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Primark extends compensation scheme for Bangladesh victims

Primark is making a third short-term financial payment to all workers or families of victims caught up in the collapse of Bangladesh factory in the Rana Plaza ahead of full compensation next year.

The company is planning to begin long-term compensation payments in early 2014 to the 550 workers, or their families, affected by the disaster in the factory where the supplier New Wave Bottoms was producing clothing for Primark and 27 other brands.   

While the long-term plans are finalised, Primark has committed to a further three months of short-term aid, on top of the six months wages it has already paid. This has gone to all 3,600 workers affected by the disaster, far more than those working for Primark.

The company is calling on other brands to make a contribution by also paying short-term aid to the victims who made clothes for their labels.

A spokesman said: “Within a week of the collapse of Rana Plaza, Primark committed to paying long-term compensation to the victims of the disaster as quickly as possible.  In the meantime, Primark will guarantee a further three months’ salary to the 3,600 or so victims of Rana Plaza to alleviate their immediate hardship, many of whom worked in the supply chain of other brands. The company calls on other brands sourcing from Rana Plaza to now contribute a fair share of this tranche of aid.”

In the wake of fire disasters and the Rana Plaza building collapse in April the Accord on Fire and Building Safety in Bangladesh was signed by over 90 brands and retailers including Primark, Arcadia, H&M and M&S.

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