Trust fund still short of target

Global brands, retailers yet to compensate Rana Plaza victims as pledged

block
Kazi Zahidul Hasan :
The ‘Donors Trust Fund’ that was formed to compensate the victims of Rana Plaza disaster is still short of its target due to buyers’ apathy in contributing to the fund, sources said.
The eight-storey Rana Plaza building, which housed five garment factories, collapsed on April 24 in 2013 killing 1,134 and injuring nearly 2,400 workers.
Nearly 30 European and American retailers or brands, including Primark, Walmart, Canada’s Loblaw, Spain’s Mango and The Children’s Place were producing garments from these factories.
Following the incident, Western retailers and brands have voluntarily promised $30 million compensation fund for the welfare of victim families and injured workers as part of their corporate social responsibility.
But two years after the Rana Plaza tragedy the fund remains $7.0 million short of its $30 million target as many of the western brands and retailers are yet to honour their commitment to contribute the fund.
Benetton, an Italian clothing company, on Friday formally announced donation of $1.1 million in the fund bringing the total to $23 million.
 “It is unfortunate that the buyers who promised to contribute to the fund are yet to make their donations,” Sherajul Islam Rony, a labour leader, told The New Nation on Friday.
He said, they must fulfil their promise to fill up gap of 7.0 million in the funding needed to deliver full and fair compensation to each of the victim families and injured workers.
Brands are yet to pay into the fund include, The Children’s Place, Walmart, Mango.
 “Western companies must pay their donation in full before the two-year anniversary of Rana Plaza disaster,” Nazma Akhter, another labour leader, said.
She also urged all brands sourcing clothes from Bangladesh should pay compensation into the fund.
In the aftermath of Rana Plaza disaster, the International Labour Organisation initiated a process, endorsed by both brands and unions, to assess full and fair compensation for medical expenses and lost earnings to victims or their next of kin, as required by global labour conventions.
But while their estimate of $30 million was widely accepted as a minimum, fund contributions were left entirely voluntary, as brands refused to commit to a binding mechanism to allocate financial responsibility. Along with Benetton, unions have urged Walmart , Matalan and The Children’s Place to make bigger contributions.
Primark, part of Associated British Foods and the UK’s biggest fashion retailer by volume, won praise after it pledged to provide full compensation for 668 workers of New Wave Bottoms, one of its suppliers, which was housed in the Rana Plaza.
Primark has contributed a total of $14 million, including $2million in short-term relief and $11million in long-term compensation.
block