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To: Business Social Compliance Initiative
Attn. Heinz-Dietter Koeppe, Mr. Berzau

Amsterdam, May 24, 2005


Dear Mr. Koeppe, Mr. Berzau,

It is our understanding that the BSCI has postponed its investigative mission to Bangladesh until the first week of June. As indicated in several conversations between BSCI and CCC representatives we find this delay deeply distressing, since it will mean a full two months will have passed since the disaster before any of the BSCI member companies or the BSCI itself will have made first contact with the labour unions and NGOs concerned, or have taken any step at all to deal with the consequences of this disaster.

Apparently the BCSI consultation will be facilitated by the German government (GTZ). To date, and despite repeated requests, our partners have still not received any indication regarding the composition of the mission, the date, an agenda, a list of invitees nor any other proposal on how best to organize such a consultation in a manner that is productive and meaningful.

For this consultation process to be credible we believe it must include individual consultations with the trade unions that had membership at Spectrum/Shahriyar (notably NGWF) and those presently actively involved in supporting the workers and mobilizing legal action on the case (NGWF, BGWIF) as well as on the NGO side Karmojibi Nari and Ain O Shalish Kendra (the two key NGOs in the Sramik Nirapotta Forum (Workers Safety Forum), a platform consisting of 17 NGOs of the main civil society organisations in Bangladesh, including Oxfam).The BNC unites a number of unions active in the sector who also have taken up the case, notably BIGUF and BGTWL and should also be consulted directly. We expect the members of the BSCI mission to also directly meet hospitalised workers and family members of dead workers to pay their respects.

Meanwhile, the survivors (often severely wounded), the families of the dead workers and the more than 5000 workers who lost their jobs are left in appalling conditions.

1. With respect to the issue of compensation and appropriate support for wounded, survivors and unemployed workers and their families:

The BGMEA is only haphazardly paying some of the families of the dead workers an amount of 79.000 Tk. They will then receive a further 21.000 Tk through the labour court.
The 21000Tk. is according to law only for accidents which result in serious injury, not for fatal accidents resulting in death. However, a total amount of 100.000 Tk., or 1250 Euro though is clearly insufficient to compensate for loss of life and income for families. NGOs and trade unions locally are calling for much higher amounts, up to one million Tk. to families of workers killed, which would be the amount awarded under the Fatal Accident Act. Legal action is being taken by the unions and NGOs concerned calling for compensation according to this act.

BGMEA and authorities are refusing to pay compensation to the wounded survivors. Many of these workers have spent days buried under the rubble, others are now handicapped for life, and families have lost their only source of income. It is beyond comprehension that the authorities, as well as industry (including thus far the BSCI brands) are now refusing to ensure financial compensation to these workers/families, which in our view is the extreme minimum first step they should take. To make matters worse, we have also received reports that in many cases injured workers are not receiving proper treatment and/or are left to take care of their own medical costs. A special medical board should be established to take responsibility to see that workers receive proper treatment, expenses for which should be fully paid (not by the workers).

As a result of the factory collapse, over 5000 workers have been left unemployed. Many of these workers are owed substantial amounts for outstanding wages and overtime pay (we have confirmed reports that wages are outstanding for February, March and April of this year, but it is possible that workers are owed even more). None of their contracts have officially been terminated, and therefore their wages should continue to be paid. If these contracts are officially ended, according to the law, notice should be given 4 months in advance and the workers should get 4 months salary plus one month for each year worked. They should be assisted in finding new jobs: the owners of Shahriyar/Spectrum continue to operate nine other factories, all of whom are still running. Many of the brands sourcing from Bangladesh workers have substantial numbers of suppliers in that country. Clearly there is scope to find jobs for these people, and it is unclear to us why this effort is not being made.

BSCI has indicated that before addressing the compensation issue the companies concerned want to have more information on the exact cause of the collapse, in order to establish responsibilities. Everyone knows that this will lead to a long and protracted (legal) debate and blame-shifting. Everyone also knows who the real victims are. After the Tsunami many corporations were able to provide immediate financial assistance within a matter of days. In this case the brands who for years were sourcing from a death trap factory have not taken a single step to provide financial assistance to the very workers who produced their sweaters. We find the continued lack of action and the continued violations of the law in the face of such massive loss of life, serious injury, and large-scale job loss to be grotesque.

Together with our union and NGO partners in Bangladesh we call once more upon all brands sourcing at Shahriyar/Spectrum at any given point of time in the past 4 years to ensure that appropriate compensation is paid to all families of the dead workers as well as to the injured workers (at least the same amount as paid to the families of dead workers if not higher, including expected loss of income over future working life, damages and all costs of treatment).

All outstanding wages and overtime payments should be paid immediately, and workers who lost their jobs should continue to receive wages, and be assisted in finding alternative employment. If officially terminated they should receive payment at least the maximum amount allowed by law in case of factory closure.

CCC recognizes that brands are co-responsible together with owners and public authorities. The lack of appropriate action on the part of owners and public authorities over the past six weeks, as outlined above, can in no circumstances be used as an excuse for the brands not to take humanitarian action and start providing compensation and support. A public statement of intent to this effect should be made by each brand and/or by the BSCI immediately to assure the workers, their families and concerned consumers that action will be taken.

2. With respect to the issue of an independent and transparent investigation:

The BGMEA and the RAJUK (Government body) each have finalized their reports, as have the police. All seem to point in the direction of a construction fault as well as an illegal structure (9 floors instead of the permitted 4 floors), but so far none of these reports have been made public. The central and urgent problem presently is that there is still no exact number or comprehensive public list of dead, missing and surviving workers (those employed and working that night, and those employed who were not working). According to the police there are 61 dead, but according to the military there are 74 dead. The BGMEA first agreed with the military's estimate, but later said there were 64 dead. Seven recovered bodies have not been identified (later this number was changed to five). This is unacceptable and of course also creates great obstacles in terms of issuing compensation funds.

A high-powered investigation committee with legal local standing should be established to find out the actual number of dead, wounded, missing persons and bodies officially recovered, and to specify which authority should follow up on those findings. The brands and the BSCI should officially request from the BGMEA and Bangladeshi authorities that this happens. They should also request that the investigation reports from BGMEA and RAJUK be made public.

3. With respect to the issue of structural prevention measures we have yet to receive a response from the BSCI or any of its members to our proposals for a program to take up safety issues, including a structural review of multi-story buildings and workers' access to safe channels to communicate their concerns on health & safety. We want to stress once more the importance and urgency to undertake such a program: the Spectrum/Shahriyar building is definitely not the only recently built factory in an area prone to flooding. In addition to an international oversight committee (including a role for the ILO) our Bangladeshi partners underline the need for a permanent tripartite high-powered committee (government, employers and trade unions) to be set up as part of the program.

The BSCI and its member companies should issue a statement indicating their support for such a program. The code implementation schemes of all BSCI brands sourcing at Spectrum/Shahriyar (and the scheme of the BSCI itself) -- none of whom identified the safety risks to the workers, nor addressed any of many other violations to almost every element of the code -- should all be reviewed.

The CCC will issue a public report shortly on the conditions at Spectrum/Shahriyar prior to the collapse as well as on the present situation of the survivors, the families of the dead, and the unemployed. In the absence of a meaningful response from the BSCI and its member brands, we will also issue a public appeal to consumers and civil society to contact brands and BSCI and express their dismay and disgust. Direct actions at stores, offices and meetings will be sure to follow.

Looking forward to your immediate action,

On behalf of the CCC,
Ineke Zeldenrust

Ineke Zeldenrust - ineke@cleanclothes.org
Clean Clothes Campaign, International Secretariat
Amsterdam, the Netherlands

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