Primark, an Irish clothing retailer, on Monday announced to pay out $10 million in compensation to victims or their dependents of the Rana Plaza factory collapse weeks before the anniversary of the disaster in which more than 1,100 garment workers lost their lives.
The retailer has agreed to pay $9 million to the 580 workers, or their families, from New Wave Bottoms, Primark’s supplier, which was based on the second floor of the building.
A further $1 million will go to workers from its competitors’ supply chain and this amount will be paid to the Rana Plaza Donors Trust Fund chaired by the International Labour Organisation for distribution, Primark said in a press release
The latest round of payouts will bring Primark’s total compensation to $12 million as the retailer has paid out $2 million in short-term support for all workers within the Rana Plaza building, including those working for other brands.
Primark’s desire to make its payments as soon as possible is being weighed against the ILO’s battle to ensure that compensation to all those affected by the disaster comes via the communal process so that no victims are short-changed.
In the immediate aftermath of the collapse of Rana Plaza, Primark promised that it would meet its responsibilities in full and that it would pay long-term compensation to the workers, or their dependents, employed in New Wave Bottoms.
Primark has worked diligently with local partners in Bangladesh over an eleven month period to establish a rigorous, sustainable approach to compensation. It has also liaised closely with the ILO throughout.
‘Payments are being delivered to victims through the BRAC and Bkash banks, the mechanism used for the distribution of short-term financial assistance’, the release said.
The retailer said that the 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 dependents 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 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, the release said.
Primark has decided to pay out now to ensure that the New Wave Bottom workers, and their dependents, are paid in full within 12 months and no further payments should be required for the factory.
Primark’s payments are in addition to the short-term financial assistance provided by Primark for all other workers at Rana Plaza.
‘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,’ the company said.
-With New Age input
