UPDATE ON COMPENSATION FOR THE VICTIMS OF KARACHI
After much campaigning, finally in January 2013 KIK signed an agreement with the Pakistan Institute of Labour Education and Research (PILER) to make an initial payment to the victims and their families of US$ 1 million for immediate relief, and to negotiate a long term compensation package with all other involved stakeholders. The initial payment is to be used to compensate the families of those victims who have not received any government compensation as the bodies have not been identified due to the severity of the burns and the decomposition of the bodies. “KIK also expressed a willingness to compensate workers who faced severe injuries in the fire leading to disability and loss of future employment. The remaining workers will be assisted in the next step after a compensation amount is agreed upon through a consensus between all stakeholders including employers and other international companies,” added Karamat Ali.
Ineke Zeldenrust, International Coordinator at CCC: ‘We welcome this agreement and look forward to having the full compensations and relief package, which we estimate will be at least EUR 20 million, to be negotiated soon. We continue our campaign towards other international stakeholders, notably auditing organisations SAI and Rina, to also take their responsibility and pay their share of the compensation needed.”
The National Trade Union Federation in Karachi state that although the high death toll at Ali Enterprises had led to extensive coverage of the fire, this is not an isolated incident but a regular occurrence in an industry that is poorly regulated and largely non unionised.
The fire follows a pattern of negligence occurring not just in Pakistan but throughout the garment industry. Brand and retailers must therefore take more action to address the root causes of such disasters. Brands and retailers need to take responsibility for improving conditions, enforcing international labour standards and need to work with worker representatives to address safety issues in every country they source from if future tragedies are to be avoided.