View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
November 30, 2021

Lao garment workers benefit from emergency Covid support

More than 20,000 garment workers Lao PDR affected by the Covid-19 pandemic have benefited from emergency income support worth about US$1.8m.

By Beth Wright

20,698 garment workers from 47 garment factories in Lao PDR each benefited from one-time cash transfers of LAK900,000 ($85) from March to October 2021 to help mitigate workers’ lost income and support business continuity while reducing employers’ staff turnover costs.

Free Report
img

How can brands navigate the post-COVID-19 Apparel market?

In 2021, the Global Apparel market remained at 3% below pre-pandemic levels, with Europe and LATAM lagging behind. If they want to see full recovery, brands must look ahead. GlobalData is therefore offering this free report, Future of the Apparel Market Post Pandemic, to assist companies in adapting to the future market. This report explores the following topics:
  • Latest forecasts for the online apparel market out to 2025
  • How different regions and categories will perform, including which regions are lagging behind and which are performing at pre-pandemic levels
  • Which categories within the Apparel market are displaying resilience
  • Which brands are driving online spending
  • Impact of inflation on the Global Apparel market
  • What the biggest trends are that apparel businesses must adopt to succeed
Read our report on the Future of the Apparel Market Post Pandemic to gain valuable insights on how to best position your brand in a post-COVID-19 world.
by GlobalData
Enter your details here to receive your free Report.

The German Federal Ministry for Economic Cooperation and Development (BMZ) funded the initiative, which was developed with technical support from the International Labour Organization (ILO).

It supported the government’s social protection response to the pandemic and provided cash assistance to workers in the garment sector, including those ineligible for government support due to not being registered with the Lao Social Security Organization (LSSO) or having paid contributions for less than 12 months.

“Thanks to the German government and ILO, we were able to provide much-needed income support to garment workers during this difficult time. The initiative has also helped strengthen our social security system payment mechanism, allowing us to transfer funds to beneficiaries who do not have bank accounts,” says Padeumphone Sonthany, vice minister of labour and social welfare.

The scheme was developed in line with international social security standards including national ownership, joint oversight by government, employers and workers as well as transparent and accountable administration. The Association of Lao Garment Industry (ALGI) and the Lao Federation of Trade Unions (LFT) were involved in its development and supported the scheme’s operation.

“We are pleased to see how this income support helped workers and businesses survive a difficult period. It is especially important that those not normally eligible for unemployment benefits were included and that every effort was made to ensure no one was left behind,” notes Graeme Buckley, director of ILO Country Office for Thailand, Cambodia and Lao PDR.

The initiative was implemented by ‘piggybacking’ on LSSO’s existing delivery systems, helping reduce administration costs and speed up delivery, whilst easing the financial strain on the national unemployment insurance scheme. New payment systems were piloted by LSSO, with electronic payments made via local mobile network operators, increasing financial inclusion for garment sector workers, especially those without bank accounts.

Support was also provided to the Association of the Lao Garment Industry to strengthen occupational safety and health performance in garment factories and dormitories in relation to Covid-19 infection prevention through on improving health and hygiene in factories, and dormitories, including capacity building for dormitory managers and OSH Committees.

The Lao PDR garment sector employs some 26,000 workers and was hit hard by the Covid-19 pandemic with many factories scaling back production, releasing staff and in some cases closing their doors.

News of the emergency income support initiative was first announced in February. 

 

Related Companies

Free Report
img

How can brands navigate the post-COVID-19 Apparel market?

In 2021, the Global Apparel market remained at 3% below pre-pandemic levels, with Europe and LATAM lagging behind. If they want to see full recovery, brands must look ahead. GlobalData is therefore offering this free report, Future of the Apparel Market Post Pandemic, to assist companies in adapting to the future market. This report explores the following topics:
  • Latest forecasts for the online apparel market out to 2025
  • How different regions and categories will perform, including which regions are lagging behind and which are performing at pre-pandemic levels
  • Which categories within the Apparel market are displaying resilience
  • Which brands are driving online spending
  • Impact of inflation on the Global Apparel market
  • What the biggest trends are that apparel businesses must adopt to succeed
Read our report on the Future of the Apparel Market Post Pandemic to gain valuable insights on how to best position your brand in a post-COVID-19 world.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Style