Last minute initiative secures additional donations to the Rana Plaza compensation fund, but $2.7 million still needed

987

Clean Clothes Campaign calls on brands to fill the remaining funding gap by May Day

The Clean Clothes Campaign has welcomed a last minute initiative on the eve of the second anniversary of the Rana Plaza disaster, which brought in additional donations to the Rana Plaza Donors Trust Fund, significantly decreasing the funding gap.   

Last Thursday on 23 April, Children’s Place working with the ILO convened a conference call of major brands and retailers in an attempt to fill the funding gap by the second anniversary of the Rana Plaza disaster.  This call raised over $1 million in donations to the fund.  In addition to these donations, Children’s Place contributed another $2 million to the fund, bringing their total contribution to the compensation fund to $2.5 million. 

“We have been calling on brands to work together to collectively resolve the funding crisis for months, and we welcome the initiative of The Children’s Place in doing so now,” says Sam Maher of the Clean Clothes Campaign. 

This last minute initiative coincided with a Global Day of Action, for which activists participated in actions around the world, calling on all brands sourcing from Bangladesh to fill the current funding gap in compensation immediately, and to sign the Bangladesh Accord on Fire and Building Safety.  There were major events and demonstrations in at least 20 countries worldwide.  Global actions included a mass demonstration held by trade unions and garment workers federations in Dhaka, a public art installation forming a concert of sewing machines in Genova, Italy, demonstrations outside stores including Mango, JC Penney, Zara, and Walmart in the US, and a flashmob outside stores in Berlin.  Thousands more showed their support online, through facebook messages, sharing solidarity photos and tweets.

There remains hope that brands and retailers will continue to step up and make additional contributions in order to fully fill the fund at $30 million, the amount required to provide the survivors and victims’ families with full and fair compensation.  Over the past several months, there have been rumours of a forthcoming donation of around $4 million from the Bangladesh Alliance, which includes Walmart and a number of other US and Canadian brands with production in Bangladesh.  

“The donations of The Children’s Place and others in the run up to the anniversary has brought us close to the target, but frustratingly, not close enough to finally complete this programme,” says Sam Maher.  “For months Walmart has been delaying any further donation, claiming that instead the Alliance would be making a significant payment. With only $2.7 million left, the Alliance is presented with a unique opportunity to finally close the gap and we are calling on them to make good on this promise by May Day. There is no excuse for any further delay.”

The urgency and need for full compensation grows with each passing day.  Many survivors have had to use their entirety of their compensation payments to date on medical fees and are living in abject poverty, awaiting the final installments. To date, claimants have only received 70% of what they are owed.

For families and individuals the wait for compensation has had devastating effects, many have faced destitution and are unable to pay ongoing medical costs.

Asha Khat, who survived the disaster, was the main earner for her mother, father, and younger sister, and now the family is desperately struggling to get by. Asha has received compensation for her injuries, but says it’s only been enough to cover her medical costs. Two years after the collapse, Asha says she still can’t eat properly, and she feels pain in her head and chest. She is too weak to stand for long periods, so she no longer leaves the house. The two-year wait for compensation has fueled Asha with despair: “I feel like I’m living like a dead person. It would’ve been better if I died, because now I’m a burden to my family.”

Notes
For more information about the Rana Plaza Donors Trust Fund and to see a list of publicly disclosed donations, see: www.ranaplaza-arrangement.org/fund/donors

For photos of events for the Global Day of Action see: www.facebook.com/events/890384840982725/