Dhaka, Bangladesh (BBN)-Brands including Primark and Matalan defended themselves on social media this morning against accusations that neither had paid sufficient reparations for the Rana Plaza factory collapse in Bangladesh in April 2014.
A compensation scheme for families of victims of the tragedy as well as survivors was set up shortly after the event, but since donations were not mandatory, the pot still remains comparatively empty, reports vogue.
“The Rana Plaza Arrangement estimated that the fund would need to collect $40 million to cover the expected claims,” The Business of Fashion reports today.
“As of August 4 2014, the current total is just under $17.9 million; the fund is not yet half-full… Neither US retailer JC Penney or Italian multinational Benetton have contributed, despite clothing destined for their shop floors being found amongst the rubble of Rana Plaza.”
Other than compensation, one of the major discussions to come out of the event is safety.
Today, WWD reports, The Accord on Fire and Building Safety in Bangladesh announced that the Bangladesh government’s Inspector General has filed a case against another company, Newtech Apparels Ltd, for failing to comply with an evacuation order that is endangering the lives of garment employees working in an unsafe multi-story building.
“The day before Rana Plaza collapsed, inspectors found cracks in the building and raised the alarm,” The Business of Fashion continues.
“Did these warnings reach Benetton and Primark [which also produced clothing in the building]? They certainly reached the banks operating in the Rana Plaza building, which evacuated all of their workers. The garment factories, by contrast, forced employees to return to work, their managers threatening to withhold a month’s pay from those who didn’t. Either the fashion companies didn’t know about these dangerous working conditions; or they did, and they allowed the factories to resume business. The former is negligent and poor supply-chain management. The latter is far worse.”
BBN/ANS-20Aug14-6:30pm (BST)