Bangladesh workers must continue to wait for full compensation

BANGLADESH | 12-06-2013 |Eleven of the brands and retailers sourcing from the factories involved in the Tazreen and Rana Plaza disasters joined high-level compensation meetings, facilitated by the ILO as a neutral chair, on 11-12 September in Geneva. Many other major companies failed to attend, showing total contempt for the 1,900 workers who were injured and the families of over 1,200 workers who were killed making their products.

IndustriALL Global Union Assistant General Secretary Monika Kemperle stated: “Consumers will be shocked that almost a half-year has passed since the Rana Plaza disaster with only one brand so far providing any compensation to the disaster’s victims. I respect those brands that came to these meetings. But I cannot understand brands that are not around the table.”

Regarding Rana Plaza out of a total of 29 brands that were invited the following 9 brands showed good faith by attending the meeting: Bon Marché, Camaieu, El Corte Ingles, Kik, Loblaw, Mascot, Matalan, Primark and Store Twenty One.

20 other companies, all of whom were invited, failed to show up: Adler, Auchan, Benetton, C&A, Carrefour, Cato Corp, The Children’s Place, Dressbarn, Essenza, FTA International, Gueldenpfennig, Iconix Brand, Inditex, JC Penney, Kids Fashion Group, LPP, Mango, Manifattura Corona, NKD, Premier Clothing, PWT Group, Texman and Walmart.

IndustriALL, the Clean Clothes Campaign (CCC) and the Workers Rights Consortium (WRC) presented a proposed model for compensation, which has been used by brands and retailers in previous factory disasters in Bangladesh. The model includes payment for pain and suffering and loss of income. For Rana Plaza US$74,571,101 would be needed to provide full compensation to all workers, of which the brands are being asked to contribute US$33,556,996. For Tazreen US$6,442,000 is required, with US$2,899,000 being asked from the brands.

International experts outlined best practices for the establishment of a compensation fund, overseen by a multi stakeholder committee, which could be created through an agreement by all the parties involved. No such agreement was reached at this meeting, although the brands present committed to continuing discussions on this issue.

IndustriALL, CCC and the WRC would welcome the creation of such a fund and urge all parties to work together to ensure this is set up at the earliest possible date. (Industriall Global Union)