Compensation estimate cut by $10m

A coordination committee has trimmed down its previous estimation of compensation for the Rana Plaza tragedy victims by $10 million to $30 million amid protest from rights and trade union activists.
The Rana Plaza Coordination Committee (RPCC), monitored by the International Labour Organisation (ILO) as a neutral and independent body, reviewed the compensation package at its 17th meeting held on December 3.
The RPCC was formed with representatives from the government, manufacturers and owners, trade unions, brands and non-governmental organisations like Bangladesh Institute of Labour Studies and Clean Cloths Campaign to monitor the contributions and payment of compensations to affected workers and families of those who died in the deadliest Rana Plaza collapse.
However, rights groups have alleged that the coordination committee was not considering the extent of losses and sufferings of the workers in accordance with the ILO convention.
"Based on a review carried out by the Rana Plaza Claims Administration (RPCA) in November of the awards made to 80 per cent of the claimants and subject to further developments, the RPCA now estimates a revised total of close to US$30 million to fund all authorised payments and medical costs," according to the official website of the Rana Plaza Arrangement.
"This new estimate includes income replacement payments and medical and allied care costs. In addition, the RPCC has decided to authorise supplementary payments subsequent to full payments of all awards calculated under Convention 121," it added.
Replying to a question about the reason of reducing the amount, Dr Mojtaba Kazazi, Executive Commissioner of the RPCA, which is a part of the RPCC, in an email said: "There is a shortage of funds in the Trust Fund, but the 30 million dollar estimate is the result of the calculation of loss of earning in each case under the ILO Convention 121 and is the total expected amount of all the awards issued by the Commissioners."
When asked, Syed Sultan Uddin Ahmed, Assistant Executive Director of BILS said: "Our demands are that there should be a minimum ceiling for the dead and seriously injured workers and it should be Tk 1.5 million, taking the conditions of injury, pain and sufferings into consideration."
According to the latest estimation, the workers who sustained minor injuries are unlikely to get any further financial support as they have already recovered, people involved with the process have said.
The minimum benchmark for dead and seriously injured workers is revised downward to Tk 1.0 million from the earlier estimated Tk 1.5 million, they have added.
So far, $21 million has been collected and the shortfall in required funds is $9.0 million.
The calculation process was being delayed, though the Rana Plaza building collapsed on April 24 in 2013, due to absence of a national standard of compensation, lack of coordination among the stakeholders and a separate compensation scheme taken by an individual brand-Primark, they noted.
The RPCC has so far received compensation claims from 2860 and some 2839 and awarded payments authorized by the Committee, according to Mr Kazazi.
The deadline for receiving claims has expired with the exception of a small number of deceased and missing claims that have been identified as non-filed, he added.
The total amount paid so far in first, second and third instalments are approximately Tk 170 million (40 per cent of the total fund) and Tk 320 million together with the initial payment of Tk 50,000.
In April last, each victim of Rana Plaza collapse received an initial payment of Tk 20,000 through the Bkash system.
The payment of the 40 per cent of the awards to the fourth and fifth instalments claimants were made on Thursday. It accounted for about Tk 121 million, said Mr Kazazi.
However, no spokesperson from ILO was available for comments.
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