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Primark offers long-term compensation to Rana Plaza factory collapse victims Primark offers long-term compensation to Rana Plaza factory collapse victims
(about 1 hour later)
The clothes retailer Primark has offered to compensate injured workers and relatives of those who died in the Rana Plaza factory disaster in Bangladesh.The clothes retailer Primark has offered to compensate injured workers and relatives of those who died in the Rana Plaza factory disaster in Bangladesh.
Six months ago 1,129 workers were killed and about 2,500 injured when the garment factory building in Dhaka collapsed. Six months ago 1,129 workers were killed and about 2,500 injured when the garment factory building in Dhaka collapsed. The factory had been supplying high-street brands around the world.
The factory had been supplying high-street brands around the world.
Primark, owned by Associated British Foods, has offered to pay long-term compensation to the victims of the disaster or their families.Primark, owned by Associated British Foods, has offered to pay long-term compensation to the victims of the disaster or their families.
Five hundred and fifty workers at the supplier New Wave Bottoms, which had been making clothes for Primark, will be given a third short-term payment, believed to be three months' wages, while the long-term compensation is finalised.Five hundred and fifty workers at the supplier New Wave Bottoms, which had been making clothes for Primark, will be given a third short-term payment, believed to be three months' wages, while the long-term compensation is finalised.
The minimum wage in Bangladesh is £24 a month and Primark said this offer would "alleviate immediate hardship".The minimum wage in Bangladesh is £24 a month and Primark said this offer would "alleviate immediate hardship".
As part of the longer-term deal workers will get medical and vulnerability assessments by experts at Dhaka University, independent doctors, unions and non-governmental organisations. As part of the longer-term deal workers will get medical and vulnerability assessments by experts at Dhaka University, independent doctors, unions and non-governmental organisations. Primark will begin paying compensation early next year.
Primark will begin paying compensation early next year.
"The company calls on other brands sourcing from Rana Plaza to now contribute a fair share of this tranche of aid," a spokesman said."The company calls on other brands sourcing from Rana Plaza to now contribute a fair share of this tranche of aid," a spokesman said.
The announcement follows pressure from campaigners for fashion brands whose clothes were produced at Rana Plaza to agree long-term compensation, although it comes amid concerns that many UK consumers are showing little interest in the disaster.The announcement follows pressure from campaigners for fashion brands whose clothes were produced at Rana Plaza to agree long-term compensation, although it comes amid concerns that many UK consumers are showing little interest in the disaster.
Sir Richard Lambert, a former editor of the Financial Times and former director general of the CBI, told an ethical business conference in London on Thursday: "I am actually amazed about how little impact the disaster in Bangladesh has had on consumers in this. I see no change in consumer habits here."Sir Richard Lambert, a former editor of the Financial Times and former director general of the CBI, told an ethical business conference in London on Thursday: "I am actually amazed about how little impact the disaster in Bangladesh has had on consumers in this. I see no change in consumer habits here."
Primark's move coincides with a candlelit vigil at the factory site by injured workers, relatives of the dead and members of the global unions IndustriALL and UNI which are fighting for the introduction of safe standards in garment factories.Primark's move coincides with a candlelit vigil at the factory site by injured workers, relatives of the dead and members of the global unions IndustriALL and UNI which are fighting for the introduction of safe standards in garment factories.
Last month IndustriALL called a meeting of some of the world's largest retailers in Geneva to discuss a £47.2m compensation fund for the workers injured in the disaster, and the families of those who died. Last month IndustriALL called a meeting of some of the world's largest retailers in Geneva to discuss a £47.2m compensation fund for the workers injured in the disaster, and the families of those who died. Only nine brands using clothes from the factory turned up.
Only nine brands using clothes from the factory turned up. Primark, which is headquartered in Dublin and trades under the Penneys banner in Ireland, had a supplier on the eighth floor of the building. It was one of 28 brands being supplied from the factory. Other companies are said to be considering whether to follow the proposal.
Primark, which is headquartered in Dublin and trades under the Penneys banner in Ireland, had a supplier on the eighth floor of the building.
It was one of 28 brands being supplied from the factory. Other companies are said to be considering whether to follow the proposal.
Primark said it was pressing ahead with its compensation scheme because of the time it is taking to reach agreement.Primark said it was pressing ahead with its compensation scheme because of the time it is taking to reach agreement.
It committed to paying another three months' wages to all workers or their families if the other 27 brands which used Rana Plaza refuse to support their compensation scheme. It committed to paying another three months' wages to all workers or their families if the other 27 brands which used Rana Plaza refuse to support their compensation scheme. Primark also sent food aid to 1,300 families within a week of the building collapse.
Primark also sent food aid to 1,300 families within a week of the building collapse.
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