BD unions criticise compensation payments
Wednesday, 19 March 2014
Bangladesh unions have criticised Primark, a retailer, for offering compensation to fewer than a quarter of the victims of 'Rana Plaza' disaster. Primark was one of more than two dozen Western retailers who had orders at the ready-made garment (RMG) factories that were situated at the multi-storey Rana Plaza complex in Savar which collapsed on April 24 last year leaving about 1230 workers dead and more than 2000 injured. Primark announced on Monday it would start paying out $ 9 million to the families of 580 dead or injured workers who worked for its supplier New Wave Bottoms, one of the five factories based at the nine-storey building. The payments being arranged through Primark’s local partners "will be met in full, in cash", it said, adding that it would contribute another $1 million to an UN-backed fund which aims to raise $40 million to compensate all the families of dead and injured workers. While New Wave Bottom workers welcomed the compensation, Bangladesh’s unions and manufacturers criticised Primark’s move, saying it could sow discord and spark protests. Roy Ramesh, head of the Bangladesh chapter of global labour group IndustriaALL, said the retailer’s plan to compensate workers without going through the International Labour Organisation (ILO) and other agencies meant hundreds of other victims would receive nothing, according to UNB.