Impact of COVID-19 on the Workers and Suppliers in Seafood Processing Industry

Sep 11, 2022 | Research Works

Introduction

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Background of the Study: In the world of work, the Covid-19 has brought unprecedented consequences in the lives of the working-class population. Along with the health consequences, the pandemic has immense implication for the economy of every country and the livelihood of millions of people, particularly for the working-class people. In response to the pandemic, various countries imposed ‘lockdown’, curfew; and issued a ‘stay-at-home’ order. The immediate and inseparable consequences of all these measures are job loss, unemployment and underemployment, and income loss. Both formal and informal sectors are bearing the impact of the pandemic, and the livelihood of workforces is now more vulnerable than ever before. An ILO report showed that almost 1.6 billion informal economy workers are significantly impacted by lockdown measures and/or working in the hardest-hit sectors (ILO, 2020). The report further informed a decline in the earnings of informal workers of 60 per cent globally in the first month of the crisis (ILO, 2020).

The Covid-19 has hit workers of the seafood processing industry (SPI) harshly. The SPI in Asia employed 58.3 million people worldwide in 2014, out of which 84% were Asians. The surge in SPI in Asia has been attributed to the abundant availability of cheap labour, land and other natural resources (FAO 2014). In Bangladesh, 80% of workers are women during peak season, and 70%-80% are hired as contract workers. Precarious working conditions are widespread in this sector, which has been more critical after the outbreak of the COVID-19 in 2020. The first Covid-19 positive case was identified on March 8th 2020. Following the surge in Covid-19 positive cases and the death toll, the government declared the closure of educational institution from March 17th. From March 26th, public holidays were declared, when public transports were shut down, and move from one district to another was restricted. The government declares lockdown/holidays/restriction continued until May 2020. The lockdown seriously affected both the workers and the suppliers in the SPI sector.

SPI is one of the export-earning sectors in Bangladesh. Decisions taken by the government to tackle/control the Covid-19 outbreak ultimately affected the manufacturing, service, and agriculture sectors employments. The workers and suppliers of SPI have experienced the impact severely. However, their condition is relatively less explored compared to the other export earning sectors in the country. The COVID-19 outbreak has already started to affect different sectors of the economy. Firstly, the immediate impact of the pandemic is the temporary shutdown of factories and businesses in an affected country; as a result, production declined. The pandemic has had a profound impact on the supply chain and demand for the apparel sector because of challenges of raw material source and cancelled orders. The apparel workers in Bangladesh Garments Industry are in the highest vulnerability situation due to the COVID-19. Due to the shortage of raw materials, the factory owners have to close down the factory. Moreover, global brands and retailers cancelled production orders and deferred the payment. As a result, the apparel workers have to go back to their house without any payment. Further, during the lockdown, a few factories continue their production without ensuring safety.

At the very outset of the pandemic in Bangladesh, the apparel sector attracted the immediate attention of the policymakers, bureaucrats, and Bangladesh’s media. The government declared supportive stimulus packages, the media published many reports, and several research/studies were also conducted to find the impact of COVID in the apparel industry and the workers of the industry. Nevertheless, both the workers and suppliers in the SPI sector have remained out of the center of attention. Initiatives to explore the impact of COVID-19 on the seafood processing industry, suppliers, and workers are largely absent. Clicks for Details: PDF