Rana Plaza compensation fund reaches $30 million goal

15 June 2015

Victims of the Rana Plaza garment factory collapse in Bangladesh are finally set to receive full compensation after the remaining funds were secured.

The Rana Plaza Coordination Committee said it has now raised all the funds required to enable the compensation scheme to make full payments to all victims in the coming weeks.

The committee had estimated that $30 million (£19 million) was needed to ensure that all victims received fair compensation, according to International Labour Organization (ILO) conventions.

In April, two years after the accident, $27 million (£17 million) had been raised and the committee had paid out 70 per cent of the awards promised to over 2,800 claimants.

The TUC had criticised clothing firms for failing to pay into the fund established to support the victims of the accident in which 1,134 people lost their lives and hundreds more were injured. But the ILO has said further donations mean that $30 million target has now been reached and all final payments can be made. ILO director-general Guy Ryder said a milestone had been reached but that there was still important work to do.

“We must now work together to ensure that accidents can be prevented in the future, and that a robust national employment injury insurance scheme is established so that victims of any future accidents will be swiftly and justly compensated and cared for,” he said.

The ILO has acted as chair of the Rana Plaza Coordination Committee since it was established in October 2013. In January 2014, the ILO also established the Rana Plaza Donor Trust Fund to support the committee’s effort to finance the scheme.

ILO said it was working with the Bangladeshi government, employers’ and workers’ organisations, donors and industry partners to establish a national employment injury insurance scheme to protect victims of accidents at work.

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