Primark, a UK-based retailer, announced Monday that it will begin long-term payments to 580 workers of the New Wave Bottoms that produced apparel products for it.
The payment worth US$ 9.0 million will be distributed to those workers or their dependants who died or were injured due to the Rana Plaza building collapse, a statement issued by the retailer said Monday.
It will also contribute $ 1.0 million to the Rana Plaza Donors Trust Fund chaired by the International Labour Organisation (ILO) for distribution among the workers in its competitors' supply chain in addition to the $ 2.0 million which it has already distributed to the workers or their families.
This brings the total that Primark is paying to the victims of Rana Plaza to some $ 12 million.
Primark is making the long-term payments, for purposes of recognition, as compensation under the auspices of the Coordination Committee of the Rana Plaza Arrangement.
Payments are being delivered to victims through the BRAC Bank and bKash, the mechanism used for the distribution of short-term financial assistance.
Payments will be made according to the impact of the injury and level of disability resulting from the collapse, and in the case of the dependants of the deceased and missing workers, according to actuarial estimates of lost earnings. Primark also seeks to address the vulnerability of those receiving payments, and their capacity to control and manage large sums of money.
This work is being carried out by The Bangladesh National Women's Lawyers Association and Naripokkho who will offer, and manage on behalf of Primark, direct assistance and on-going support to vulnerable victims and beneficiaries.
Primark has decided to pay out now to ensure that the New Wave Bottoms workers, and their dependants, are paid in full within 12 months. No further payments should be required for the workers at New Wave Bottoms. Primark's payments are in addition to the short-term financial assistance provided by Primark for all other workers at Rana Plaza.
In the event that qualifying workers, from New Wave Bottoms, have not yet registered with Primark, for whatever reason, Primark confirms its intention to leave both its short-term financial assistance and this long-term scheme open for payments.
A Primark spokesman said: "We are announcing today that we are paying a total of $ 12 million as a result of the collapse of the Rana Plaza building in Bangladesh."
"With the first anniversary of Rana Plaza fast approaching, we are determined to meet this responsibility to workers in our supply chain. We are therefore pleased to be in a position to now press ahead with payments."
