SPECTRUM/SHAHRIYAR UPDATE #14

April 11 2009 marks the fourth anniversary of the Spectrum factory collapse in Bangladesh, which killed 64 and injured 80, of which 54 seriously. CCC is very pleased to report that, following years of delay, the Relief Fund that was set up by former buyer Inditex (Zara), cooperating with the International Textile, Garment and Leather Workers Federation (ITGLWF) has paid a substantial part of the monies due to the injured and has made progress on the payments due to the widows and families of the dead.

The scheme, originally scheduled to be launched in September 2006 and estimated at a total of 533,000 Euros, is intended to provide the victims and the families of the survivors with a monthly income, and follows previous efforts to provide medical care and other types of emergency relief. Several companies producing at Spectrum and the adjoining Shahriyar Fabric, notably Inditex (Spain), KarstadtQuelle (Germany), New Wave Group (Sweden), Scapino (Netherlands), and Solo Invest (France) have agreed to participate in the scheme.

According to information gathered from the organized Spectrum workers in December 2008 40 of the 54 injured workers were paid the amounts calculated under the relief scheme provisions for 2005-2008, including the monthly pensions that were owed to them over this period. 2 workers already had already received the total amount due to them during the advance period. As of 8 of march updates on bank accounts were still required for 11 of the workers, as soon as banking details available those payments will be made. One of the victims received treatment but in fact was not a Spectrum employee. Advance payments made in the years previously (see earlier updates on this site) were subtracted. The amounts were based on their degree of injury estimated first at a medical assesment in 2006, and followed by a medical reassesment in December 2007. This resulted in a significant number of the workers receiving a higher rating (meaning that injuries were worse than previously assessed). This was corrected for the entire period since April 2005. According to the Relief scheme provisions all pensions are due to be incremented by 4.2% per year. It is unclear at present if this has been included in the calculations, nor is it clear if the interest that has been gained on the outstanding pensions over the years has been included.

Almost all the injured workers (except 2) have found new jobs, partly at Inditex suppliers and partly at other factories, while a few younger workers have returned to school and changed their job. CCC is pleased with this result given that discrimination against workers with handicaps is quite common in the industry. 6 workers’ handicaps due to the collapse are permanent. They will remain dependent on additional pensions from the relief scheme. For 4 others the entitlement will run out at the end of this year according to the medical assesment.

Under the Relief scheme provisions, the families of the dead Spectrum workers were due, firstly, a lumpsum payment of 168.000 Taka and secondly a lifelong pension, the amounts dependent on age and family composition. The BGMEA and the government paid the fairly standard compensation of 100.000 Taka shortly after the collapse, which was subsequently considered part of the lumpsum payment. 56 of the 64 families were paid the remaining 68.000 Taka (about 766 Euro) at the end of 2008. Two workers remain unidentified, a legal process is ongoing to determine their identity. Difficulties have arisen on the question of the entitlement for some of the others especially in cases where the worker was married, or for identifying the exact dependents. It is unclear if provisions have been made for the considerable devaluation of the Taka versus the Euro in the time since the amounts were calculated, or for interest due.

So far none of the pensions due to the families of the dead, estimated at 253.000 Euro have been paid. CCC is hopefull that now that a mechanism has been established to organize the payments to the victims and their families regular pension payments will be set up shortly, both for the victims who are due continuing pension payments and for the families of the dead.

Now that the Relief Scheme is demonstrably operational those companies that thus far have refused to enter the scheme have run out of excuses not to commit to the Relief Scheme. CCC is calling upon Carrefour (France), Cotton Group (Belgium), New Yorker, Steilmann, Kirsten Mode, and Bluhmod (Germany) to contact Inditex and the ITGLWF, and commit to participation in the Relief Scheme.