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Urgent Appeals
Spectrum-Shahriyar:
Six Months After the Fatal Factory Collapse
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October 11th 2005 marked six months since the Spectrum
Sweater factory in Bangladesh collapsed, leaving 64 workers
dead, at least 74 workers wounded and hundreds jobless. To
date, emergency relief measures and medical needs have largely
been met. Compensation payments to the families of the dead
and the injured remain an important issue. Workers are still
owed overtime payments and none of the workers have received
their legally-due severance pay.
Women who have lost their jobs,
in front of the remains of the collapsed Spectrum
factory. |
More than 500 workers have received medical treatment and
emergency relief payments, mainly drawn from of the €35,000
provided by the Spanish company Inditex. Inditex also donated
two years wages to two severely injured workers. Several other
companies indicated that they were willing to contribute financially
to the emergency fund, but since most emergency issues are
covered, they have been called upon to contribute instead
to the compensation trust fund.
The process for dealing with compensation payments has
been haphazard and workers have stated that the compensation
received so far is totally insufficient to help the families
of the injured and dead workers in the long term. Nearly
all families of the dead workers have received Tk 79,000
(€1,000) from the Bangladesh Garment Manufacturers
and Exporters Association (BGMEA), and most families have
received or applied for the additional compensation of Tk
21,000 (€266) they are legally entitled to from the
Labour Court. The owners of Spectrum Sweater and adjacent
Shahriyar Fabric made part of this money available. Legal
action has been taken in Bangladesh on behalf of five workers
to demand compensation under the Bangladesh Fatal Accident
Compensation Act of 1955.
Trust fund still to be hammered out
International pressure has resulted in an initial agreement
among some of the parties to establish a compensation trust
fund into which buyers, the factory owner and the BGMEA
could contribute money. Commissioned by Inditex, the inter-national
consultancy firm KPMG has drafted a proposal regarding the
appropriate amounts of compensation. An initial review of
the first proposal suggested that there was scope for significant
improvement to obtain a fair and decent settlement package.
As this newsletter went to press a revised proposal was
being developed.
While some companies, such as Inditex, have been clear
about their support for a trust fund to compensate the Spectrum
workers and families, there are still many companies who
were confirmed to have been sourcing at Spectrum-Shahriyar
but who have not yet pledged to contribute to the compensation
trust fund. Pushing for these companies to make such a step
continues to be an important part of CCC follow-up on this
case.
Money owed to workers
Workers are still owed wages and severance pay. In May,
the National Garment Workers Federation (NGWF) in Bangladesh
sent a memorandum regarding outstanding wages to the Labour
Inspection Department and the Department proceeded to file
a case against the owner of Spectrum-Shahriyar. The court
ordered that these workers are entitled to their back wages.
Until now, none of the Spectrum-Shahriyar workers have received
the severance pay they are legally-entitled to, which would
be four months (plus one month for each year worked) since
the date of dismissal. Since none of the workers have received
an official letter from the company terminating their employment,
strictly according to the law they are even due salaries
(and then severance from the date of dismissal).
CCC representatives reported that upon visiting the Spectrum-Shahriyar
site, new garment-producing machinery was present and the
Shahriyar factory was up and running for what was referred
to as "light production work" for the Belgian
company Cotton Group, in addition to packing and labelling
for the German company Bluhmod of sweaters produced by Spectrum
before the collapse. Cotton Group did a structural audit
before agreeing on the continuation of running orders but
did not ask for a social audit. The company states that
the payment of the current order will be conditional to
the owner paying (part of) the legal dues to the workers.
The CCC representatives have raised doubts as to whether
present health and safety measures are satisfactory.
There are different estimates as to the number of unemployed
workers as a result of the Spectrum-Shahriyar factory collapse,
and on the percentage that have found new jobs. According
to the NGWF, the majority have found other forms of employment
somehow, although the Bangladesh National Council of Textile
Garment and Leather Workers (BNC) reports that though these
workers managed to find work, it is usually temporary work
and many skilled and experienced workers are doing less
skilled work.
Forums for broader industry-wide discussions?
Several high-level meetings have been held involving buyers,
international agencies and the Bangladeshi government. The
Bangladeshi government has set up a "National Forum
on Social Compliance", and within this two task forces:
one for labour and one for CSR. Though this seemed a promising
development, concrete plans and terms of reference for the
task forces, due by late August, have not been produced.
The June 27-28 MFA forum meeting in Bangladesh, hosted by
the UNDP and attended by international buyers, trade unions
and international organisations, provided input and suggestions
towards the governance and activities of the government
forum. The MFA forum continues to organise discussions with
the different parties to ensure follow-up.
The Spectrum collapse is merely the latest in a series
of many incidents where workers died in unsafe buildings
in greater Dhaka, and workers lives continue to be at risk
there. Local unions and NGOs have called for a comprehensive
health and safety review and follow-up action measures since
the collapse, and it is distressing that no actual progress
has been made. Waiting for the government forum to make
progress on its very broad mandate should not become an
excuse for not taking direct and immediate action on this
specific point.
Inditex disclosed its supplier list to local trade unions,
and is actively exploring ways to involve them in workplace
assessments and remediation work. Although KarstadtQuelle
indicated that they would also provide their supplier list
to the local trade unions, they have failed to follow-up
on this. Several buyers have reported that they will step
up their audit-activities in this area, and include structural
reviews of buildings. Depending on the quality of the auditing
this can certainly be an improvement, however, in the face
of this tragedy it is insufficient. Collective and comprehensive
action is urgently needed - there really is no viable excuse
for any more delay.
Support is needed to secure justice for the Spectrum-Shahriyar
workers and families! Please see the CCC website for the
latest action request in relation to the Spectrum-Shahriyar
case: www.cleanclothes.org/appeals.htm
