British retailer Primark will contribute Tk30 crore more as compensation to the victims of Bangladesh’s deadliest Rana Plaza factory accident, officials said.
The fund will go to families of 581 victims who were working at a Primark’s sourcing company housed in the building.
The brand earlier gave Tk83 crore to the families.
On March 8, the Primark in a letter sought approval from the Bangladesh government for a total of Tk113.43 crore (including the previous Tk83 crore) compensation fund.
Labour and Employment Secretary Mikail Shipar admitted the receipt of the letter.
“Primark sought approval for Tk113.43 crore compensation fund for the victims who worked in the brand’s supplier company. Of the amount, it has already disbursed Tk83 crore,” he said.
Primark, however, earlier committed over US$14m (Tk108 crore) in aid and financial support to the victims’ families.
It also gave an additional $1m to the Rana Plaza Donors Trust Fund, chaired by the International Labour Organisation.
The Trust Fund, constituted by IndustriALL, UNI Global Union and the Clean Clothes Campaign, estimated the needed compensation for Rana Plaza victims at $40m. The figure was later revised down to $30m with the Fund having collected nearly $21m.
“Forty percent of the Fund has already been spent while another 30% will be distributed soon,” Ramesh Chandra Roy, secretary general of IndustriAll Bangladesh Council, told the Dhaka Tribune. He said the other 30% disbursement is however dependent on the availability of fund.
“But we will continue to put pressure on the retailers and the concerned stakeholders to contribute to the funds so we can ensure a full-fledged compensation for the victims,” he pointed out.
Primark’s sourcing company at the Rana Plaza was New Wave Bottoms which was housed on the second floor of the building. On April 24 last year, Rana Plaza, which housed five garment factories, a shopping complex and a branch of Brac Bank, collapsed.
The death toll from the deadliest building collapse stood at 1,135 while 2,438 people were rescued alive from under the rubble.
The Rana Plaza collapse is regarded as the deadliest garment-factory accident in history. It is also the deadliest industrial accident in history of Bangladesh
The building housed garment factories, a bank, apartments, and several other shops. The shops and the bank on the lower floors immediately closed after cracks were discovered in the building.