Tuesday, October 7, 2025

EU rights groups alliance urges global brands to pay $71m in compensation

An alliance of trade unions and rights organisations in 12 European countries has estimated that more than $71 million would be needed for the compensation of Rana Plaza victims and urged the related brands to step forward for paying the compensation.
The Clean Clothes Campaign in a press release on Monday said that this calculation is based on ILO standards and an established formula developed following previous fire and safety accidents in Bangladesh, developed by Bangladeshi and international trade unions.
The figure includes compensation for pain and suffering, as well as long-term loss of earnings for families of deceased workers, and injured workers not able to return to work.
It does not include medical costs for the physically injured workers, psychological support for all workers or their families involved in the collapse or payment of wages and legal severance payments to the Rana Plaza workers who are all now left unemployed, the release said. Urging the brands that have had production at Rana Plaza to step forward and put plans for paying compensation into place, the CCC said the families and injured workers need to know that their immediate and longer term rights to compensation will be assured.
At least 1,127 people have been killed and more than 1,650 workers admitted to hospital following the Rana Plaza collapse in Saver on 24th of April.
The CCC said that even worse, only six companies have announced they will make some form of financial contribution to the workers, including Primark (UK), El Corte Ingles (Spain), Loblaw (Canada), PVT (Denmark), Matalan (UK) and Premier Clothing (UK).
However, the majority of the remaining 40 or so other brands linked to the factory are yet to come forward to confirm their relationship with the factory, thus slowing down the process for distributing compensation, the alliance said.
Tessel Pauli, Union president of the CCC, said, ‘In the immediate aftermath of this disaster, while everybody is looking at Bangladesh and the main buyers from these factories, some companies might want to look good by making promises and provide some humanitarian relief on the ground. The victims need immediate support, but also need to be sure about long-term compensation and being sure that all workers and families are included’.
The Clean Clothes Campaign expects all brands that have produced in Rana Plaza to engage with the Bangladeshi trade unions and the global trade union federation representing garment workers, to negotiate the final compensation figures, and to agree on the size of contributions from all stakeholders. In addition to brands and retailers, the government, Bangladesh Garment Manufacturers and Exporters Association and the employers are also expected to pay into the fund.
These funds must be dispersed in a transparent way and in agreement with Bangladeshi and international trade unions, the release said.
In the release, the CCC said, ‘Getting justice for the victims of Rana Plaza must be combined with immediate steps to prevent future tragedies. All brands involved must sign up to the Accord on Fire and Building Safety in Bangladesh and begin work to make the Bangladesh garment industry safe.’

-With New Age input

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