In the two years since Rana Plaza collapsed in Bangladesh, a committee formed following the incident has contributed $9.8 million to the injured and the family members of the workers who perished.
The Rana Plaza Coordination Committee, an International Labour Organization (ILO)-chaired group of brands, retailers, NGOs, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), trade unions and the Bangladesh government paid the nearly $10 million to 2,968 eligible recipients. Of the recipients, 2,277 were dependents of deceased workers, 282 dependents of missing workers and 409 injured workers.
Payments were funded by multiple sources, though most notably through the Trust Fund, which is open to contributions from any organization, company or individual looking to provide support for Rana families.
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Compensation for each individual was calculated based on the ILO Employment Injury Benefit Convention 121 and awarded after factoring in the last salaries of the deceased, missing or injured workers, which was upgraded retroactively according to the wage increase the government put in place in December 2013. The amount and age of any surviving dependents and the level of disability in the case of the injured was also considered.
This award is just 70 percent of the total approved by Commissioners in the country—the remaining 30 percent will be paid once funds are available in the Rana Plaza Donors Trust Fund. Workers were also paid through the Prime Minister Welfare Fund and an initial payment from the Trust Fund. The Coordination Committee estimates the total for all issued awards is $16.4 million.
“It is estimated that a total USD $30 million, after the deduction of amounts received from Prime Minister Welfare fund, is required for the full payment to the Rana Plaza injured workers and the family members of deceased and missing workers, including claims of New Wave Bottom workers paid separately by Primark, as well as long term medical care and allied costs for injured workers,” according to a Committee statement. “Such estimated amount includes an estimation of potential supplementary payments. So far, the amounts either received in the Trust Fund or spent otherwise for the benefit of Rana Plaza workers and expected to be recognized as contribution to the Trust Fund total approximately USD 24 million.”
United Colors of Benetton announced last week that it contributed $1.1 million to the Rana Plaza Trust Fund to further support the victims of the tragedy—a figure double its recommended contribution. Chief Executive Officer Marco Airoldi said the company chose to go further with its contributions “to demonstrate very clearly how deeply we care.”
The Rana Plaza Coordination Committee has discussed providing supplemental payments after the full payment of all awards should additional funds become available. As part of the entitlement under the ILO Convention, the Committee is also working to finalize an arrangement for long-term medical care and allied costs for the injured workers.
