Home / Knowledge / News / Apparel/Garments / $40mn fund set up for Bangladesh garment factory victims
$40mn fund set up for Bangladesh garment factory victims
27
Dec '13
An estimated US$ 40 million compensation fund would be set up by international clothing retailers, along with manufacturers and labor unions, for victims of the Bangladesh garment factory Rana Plaza collapse that took place in April 2013.
 
According to a statement issued by the Rana Plaza Arrangement Organization, an unprecedented coordinated framework has been agreed to compensate the hundreds of victims, both injured workers and dependents of the deceased, of the Rana Plaza garment factory disaster.
 
With the United Nations agency International Labour Organisation (ILO) acting as a neutral chair, a unique multi-stakeholder ‘Coordination Committee’ has developed a ‘Practical Arrangement’ which provides a single approach for compensation consistent with the ILO international standards, for these victims.
 
The understanding for this 'Practical Arrangement' has been signed by leading clothing retailers Primark, Loblaw, Bonmarche, and El Corte Ingles, along with the Bangladesh Ministry of Labor, Bangladesh Employers’ Federation (BEF), Bangladesh Garment Manufacturers and Exporters Association (BGMEA), IndustriALL Bangladesh National Council, Bangladesh Institute for Labor Studies (BILS), IndustriALL Global Union and Clean Clothes Campaign, which also integrate the multi- stakeholder Coordination Committee.
 
The Coordination Committee, with key technical support of ILO and UN experts, will continue to oversee the scheme which will cover income replacement needs and medical costs to all beneficiaries, as per the recently updated wages in Bangladesh.
 
Disbursements will be made on a case by case basis after a medical assessment determined the level of disability of the injured workers.
 
Under the arrangement, in order to finance the payments to victims, international brands and retailers would be making voluntary contributions into a humanitarian International Trust Fund, managed by a global bank and open to other international donors. Any local funds will be kept in a local bank, and the local bank will provide payments directly to the beneficiaries’ bank accounts.
 
The Coordination Committee has also designed the mechanisms to ensure a consistent, transparent and fair scheme management, including through independent commissioners and externally contracted services. A stringent calendar has been established for the first installments to be delivered starting in February 2014, provided that sufficient pledges are received by mid-January.
 

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Pexels

Textiles | On 15th Jul 2018

WCO publishes global standards on e-commerce

The World Customs Organization (WCO) has published the Framework of...

Courtesy: M Dohmen

Textiles | On 15th Jul 2018

Archroma takes remaining minority shares in M Dohmen

Archroma, leader in colour and specialty chemicals towards...

Courtesy: Reebok

Fashion | On 15th Jul 2018

Reebok, CFDA join hands to nurture America's fashion

Global fitness and lifestyle brand Reebok has joined hands with the...

Interviews View All

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Poojaa Kumar Deepak
Zeven

Zeven's performance sports apparel is designed for the Indian body type,...

Urmil Arya

Sushila International, a well established textile organisation established ...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Samar Firdos
Arvind Ltd

<b>Samar Firdos</b>, Chief Manager (Design) at Lifestyle Apparel Denim...

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


July 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search