Victory for Rana Plaza workers as compensation fund is finally filled

 

After two years of campaigning across the world, an large anonymous donation of €2.4 million secures full and fair compensation for victims of Rana Plaza
After two years of campaigning across the world, an large anonymous donation of €2.4 million secures full and fair compensation for victims of Rana Plaza

The Clean Clothes Campaign (CCC) is delighted to announce a major campaign victory with the confirmation that the Rana Plaza Donors Trust Fund has finally met its target of $30 million, following a large anonymous donation.

 

The CCC has been campaigning since the disaster in April 2013 to demand that brands and retailers provided compensation to its victims.

Since then over one million consumers from across Europe and around the world have joined actions against many of the major high street companies whose products were being made in one of the five factories housed in the structurally compromised building. These actions forced many brands to finally pay donations and by the second anniversary the Fund was still $2.4 million dollars short of its $30million target. A large donation received by the Fund in the last few days has now led to the Fund meeting its target.

“This day has been long in coming. Now that all the families impacted by this disaster will finally receive all the money that they are owed, they can finally focus on rebuilding their lives. This is a remarkable moment for justice,” said Kate Nolan of the Clean Clothes Campaign Ireland. “This would not have been possible without the support of citizens and consumers in Ireland and across Europe who stuck with the campaign over the past two years. Together we have proved once again that European consumers do care about the workers who make their clothes – and that their actions really can make a difference.”

 

The Rana Plaza Donors Trust Fund was set up by the ILO in January 2014 to collect funds to pay awards designed to cover loss of income and medical costs suffered by the Rana Plaza victims and their families when the Rana Plaza building collapsed in the garment industry’s worst ever disaster.

In November 2014 the Rana Plaza Coordination Committee announced that this would need around $30million to pay in full over 5,000 awards granted through the scheme. However, the failure of brands and retailers linked to Rana Plaza to provide sufficient and timely donations into the Fund has, until today, prevented the payment of the awards from being completed.

The CCC continues to call for policy changes to ensure that those affected by future disasters will receive more timely support. They welcome a new initiative by the ILO in Bangladesh to develop a national workplace injury scheme for the country’s 4 million garment workers. They also urge European politicians to develop better regulation of supply chains to ensure that brands and retailers are held properly accountable in the future.

This is a huge victory – but its been too long in the making” says Ineke Zeldenrust from the CCC International Secretariat: “That brands with a collective annual profit of over $20 billion took two years and significant public pressure to come up with a mere $30 million is an indictment of the voluntary nature of social responsibility. We now need to look at ways to ensure that access to such remedy is provided by brands and retailers as a matter of course, and not only when public outrage makes doing nothing impossible.”

Benetton continues to deny compensation to Rana Plaza victims

Benetton continues to refuse to pay compensation to Rana Plaza victims
Benetton continues to refuse to pay compensation to Rana Plaza victims

Benetton targeted over Rana Plaza compensation on International Human Rights Day.

Labour rights campaigners across Europe and the USA are marking this years’ International Human Rights Day by calling on Italian fashion brand Benetton to finally pay into a fund set up to pay compensation to thousands of families affected by the Rana Plaza disaster in April 2013.

On and around 10 December 2014, activists will be participating in street actions in France, Spain, Italy, Switzerland and the U.S. demanding that Benetton immediately pay into a fund set up by the ILO to provide compensation to those injured in the collapse and the families of those killed. These street actions will be complimented by online actions from all over the world, coordinated through the launch of a new website by the Clean Clothes Campaign targeted at Benetton: https://payup.cleanclothes.org. Campaigners have also called on franchise holders of Benetton stores throughout Europe to support the campaign by asking the Benetton Group to take immediate action.

“We are using International Human Rights Day to remind citizens that compensation is a right for all workers and that until compensation is paid in full there will be no justice for the Rana Plaza workers,” said Deborah Lucchetti from the Campagna Abiti Puliti. “We are determined to continue our campaign until Benetton pays what it owes.”

Benetton is the only international brand with confirmed links to the Rana Plaza factories which has refused to contribute a single penny to the Rana Plaza Donors Trust Fund, set up by the ILO in January 2013 to finance compensation payments to over five thousand individuals who either lost a relative or were injured in the garment industry’s worst ever industrial disaster. Almost a year since the Fund was first opened it has collected just over $22 million, leaving a significant shortfall in the amount required to pay all of compensation awards.

The awards have been calculated and agreed by the Rana Plaza Co-ordination Committee, which brings together government, brands, trade unions and factory owners to oversee a system to deliver and calculate compensation awards in line with international standards. With the claims process now almost complete campaigners say that the lack of funding is now the only obstacle to delivering full compensation to everybody before the new year.

In 2013, the same year as the Rana Plaza collapse, Edizione S.r.l., a company under the full control of the Benetton family and which owns the Benetton Group, earned profits of  €139 million.  Benetton is being asked to contribute $5 million to the Fund, an amount campaigners believe is proportional given the clear links between Benetton and one of the factories at Rana Plaza and the huge profits made by the company.

“Collectively the brands linked to Rana Plaza earn billion of dollars in profit from selling clothes – only a tiny fraction of this is needed to ensure justice for Rana Plaza victims” said Ilona Kelly of the Clean Clothes Campaign. “Given the exorbitant collective wealth of the Benetton family, and the continued profits of their investment company Edizione, surely they can afford to give just $5 million of that to the Rana Plaza victims”.

Stitched Up – New Report Finds Poverty Wages for Garment Workers in Eastern Europe and Turkey

Poverty wages for garment workers in Eastern Europe and Turkey

Clean Clothes Campaign works with garment workers all over the world.  While many people are aware of the terrible working conditions and poverty wages garment workers in Asia receive, a new report –Stitched Up   interviewing hundreds of workers in 10 countries across eastern Europe the report finds that poverty wages and shocking working conditions are endemic in the global garment industry.

Far from being a problem confined to garment workers in Asia Stitched Up has found that the idea that “Made in Europe”means better conditions for workers is a myth.

Busting the myths

The report shows that there are no good guys.

It is important that we put an end to the myths that paying more for clothes or sourcing from Europe guarantees decent working conditions. Brands and retailers have to take clear steps and show a true commitment within their own supply chain in order to ensure all those who work for them, wherever they may live, are paid a living wage.

Campaigners and workers are calling on European fashion brands to make sure as a first immediate step that workers in the researched region receive a basic net wage of at least 60% of the national average wage. Buying prices must be calculated on this basis and allow for these wage hikes.

Brands need to act now and make sure that garment workers in their own supply chain – be it Asia or Europe- receive a living wage.

 

Read the full report here

Stitched Up – Poverty Wages for garment workers in Eastern Europe and Turkey

View individual  country reports here

Romania

Ukraine          Turkey

Bulgaria         Croatia,

Slovakia,       Georgia,

Macedonia    Moldova.

Bosnia & Herxogovina

 

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