U.S. companies rectify and compensate the victims of Dhaka

Social organizations in the United States reach the first anniversary of the tragic collapse of a textile complex in Bangladesh with an ambivalent feeling: with its lobbying campaign garnered a first win, but they know that is ridiculous and they have yet a lot to accomplish. For 11 months U.S. companies receiving supplies from garment factories in Rana Square building had refused to contribute to the compensation fund for victims of the accident, which caused 1,134 dead and 2,500 wounded. However, in late March finally there was some positive move. Walmart, Children ‘s Place and Gap, who had no clothes produced in this complex but in other Asian country announced a joint donation of two million dollars to the fund, which aims to collect 40 million from a large group of multinationals.

” Undoubtedly it is a very low amount,” criticizes Liana Foxvog, organizational director of the International Labor Rights Forum (ILRF), a civil organization based in Washington that initiated the campaign against poor work conditions in Bangladesh factories. Walmart and Children ‘s Place only give you $ 750 for each affected family. Imagine those families who have lost their only source of income and who are homeless, young people who lost a leg or 300 children who are now orphans.

Twelve other companies – including the Spanish El Corte Inglés, Inditex and Mango, the Loblaw Canadian or Irish Primark, have contributed to the fund, coordinated by the International Labour Organization, to compensate damages for lost wages and medical expenses to survivors and relatives of those killed in the catastrophe of Dhaka. The tragic incidence shook the conscience of the West to reveal the precarious working conditions in Bangladesh, erected in recent years as the largest textile mill in the world only after China. However, of the 40 million so far have been collected only a third, as recorded by the Clean Clothes Campaign. This explains why most survivors are to receive only a small portion of compensation this week.

Primark has long been the largest contributor, with seven million, but its example was not followed by all. Social organizations are calling on other donors such as Walmart to increase their contributions. And in parallel, asked to join the compensation plan the other 16 firms that had produced garments in the collapsed building, including three Americans Cato Fashion, JC Penney and Iconix Brand -low – Lee Cooper; and giant Benetton as Italian and French Carrefour.

ILRF believe Walmart should provide at least 17 million compensation fund, while Children’s Place 8 million. The organization has called for protests Thursday in front of establishments in both groups in Chicago, New York and Washington to require them to expand their donations. “Walmart is the largest retailer in the world, was associated with two factories in Rana Plaza and has the financial capacity to make a significant contribution,” claims Foxvog. In the third quarter of 2013, the latest available, Walmart reported a profit of 3,730 million; while Children ‘s Place won 655 million in the full year. “My hope is that the managers of the companies these days shall be determined in the stories of the survivors, in their photographs, and that their physical, emotional and economic trauma call their attention,” he adds.

In late March Walmart, the second largest customer of all factories in Bangladesh, behind the Swedish giant H & M, gave three million dollars through the U.S. affiliate of BRAC, a development organization Bengali different sector projects Bangladesh textile, a third of which went to the compensation fund. Gap and Children ‘s Place awarded $ 500,000 respectively to the fund also through BRAC. The fact that indirect contributions are consistent with the view of many experts, who attributed the rejection of U.S. firms to participate in the fund to the fear that doing so would be admitting their involvement in possible negligence, which could entail for prosecution.

From Walmart avoids answering the call for labor rights organizations to increase their contributions and simply highlight their actions following the collapse of a year ago. “We are actively working to promote a significant and substantial reform of the textile industry in Bangladesh,” said spokesman Kevin Gardner in a email response, which emphasizes that the company plans to invest another eleven million in safety improvements factories of its suppliers in the country.

Both Walmart, buying each year about 1,000 million dollars in clothing produced in Bangladesh, as Children ‘s Place refuse at the time of the fatal collapse they were weaving his clothes in one of the workshops spread over eight stories, Rana Plaza. But a few months ago had a strong presence, so, like the rest of the twenty multinationals, they are also responsible for the safety deficiencies in the building, built with substandard materials on a swampland.

Gap, meanwhile, has never been linked with Rana Square but works with 70 factories in Bangladesh, some of which have been involved in fatal accidents in the past. “We believe that global retailers, regardless of where produce their clothes, they have to take action to improve the lives of textile workers,” simply notes from the taught.

Along with Walmart, Gap in May prompted a covenant, which had joined thirty U.S. firms, to improve monitoring and factory conditions of Bangladesh. Unlike a similar framework promoted by European companies that have signed about 150 companies, some Americans, the pact includes loans and is not legally binding, also for fear of lawsuits. U.S. firms importing 30% of textiles made ??in Bangladesh, behind European levels.

Although much remains to be done – in the compensation fund for victims and improving working conditions- a year after the collapse of Rana Plaza is generated if crystallize significant progress can lead to a profound transformation the textile sector. Bangladesh, where the textile business is a 22,000 million a year and employs four million people, still has the lowest wages in the world – the mass attracted to Western firms and enquistó precarious – but, after intense negotiations, has increased by 77 % (to $ 68 per month). Has also been given greater freedom to trade unions, who have spent four years in two plants listed at 134.

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Posted by Nadeem Bajwa on Apr 29 2014. Filed under Business, World. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.