“It was important to get commuting accidents included in the injury scheme. If any incident happens, it must be compensated for,” said Towhidur Rahman, IndustriALL Bangladesh Council’s representative on the EIS Board.

More than 50 brands have committed to the EIS pilot, making voluntary top-up payments equating to just 0.019% of their Bangladesh export value. This small contribution ensures decent protections for supply chain workers and mitigates legal risks from emerging due diligence legislation.

“We urge brands and retailers to continue their financial contributions to the scheme as part of their responsibility for the workers in their supply chains,” added Christina Hajagos-Clausen, IndustriALL’s textile director. She emphasized the importance of brands participating in the EIS pilot, noting, “This time-bound, bridging solution addresses a pressing need in the RMG sector. Although social protection is a government function, the shared responsibility of other stakeholders has been, and will be, crucial to the initiative’s success.”

Launched in 2022 by Bangladesh’s labour ministry and the ILO, the three-year EIS pilot provides medical treatment, rehabilitation services, and income protection for occupational injuries and illnesses. It covers export-oriented RMG factories from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association.

The pilot has two components: data gathering on accidents and diseases for capacity building, and a risk-sharing program providing ILO-compliant compensation for permanent disability or death in the export RMG sector.

In 2023, global fashion brands and retailers were informed of expected price increases on readymade clothing sourced from Bangladesh following official directives for factories to raise worker wages to TK12,500 ($114) per month, marking the first wage hike in five years.