Employees protected from rising cost of food

Bangladeshi garment makers are to sell food at a discount to employees to cushion them against rising food prices caused by last year’s bad weather and a global rice shortage.

The decision follows protests by about 20,000 workers demanding pay increases and assistance with soaring rice prices.

Under the scheme, being introduced by the Bangladesh Knitwear Manufacturers’ and Exporters’ Association, every worker will be offered four kilograms of rice a week from participating stores at a 30 per cent discount. Up to 200,000 workers are expected to benefit in a country where most households are estimated to spend almost 70 per cent of their income on food.

Garment factories, supplying retailers such as Carrefour, Tesco and Wal-Mart, account for 74 per cent of Bangladesh’s exports, bringing $9billion (£4.54bn) into the economy last year.