US giants turn backs on factory fire victims
The International Labor Organisation is working with Bangladeshi officials, labour groups and retailers to create ambitious compensation funds to help families of the dead and the more than 1800 workers injured, some of whom are still in hospital.
A handful of retailers, led by Anglo-Irish company Primark and C&A, a Dutch-German company, are deeply involved in getting long-term compensation funds off the ground, one for Rana Plaza victims and one for victims of the Tazreen fire, which killed 112 workers.
But, to the dismay of those pushing for the compensation, neither Walmart, Sears, Children's Place nor any of the other US sellers of goods produced at Tazreen or Rana Plaza has agreed to contribute to the efforts.
Supporters of compensation plans say they are needed to pay for medical care for those who are paralysed or otherwise badly injured, to provide income after a vital breadwinner died and to give families enough income that children are not forced to quit school and go to work.
"Compensation is so important, because so many families are suffering. Many families don't have anyone left to support them," said Kalpona Akter, executive director of the Bangladesh Centre for Worker Solidarity.
"There's been a good response from some European brands, but so far none of the US retailers have agreed to pay a single penny for compensation."
Primark, Benetton, Loblaw and El Corte Ingles are working with the ILO to set up what would be one of the largest industrial compensation funds in history. Advocates are urging about 20 European and US retailers to commit money for compensation.
Even as labour advocates single out Primark for praise, they single out Walmart for criticism, partly because production documents recovered after the Tazreen fire indicate that, two months before that fire erupted, 55 per cent of the factory's production was for Walmart contractors.
Walmart has repeatedly been asked to contribute to the anticipated $6 million compensation program for Tazreen survivors and families.
Walmart said unauthorised contractors were producing the garments without its knowledge.
New York Times
Frequently Asked Questions about this Article…
The Tazreen factory fire was a tragic incident in Bangladesh that resulted in the deaths of 112 workers. It highlights the importance of ethical sourcing and corporate responsibility, which are crucial considerations for investors interested in sustainable and socially responsible investing.
Primark and C&A are actively involved in establishing long-term compensation funds for the victims of the Tazreen factory fire and the Rana Plaza collapse. Their efforts demonstrate a commitment to corporate social responsibility, which can be an important factor for investors evaluating company ethics.
US retailers like Walmart, Sears, and Children's Place have been criticized for not contributing to the compensation funds for the victims of the Tazreen factory fire and Rana Plaza collapse. This lack of participation may impact their reputation and investor perception regarding their commitment to ethical practices.
The International Labor Organisation (ILO) is collaborating with Bangladeshi officials, labor groups, and retailers to create compensation funds for the victims. Their involvement underscores the global effort to address worker safety and compensation, which is a key concern for socially conscious investors.
Compensation is crucial for the affected families as it helps cover medical expenses, provides income support, and ensures children can continue their education. For investors, supporting companies that prioritize such compensation reflects a commitment to social responsibility and ethical business practices.
European brands like Primark, Benetton, and Loblaw are praised for their proactive involvement in compensation efforts. This positive engagement can enhance their appeal to investors who prioritize corporate responsibility and ethical supply chain management.
Compensation advocates face challenges in securing commitments from US retailers, who have so far not agreed to contribute financially. This reluctance can affect investor confidence in these companies' dedication to ethical practices and social responsibility.
The factory fire incidents highlight the importance of ethical sourcing and corporate responsibility. Investors may increasingly consider these factors when making investment decisions, favoring companies that demonstrate a commitment to worker safety and fair compensation practices.
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