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CPD advocates for wage guarantee scheme and comprehensive labour reforms

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Centre for Policy Dialogue has proposed the introduction of a wage guarantee insurance scheme, alongside a series of short- and long-term labour reforms, to improve workers' livelihoods, workplace safety, and rights

Staff Correspondent

Publisted at 12:23 PM, Sun Jan 12th, 2025

The Centre for Policy Dialogue (CPD) has recommended the establishment of a government-backed wage guarantee insurance scheme to protect workers from wage non-payment.

"The scheme should be funded through employers' contributions, ensuring wage payment even in cases where employers fail to meet their obligations," said CPD Senior Research Associate Tamim Ahmed during a discussion titled "Reform in Workers' Livelihood, Workplace Safety, and Rights-Related Issues: An Agenda for the Interim Government," held at the CPD office on Sunday (12 January) in collaboration with Christian Aid.

Delivering the keynote address, Tamim Ahmed also proposed the development of sector-specific guidelines that would outline clear promotion pathways for workers in each sector.

CPD Research Director Dr Khondaker Golam Moazzem highlighted that these recommendations are not expected to be implemented immediately, but rather over a period of time.

He noted, "We are not saying these recommendations must be actualised within a year. This is a short-term, medium-term, and long-term process. However, we want this year to be declared 'Labour Reform Year' so that these reforms can be expedited. Ministries and organisations dealing with labour must coordinate effectively."

CPD outlined several key recommendations at the event, with a blend of short-term and long-term objectives.

In the short term, the CPD recommended integrating provisions for children's education into the minimum wage structure, ensuring that workers' families are not left behind.

On a national level, the think tank proposed a gradual shift towards establishing a national minimum wage that would apply across all industries, including those within the informal sector that remain outside the purview of the Minimum Wage Board (MWB) regulations.

Furthermore, the CPD advocated for the guarantee of minimum wages for all types of contract workers, including those temporarily hired through third-party agencies, with legal provisions to ensure compliance.

Another recommendation put forward by the CPD was to adjust minimum wage-related allowances, such as housing, as a percentage of the basic salary rather than a fixed sum, to ensure better alignment with inflation and cost of living changes.

For the long term, the CPD recommended that all industries, with a focus on those where trade union presence is limited, should be brought under the coverage of the MWB.

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