Compensation Talks Start in Geneva for Bangladesh Factory Victims

Representatives of shops, labor unions and non-governmental organizations began meeting today in Geneva to discuss compensation for those killed or injured in two factory disasters in Bangladesh.

Today’s talks are serious about November’s Tazreen factory blaze, said Jenny Holdcroft, policy director at IndustriALL, a Geneva-based union federation representing workers in 140 countries. a meeting tomorrow will consider the Rana Plaza factory collapse, the nation’s worst industrial accident, which killed more than 1,000 people.

“This is a specific discussion of the actual money that the companies will provide,” Holdcroft said. “We hope that the results of the meetings can be specific commitments of dollar amounts by the brands of what they could contribute to the compensation.”

C&a suite is among five retailers who've confirmed they'd attend the meeting today, while the meeting tomorrow will be attended by no less than 11 retailers, including Primark, in keeping with IndustriALL. While IndustriAll had said Inditex will be there, a corporation official at Inditex said the world’s biggest clothing retailer has no plans to attend.

IndustriALL has previously estimated long-term compensation for Rana Plaza can be more than $71 million and about $5.7 million for Tazreen.

Paying Up

“Obviously there is a discussion about how much the brands contribute vis-a-vis the factory owners, the govt. . in Bangladesh and the employers’ federation,” Holdcroft said.

The meetings, overseen by the International Labour Organization, aren’t component to the Bangladesh Accord on Fire and Building Safety, an agreement arrange by retailers and labor unions in July.

The talks were initially planned for Aug. 11 and 12 in Dhaka and were postponed. Representatives of Wal-Mart Stores Inc. and Carrefour SA are among people that have said they won’t attend, according to IndustriALL.

Wal-Mart pledged in August to lend $50 million to Bangladesh factory owners in an initiative with other retailers called Alliance for Bangladesh Worker Safety.

“Our goal is to positively impact global supply chain practices both by raising our own standards and by partnering with other stakeholders to reinforce the factors for staff round the industry,” Wal-Mart spokesman Kevin Gardner said in an e-mailed comment. “We are all in favour of investing our resources in proactive programs so as to address fire safety contained in the garment and textile industry in Bangladesh and forestall fires before they happen.”

‘Full Compensation’

Carrefour officials didn’t immediately respond to e-mails seeking comment. C&A confirmed it’s attending today, while a spokeswoman for Primark, a unit of Associated British Foods Plc, said she wasn’t immediately prepared to comment.

“Only full compensation may also help bereaved families and injured survivors mend their broken lives,” said Murray Worthy, a campaigner at War on Want, a U.K. group that says it aims to fight poverty. He commented in an announcement. “Every brand that sourced clothes from Rana Plaza will need to have acted to ensure their workers’ safety. This wasn’t an accident, it was a unconditionally preventable tragedy.”

With assistance from Manuel Baigorri in Madrid, Renee Dudley in Ny, Andrew Roberts in Paris and Gabi Thesing in London. Editors: Thomas Mulier, David Risser

Copyright 2013 Bloomberg.