European Union gives 100m for Bangladesh apparel worker wage support

EU countries will contribute more than 100 million euros to a Bangladeshi welfare program to aid thousands of garment workers hit by job losses and pay cuts during the coronavirus pandemic, officials said on Thursday, Reuters reports.

The EU is the biggest market for clothing made in Bangladesh, which saw billions of dollars in orders cancelled or put on hold as fashion brands shuttered stores earlier this year - taking a heavy toll on garment factory employees.

Under Bangladesh's new social protection program, workers in the garment, leather and footwear industries will initially be given monthly cash aid of 3,000 taka (US$35.30) for three months, an EU statement said.

Germany and the EU - which provided emergency aid to garment workers in Myanmar earlier this year - together pledged 113 million euros to the Bangladeshi scheme.

"By providing income support to workers in key export sectors who lost their job, (the) programme for unemployed and distressed workers responds to an immediate need to protect livelihoods," said Bangladesh's EU Ambassador Rensje Teerink.

Cancelled clothing orders have caused wage losses of up to US$5.8 billion among garment workers worldwide, according to pressure group Clean Clothes Campaign.