Eight months after the Rana Plaza factory building collapsed in Bangladesh, killing more than 1,100 workers and leaving hundreds of families bereft and financially adrift, several prominent retailers and labor groups have joined with the Bangladesh government to create an estimated $40 million compensation fund to aid the victims’ families.
Several officials involved in negotiations to establish the fund said in interviews that the families of the dead would receive, on average, more than $25,000 each, while hundreds of workers who were injured or maimed would also receive compensation. Per capita income in Bangladesh is about $1,900 a year.
“Following the collapse, we came very quickly to the conclusion that compensation was not only a necessity for the survivors and their families, but a responsibility for the many retailers sourcing from Rana Plaza,” said Robert Chant, senior vice president for corporate affairs at Loblaw, a Canadian company. “We are still hopeful that other retailers will join us in meeting the obligation, but we’ve already made public our disappointment in the failure of others to step forward.”
New York times