Just seven of the 28 retailers linked to factories in the Bangladesh building which collapsed killing 1,100 workers have paid into fund
Victims of the Rana Plaza factory collapse in Bangladesh are still waiting for long-term compensation with six weeks to go before the first anniversary of the disaster in which 1,100 workers lost their lives.
Despite months of negotiations, only seven of the 28 retailers linked to factories in the building have publicly paid into a joint fund backed by the international union, the ILO. Donations from Bonmarché, El Corte Inglés, Inditex, Mango, Mascot, Premier Clothing and Loblaw are thought to total less than a quarter of the promised fund total of £24m.
One missing donor is Primark, the British fashion chain, which is holding off payment over differences about how its donation would be shared out. Talks with the ILO in Geneva on Friday could persuade the retailer to stay within the communal scheme, rather than going it alone.
It is understood that the ILO and Primark are looking for a compromise in which the retailer’s payments are made via the ILO scheme but ringfenced for the workers producing for the retailer.
Because it is designed to be paid only to the 581 workers at the New Wave Bottoms factory who supplied Primark, just 17% of the Rana Plaza workers would receive compensation, potentially undermining the collective approach brokered by the ILO. But union officials want to keep Primark on board as the chain led early action to provide short-term support for victims and their families.
If Primark does not join the ILO-backed scheme, other potential donors, who are watching its actions closely, may also back away leaving victims short-changed.
Those close to negotiations say the ILO-backed scheme is highly credible and robust. Designed to compensate all Rana Plaza workers it conforms to ILO Convention 121, and could – its fans say – form a blueprint to provide justice following similar tragedies.
“Unfortunately, during the past months Primark has delayed the setting up of the Rana Plaza Trust Fund at the same time as it has made preparations for its own voluntary corporate scheme,” said Jyrki Raina, general secretary of IndustriALL Global Union.
Paul Lister, company secretary of Primark’s owner ABF said: “I totally reject the idea that we have delayed the scheme. We made the commitment to fully compensate people in our supply chain and that’s what we are trying to do. We are also keen to find an accommodation with the ILO scheme.” A Primark spokesman pointed out that the company had already paid or underwritten nine months’ wages of short-term aid for all workers within Rana Plaza, including those working for other brands.
Source: The Guardian
