealed that the labor productivity of the people in Dhaka is affected more than in any other city due to extreme heat.
Other affected cities, such as Abu Dhabi and Bangkok, are more exposed to heat stress, while Dhaka is unusually vulnerable to its effects, due to its labor-intensive economy and low rate of active cooling, according to the report.
Worker protection projects, such as the Red Cross/Red Crescent’s FbF solution, can be scaled up to provide broad-based social insurance against extreme heat for vulnerable workers.
The report also suggested investment in the built environment and nature-based solutions.
Talking to The Financial Express, Professor of Chemistry Department at Dhaka University Abdus Salam observed that both global warming and local pollutions, mainly caused by manufacturing and transport sectors, and brick making are mostly responsible for the extreme heat and temperature.
The government should take immediate action to curb all sorts of pollution in this regard. Though the country is enacting laws and taking some actions, the higher focus should be on enforcement and execution, he pointed out.
Professor Salam also said Bangladesh should look for ways to use environment-friendly sulfur fuel to a great extent to curb pollution.
He underlined the need for using eco-friendly electric vehicles and alternative fuels to reap better benefits.
Apart from Dhaka, the 11 other assessed cities were – Athens (Greece), Bangkok (Thailand), Buenos Aires (Argentina), Freetown (Sierra Leone), London (United Kingdom), Los Angeles (United States), Miami (United States), Monterrey (Mexico), New Delhi (India), Santiago (Chile), and Sydney (Australia).
The average loss across the 12 cities was $44 billion in 2020. If measures are not taken to reduce the temperature, this loss could reach $84 billion by 2050, it said.
Agreeing with the report findings, Sharif Jamil, General Secretary of Bangladesh Poribesh An-dolon (environment movement), suggested changing the mindset of policymakers right at this moment after recognizing economic and public health impacts.
He urged the government to collaborate and coordinate with the stakeholders concerned, including technical experts, while enacting new policies and laws to reap better benefits from them.
These losses capture only direct impacts on output, but the lost wages and output also have indirect effects on the wider economy, as overall spending declines and affects the economic activities that are not exposed to heat, as per the Arsht-Rock report.
Low-income workers are especially exposed to heat – in sectors such as garment manufacturing, transport, and retail trade, and the losses already amount to around 10pc of income.
The report also stated that the losses are expected to be concentrated in sectors – such as manufacturing and logistics, which already lost $1.5 billion (BDT 132 billion, or 9.0pc of sectoral output) and $1.8 billion (BDT 158 billion or 10pc of sectoral output), respectively.
Losses in manufacturing are likely to be particularly high in sectors such as garment manufacturing or brick making, where proximity to machinery or ovens increases the temperature to which workers are exposed, the report added.
In light of the current situation, Bangladesh Bank has mandated that all banks and financial institutions refrain from charging additional fees for late payments of credit card bills and loan installments.
The central bank issued this directive through two separate notifications on Wednesday, providing a significant relief measure to the financially burdened.
Borrowers and credit card holders who were required to make payments during the curfew and public holidays now have until July 31 to settle their dues. Bangladesh Bank has explicitly stated that banks and financial institutions are prohibited from imposing any extra interest, penalties, or late fees for installments or credit card bills due between July 18 and 25. Furthermore, no savings schemes shall be canceled for non-payment of installments during this period.
The central bank’s notification acknowledges that many borrowers and credit card users have struggled to meet their payment deadlines due to the prevailing circumstances.
Additionally, numerous depositors have been unable to make timely deposits into various savings schemes, including the Deposit Pension Scheme (DPS). To address these challenges, the new guidelines will be in effect from July 18 to 25, covering dues on loans, credit card bills, and savings scheme installments.
According to the directive, if the outstanding loan and credit card payments are settled by July 31, any accrued interest, penalty interest, additional interest, excess profit, or late fees will be waived. Similarly, if savings scheme installments are paid by July 31, no late fees or penalties will be imposed.
Moreover, any interest, penalty, or late fee already collected on loans, credit cards, or savings schemes must be refunded or adjusted, as per the Bangladesh Bank directive.
The Bangladesh Bank (BB) has announced an extension for the payment period against imports of industrial raw materials from 180 to 360 days, a measure now set to remain in place until December 2024. This policy, initially scheduled to end in June of this year, has been prolonged to facilitate trade transactions, according to a BB circular issued today.
“To support trade transactions, it has been decided to extend the policy support until December 31, 2024. The extended usance period will not apply to imports under EDF loans, as previously stipulated. All other relevant instructions remain unchanged,” the circular stated.
To ensure timely payment of salaries and bonuses to garment industry workers before Eid-ul-Azha, the branches of banks in key industrial areas will remain open on a limited basis on June 14, 15, and 16.
The Bangladesh Bank (BB) issued a notification stating that bank branches in Dhaka metropolitan, Ashulia, Tongi, Gazipur, Savar, Bhaluka, and Narayanganj will operate on these days to facilitate financial transactions for garment sector employees.
Typically, Friday and Saturday (June 14 and 15) are weekly holidays, and Sunday (June 16) will be closed for Eid. Despite these closures, the BB has mandated that banks in industrial regions stay open to manage the disbursement of wages and bonuses and facilitate the sale of export bills.
Additionally, bank branches in Chattogram metropolitan and industrial areas will also be open to support garment workers’ payments and the processing of export bills.
The BB has instructed banks to coordinate with local authorities to ensure adequate security at the branches during this period.
Eid-ul-Azha, one of the most significant religious festivals for Muslims, will be celebrated in Bangladesh on June 17.
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