Companies invited to join September start-up of relief scheme for victims of collapsed factory, Bangladesh.

On July 6 2006, Spanish-based retailer Inditex sent a letter to invite brands to participate in a Voluntary Relief Scheme to provide much needed support to workers who were injured and the families of those who died when the Spectrum / Shahriyar factory collapsed on April 11, 2005. Spectrum / Shahriyar was a garment factory supplying Inditex (Zara) and many other European retailers, including Carrefour, Cotton Group, Scapino and KarstadtQuelle. Sixty-four people were killed, more than seventy were injured and hundreds of workers were left jobless as a result of the disaster. The relief scheme, proposed to start this September, is one of the demands that the CCC and Bangladeshi partners have been making of garment companies sourcing from the factory since its collapse. Inditex are organizing the Voluntary Relief Scheme with the International Textile, Garment and Leather Workers’ Federation.

The CCC, CCC partners in Bangladesh (unions and NGOs) and Spectrum/Shahriyar workers have all supported the idea of a transparent trust fund involving all companies and Bangladeshi partners and that includes not only lump-sum compensation payments, but also pensions based on calculations that take wages, family composition and injury level into account. As far as the CCC is informed, the aid fund set up by KarstadtQuelle, Cotton Group, Scapino and Steilmann does not meet this criteria. Therefore, the CCC asks those companies to participate in the Voluntary Relief Scheme.

Inditex aims to have the Relief Scheme in operation by September 1, 2006. A deadline was set for July 20th for companies sourcing from the Spectrum / Shahriyar factory to give comments on the final draft of the proposal and state whether they are able to contribute to it and the extent of that contribution. In multiple discussions that have taken place over the previous months, it was envisaged that contributions to the Scheme would be made by Spectrum, the Government of Bangladesh, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), brands and retailers.

The final amount required to provide the necessary relief to the workers is calculated to be €533,323.39. The NGO INCIDIN, the Bangladesh National Council of Textile, Garment and Leather Workers and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) were all involved in assessing the level of compensation that would be paid to workers and families of those injured and killed in the collapse of the factory, based on field research.

The CCC supports the request that companies sourcing from the factory join the scheme and calls upon them to contact Inditex immediately to join up before September 1. The development of the Voluntary Relief Scheme required legal advice and intensive research to assess the needs of the survivors and the families of those who died who are spread all over the country. It would be unfortunate if Spectrum-Shahriyar clients add to the length of this process by delaying their participation in this long-anticipated initiative.

During the 15 months since the factory collapse the CCC has repeatedly reached out to the factory’s clients to urge them to follow up on the failure to ensure the safety of the men and women at their supply facility, requesting that they contribute to a fund such as the Voluntary Relief Scheme, which aims to address the long-term needs of those whose lives have been so negatively impacted by this disaster. For an overview of the case of the Spectrum-Shahriyar disaster, please see “Spectrum, Bangladesh Garment Workers and their Demands One Year After the Collapse of their Factory” http://www.cleanclothes.org/.

The collapse of the Spectrum / Shahriyar factory is not an isolated incident. There are wide-spread health and safety violations in the Bangladesh garment sector, as well as labour rights violations. To take action to support improvements in health and safety in Bangladesh garment factories, visit: http://www.cleanclothes.org/

The CCC will follow up with the Spectrum buyers to urge them to respond positively to the Scheme and we will keep you informed.