Human Rights Watch urged the international garment brands to help mitigate the damage by assisting with the full restitution of those who were injured or lost their lives in Rana Plaza collapse.
“One year after Rana Plaza collapsed, far too many victims and their families are at serious risk of destitution,” said Phil Robertson, deputy Asia director at Human Rights Watch.
The deputy Asia director said, “International garment brands should be helping the injured and the dependents of dead workers who manufactured their clothes.”
International companies that sourced garments from five factories operating in the Rana Plaza building are not contributing enough to the financial trust fund set up to support survivors and the families of those who died, the New York-based rights organisation said in a report published in its website today.
According to the Bangladesh government, more than 1,100 people died and about 2,500 were rescued from the disaster when the building collapsed on April 24 last year.
The target for the fund, which is chaired by the International Labour Organization (ILO), is US$40 million, but only $15 million has been raised so far. On April 22, 2014, the government announced that victims would receive their first payments of $645 each from the fund, the HRW mentioned.
Some said they were struggling to feed their families and send their children to school. Survivors also told Human Rights Watch of the poor working conditions in the factories prior to the collapse. The eight-story building housed factories supplying garments to major brands in the US and Europe, the report said.
Of the $15 million raised for the fund so far, a single firm, Primark, has donated $8 million, HRW said quoting the fund’s website. Some companies that were not doing business with Rana Plaza have also contributed to the fund.
By contrast, 15 brands whose clothing and brand labels were found in the rubble of the factory by journalists and labor activists have not paid into the fund.
The fund will establish a systematic and transparent claims process so that all victims, their families, and dependents will receive the long-term support they need. The fund is open to any company, individual, or organisation that “wishes to contribute as a way of expressing solidarity and compassion with the Rana Plaza victims,” the fund’s website explains.
According to the UN Guiding Principles on Business and Human Rights, companies have a responsibility “to prevent or mitigate adverse human rights impacts that are directly linked to their operations,” and to take remedial action should abuses occur.
The UN Global Compact encourages businesses to adopt sustainable and socially responsible practices in line with international human rights standards.
Human Rights Watch has written to the companies that have not paid into the fund, asking them to explain why. They include: Adler Modemärkte (Germany), Ascena Retail (USA), Auchan (France), Benetton (Italy), Carrefour (France), The Cato Corporation (USA), Grabalok/Store Twenty One (UK), Güldenpfennig (Germany), JC Penney (USA), Kids for Fashion (Germany), Matalan (UK), NKD Deutschland GmbH (Germany), PWT (Texman) (Denmark), and Yes Zee ESSENZA (Italy). Benetton replied to explain why it has preferred a project run by an NGO.
Others, such as Ascena Retail, Carrefour, the Cato Corporation, and Güldenpfennig, have made previous statements denying they were doing business at Rana Plaza at the time of the collapse, according to the Clean Clothes Campaign.
Human Rights Watch also wrote to 14 companies that are listed as donors to the Rana Plaza Trust Fund, asking them if they plan to take any further steps to improve the plight of injured workers or families of deceased workers. These are: Bonmarché (UK), C&A (Holland), Camaïeu (France), The Children's Place (USA), El Corte Inglés (Spain), Inditex (Spain), KIK (Germany), Loblaw (Canada), LPP S.A. (Poland), Mango (Spain), Mascot International (Denmark), N. Brown Group (UK), Premier Clothing (UK), and Walmart (USA).
Nine of these companies replied to the HRW explaining why they contributed to the fund. Some said they had done so even though were not linked to Rana Plaza. Britta Schrage-Oliva, of KIK, said she hoped her company’s contribution of $500,000 would encourage others to donate.
“Companies should recognise this fund is the most appropriate mechanism for ensuring that the right help goes to the right people, since it has been set up by all the relevant stakeholders: the Bangladesh government, industry bodies, the ILO, trade unions, NGOs, and some of the brands themselves,” Robertson said.
“International garment brands now need to step up their support to make this victims’ fund work to help the thousands of people affected by this disaster.”
Human Rights Watch recently spoke to 44 survivors and relatives of the deceased, and found that all had received some financial support, but in most instances this was inadequate. The assistance came from a variety of sources but the amount each received may not have been sufficient, with little opportunity for victims to seek adjustments, the report said.
The workers alleged that children worked in four of the five factories: New Wave Bottom, New Wave Style, Ethertex, and Phantom Apparel. They said that factory managers forced children to work long hours and sought to conceal them from external monitors.
In these same four factories, it has been alleged that managers used physical and verbal abuse to pressure workers who failed to meet production targets or made errors, survivors said. Factories also denied workers toilet breaks or prayer breaks, refused to give sick leave, and required them to work overtime, which was sometimes not compensated.
Participants of the UN Global Compact agree to abide voluntarily by 10 principles. Principle 2 calls on businesses to ensure that through their operations they are not complicit in human rights abuses. At least four of the companies that have paid into the fund, El Corte Inglés, Inditex, Mango, and N Brown Group, are listed by the Global Compact as participating companies.
Two of the companies that have been linked to Rana Plaza by campaigners and journalists, Auchan and Carrefour, are also participants in the Global Compact, according to its website.
In May 2013, Carrefour said it had no business dealings with any of the factories in Rana Plaza. In the same month, Auchan said that it had never placed any direct orders with the Rana Plaza factories and was investigating why its labels were reportedly found there.
“The Rana Plaza disaster showed the failure of proper oversight over factories manufacturing clothes for international garment brands,” Robertson said. “These brands should help mitigate the damage by assisting with the full restitution of those who were injured or lost their lives in the collapse.”