New Employment Injury Scheme Launched for Ship-Breaking Workers in Bangladesh
Workers in Bangladesh’s ship-breaking industry are set to benefit from a new Employment Injury Scheme (EIS) pilot program aimed at providing social protection. Launched on March 12, 2023, by the International Labour Organization (ILO) in collaboration with the Baltic and International Maritime Council (BIMCO), this initiative seeks to enhance the safety and rights of workers in one of the world’s most hazardous occupations. The scheme comes in response to the significant risks faced by ship-breaking workers, who are often exposed to toxic materials, heavy machinery, and the threat of falls, with limited recourse for those injured on the job.
The EIS pilot builds on the success of a similar program introduced in June 2022 for Bangladesh’s export-oriented ready-made garment industry. This earlier initiative provided lifelong financial support to injured workers and the families of those who died while working. The ship-breaking EIS aims to establish a fund that offers pensions and financial assistance to workers unable to work due to job-related injuries or illnesses. Ship owners sending vessels for recycling in Bangladesh can contribute $0.50 per light displacement tonnage by signing a Letter of Intent facilitated by BIMCO.
Strengthening Worker Rights and Safety Standards
The new EIS pilot complements the Hong Kong Convention, which sets global standards for safe and environmentally sound ship recycling. David Loosley, Secretary General and CEO of BIMCO, emphasized the importance of the scheme in closing the gap until a national employment injury insurance scheme becomes operational in Bangladesh. He stated, “Ship recycling is the most environmentally sound way of disposing of a ship when it reaches the end of its operational life. But it is a high-risk industry, so we strongly support closing the gap until the national employment injury insurance scheme is operational in Bangladesh.”
New Employment Injury Scheme Launched for Bangladesh’s Ship Recycling Workers
The EIS operates as a social insurance mechanism, pooling risks among industry participants. By contributing to the EIS, ship owners can ensure that workers and their families receive adequate compensation in the event of permanent injury or death, aligning with international labor standards. The scheme is currently voluntary and serves as a temporary measure while Bangladesh transitions from its existing employer-liability system to a national, wage-based employment injury insurance scheme, which is expected to become mandatory by July 2027.
BIMCO has urged its members to sign a letter of intent to support the EIS fund. Walton Pantland, Director of Organizing and Campaigns at IndustriALL, highlighted the dire conditions faced by ship-breaking workers, stating, “Shipbreaking is a difficult and dangerous work. It has left a terrible toll of death, injury, and occupational illnesses for the workers involved.” He called on ship owners to contribute to the EIS fund, emphasizing that the scheme provides essential social protection for workers and their families.
Zahirul Islam Rinku, former Vice President of the Bangladesh Ship Breakers and Recyclers Association, confirmed ongoing discussions with IndustriALL and other organizations regarding the scheme’s launch. He noted that the initial contributions from ship owners would ensure long-term support for workers in the event of workplace injuries and provide benefits for families in cases of death.
