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Clean Clothes Campaigni, November 2012
Hazardous workplaces: Making the Bangladesh Garment industry safe

The safety record of the Bangladesh garment industry is one of the worst in the world. ccording to the Bangladesh !ire "epartment #1# garment wor$ers were $illed in at least 21% factory fires between the years 200& and 200'ii. further (' wor$ers lost their lives in 2010 in 21 separate recorded incidents.iii The high death toll from these incidents reflects not only substandard buildings but poor emergency procedures, inade)uate and bloc$ed fire e*its and overcrowded wor$places. +any of the wor$ers involved were $illed while producing clothing for brands and retailers in ,urope and North merica. This briefing aims to give an overview of what action needs to be ta$en by the different actors involved in order to improve the safety of garment factories in Bangladesh, what has been achieved so far both in preventing future tragedies and compensating the victims of previous incidents and what more could and should be done by the brands, retailers and employers to ensure that the wor$ers of Bangladesh are not ris$ing their lives for the sa$e of cheap fashion. Section A loo$s at why the industry in Bangladesh is so unsafe and what what is re)uired to improve safety standards in Bangladesh and the action needed to prevent future accidents. This includes bac$ground information on the industry in Bangladesh, international standards for the right to safe wor$, the roles and responsibilities of different sta$eholders in ensuring this right is respected and an overview of the wor$ done so far to prevent future tragedies on Bangladesh. Section B loo$s at the issue of remedy in general and provision of compensation to affected families in particular. -t aims to provide an overview of international standards in regard to remedy and the obligations this places on the different sta$eholders and to provide a comparison and analysis of the various schemes that have been set up in Bangladesh to date. -t also provides suggestions for other remedial actions. In conclusion we provide an overview of recommendations being made to the government, industry and multinational buyers and what urgent steps now need to be ta$en.
Section A Prevention of future tragedies

-n this section we are focusing on the need to prevent future tragedies. .hy does /prevention0 come first1 The right to safe wor$ is universal and should be provided to all wor$ers. -t is important not to wait for the ne*t tragedy to happen to shoc$ us into action2 rather resources should be invested into ensuring, as far as possible, the ne*t tragedy is avoided. This re)uires a systematic, long term approach focused on eliminating the root causes of factory collapses, fires and stampedes. This wor$ must be a priority for all brands and retailers and employers, regardless of whether or not an incident has ta$en place in their supply chain or factory. -t must also include action from both the government and trade unions, who have a responsibilities for safeguarding their citi3ens and members from future tragedy.
lean lothes ampaign ! Hazardous workplaces: Making the Bangladesh Garment industry safe
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#nternational standards: the right to safe work
ll wor$ers have the right to wor$ in an environment which is safe and not detrimental to their health. The -45 Constitution sets forth the principle that wor$ers should be protected from sic$ness, disease and in6ury arising from their employment and have established a number of conventions to promote this principle. -45 Convention 177 on 5ccupational 8afety and 9ealth outlines action to be ta$en by governments and within enterprises to promote occupational safety and health and to improve wor$ing conditions. This convention has not been ratified by the Bangladesh government. ll of the incidents documented over recent years could have been avoided if proper regulation and inspection systems were in place. !aulty electrics, old and badly maintained e)uipment and buildings that fail to meet building code standards have often been the cause of disasters. "eath and serious in6ury tolls have been high due to the lac$ of training, procedures and e)uipment for use both by wor$ers and managers and by the emergency services themselves. 4oc$ed, bloc$ed and inade)uate escape routes have also been a common factor. -t is clear that the current failure of either the government of Bangladesh or the businesses that are connected to the Bangladesh industry are not doing enough to ensure garment wor$ers rights to a safe wor$place are being either protected or respected. The :N ;uiding <rinciples on Business and 9uman =ights, which were signed unanimously by all member states in +arch 2011, provide a framewor$ for defining the roles and responsibilities of both governments and businesses in regard to human rights. -t is based on a framewor$ of three separate /pillars0> <rotect, =espect and =emedy. This framewor$ can be applied in situations where any human right impacts could occur, including breaches of labour rights in the wor$place. s the right to safe wor$ is a recognised labour right, the :N !ramewor$ can and should be applied to the issue of ha3ardous wor$places and states and business therefore have responsibilities to ta$e action to protect and respect their citi3ens and the community where business operates in regard to ensuring wor$places meet international and national standards on health and safety at wor$.
%hy is the Bangladesh Garment #ndustry so unsafe&
The ready?made garment sector @=+;A in Bangladesh has become the bac$bone of the Bangladesh economy, producing around B0C of the countryDs e*ports. -t is now the second largest garment e*porter in the world, e*porting over :8E1(billion worth of clothing in 2011.iv -n recent years the industry has boomed and the number of factories engaged in garment production has increased rapidly. Bangladesh is now estimate to have between four and five thousand garment factories, ranging from large first tier suppliers to small factories largely operating as subcontractors to bigger clients. The industry is characterised by low cost, fast production relying on cheap labour and production costs to compete with its competitors. 5ver three million wor$ers, the ma6ority of whom are young women, are employed in the Bangladesh garment industry and remain the lowest paid garment wor$ers in the world. The lac$ of alternative employment options combined with widespread poverty mean these women are forced to accept 6obs that are poorly paid and carried out in wor$places that fail to adhere to the most basic standards of
health and safety. The rapid e*pansion of the industry has led to the conversion of many buildings, built for other purposes, into factories, often without the re)uired permits. 5thers have had e*tra floors added or have increased the wor$force and machinery to levels beyond the safe capacity of the building. +any factories run throughout the day and night in order to meet production targets. The establishment of factories, or the conversions of other buildings into garment factories, has often been done as )uic$ly and as cheaply as possible, resulting in widespread safety problems including faulty electrical circuits, unstable buildings, inade)uate escape routes and unsafe e)uipment. -n pril 2007, &# garment wor$ers were $illed and B0 were in6ured when the 8pectrum factory, producing clothing for -ndite* and Farstadt Guelle, among others, collapsed. The incident shone a spotlight on the poor safety record of industry that employs over % million wor$ers often in buildings that are not fit for purpose. lthough the 8pectrum tragedy brought world attention to the safety problems in the garment industry it appears to have done little to encourage either factory owners or the government to ta$e the systematic action re)uired to improve the safety of Bangladesh garment wor$ers. ,very year more wor$ers lose their lives or their health as a result. 8ince the 8pectrum collapse the Clean Clothes Campaign has been wor$ing with Bangladeshi trade unions, local and international labour rights N;5s and the -nternational Te*tile, ;arment and 4eather .or$ers !ederation @-T;4.!A to call for 6ustice for those wor$ers and families affected by factory disasters. This has included campaigns on several specific cases involving fires, collapse and stampedes that caused unnecessary deaths and in6ury to garment wor$ers. @see appendi* - for an overview of these casesA. CCC has also supported calls for more industry?wide changes, calling on employers, brands and retailers and the Bangladesh government to ta$e action to prevent further tragedies. ,ach of the campaigns run so far has focused on both the protection of and respect for the rights of Bangladesh wor$ers to a safe wor$place and on the need for remedy in cases where wor$ers suffer in6ury or death as a result of a safety incident.
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Action taken so far to improve safety in Bangladesh
!ollowing the 8pectrum tragedy demands were made to buyers, the Bangladesh industry and the Bangladesh government to ta$e steps to improve the safety of garment factories. This included developing a programme of inspections to chec$ the building safety of garment factories and the establishment of a multi?sta$eholder oversight committee, which would include representatives of employers, government, trade unions and fire and safety e*perts, to investigate and monitor building safety issues. 8traight after the 8pectrum some measures were ta$en including the stepping up of buyer? re)uested audits focused on building safety, the setting up of a government tas$ force to loo$ into safety, which included a point of contact where wor$ers and others could raise their concerns, and the involvement of the Bangladesh ;arment +anufacture and ,*port ssociation @B;+, A in unannounced inspections to chec$ on access to fire e*its. !rom the outset labour groups raised concerns that this response was not systematic enough, that there was limited capacity for doing any more than ad hoc visits and a lac$ of effective follow up. -n fact the government tas$ force remained largely limited to the
compiling of long lists of improvements needed, most of which were already established in Bangladesh law, and did little in the way of implementation or enforcement. ;iven that these actions were limited to larger factories owed by B;+, HBF+, members there were also concerns that factory owners would simply sub contract orders to smaller factories that were outside the remit of the tas$ force and B;+, inspections, thereby avoiding inspections or costly re?mediation actions. These concerns were soon to proved well founded. -n 200&, after these measures were introduced, do3ens more wor$ers were $illed in a number safety incidents including &% at FT8 Te*tile -ndustries, 22 at <hoeni* and % at 8ayem !ashions, proving beyond doubt that the actions ta$en so far were insufficient. "uring 200& the +ulti !ibre rrangement !orum Bangladesh @+! !orumA, which brought together representatives of government, industry, buyers and trade unions, held meetings to thrash out a more structural response to the problems of building safety but ultimately failed to reach agreement or to carry out any practical wor$ in this area. !ollowing the tragedy at ;arib and ;arib in !ebruary 2010, various parties once again tried to pull together a multi?sta$eholder approach to dealing with fire safety. -n +ay 2010 a proposal was made to organise a meeting, bringing together government, buyers, industry and trade unions. This meeting finally too$ place in "ecember 2010. -t was attended by representatives of buyers, the garment industry, trade unions and labour rights groups. The government failed to send a representative. The meeting focused on sharing progress on individual programmes being carried out by buyers, the B;+, and trade unions, which were largely limited to an increased focus on electrical inspections. The meeting resulted in few, if any, concrete proposals for action, apart from an agreement to meet again in the near future. 4ess than two wee$s after the meeting, the fire at ThatDs -t 8portswear @9ameem ;roupA too$ the lives of 2' wor$ers. third multi?sta$eholder meeting was held in "ha$a in pril 2011 bringing together representatives of the B;+, , trade unions and buyers. The government was represented by officials from the !ire 8afety "epartment and the Building and !actories "epartments. <articipants discussed the signing of a +emorandum of :nderstanding @+o:A that would establish a programme of wor$ aimed to prevent future tragedies, whoDs implementation would be overseen by a multi?sta$eholder tas$ force. -t was agreed that more negotiations would be necessary to address various aspects of the +o: and no action was agreed upon during the meeting. -t was foreseen that negotiations would continue until the summer, with the hope that a final +o: would be signed within months. The hoped for +o: failed to materialise during 2011 but negotiations continued behind the scenes. 5n the 17th +arch 2012 an +o: was signed between <I9 Corp., a :8 company owning several brands including Tommy 9ilfiger and Calvin Flein, and Bangladeshi and international labour rights groups and trade unions, including both the Clean Clothes Campaign and the -nternational Te*tile ;arment and 4eather .or$ers !ederation. The +o: outlines a programme of wor$ which allows for independent building inspections, wor$er rights training, public disclosure and a long?overdue review of safety standards. -t is transparent as well as practical, and uni)ue in being supported by all $ey labour sta$eholders in Bangladesh and internationally. 5n the 1#th 8eptember, 2012 Tchibo was the second retailer to sign the +o:.
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)he role and responsi*ility of different stakeholders to prevent future tragedies
Bangladesh government
.ithin the :N ;uiding <rinciples it is the role of national governments to /<rotect0 their citi3ens from human rights impacts of business operations. This should include actions to prevent and investigate abuses as well as measures to punish and redress. .here abuses are ta$ing place as a result of business practices governments carry responsibility if they fail to ta$e appropriate steps to prevent abuses occurring. lthough Bangladesh does have regulations in regard to building safety they are not sufficient to provide real protection to wor$ers. !urthermore the governmentDs ability to enforce even these limited regulations is woeful. ccording to a report by the Bangladesh 5ccupational 8afety, 9ealth and ,nvironment !oundation @589,A in 200B there were only eighty personnel involved in inspection activities for the entire country J divided among four ma6or cities J with 6urisdiction over 2#,2'' registered factories, roughly three million shops and establishments, and two ma6or ports. 5f these personnel, only twenty were solely responsible for occupational health and safety issuesv. ccording to a report to the -45 in 2011vi the number of inspectors had increased to '%, although the number of new wor$places has also dramatically increased during this period. BangladeshDs failure to implement a robust and credible labour inspectorate has regularly been criticised by the -45 Committee of ,*perts. -n the 2011 =eport of the Committee of ,*perts to the -45 Congress it critici3ed the failure of the Bangladesh government to increase investment in its labour inspectorate, to recruit more labour inspectors or to properly train those already wor$ing. -t also raised concerns in regard to the practice of providing significant advance notice of inspections and the authority and credibility of the inspectorate.vii Recommendations for government actionviii:
Conduct a full and rigorous review of building and fire safety standards and regulations for =+; enterprises, and develop benchmar$s for compliance. :nderta$e an urgent review, conducted by a multi?sta$eholder committee of all multi?story buildings currently housing garment production facilities to ensure they may be safely used for this purpose. ,nsure that the factory inspectorate is e)uipped with the necessary resources to conduct regular inspections for adherence to wor$place safety and labour legislation, including BangladeshKs National Building Code and !actory ct. -ssue J on a )uarterly basis J a public list of all factories that do not meet the standards outlined above and revo$e the e*port license and B;+, membership of each factory on this list until compliance is demonstrated. ,nsure respect for wor$ersK internationally recognised rights of freedom of association and collective bargaining and ensure the removal of all unlawful or unreasonable obstacles to the registration of factory?level unions. 8et up a high?level investigative committee to conduct in)uiries into accidents at factories involving wor$er fatalities or multiple serious in6uries. 8uch a committee should conduct a thorough investigation into the causes of each such incident and issue a public report of its investigation. The government should pursue all applicable criminal charges against the employer in the case of negligence.
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Brands and retailers
:nder the :N ;uiding <rinciples, a clear responsibility for respecting human rights is placed on businesses of any si3e and operating in any 6urisdiction. Their responsibility is to avoid infringing on the human rights of others and to address adverse human rights impacts with which they are involved. The principles place an obligation on business to carry out proper due?diligence processes to identify, prevent, mitigate and account for how they address their impacts on human rights. lthough brands and retailers themselves arenDt directly responsibly for the safety of the buildings where production is ta$ing place, it is clear that the decisions of brands and retailers to see$ low cost, unregulated environments in which to carry out production has contributed to a situation where wor$ers lives are being placed at ris$. ccording to a B8Creport Dthe expansion of production [in Bangladesh] has led to wild extensions of buildings, especially the construction of new stories.ixD The purchasing practices of brands, which are often characteri3ed by short term, unstable relationships, constant price cutting and short lead times also contribute to a lac$ of investment in the safety conditions within factories and attempts to produce more than the capacity of the factory allows for. t the same time buyers are relying on audit systems, widely criticised for their wea$ness in uncovering labour rights violations, to monitor supplier adherence to codes of conduct yet are failing to enforce corrective actions in regard to health and safety. Their failure to wor$ in collaboration with other buyers and with local sta$eholders, in particular with trade unions representing the garment sector in this regard represents a serious breach of due diligence. s such their actions can be seen as contributing to the human rights abuses detailed here, namely the loss of life and in6ury of wor$ers in the Bangladesh =+; industry. Recommendations for brands and retailers:
,nsure that a full and rigorous review of building and fire safety standards and regulations for =+; enterprises will be conducted, including benchmar$s for compliance. ,nsure thorough, independent and transparent building and safety inspections of all suppliers in the =+; sector and re?mediation of any issues uncovered in the process. ,nsure purchasing practices and pricing that allow for factory renovations and investments in wor$er safety. ,nsure that wor$ers are trained on their rights in collaboration with trade unions. ,nsure that functioning and independently elected 9ealth and 8afety committees are installed at each supplier. ,nsure that wor$ers have information about and access to credible grievance mechanisms in order to report information about health and safety ha3ards. ,nsure respect for wor$ersK internationally recognised rights of freedom of association and collective bargaining. .or$ with labour rights organisations and unions to achieve the above mentioned recommendations.
### Bangladesh Garment Manufacturers and +,porters Association -BGM+A. /Bangladesh 0nitwear Manufacturers and +,porters Association -B0M+A.
The sheer number of fire and building safety tragedies in recent years are indicators of a systematic failure of the industry to comply with national and international standards. !ires occur in all levels of production from first tier, large suppliers to small, subcontracting factories. s such the response needs to be industry wide and not simply factory by factory. s the representative bodies of the Bangladesh garment industry the Bangladesh ;arment +anufacturers and ,*porters ssociation @B;+, A and the Bangladesh Fnitwear +anufacturers and ,*porters ssociation @BF+, A are powerful and influential organisations, with the potential to ma$e a real difference to the way the industry wor$s. They therefore have responsibility for ensuring their members are fully informed in regard to safety standards and have an important role to play in enforcing the implementation of these standards by its members. Recommendations for BGMEA/BKMEA:
,nsure that B;+, HBF+, standards.
members are fully informed in regard to safety
.or$ with the government to provide full and comprehensive inspections of member factories. .or$ with the government to revo$e the e*port license and B;+, membership of each factory that do not meet the standards until compliance is demonstrated. <romote respect for freedom of association among its membership.
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2actory owners
!actory owners themselves must ultimately be held accountable for their negligence in regard to the upholding of ade)uate safety standards in the wor$places they own and run. 8imply e*pressing regret or even, in some cases, providing compensation to wor$ers once an incident has occurred is not sufficient when it is their decision to cut corners in regard to building safety, electrical and e)uipment maintenance that has put the lives of their own wor$ers at ris$. ,ach individual factory owner needs to ta$e responsibility for ensuring the safety of his employees by ta$ing ade)uate steps to rectify these problems. ll buildings, including e*tensions to the factory, must meet legal standards and electrical e)uipment should be properly maintained. t the same time they must ensure that managers, supervisors and wor$ers are properly trained in fire and safety procedures, that e*it routes are sufficient for the number of wor$ers employed in the factory, that these remain unbloc$ed at all times. !actory gates should be $ept unloc$ed whenever wor$ers are in the building. -t is also vital that factory owners start ta$ing a more positive attitude to dealing with concerns of wor$ers by allowing proper wor$place representation and recognise the role that trade unions and wor$place safety committees can play in upholding safety standards for wor$ers. Recommendations for factory owners:
ll buildings, including e*tensions to the factory, must meet legal standards and
electrical e)uipment should be properly maintained.
=eview the safety situation at all wor$places by an independent inspector, and ensure that any safety issues identified during the process are timely remedied. -n case @part ofA the wor$places need to be closed during renovations, wor$ers employment should be maintained and they should not suffer of any loss of pay. +anagers, supervisors and wor$ers should be properly trained in fire and safety procedures and ta$e responsibility for ensuring the safe e*it of the building during or following an incident. ,*it routes must be sufficient for the number of wor$ers employed in the factory and must remain unbloc$ed at all times. !actory gates should be $ept unloc$ed whenever wor$ers are in the building. -nstall a 9ealth and 8afety committee in accordance with Bangladeshi law. ,ach committee should be comprised of wor$ers and managers, with wor$ers representing no less than 70C of the members, and with selection of wor$ers to be made by the factoryKs trade union, if present, and by democratic election among the wor$ers where there is no trade union. Ta$e a more positive attitude to dealing with concerns of wor$ers by allowing proper wor$place representation and recognise the role that trade unions and wor$place safety committees can play in upholding safety standards for wor$ers.
oint Memorandum of !nderstanding "Mo!# between $%& 'or()* +c,ibo* Banglades, unions and labour rig,ts grou(s
The +o:, signed by <I9 Corp. @owners of Tommy 9ilfiger, Calvin Flein and 8peedoA, representatives of Bangladeshi trade unions, - and a number of international labour rights groups on +arch 17, 2012, ac$nowledges the need for the Bangladeshi government, the Bangladeshi =eady?+ade ;arment @=+;A industry, brand owners and retailers, and labour to wor$ together to create a safe and sustainable wor$ environment within the Bangladeshi =+; industry. 5n ugust 1#, 2012, the ;erman retailer Tchibo was the second international company to sign the +o:. -t outlines their commitment to a two year programme, to be led by a multi? sta$eholder tas$ force, for the purposes of

establishing an in?factory training program2 facilitating the creation of factory health and safety committees2 reviewing e*isting building regulations and enforcement2
developing a wor$er complaint process and mechanism for wor$ers to report health and safety ris$s2 and advising a Chief -nspector who will design and implement a fire safety inspection program based on internationally recogni3ed wor$place safety standards.
-t is envisaged that the programme will be funded by the participating brands and retailers and that it will involve all of their suppliers. !actories will be e*pected to ta$e corrective action on any safety issues highlighted. Those failing to ta$e ade)uate steps to address health and safety issues will lose orders, and these will be transferred to safe factories in Bangladesh, with a commitment to protecting any wor$ers displaced as a result. Transparency of the programme and inspections will be ensured through the regular disclosure of supplier lists and inspection reports. The +o: will come into operation once four brands agree to sign up to and implement the programme.
Section B
ompensation and 3e!mediation
.or$ to prevent future tragedies to hit the Bangladesh industry is both urgent and vital, however it is also important to ensure that those wor$ers and their families already affected by a factory disaster are properly compensated and that action is ta$en to ensure the wor$places involved are made safe for current and future employees. 8uch actions need to include the payment of salaries and, if necessary, redundancy to wor$ers rendered temporarily or permanently unemployed as a result of the accident, payment of immediate medical needs of those affected and the payment of compensation for both loss and suffering and loss of income to ensure families of those wor$ers $illed and of in6ured wor$ers.
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3esponsi*ility for providing redress
The third pillar of the :N !ramewor$ is the need for greater access by victims to effective remedy.* This recognises the fact that, even if all efforts have been ta$en to prevent human rights abuses, things do go wrong. The duty of governments in this regard is to ensure those affected within their 6urisdiction have access to effective remedy. -n Bangladesh, although there is a legal process for claiming compensation this has proved inade)uate in addressing the actual needs of those affected and is often bypassed. +any of the wor$ers and families affected by the garment fires and building collapses have never received any compensation or have received compensation at a level or in a form that fails to provide genuine remedy to the victims. ,mployers often bypass the process altogether, which although illegal is rarely addressed by the courts and often goes unchallenged by wor$ers who are unaware of their legal rights. ,ven where wor$ers are aware of legal processes few have the resources to employ legal representation of the same )uality and standard as employers. +any in6ured wor$ers are forced to return to their villages, unable to afford life in the city without employment and as a result never get representation. !inally legal processes are often incredibly costly and may ta$e years to reach a settlement. +ost are unable to wait years for legal processes to conclude and produce re)uired results. ,ven where the courts find employers liable the emphasis on individual employers within the Bangladesh legal system means that an employer can simply state they do not have the financial resources to provide the ordered level of compensation. -n the 8pectrum case, a court order for the employer to pay outstanding wages and severance was not complied with on the basis that the employer was ban$rupt. 4egal proceeding to e*tract owed wages become drawn out and costly, adding yet another burden to families involved. The first line of responsibility, under law and practice, is the direct employer of the wor$ers affected, particularly when the in6ury has occurred as a result of negligence. -n all the cases CCC has wor$ed on deaths and in6ury were caused or e*acerbated by illegal, unsafe building, faulty electrics or machinery, poor safety procedures and avoidable ha3ards such as bloc$ed or inade)uate fire e*its. lthough the principle of employer responsibility is supported by trade unions and campaigners, for the reasons outlined above, it often leaves victims with little or no redress.
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.ithin the :N !ramewor$ the remedy pillar states that> where business enterprises identify that they have caused or contributed to adverse impacts, they should provide for or cooperate in their remediation through legitimate processes. s shown above brands and retailers sourcing from Bangladesh have so far failed to ta$e proper due diligence to ensure that supplier factories meet appropriate standards of building safety. To date none have engaged in meaningful programmes to address this, despite the mounting evidence that wor$ers are at ris$ of death and in6ury. This failure to ta$e appropriate steps means that they do have responsibility for those wor$ers who suffer the conse)uences.
Surviving a fire 4 living with the conse5uences6666

'I fell down because somebody pushed me. I dont think they pushed me intentionally, it happened accidentally, and I fell down on the stairs....When I was in hospital, my family came to me, and they were with me. But I never saw any management. I never received any compensation. And now Im not able to work for the rest of my life. I cannot move my fingers hardly at all.
!urther, in the case of garment supply chains a significant percentage of the value of products made by affected wor$ers goes to the brands and retailers meaning they are the main beneficiaries of the wor$ carried out by employees. Brands and retailers - Lovely, survivor KTS fire, 2006 therefore have a moral responsibility for ensuring compensation is paid, including contributing to funds where employer and government action cannot or does not meet international standards.
I became a burden for my family, so they mistreat me. It's like, if they give me food one day, maybe the ne!t three days I wont get food, even from my family.'
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+sta*lished standards for compensation provision
This section aims to provide an overview of international standards and national legislation that provides for compensation to be paid and the responsibilities of different sta$eholders in this regard.
#nternational Standards
ccording to the -nternational 4abour 5rganisation @-45A compensation for accidents at wor$ is the oldest and most widespread form of social protection *i. lthough such schemes differ considerably from place to place, best practice is seen to be in the form of social protection schemes, funded through the pooling of financial contributions made by employers or other parties.*ii The -45 had adopted two conventions that cover the provision of ,mployment -n6ury 8chemes> C102 and C121. C102 deals more broadly with social security payments, which includes sic$ness, unemployment, maternity, medical and family benefits as well as medical compensation payments. C121 provides more detailed principles for the payment of compensation for damages sustained during employment. The main principles include the following>
ll wor$ers regardless of length of service are covered. ll types of wor$ers, including migrant wor$ers, are entitled to the same level of compensation.
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Compensation should be in the form of periodic payment throughout a period of incapacity for wor$ and in case of death. 4ump sum payments should only be provided in certain circumstances @e.g. partial in6uryA. mount of periodic payments should be fle*ible and can be raised or decreased based on e*ternal factors @e.g. increase in cost of living, partial recovery of affected employeeA. 5ccupational illnesses and accidents during commutes to and from wor$ are also included in ,mployment -n6ury 8chemes.
C121 also sets minimum standards of payments at &0C of wages in the case of temporary or permanent incapacity for wor$ and 70C of wages in case of death @ne*t of $in to be beneficiaryA. -n general compensation payments are made on the basis of the in6ury received and are not tied to the need to prove or admit liability of any party. The -45 conventions donDt specify how and by whom compensation should be provided, but recommends the establishment of a nationally ,mployment -n6ury Board that all employers pay into. 8uch schemes wor$ as insurance policies for all employers against paying out compensation for wor$place in6ury. They also mean that wor$ersD arenDt reliant on the ability of one specific employer to pay.
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Bangladesh national legislation,iii
Bangladesh has not ratified either convention 102 or 121 and national legislation in Bangladesh as regards to employment in6ury benefits falls short of the international standards as defined by the relevant -45 conventions. 8pecifically the Bangladesh government doesnDt provide a national compensation or in6ury scheme and doesnDt have provisions or a system for administering periodic payments to beneficiaries of compensation payments*iv. 4iability for ,mployment -n6ury Compensation lies s)uarely with the employer involved and it is the responsibility of the employer to administer the payments, sometimes with the oversight of the labour court. The definition of /employer0 under the legislation is )uite broad and can include not 6ust the direct employer but also companies @principal employerA that have contracted the wor$ to another party @the contractorA who directly employs the wor$er, provided that the wor$ is part of the normal business of the principal employer and the accident occurs on premises usually used by the principal employer*v. The circumstances under which compensation should be provided are laid out under the Bangladesh 4abour ct 200& @B4 A. The procedures differ depending on whether the case involves a death, permanent or temporary in6ury. -n the case of death an employer must deposit 100,000 TF compensation to the Court, which will then decide on distribution of compensation to beneficiaries. The employer might directly compensate the family of a wor$er who died as a result of a wor$place accident , but only when the wor$er, during his or her employment, has nominated any of his successor for compensation*vi. -n cases of non fatal accidents compensation is decided on the basis of the seriousness of in6ury, categorised as total disablement, permanent total disablement, permanent partial disablement or temporary partial disablement. .or$ers who suffer a permanent total or partial disability should be provided with a lump sum payment, those who suffer a
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temporary total or partial disability are provided with periodic payments based on salary for the period of their disability. Those wor$ers entitled to claim a lump sum are e*pected to have attempted to negotiate this with their employer prior to ta$ing their claim to court.
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BGM+A insurance scheme
B;+, and BF+, have made it mandatory for their members to pay into a group insurance which provides compensation to the families of wor$ers in case of death . =+; companies have to deposit the yearly due insurance premium amount to B;+, HBF+, , which thereafter pay the amount to the insurance company on behalf of the said member. -f any claim arises due to the death of a wor$er, the insurance company will pay the claimed money to B;+, HBF+, . B;+, HBF+, , thereafter, will pay the said money @100.000 Ta$aA to the deceased wor$erDs nominee@sA directly. :nless the wor$ers are covered with insurance, B;+, HBF+, would not grant e*port permission to that company.
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omparison of compensation schemes
!ollowing the 8pectrum disaster in 2007 the CCC have been wor$ing with trade unions in Bangladesh to establish models of compensation, with the e*pectation that the provision of funds would come from the governments, the industry and the buyers involved. Below is a comparison of different models that have been instigated following campaigns on 8pectrum @2007A, ;arib and ;arib @2010A, ThatDs -t 8portswear @2010A and ,urote*HContinental @2011A. -n all cases demands were made that victims received ade)uate medical care and immediate relief, that a lump sum payment was made to account for pain and suffering caused and that the long term medical and financial needs of the victims and their families were provided for.
Provision for immediate medical and financial needs
-n the immediate aftermath of the 8pectrum disaster most in6ured wor$ers were transferred to the local government hospital for treatment. "uring a visit by some of the ma6or buyers from 8pectrum, which too$ place in the wee$s immediately after the disaster many of the in6ured wor$ers were visited by Neil Fearny, secretary general of the -T;4.! and Lavier Chercoles from -ndite*. -t was clear during the visits that the victims, many of whom sustained serious in6uries to limbs and organs were not receiving ade)uate treatment. t the re)uest of -ndite*, who also offered to pay the treatment fees, eighteen of the most seriously in6ured wor$ers were transferred to the /Trauma Center0 in "ha$a J a high )uality private medical service speciali3ing in orthopaedics and pain treatment. further four wor$ers were transferred in the following wee$s and families caring for the victims were provided with food, again paid for by -ndite*. -n total (0 wor$ers received treatment at the Trauma Center with fifty four of these re)uiring prolonged treatment. 5ne wor$er was transferred for special rehabilitation at the National 9ospital for <araplegics in Toledo. !ollowing the ;arib and ;arib fire in 2010 si* wor$ers were admitted to several hospitals in the "ha$a area, we believe this was paid for by the owner. !ollowing the fire at ThatDs -t 8portswear, the owners of the factory J 9ameem group ? paid the medical costs of the in6ured wor$ers. The same was true for wor$ers in6ured in the ,urote* and Continental incidents.
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Addressing redundancy and re!employment of survivors
-n the immediate aftermath of an accident much of the initial attention, for good reason, is focused on the dead and in6ured, but for those incidents where the factory is forced to close either temporarily or permanently all the employees of the factory suffer the immediate burden of being made suddenly unemployed. -n many cases they will be owed wages and benefits accrued in the period immediately prior to the incident. Therefore an urgent first step is to identify survivors of the accident and ensure they are compensated for bac$ wages and redundancy and supported to find new employment. -n cases where the factory closes temporarily wor$ers need to continue receiving salaries until the factory is ready to reopen. -n the case of 8pectrum the estimated wor$force was estimated to be around 1200. .or$ was done by the trade union to identify those wor$ers who had lost their income overnight. -n total &B0 wor$ers were identified as e*?8pectrum wor$ers and were paid a /relief payment0 of 2000 TF each @e)uivalent to around one months wages in 2007A. The union also provided these wor$ers with information about alternative 6ob opportunities. Buyers from the factory were also pressed to find alternative employment for 8pectrum wor$ers in other factories supplying their brand. 5ne year after the disaster overtime and bac$ wages had been paid to the identified wor$ers, but no severance pay*vii had been provided. lthough in the end most of the spectrum wor$ers were able to find other wor$ they were never paid the severance they should have been entitled to, nor any of the bac$ wages owed. -n the cases of 9ameem, ,urote* and Continental all the in6ured wor$ers continued to receive their wages and the factories resumed wor$ shortly after the fire. No reports have been made of 6ob losses resulting from the incidents. -n the case of ;arib and ;arib production did cease at one facility, while the other remained open but no information has been provided on the provision of bac$ pay or severance.
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+sta*lishment of compensation funds
+uch of the wor$ by unions and campaigners has focused on the development of compensation funds for deceased and in6ured wor$ers, which would provide for the longer term financial needs of victims and their families. The trade union movement and labour rights campaigns both in Bangladesh and internationally believes that provision of compensation should be the responsibility of the Bangladesh government, employers, garment industry representatives and international buyers. Therefore all the schemes proposed by trade unions and campaigners are envisaged to be multi?sta$eholder and established through contributions from the government, industry bodies @the B;+, and BF+, A, the owners and the buyers of the factories involved. The first such fund to be established was proposed following the 8pectrum disaster by the -T;4.! and -ndite*. -t was hoped that the scheme would be funded by brands sourcing from the factory, 8pectrum, the B;+, and the government. -n the end only the owner and a handful of brands @-ndite*, FarstadtGuelle, 8capino, New .ave ;roup and 8olo -nvestA contributed to the fund. The 8pectrum =elief !und was the first initiative of this $ind to be developed in Bangladesh and a lot of wor$ was invested in developing formulas for compensation provision, pensions, definitions of beneficiaries and administration of the scheme, as a way of establishing best practice for future cases.
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similar scheme was proposed following the fire at ThatDs -t 8portswear. This would re)uire various sta$eholders to pay contributions into a separate ban$ account set up for this occasion, from which compensation payments would be made to the affected families. The proposal set out amounts that should be paid by each sta$eholder which included brands @#7CA, the factory owner @2BCA, the Bangladesh ;arment +anufacturers and ,*porters ssociation @B;+, A @1BCA and the government @'CA. By 2012 the brands had all contributed the amount re)uired to provide compensation to the families of the deceased, but have so far refused to contribute compensation for in6ured wor$ers. The owner has contributed only #0C of its re)uired contribution for compensation to families of the dead wor$ers, along with 2(#,000TF towards a range of e*penses including some compensation, medical and burial costs. The factory owners have also agreed to pay the education costs of any dependent children of those wor$ers $illed. The B;+, has only paid 20C of its contribution while the government has yet to contribute aside from payments for burial costs. -n the case of the fire at ;arib and ;arib, no compensation scheme has been sent up, and none of the buyers or the owners have contributed money. 9M+, one of the ma6or buyers, have decided to focus on the needs of the children and elderly parents, but not to provide general compensation based on the lost income suffered by family members of the dead wor$ers. 5ther brands sourcing from the factory include Terranova @owned by the -talian company TeddyA and 4C .ai$i$i @owned by the Tur$ish company TemaA, all of whom initially announced that they were willing to contribute to the compensation of the victims and the !rench company <rovera, who announced that it was willing to help the families of the victims. No concrete proposals have been made by any of these brands and no concrete steps towards the provision of compensation have been forthcoming. -n the case of the ,urote* and Continental factory the compensation scheme was devised on the same lines as those developed following the fire at ThatDs -t 8portswear. +ost of the sta$eholders involved in the ,urote* and Continental factories have contributed the e*pected amount. The ma6ority of the brand contribution was paid by <I9 Corp., with a smaller contribution made by ; <. The owner assumed responsibility for the government share. The amount owed by the B;+, insurance scheme is still to be paid.
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ompensation payments to families of deceased workers
-n the case of 8pectrum it was agreed to provide a lump sum /relief0 payment to the families of deceased wor$ers. lump sum payment of 1&B,000 TF @2,102.10 eurosA was agreed for each family identified as a beneficiary. n initial 100,000 TF was paid to the families by the employer shortly after the factory collapse. !ifty si* of the families received the remaining &B,000 TF between "ecember 200B and !ebruary 200', the remaining families had yet to receive the payments due to disputes over the beneficiary and, in one case, problems with establishing a ban$ account. fact?finding mission carried out by -NC-"-N after the 8pectrum disaster identified the importance of providing pensions to the families of the deceased, in order to compensate for the loss of ongoing income resulting from the death of their family member, this was also a $ey demand from the unions and the wor$ers themselves. <ensions were to be provided based on 70C of the minimum wage in the garment sector, ad6usted for inflation. The lump sump payment would be deducted from this. The implementation of the pension scheme envisaged ran into difficulties early on, and three and half years after the disaster the families had still not received any of the pro6ected pension payments. -n Lune 200' a meeting of families indicated that the proposed plan for pension payments should be scrapped and should instead be paid in the form of a lump sum. These payments have now
15
been completed*viii. 8i* months after the fire at /ThatDs -t 8portswear0 a coalition of national trade unions and N;5s, supported by international organisations presented a set of demands for compensation. !or the families of deceased wor$ers it called for a payment of 700,000 Ta$a for loss and suffering and a loss of income payment based on 70C of the minimum wage multiplied by 27 years for each wor$ers, ad6usted for inflation. This would bring the total payment to each family to an estimated 1.( million TF @1(,000 eurosA. The unions decided that the lump sum payment would be preferable as it could be enacted )uic$ly and the amount would anyway be sufficient to provide monthly interest payments. <ayments to the families of the dead wor$ers have been made in two installments and they have now received the amounts owed. !amilies of the wor$ers $illed at ;arib and ;arib in !ebruary 2010 were given a lump sum of 200,000 Ta$a a month after the incident too$ place, but have not been offered compensation for loss of income. :nions continue to demand that each family be provided with a minimum of 700,000Ta$a. The family of a wor$er who was $illed during a stampede at +atri* 8weaters in 2010 has been provided with a lump sum payment based on loss of earnings calculations. !amilies of the dead wor$ers from ,urote* and Continental have now received 1.& million TF per family. The outstanding amount should be provided once the B;+, insurance @see above> section 2 ---A is paid out.
ompensation for in7ured workers
.or$ done to prepare the model for the 8pectrum relief fund also included identifying in6ured wor$ers, classifying the level of in6uries sustained and in turn calculating compensation due on this basis. !ollowing medical assessments fifty four wor$ers were classified as in6ured and were divided into four separate categories based on the permanence and severity of their in6uries. These were>
;roup -> -n6uries that leave permanent, very severe after?effects that prevent the employee from carrying out any type of professional activity. @' wor$ersA ;roup --> -n6uries from which partial recovery is possible but which reduce the victimKs capacity for future wor$. @1% wor$ersA ;roup ---> Temporary in6uries of undefined severity which do not hamper normal occupational activity for a prolonged period of time. @' wor$ersA ;roup -I> Temporary superficial in6uries of minor importance that do not prevent the employee from carrying out hisHher normal occupational activity. @2% wor$ersA
ll in6ured wor$ers were to receive a lump sum, e)ual to 10C of their final compensation amount, which in turn was based on the severity of their in6ury. .or$ers from ;roups - J --would also be provided with a pension to be paid at 70C of the national minimum wage ad6usted for inflation. ;roup - wor$ers would receive a pension for life, ;roup -- wor$ers would receive a pension for five years, with the possibility of e*tension if they were not medically fit enough to resume employment and ;roup --- wor$ers would receive a pension for si* months. .or$ers would be re)uired to attend annual medical chec$ ups.
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The actual payments commenced in ugust 2007. Two of the most seriously in6ured received two years wages in the first instance @paid for by the ownerDs contributionA and a further 20 wor$ers were given a &,000 TF lump sum. -n pril 200(, 6ust days before the second anniversary of the disaster, payments were made based on the terms of the scheme and medical assessments, when N20,(7( was distributed to twenty wor$ers. -n "ecember 200B #0 of the in6ured wor$ers were paid what they were owed for compensation and pension from 2007 ?200B in the form of a lump sum payment. !or this period ad6ustments were made to the initial assessments of the seriousness of the in6uries following medical reassessments that had ta$en place in "ecember 200(. By Lune 200' only & of the in6ured wor$ers remained in Category 1. -n Lune and Luly 200' these si* seriously in6ured wor$ers received pension payments and thirty in6ured wor$ers were given their full payments. further # wor$ers in category 2 were returning to wor$ and were e*pected to leave the scheme within a short time. 5n pril 1&, 2011, all in6ured wor$ers *i* who remained in the scheme received their final payments. !ollowing the ThatDs -t 8portswear fire the unions demanded that compensation be paid to in6ured wor$ers to cover medical costs, compensation for pain and suffering plus an amount depending on the seriousness of the in6uries. The formula for defining categories and wor$ers and for defining the amount each would receive is the same as that developed for 8pectrum, although it is li$ely wor$ers will be paid in a lump sum rather than in the form of pensions. To date most wor$ers have had immediate medical costs paid by the employer. 8ome amounts of compensation have been provided by the owner, but no details of the brea$down or the recipients have been provided. There remains a lot of wor$ to be done to document the levels of in6ury sustained by wor$ers, determine and pay the full compensation to the in6ured wor$ers and ensure that process is transparent and involves all sta$eholders including the local trade unions. t ;arib and ;arib none of the in6ured wor$ers have been offered loss of earnings compensation. 9M+, the main buyer at the factory, is assessing family circumstances of those in6ured to ascertain what support they are willing to give but continue to refuse to provide compensation for loss of income. 8uch a stance undermines the achievements of recent year in attempting to provide ade)uate compensation for in6ury. Trade unions made the same demands for the families of the dead and for in6ured wor$ers following fatal accidents at ,urote* and Continental. -n6ured wor$ers received support from the factory owner to cover immediate medical costs and received wages during the period they were unable to wor$. +ore wor$ needs to be done to establish medical need for those wor$ers more seriously in6ured.
(
#
#ssues arising in the esta*lishment of compensation schemes Pressure on stakeholders to fulfil responsi*ilities
The first hurdle for establishing all the compensation schemes has been to push buyers, employers and the government to ac$nowledge and fulfil their responsibilities in regard to provision of compensation. +any brands and retailers have resisted ta$ing such action, concerned about the idea of accepting responsibility or setting precedents. Oears of concerted campaigning after 8pectrum forced two of the biggest buyers, -ndite* and FarstadtGuelle, to contribute
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significant amounts, others also contributed smaller amounts. 5ther large buyers, in particular Carrefour continued to resist such calls, preferring instead to set up their own schemes based more on the principles of humanitarian relief rather then on reparations for in6ury caused by their action. -n ;arib and ;arib @;M;A none of the buyers have so far proved willing to provide compensation. 9M+, the main buyer at ;M; has followed CarrefourDs e*ample and attempted to set up their own scheme that falls well short of best practice and fails to recognise victims right to redress. +ost of the buyers at ThatDs -t 8portswear have contributed to compensation schemes for the families of the dead, but refused so far to compensate the in6ured wor$ers for loss of income. The Bangladesh garment industry has also been slow in living up to their responsibilities. ,mployers have, to some e*tent, legal obligations to provide some compensation, but at inade)uate levels. -n all cases the owners did have to pay monies to wor$ers in regards to bac$ pay, severance pay, burial costs and initial compensation, but in no cases have they paid out the full amounts owed to compensation schemes. The ;overnment of Bangladesh has provided almost no payments towards compensation schemes apart from small amounts toward burial costs.
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8ump sum vs ongoing payments
5ne principle that lay at the heart of the initial 8pectrum =elief fund was the )uestion regarding the forms of payment. -45 specifies that best practice in terms of compensation provision for loss of life and serious in6ury is to provide ongoing payments. This provides security to those affected and reduces the ris$ that lump sums are eroded through debt, bad investment or other problems. -n practice such a scheme proved impossible to set up and implement, and the administrative problems that beset the scheme were numerous. This left families, particularly those of the $illed wor$ers, desperate and without income for as long as five years. Barriers to getting the scheme to operate included the lac$ of and difficulty in obtaining ban$ accounts for wor$ers2 setting up a structure which could oversee the scheme over the long term including difficulties in transferring money from ,urope to Bangladesh, reluctance for sta$eholders to nominate or provide trustees, agreements over decision ma$ing and control of the fund and complications with the transferring of money to wor$ers themselves. -n the absence of any group in Bangladesh being able and willing to directly administer such a scheme the money ended up being disbursed on an ad hoc basis, dependent on the occasional presence of -T;4.!H-ndite* representatives. !inally it was decided that the provision of ongoing pensions was not functioning sufficiently well to provide genuine relief for victims families and an agreement was made to transfer all monies owed in the form of a lump sum. -n later cases, including ThatDs -t 8portswear, the unions have continued to support a preference for pension payments in principle, but recognise that the priority is swift payment to the victims. Therefore they have been willing to negotiate the payment of a lump sum instead on the basis of a )uic$ payment process.
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#dentification of *eneficiaries
nother issue that led to considerable delay in the case of 8pectrum payments was the identification of beneficiaries. The initial fact finding mission to identify families was carried out in !ebruary 200& and encountered a number of barriers in identifying who should be the beneficiary of each payout. +any had returned to their villages across Bangladesh and needed to be traced, a tas$ hindered by poor documentation of wor$ersD details. There were
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also cultural barriers to identifying appropriate beneficiaries. !or e*ample under the 8pectrum scheme the beneficiaries of married male wor$ers were defined as their widows, but under Bangladesh law the beneficiaries would more li$ely to be defined as the parents. -n cases where the widow remains living with in?laws it was easy to trace and identify these women. -n the case of 8pectrum however a number of whom were no longer living with their in?laws and were difficult to trace. -n these cases the widows stood a high li$elihood of being disenfranchised entirely by parents of the dead wor$ers. -n the end the beneficiaries of all &# $illed wor$ers were identified, but several remain outstanding following legal challenges in regard to who is identified as the beneficiary. <art of this could be prevented when factories $eep accurate records of employees, and all sta$eholders wor$ on immediate recording of victims and family members in the aftermath of accidents and disasters. There should be agreement with wor$er representatives on how to ensure a transparent and credible process of establishing beneficiaries.
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Parallel programmes
The final impediment to the establishment of a credible compensation scheme has been the setting up of parallel programmes, largely focusing on humanitarian relief. +ost of these have been instigated by buyers themselves as a way of bypassing trade union led processes and establishing schemes that are less costly, donDt set precedents and suggest an ac$nowledgement of liability to the company involved. By e*cluding wor$ers and their trade unions from involvement in negotiating the parameters and development of the programme they ta$e such efforts out of the framewor$ of labour rights @where abuses have occurred and need to be rectifiedA and into the realm of /disaster relief0 @a no?fault tragedy where victims must be /helped0A. -n the case of 8pectrum a parallel initiative was set up by a disaster relief organisation, !riendship, and funded initially by Carrefour. 5ver the course of the programme !riendship provided e)uipment for income generation activities, some lump sum payments of between 2000 J %000 Ta$a per wor$er along with e*tra payments for medical fees, money for investment in land, businesses and animal husbandry, assistance with employment and training and assistance with medical costs. lthough such activities undoubtedly brought some relief to the families involved, none was sufficient to provide long term relief. This is not a problem in itself so long as it is done alongside rather than instead of a genuine compensation scheme. The danger of the programme was that it offered an easily alternative for brands to 6ump into if they were uncomfortable with the compensation fund. -ndeed by the end of 2007 FarstadtGuelle, 8capino, 8teilmann and Cotton ;roup abandoned the relief fund in favour of the !riendship programme. nother concern regarding the programme was the lac$ of long term provision. 5nce families were deemed to have been provided sufficient support they were removed from the programme. The scheme also relied on the long term commitment of funders, i.e. the brands. The education programme !riendship had proposed as a third phase was dropped after the brands decided to withdraw from the programme in 200(. -n the case of ;arib and ;arib 9M+ has ta$en a similar stance to Carrefour, employing an outside agency, 8ave the Children "enmar$, to develop the parameters of their programme and e*cluding national, representative organisations. The danger of their scheme is that is undermines the gains won in recent years, which have firmly established the principle of compensation over relief, responsibility of multiple sta$eholders and calculations based on loss of earnings and pain and suffering rather than /need0 as evaluated by e*ternal parties.
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9
#
:ther actions for remedy )ransparent investigations and improvements to factories
-n all of the cases the accident could have been avoided and serious in6uries avoided if proper safety chec$s had been done. Therefore in each case trade unions have demanded full and transparent investigations into the causes of the accident and, where the factory remains open, immediate chec$s and improvements to be made. The case of ;arib and ;arib is clear e*ample of why such actions are re)uired. +onths prior to the fatal accident in !ebruary 2010 a fire had $illed on wor$er and a fire fighter. Lust wee$s after the !ebruary fire a third fire bro$e out, although luc$ily in this instance nobody was seriously in6ured.
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Accounta*ility and prosecutions
There is also a need for prosecutions of negligent factory owners to be ta$en by the government. 8uch prosecutions could act as a spur for other factory owners to ta$e more preventative action.
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+nsuring ongoing employment for survivors
!or accident survivors, the worst case scenario is that they find themselves unemployed. !or this reason is is vital that brands continue to put orders into the factory and wor$ closely with the owner and with trade unions to closely monitor safety conditions at the factory.
#1
Support for trade union organising
!inally, in many of the cases the presence of a trade union may have helped to prevent the accident. -n 8pectrum wor$ers had been raising concerns about crac$s in the wall for wee$s prior to the collapse. Those wor$ers who raised their concerns were simply told to shut up, stop frightening their colleagues and get bac$ to wor$. The presence of a trade union may have provided a channel for these concerns to have been raised collectively and pressure for early action to be ta$en. Trade unions could also have a role in ensuring proper safety e)uipment is supplied, a chec$ on safety permits and a method for ongoing monitoring of safety issues.
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3ecommendations for future action
Government: <rovide emergency short?term compensation and ade)uate disability or survivorsK benefits to the families of wor$ers who are $illed or permanently disabled because of wor$place accidents. <rovide free medical treatment to wor$ers in6ured in wor$place incidents. -n the case that factories are closed due to accidents or a failure to meet safety standards, ensure wor$ers are provided income support, e)uivalent to their former average earnings, for the duration of the closure or, in cases where factories are closed permanently or for a e*tended time, a reasonable period in which to secure alternative employment. 8et up a high?level investigative committee to conduct in)uiries into accidents at factories involving wor$er fatalities or multiple serious in6uries. <ursue all applicable criminal charges against the employer in the case of negligence.
BGMEA/BKMEA:
<rovide emergency short?term compensation and ade)uate disability or survivorsK benefits to the families of wor$ers who are $illed or permanently disabled because of wor$place accidents. <rovide free medical treatment to wor$ers in6ured in wor$place incidents. ,nsure payments made to wor$ers from insurance fund are made in a timely and transparent manner. ,nsure that contributions to the compensation fund are made in accordance with principles established in the 9ameem model. Cooperate with investigations into the root causes of the accident and push for any improvements recommended as a result.
Brands and retailers: .or$ with other buyers, factory owners and the B;+, to )uic$ly establish a compensation fund that at a minimum meets the standards already laid out under the /9ameem0 model. Negotiate directly with labour groups representing affected wor$ers to establish e*act calculation and implementation of compensation agreements. .or$ with trade unions and the B;+, to support wor$ers affected by sudden factory closure to find other wor$ or in the case of temporary closure, to ensure income is maintained during that period. .or$ with the authorities to establish the cause of any incident and support and resulting improvements re)uired.
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Section
onclusion
-t is clear that the safety problems facing the Bangladesh garment industry are both serious and widespread. :nless immediate and coordinated action ta$es place more of the % million Bangladeshi women employed to ma$e our clothes will continue to needlessly ris$ their lives. 9owever to date there has been a lot of tal$ and very little action. +ore meetings where everyone blames each other for the industries failings will not achieve anything. -n this briefing we have outlined where improvements have and can be made2 all of those involved in the industry have their part to play in ma$ing factories safe. Brands and retailers must also accept responsibility J although they donDt directly own the factories producing their goods, they can and should do more to prevent more deaths from ta$ing place. lthough many brands and retailers ac$nowledge the right to a safe wor$place for wor$ers in their corporate codes of conduct, they continue to loo$ to others for action, and use the inaction of the government and industry as an e*cuse for failing to engage with issue properly. No plan currently on the table is perfect, but we cannot wait for more wor$ers to die before we act. The Building and !ire 8afety +o: that has been signed by <I9 Corp. and Tchibo, responds to the duty of brands and retailers to do due diligence. -t is built upon the principles of transparency, credibility, sta$eholder involvement and wor$er participation. 8ince suppliers are shared, brands and retailers should not operate in isolation or try to develop their own plans. -t is vital that brands and retailers sourcing from Bangladesh wor$ with those representing wor$ers on the ground to establish a programme of wor$ based on the principles of the current +o: as soon as possible. The first step is to to sign on to the +o: already in place. 5ver recent years much has been achieved in establishing a model for provision of compensation to affected wor$ers when tragedies inevitably happen. This has been vital in ensuring 6ustice for wor$ers and their families who have lost their lives, livelihoods and health as a result of negligence on the part of owners and buyers. This wor$ must continue forward and should not be undermined by individual brands who prefer to offer charity over respect for the rights of these wor$ers. Therefore all brands and retailers operating in Bangladesh should adopt the principles of the 9ameem compensation model in all safety incidents and agree to negotiation e*act amounts and implementation with those groups representing wor$ers and their families.
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Appendi, # Safety incidents in Bangladesh since $<<9

NB !his is by no means a comprehensive list of factory incidents since "##$, but an overview of the main cases received by the %lean %lothes %ampaign. A(ril --* .//0 S(ectrum 1actory colla(se &# dead, at least (# in6ured, including several wor$ers who sustained permanent disablement Buyers -ndite* @8painA, Carrefour, 8olo -nvest, C+T .indfield @!ranceA, Cotton
;roup @BelgiumA, FarstadtGuelle, New Oor$er, Bluhmod @;ermanyA, 8capino @NetherlandsA, and New .ave ;roup @8wedenA.
&ncident details 8hortly before 1 am. on the morning of pril 11th wor$ers in the 8pectrum?8weater factory built on top of a flood?prone former swamp in 8avar, %0 $m north?east of "ha$a, found their wor$place, suddenly crashing down upon them. 5n the night of the collapse, factory officials have stated that appro*imately 1B# wor$ers were at the factory. 9owever, wor$ersD who were present that night maintain that there were at least #00 employees on the night shift. This would indicate that the other wor$ers were able to escape from the building. 5n several occasions before the collapse wor$ers had tried to report concerns regarding the safety of their building, including one wor$er who saw crac$s in the factory wall five days prior to the collapse. 9e was told to $eep his mouth shut and wor$. 8pectrum was in violation not only of its construction permit, but also of many labour laws and code of conduct provisions prior to the collapse, such as violation of the minimum wage and of the legal right to one day off per wee$. 1ebruary .2* .//3 1ire at K+S +e4tile Industries* ',ittagong &1 dead, appro*imately 100 in6ured Buyers :ni 9osiery, +ermain -nternational, TT ,nterprise, I-" -nc, mbiance, ndrew 8cott ,nterprise, 4eslee 8cott
&ncident details fire, caused by an electrical short circuit, bro$e out at the factory $illing &# wor$ers, including three girls of 12,1% and 1#. t the time of the incident wor$ers estimate that some #00?700 people were wor$ing in the building. 4oc$ed e*its prevented wor$ers from escaping from the facility2 at least one local media source reported that it was possible the main gate was intentionally loc$ed at the time of the fire to prevent theft from the factory2 sources report that there was no fire safety e)uipment at the factory, nor had there ever been a fire drill. The factory, was reportedly in violation of numerous additional serious labour rights including> forced overtime, seven?day wor$ wee$s, payment of below subsistence level wages @seven to 1# cents per hourA , denial of legal maternity rights, physical abuse of wor$ers, suppression of wor$ers rights to freedom of association and bargain collectively. !actory owner .ahidul Fabir reportedly lives in the :nited 8tates, in California, where many of the factoryDs clients are based.
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1ebruary .0* .//3 $,oeni4 Building* 5,a6a 22 dead, 70 in6ured Buyers un$nown but reportedly produced clothing for e*port to ;ermany, 8wit3erland, Norway, !inland and "enmar$ &ncident details The five?story building in the Te6gaon industrial area collapsed following unauthori3ed renovations to convert the upper stories of the building into a 700?bed private hospital. The building had housed <hoeni* ;arments, but production was being phased out and relocated. t the time of the collapse one line of the garment factory was reportedly still running. +any of the dead appear to have been construction wor$ers involved in the renovation, as well as people who were on an ad6oining road at the time of the collapse, and those who lived in the slum nearby. The owner, "een +ohammad,is also the owner of the City Ban$ of Bangladesh. 1ebruary .0* .//3 Imam Grou(* ',ittagong 7( in6ured Buyers Clients reportedly include :8 retail giant Fmart and :8?based !olsom Corporation. &ncident details transformer e*plosion caused wor$ers to rush for the e*its, do3ens were in6ured when they were unable to get out the narrow e*ists, at this facility housing +oon !ashion 4imited, -mam !ashion, +oon Te*tile, 4eading !ashion and Bimon -nda garment factories. Marc, 3* .//3 Sayem 1as,ions* Ga7i(ur % dead, appro*imately 70 in6ured> Buyers -ndite*, Charles !. Berg, .et, Freisy, <ersival @not confirmedA. da ;atti, Bersh$a Company, B8F ;arments, P?+ail,
&ncident details fire triggered by an electrical short circuit at the building housing 8ayem !ashions, 8F 8weater and =adiance 8weater %7 $ilometres from "ha$a lead to a stampede when wor$ers attempting to e*it the premises were bloc$ed from doing so by bo*es stored in the area. .or$ersD organi3ations report that other wor$ersD rights violations at the facility included long wor$ing hours and seven?day wor$ wee$s. The building was reportedly owned by +onir 9ossain, also the owner of =adiance 8weater and 8ayem !ashions @the three women who died were all wor$ing at 8ayem !ashionA 1ebruary .0* ./-/ Garib and Garib 21 dead, appro*imately 70 in6ured. Buyers 9M+, 5tto, Teddy @brand TerranovaA, ,l Corte -ngles, :lla <op$en, Taha ;roup @brand 4C .ai$i$iA, <rovera and +ar$Ds .or$ .earhouse, &ncident details The fire, seemingly caused by an electrical short circuit, started on the first floor of the seven story building at '.%0pm on Thursday !ebruary 27. -t )uic$ly spread to the other floors filled with inflammable materials such as wool threads and other goods. 4asting nearly two hours, the fire created a thic$ blac$ smo$e and consumed the o*ygen in
24
the air, suffocating the wor$ers. The smo$e could not escape because of poor ventilation and the presence of unauthori3ed sheet metal structures that were being used for storage of highly inflammable materials on the roof of the building. -t appears, from witness statements and press reports, that emergency e*its were bloc$ed, the front gate was loc$ed and fire e*tinguishing e)uipment was either missing or inappropriate. ccording to one survivor, rescue efforts were further hampered by the fact that firemen had to cut the window grills to access the building and rescue the trapped wor$ers. No?one on the scene could tell fire fighters how many wor$ers were in the factory at the time the fire began. This fire followed a previous fire incident at the factory in 200', which $illed one wor$er and one fire fighter. third fire bro$e out at the factory in pril 2010. This time the fire bro$e out during a lunch brea$ and no wor$ers were $illed. Two wor$ers were in6ured. 5ecember -8 ./-/ +,at9s It S(ortswear "&ameem Grou(# 2' dead, in6ured 11 seriously along with numerous minor in6uries. Buyers ;ap, <I9 Corp., I!Corporation, Target, LC <enney, CarterDs @5sh$oshA, bercrombie and !itch, FohlDs 'escription of incident The fire, which bro$e out in what was considered a modern building, was, li$e so many others, caused by an electrical short?circuit and substandard wiring. -t was reported that proper fire drills were not carried out, that the e*its were bloc$ed and that the wor$place was not properly supervised . .hen the fire bro$e out on the ninth floor, fire fighters were powerless to help because their ladders couldnKt reach beyond the fifth floor and helicopters were unable to land because the rooftop had illegally been turned into a canteen. +oreover, the wor$ers were effectively denied the right of freedom of association which would have allowed them to play a role in addressing some of these violations in advance of the tragedy. +any who tried to escape from the windows fell to their deaths. 5ecember 2 ./-- Eurote4 "'ontinental# 2 dead, &# in6ured Buyers Tommy 9ilfiger @owned by the :8 company <I9 Corp.A, Qara @owned by the 8panish company -ndite*A, ;ap @:8A, Fappahl @8wedenA, CM @BelgiumA and ;roupe "ynamite Bouti)ue -nc @CanadianA ? either directly or via subcontracting. 'escription of incident Lesmin $ter, 20 years old and employed as a helper, and Taslima $ter, 22 years old and employed as an operator, were trampled to death after a panic bro$e out following a boiler e*plosion on the second floor of the ,urote* 4td factory in 5ld "ha$a. ,ye witness reports state that one the day of the incident, atround 1>17 pm wor$ers reported a problem with the boiler on the second floor. =eports vary on e*actly what happened, some witnesses reported seeing vapour escaping from the boiler, others say they heard an e*plosion. .or$ers were employed on the second to si*th floor of the factory and as rumours spread through the factory that a fire had bro$en out many panic$ed and rushed to leave the building. .or$ers report that the stampede led to overcrowding on the stairs down to the first floor, resulting in the collapse of a stair rail and a number of wor$ers falling. =eports suggest that the fire doors at the bottom of the stairs were loc$ed, contributing to the stampede and over?crowding on the stair case. 5ne wor$er reported that at first the gates were open, but were closed by a factory manager, who was urging people to return to wor$ saying that nothing had happened. This witness claims the in6uries and deaths were caused when wor$ers started to rush bac$ up the stairs pushing bac$ against those coming down. 8everal international buyers had already identified concerns in regard
25
to safety ris$s at the factory. 20 days after the e*ploding boiler at ,urote*, a lift cable bro$e in parent company Continental. This accident $illed another wor$er and in6ured 2 wor$ers.
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Appendi, ## Health and Safety Action Points for Buyers sourcing from Bangladesh
The following demands were developed and published on pril 11 th 2010, on the fifth anniversary of the 8pectrum disaster and 6ust two months after the tragedy at ;arib and ;arib. !ew if any of these demands have been met, although the recent +o: signed by <I9 Corp. and Tchibo goes some way to meeting the ma6or elements in these demands. -# A((arel buyers s,ould (ress t,e government of Banglades, and t,e BGMEA to: aA :nderta$e an urgent review of all multi?story buildings currently housing garment production facilities to ensure they may be safely used for this purpose. This review should be conducted by a committee consisting of representatives from all government departments directly involved in the observance of the relevant laws and regulations, labour groups, and international buyers. ,nsure that the factory inspectorate is e)uipped with the necessary resources to conduct regular inspections for adherence to wor$place safety and labour legislation, including BangladeshKs National Building Code and !actory ct. bA 8uch inspections must ensure that each factory> iA 9as a sufficient number of emergency e*its and $eeps such e*its unloc$ed and unobstructed during wor$ing hours, so that wor$ers can swiftly and safely evacuate in case of emergency and rescue and fire fighting teams and e)uipment can )uic$ly enter. iiA +eets regulations for gas lines and electrical wiring, fire retardant materials in walls and roofs, the safe use in multi story buildings of the machinery being operated, and maintenance of wor$ing public address systems, emergency lighting, and other warning and response mechanisms. iiiA 9as a professionally?developed fire emergency policy, which is tested through regular, monthly fire drills with all wor$ers. ivA 9as a designated manager responsible for structural and fire safety, and an ade)uate number of employees who are trained to respond appropriately to fires and other emergency situations. vA 9as well?maintained fire prevention materials and fire fighting e)uipment on the premises. viA 9as a factory health and safety committee comprised of representatives of management and wor$ers, which meets regularly to review and address health and safety issues, including fire safety. viiA -n the case of factories operating in buildings housing more than one enterprise, in addition to the measures outlined above, has a coordinated fire emergency policy and procedures, accessible fire fighting e)uipment, designated and trained personnel, and a program of regular fire drills for the entire building. cA -ssue J on a )uarterly basis J a public list of all factories that do not meet the standards outlined above and revo$e the e*port license and B;+, membership of each factory on
27
this list until compliance is demonstrated. dA 8et up a high?level investigative committee to conduct in)uiries into accidents at factories involving wor$er fatalities or multiple serious in6uries. 8uch a committee should conduct a thorough investigation into the causes of each such incident and issue a public report of its investigation. The government should pursue all applicable criminal charges against the employer in the case of negligence. eA <rovide emergency short?term compensation and ade)uate disability or survivorsK benefits to the families of wor$ers who are $illed or permanently disabled because of wor$place accidents. <rovide free medical treatment to wor$ers in6ured in such incidents. The amount of compensation should be determined through negotiations with wor$er rights organisations, including the unions representing the wor$ers. fA -n the case that factories are closed due to accidents or a failure to meet safety standards, ensure wor$ers are provided income support, e)uivalent to their former average earnings, for the duration of the closure or, in cases where factories are closed permanently or for a e*tended time, a reasonable period in which to secure alternative employment. gA ,nsure respect for wor$ersK internationally recognised rights of freedom of association and collective bargaining. Trade unions can and should play a central role in promoting wor$place health and safety by ensuring wor$ers a voice in identifying and addressing ha3ards, and providing collective representation to wor$ers who are in6ured in wor$place accidents. ;overnment @in particular the Loint "irector of 4aborA and factory management should ensure the removal of all unlawful or unreasonable obstacles to the registration of factory?level unions. .# Buyers s,ould do t,e following wit, res(ect to eac, of t,eir own su((lier factories: aA Conduct regular audits of factories to ensure the facilities are compliant with applicable structural and fire safety standards, including in each area discussed in item 1.C above. bA "evelop a system that includes meaningful engagement with labour groups at each stage of the audit process, including pre?audit planning, arrangements for labour groups to accompany brand representatives to observe inspections at certain facilities, and review of audit findings. cA Notify the Bangladesh government and B;+, when factory audits identify health and safety ha3ards, and publicly disclose the results of such audits. dA ,nsure that wor$ers have information about and access to credible grievance mechanisms in order to report information about health and safety ha3ards. eA ,nsure respect for wor$ersK internationally recognised rights of freedom of association and collective bargaining. s discussed above, trade unions can and should play a central role in promoting wor$place health and safety.
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Appendi, ### =oint Memorandum of >nderstanding on 2ire and Building Safety

BangladeshKs garment sector is a significant economic power2 it generates (7C of the countryKs total e*port earnings and has become the most significant source of domestic employment for the countryKs fast?growing wor$force, currently employing an estimated %.7 million wor$ers. Oet there are serious concerns about wor$place safety. The Bangladeshi government reported that #1# apparel wor$ers died in fires between 200& and 200'. -n 2010, two large fires resulted in the deaths of 70 wor$ers. The problem of unsafe conditions in BangladeshKs apparel factories must be addressed at multiple levels by a variety of different sta$eholders. The ;overnment of Bangladesh must play a critical role in long?term, sustainable change by updating laws and implementing regulations, improving factory inspections, and establishing the tripartite framewor$ necessary for appropriate relations between employer and labor sta$eholders. 5ther governments and multilateral organi3ations should encourage these changes. !actory owners and operators @/factories0 or /suppliers0A must commit to facilitate and support a continuing cycle of safety management based on ongoing dialogue between management and trade unions or wor$ersK elected representatives. Brand owners and retailers @also referred to as the /companies0 or /company0A must verify that the factories they use comply with applicable safety standards and must ensure that their pricing and sourcing practices ma$e this feasible. -n this conte*t, the undersigned parties have agreed to wor$ together building trust and consensus, to facilitate immediate improvements that will create safer wor$places and demonstrate to the wider industry re)uirements for protecting wor$ers. The undersigned parties are committed to the goal of a safe and sustainable Bangladeshi =eady?+ade ;arment @R=+;RA industry in which no wor$er needs to fear fires, building collapses, or other accidents that could be prevented with reasonable health and safety measures. The following program, designed for a two?year period, is a pragmatic first step towards this end goal. 4ocal ownership is $ey to long term sustainability and the active participation of the government and industry associations is foreseen. The program will be evaluated continuously to help participants improve it and design future steps to create a safe and sustainable Bangladeshi =+; industry. +,e following are t,e elements of t,e (rogram: +ASK 1:R'E 1A The establishment of a multi?sta$eholder Tas$ !orce, led by an 5versight Committee @5CA comprised of a subset of Tas$ !orce members, to lead a time? bound program of two years to improve fire and building safety and for the purpose of underta$ing the items listed below. 2A The Tas$ !orce will be comprised of nine total members, who will be designated in the following manner> The labour signatories to this +5: will designate four Tas$ !orce members and will designate two of those members to also serve on the 5C2 the company signatories to this +5: will designate four Tas$ !orce members and will designate two of those members to also serve on the 5C2 one person will be designated 6ointly by the company and labour signatories to serve on the Tas$
29
!orce and the 5C. The ideal Tas$ !orce will include labour representatives selected from Bangladeshi trade unions, international trade unions and labour non? governmental organi3ations @/N;5s0A, and business representatives selected by the companies from Bangladeshi suppliers and brand owners and retailers sourcing from Bangladesh. :%ERSIG&+ ':MMI++EE %A The 5C shall be the body that has ultimate authority to administer this fire and building safety program, including, but not limited to> the selection, contracting, compensation and review of the performance of the Chief -nspector and Training Coordinator2 overseeing and approving the program budget2 overseeing financial reporting and hiring auditors2 and such other management duties as may be re)uired. The 5C shall e*ercise this authority in consultation with the full Tas$ !orce. '&IE1 I;S$E'+:R #A )ualified Chief -nspector, with fire safety e*pertise, who is independent of and not employed by companies, trade unions or factories, will be unanimously appointed by the 5C.
7A The appointment will be made from a list of one or more candidates that will be provided to the 5C by ;arrett Brown @+a)uiladora 9ealth M 8afety 8upport Networ$A, who shall develop this list in consultation with relevant sta$eholders in Bangladesh and internationally. The 5C will appoint one of the candidates from the list presented by ;arret Brown unless there is clear evidence that all of the candidates on the list are un)ualified due to demonstrated incompetence andHor bias, in which case the 5C will as$ ;arrett Brown to provide a list of additional candidates, which list shall be treated in the same manner as the original list, and so on until a Chief -nspector is appointed. &A The Chief -nspector will design and implement a fire safety inspection program that is credible and effective and based on internationally recogni3ed wor$place safety standards. (A s long as the Chief -nspector acts in a manner consistent with the provisions of this +5: and unless there is clear evidence of malfeasance or incompetence on his or her part, the 5C shall not restrict or otherwise interfere with the Chief -nspectorKs performance of the duties set forth in this +5: as he or she sees fit, including the scheduling of inspections and the publishing of reports.
1A'+:R< =IS+S BA -n order to facilitate implementation of this program, the companies participating in the program will provide to the Chief -nspector accurate and regularly updated lists of their approved suppliers @including sub?contractorsA in Bangladesh, organi3ed by tiers as set forth in point 11. 'A The Chief -nspector will create a single aggregated list of all suppliers in Bangladesh @including sub?contractorsA used by the companies, with an indication as to which factories on this list have been designated by one or more companies as Tier 1 factories and which have been designated by one or more companies as
30
Tier 2 factories, and shall ma$e this list available to the public and shall update this public list as needed. 10A ll participating companies will submit a list of factories to the Chief -nspector that accounts for not less than &7C of their orders by volume, irrespective of their si3e as a customer at each facility. These lists containing volume data and lin$ing specific companies to specific factories will be $ept confidential. 1A'+:R< +IERS 11A The primary facilities for inspection, remediation and training will be those identified by each participating brand owner or retailer as representing, in the aggregate, appro*imately %0C of that companyKs annual production in Bangladesh by volume @/Tier 1 factories0A. The secondary facilities for inspection and remediation @but not trainingA will be any remaining ma6or or long?term suppliers to the company @/Tier 2 factories0A. 12A Together, Tier 1 and Tier 2 factories must represent appro*imately &7C of the companyKs production in Bangladesh by volume. 1%A The tertiary facilities will be those with occasional orders, one?time orders or those for which a companyKs orders represent less than 10C of the factoryKs production in Bangladesh by volume @/Tier % factories0A. Tier % factories will be the sub6ect of initial inspections under the program led by the Chief -nspector. These will be more limited than the inspections conducted for Tier 1 and Tier 2 factories. Their main purpose will be to identify facilities among Tier % where safety ris$s are high. -n cases where high ris$s are identified at a Tier % factory, the applicable companies will agree to cause the factory to be sub6ected to the same inspection as performed on Tier 1 and Tier 2 factories. t the remaining Tier % factories, participating companies will wor$ to ensure that the suppliers are addressing fire and building safety issues in the facilities. I;S$E'+I:;S
14)
thorough, independent safety inspection of multi?story =+; production facilities that supply to the undersigned companies will be carried out by s$illed personnel acting under the direction of the Chief -nspector. -ndividual inspectors or inspection organi3ations will be appointed by the Chief -nspector to conduct said inspections, with priority for factories where wor$ers have submitted complaints regarding fire and electrical safety, where initial evaluations confirm a priority need, where management is willing to participate, andH or with which any participating company has reasonably significant influence.
REME5IA+I:; 17A The Chief -nspectorKs recommendations concerning corrective actions necessary to bring factories into compliance with building, fire and electrical safety standards shall be mandatory and time?bound, with sufficient time allotted for all ma6or renovations. 1&A ,ach company will ma$e a good faith effort with each factory in which it has production to have the factory @aA remediate violations discovered upon inspection2 @bA implement all other aspects of this +5: applicable to the factory
31
@e.g., submission to inspections, implementation of a wor$er complaint process and creation of health and safety committees, it being understood that only Tier 1 factories need to implement fire safety training programsA. 1(A The signatory companies will also wor$ in con6unction with the 5C in see$ing financial and related assistance from governments and private funders from around the world in an effort to help factory owners secure the resources to remediate discovered violations and implement other aspects of the +5: as described above. The efforts of the companies to secure assistance shall not be interpreted as a reason to delay any actions in clause 1& above. 1BA The trade unions and N;5s that are signatories to this +5: shall be consulted at an early stage in the remediation process if progress is not being made. ,arly notice shall be given by the applicable company to the applicable supplier regarding its non?compliance andHor failure to remediate, its ris$ of the loss of orders for continued failure to comply or remediate and its need to ensure compliance with labour standards in the event orders are discontinued as a result of the failure to remediate and the employment of any wor$ers is terminated as a result. 1'A s a final resort, if the factory fails to remediate any high ris$ or implement other applicable terms of this +5:, the companies producing there will cease doing business with the factory. RES$:;SIB=E +RA;SI+I:;S 20A "uring any period that a factory @or portion of a factoryA is closed for renovation, wor$ersK employment relationship shall be maintained and wor$ers shall not suffer any loss of pay. 21A -n case business is ceased with any factory pursuant to <aragraph 1', orders from that factory shall be consolidated in )ualified Tier 1 and Tier 2 factories identified as safe, unless the orders being relocated are not suitable for production in any safe Tier 1 or Tier 2 factory, in which case the responsible brand or retailer may relocate the orders to any factory where high safety ris$s have not been identified, provided that the brand or retailer shall ensure that the total volume of its production in Bangladesh is not reduced as a result. 22A -n such cases, all reasonable effort shall be made to ensure that any wor$ers whose employment is terminated as a result of the loss of orders are offered employment with safe suppliers, including actively wor$ing with suppliers to provide hiring preferences to these wor$ers. ':M$=AI;+S $R:'ESS 2%A The Tas$ !orce will develop a wor$er complaint process and mechanism that ensures wor$ers from Tier 1, 2 and % factories can complain about health and safety ris$s safely and confidentially to the Chief -nspector. 2#A ll complaints will be followed up in a timely fashion and factories that are the sub6ect of complaints will be given high priority in the scheduling of inspections. RE%IE> :1 B!I=5I;G S+A;5AR5S
32
27A 5ne or more )ualified e*perts appointed and supervised by the Tas$ !orce shall complete a full and rigorous review of current building standards and regulations for =+; enterprises. There shall be sufficient resources for the review to ensure it is credible and effective. 2&A The parties to this +5: intend to provide guidance to the ;overnment of Bangladesh on ade)uate and effective fire and building safety regulation in industrial environments, including benchmar$s for compliance. 2(A 8uch standards shall include agreed procedures to ensure the right of a wor$er to refuse dangerous wor$ or shut down wor$ that he or she believes in good faith is unsafe, without suffering discrimination or loss of pay. RE$:R+I;G 2BA The Chief -nspector will regularly provide detailed information to the 5C regarding the inspection process and design and will promptly convey all -nspection =eports to the 5C. 2'A The Chief -nspector will immediately disclose to the public -nspection =eports for factories in which sHhe has identified imminent and severe threats to health and safety. %0A -nspection reports for factories not containing imminent and severe threats will be made public in the following manner> i. !actory management, the factoryKs health and safety committee, and wor$er representatives, if there are one or more unions with members in the factory, will be briefed verbally by the Chief -nspector as to hisHher findings upon completion of the inspection, ii. factory management, the health and safety committee and wor$er representatives will be presented with the Chief -nspectorKs written report as soon as it is completed2 iii. three wee$s from the date on which the Chief -nspector provides factory management the written report, the Chief -nspector will disclose the report to the public, accompanied by the factoryKs remediation plan, if the latter has been provided to the Chief -nspector and has been deemed ade)uate by the Chief -nspector prior to publication of the inspection report. iv. -f, in the 6udgment of the Chief -nspector, the factory does not, at the time the inspection is completed, have a properly functioning health and safety committee with wor$er participation, as re)uired by Bangladeshi law, the Chief -nspector will disclose the inspection report, upon its completion, to the Bangladeshi labor unions that are signatories to this +5:. %1A The purpose of providing the inspection report to the health and safety committee, to wor$er representatives in the factory, andHor to the Bangladeshi union signatories is to ensure that wor$ers are informed promptly as to inspection findings and are able to provide input through wor$er representatives in the development of the remediation plan. %2A -f the Chief -nspector determines at any point that a factory is not acting e*peditiously to implement remedial recommendations, the Chief -nspector will issue a public statement reporting his or her concerns.
33
%%A -n addition, the Chief -nspector will publish )uarterly ggregate =eports which summari3e the inspection and remediation activity of the prior )uarter. ll ggregate =eports will include both aggregated industry compliance data as well as a detailed review of findings, remedial recommendations, and progress on remediation to date for all factories at which inspections have been completed. %#A The Tas$ !orce will e*plore how compliance could be made a prere)uisite for factories to receive an e*port license. +RAI;I;G $R:GRAMS %7A The 5C will appoint a Training Coordinator who will establish and deliver e*tensive wor$place?based fire safety training programs for wor$ers, managers and security staff to be delivered with involvement of trade unions and speciali3ed local e*perts. %&A The Tier 1 factories will participate in intensive training in which the Training Coordinator and designated training teams, including union representatives, will be ensured access to the factories to provide training to wor$ers and management on a regular basis. %(A This training program will include guidance in how wor$ers can proactively participate in advancing wor$place fire safety and health through the e*ercise of their rights. &EA=+& A;5 SA1E+< ':MMI++EES %BA The participating brand owners and retailers shall re)uire the creation of health and safety committees in all Bangladesh factories that supply to them. %'A !unctioning in accordance with Bangladeshi law, each committee will be comprised of wor$ers and managers, with wor$ers representing no less than 70C of the members, and with selection of wor$ers to be made by the factoryKs trade union, if present, and by democratic election among the wor$ers where there is no trade union. #0A The role of the committee is to reduce illness and in6ury by identifying health and safety ris$s, ma$ing recommendations for reduction of ris$s, and educating managers and wor$ers about health and safety issues, with the goal of ma$ing health and safety activities an integral part of the organi3ationDs operating procedures and culture. #1A The committee will meet regularly and maintain records of its proceedings and activities. S!$$=IER $AR+I'I$A+I:; #2A ,ach of the parties to this +5: will ma$e reasonable efforts to fulfill the terms of this +5: and support the successful completion of the pro6ect. #%A ,ach of the signatory brand owners and retailers shall re)uire all of its suppliers in Bangladesh to participate fully in the inspection, remediation, training
34
and health and safety committee activities, corresponding to their designated status as Tier 1, 2 or % factories, as described above in this +5:. S!$$=IER I;'E;+I%ES ##A -n order to induce Tier 1 and Tier 2 factories to comply with upgrade and remediation re)uirements of the program, participating brands and retailers will not offer prices to, or accept prices from, factories such that the factories would be without the financial wherewithal to maintain safe wor$places and comply with upgrade and remediation re)uirements instituted by the Chief -nspector. #7A s further inducement to Tier 1 and Tier 2 factories to comply with upgrade and remediation re)uirements, as determined by the Chief -nspector, the participating companies will continue business at comparable or greater order volumes with such factories at least through the initial two?year term of this program, provided that @aA such business is commercially viable for each company, and @bA the factory continues to substantially meet the companyKs terms. 1I;A;'IA= S!$$:R+ #&A !inancial support during the two?year term of the program will be provided by the participating brand owners, retailers and suppliers. The brand owners and retailers will share e)uitably among themselves the financial burden of funding this program, ta$ing into account their respective financial resources, and will ensure the complete funding of this program. $R:GRAM 5!RA+I:; #(A The implementation of the program shall begin on the date when at least four well?$nown international apparel brand owners and retailers that source from Bangladesh have become signatories to this +5: @the /effective date0A, and shall continue from that date for a period of twenty?four months. $R:GRAM =A!;'& #BA The labour unions, N;5s, brand owners and retailers that are the signatories to this +5: as of its effective date shall, within %0 days of that date, aA bA ppoint their respective members of the Tas$ !orce pursuant to <aragraph 2. ppoint, and @in the case of the brand owners and retailersA provide funds to compensate, a person who shall serve as an -nterim dministrative Coordinator for a period of no less than '0 days. The -nterim dministrative Coordinator shall assist the signatories in establishing the Tas$ !orce, and assist the 5C, once appointed, in completing its initial tas$s, as provided in <aragraphs 1, 2, #, 7 and 70.
A55I+I:;S :R '&A;GES #'A By mutual agreement, the signatories, either before or after the effective date, may ma$e such changes to the administrative, leadership, andHor oversight mechanisms of the program that the signatories may feel are in the best interests
35
of the program. IM$=EME;+A+I:; $=A; 70A The 5C will, within #7 days of all its members being appointed, agree upon, in consultation with all other relevant sta$eholders, a plan for the implementation and administration of the Bangladesh =+; fire and building safety program described above that will include, at minimum> aA The schedule for implementing the program activities described above, including, but not limited to, the review of current building standards and regulations referred to in <aragraph 272 the factory inspection program discussed in <aragraph 1#2 the fire and building safety training program discussed in <aragraphs %7?%(2 and the implementation of health and safety committees, as discussed in <aragraphs %B?#1. bA process for binding and legally enforceable arbitration of disputes between parties to this +5: with respect to this +5: and the program, including, but not limited to the allocation of costs relating to any arbitration. cA full budget for the e*penses of the Tas$ !orce, the 5C and the administration of the program, and budgeted compensation and reimbursement for e*penses of> i. a )ualified Chief -nspector and sufficient s$illed personnel to assist in carrying out the factory inspection program2 ii. one or more e*perts to carry out the review of current building standards and regulations2 iii. a )ualified Training Coordinator and an appropriate number of s$illed assistants needed to carry out the fire safety training program and activities related to the health and safety committees2 iv. an dministrative Coordinator to provide administrative support and coordination for all aspects of the program2 and the person@sA with financial, accounting and other relevant e*perience to oversee and account for the e*penditure of the contributed funds. dA formula for establishing the amount of funds each party will contribute to the budget. ,ach company will contribute in proportion to the annual volume of its garment production in Bangladesh relative to the respective annual volumes of garment production of the other companies, sub6ect to a ma*imum contribution of E700,000 per year for each of the two years of the program and, for companies with annual corporate revenue in e*cess of E1 billion, a minimum contribution of E270,000 per year for each of the two years of the program, with a sliding scale minimum contribution based on revenue to be determined for smaller corporations.
eA Credible, robust, and transparent procedures for the accounting and oversight of all contributed funds. 71A 5nce the accounting and oversight procedures referenced in <aragraph 70@eA are agreed upon, the undersigned companies shall be obligated to contribute funds in accordance with the formula established pursuant to <aragraph 70@dA. 72A 5nce agreed upon by the 5versight Committee, the implementation plan established pursuant to <aragraph 70 shall be documented in writing, immediately become incorporated by reference into this +5: and be binding on all current and
36
future signatories to this +5:. 5IS$!+E RES:=!+I:; 7%A ctions to resolve any dispute among the signatories hereto prior to the establishment of the arbitration procedures under the implementation plan relating to the interpretation, application or implementation of this +5: may be brought in any court of law having 6urisdiction over the sub6ect matter and the necessary parties. The foregoing is agreed to by the undersigned parties.
37
Appendi, #1 e,planatory note Hameem compensation model

M!=+I S+AKE&:=5ER R:!;5?+AB=E MEE+I;G :; ':M$E;SA+I:; 1:R %I'+IMS :1 +&E +&A+@S I+ S$:RS>EAR "&AMEEM GR:!$# 1IRE
5,a6a* -3 and -A A(ril ./--
5EMA;5S :; ':M$E;SA+I:; "%ersion amended following t,e meeting# $REAMB=E

The aim of this document is to set down the demands for compensation for the ' wor$ers who were seriously in6ured and the families of the 2' wor$ers who died as a result of the fire at ThatKs -t 8portswear on "ecember 1# 2010. These demands were formally agreed at a meeting of the members unions of the Bangladesh National Council @BNCA and other unions and are supported by the organisations listed at the bottom of the document. The implementation of these demands shall constitute a good e*ample of meaningful social dialogue and shall contribute towards an ethical and sustainable standard for dealing with industrial accidents, thus helping to protect the image of the =+; industry and helping to prevent damage to the reputations of responsible buyers doing business in Bangladesh. This signatories of the present document ac$nowledge that some funds have already been pledged or paid by the 9ameem ;roup, B;+, and the government. mounts already paid shall be deducted from the demands outlined below. -t is further recognised that provisions have been made in respect of funeral costs, payment of medical costs, and the education of the children of deceased wor$ers. 9owever, the signatories of the present document believe that the current compensation arrangements are insufficient to meet the needs of those affected by the disaster and to mitigate the negative impacts on their lives. The present demands are based on the learnings from the 8pectrum case and from other recent compensation cases in the =+; sector. The demands include compensation for general damages @compensation for pain and suffering and ad6usting to life following the tragedyA as well as loss of future earnings @compensation for the long?term effects of losing a breadwinner in the familyA. The signatories of the present document firmly believe that while it is essential to ensure that those affected by industrial disasters are ade)uately compensated, the emphasis must be on the prevention. +easures are needed to ensure that the government and employers ta$e effective action on fire prevention and that the brands have ade)uate systems in place
38
to monitor safety and address any deficiencies. The issue of prevention shall be dealt with separately.
=IS+
:1 5E'EASE5 A;5 I; !RE5 >:RKERS
The names of the deceased wor$ers shall be listed in an anne* to the agreement, including their ages and the names and details of their beneficiaries. S4ist to be provided by the factory ownerT The list of in6ured wor$ers shall be listed in an anne* to the agreement along with a description of their in6uries as per their medical reports. S4ist to be provided by the factory ownerT
1!;ERA=
':S+S
-t is noted that the 9ameem ;roup has covered the the funeral costs of the deceased with additional assistance provided by the government Sdetails to be providedT.
':M$E;SA+I:; $A<AB=E +: +&E 1AMI=IES :1 +&E 5E'EASE5 >:RKERS
'om(ensation for (ain and suffering The families of the deceased wor$ers shall receive 700,000 ta$as @five hundred thousandA as compensation for pain and suffering. 'om(ensation for lost wages Compensation for loss of earnings shall be calculated as follows> 70C of the minimum wage in the garment sector * 27 years with an ad6ustment for the pro6ected average annual inflation rate. The annual minimum wage is currently %,000 * 12 U #000 @festival bonusA V #0,000 ta$a.
':M$E;SA+I:; 1:R I; !RE5 >:RKERS
'om(ensation for general damages Compensation for general damages @pain and sufferingA for those who sustained serious in6uries shall be determined ta$ing into account the nature of the in6uries and their psychological impact. 'om(ensation for loss of income based on severity of inBury The in6ured shall be independently assessed and awarded compensation based on loss of earnings for a length of time determined by the severity of their in6uries and their incapacity to wor$. Those with lasting in6uries shall be awarded compensation as follows> <ermanent disability> compensation based on 70C of the minimum wage in the garment sector in Bangladesh * number of years till the age of retirement. 8erious damage but with the possibility of recovering> compensation based on 70C of minimum wage in the garment sector in Bangladesh for an indefinite duration until a
39
medical assessment deems they are capable of re?employment2 Temporary in6uries> compensation based on 70C of the minimum wage in the garment sector in Bangladesh for si* months2 8uperficial in6uries of a temporary nature and low level of seriousness, which do not prevent common labour activities from being carried out> no compensation for loss of income.
ME5I'A=
':S+S
-t is noted that the 9ameem ;roup is already covering all the costs of providing ade)uate medical attention to the in6ured wor$ers. "etails of costs anticipated for the future shall be noted in the agreement. S"etails to be providedT
E5!'A+I:;
:1 +&E '&I=5RE; :1 5E'EASE5 >:RKERS
-t is noted that the 9ameem ;roup has committed to the paying the education costs of the children of the deceased wor$ers. "etails of costs anticipated for the future shall be noted in the agreement. S"etails to be providedT
5E+ERMI;I;G
+&E BE;E1I'IARIES
.e note that to date the 9ameem ;roup has paid compensation in accordance with the following guidelines>
-f the deceased wor$er was married with dependent children> 100C of compensation paid to the surviving spouse. -f the deceased wor$er was married with no dependent children> 70C paid to the surviving spouse, 70C paid to the parents of the deceased wor$er. -n the event of the death of both husband and wife with dependent children> 100C paid to the children. -n the event of the death of both husband and wife with no children> 70C paid to the parents of the wife, 70C paid to the parents of the husband.
EM$=:<ME;+
:$$:R+!;I+IES 1:R 1AMI=< MEMBERS :1 +&E 5E'EASE5
The 9ameem ;roup shall ma$e every effort to provide employment to family members of the deceased wor$ers in its facilities. The brands shall ma$e every effort to help family members of the deceased wor$ers to find employment with their suppliers in Bangladesh.
A5MI;IS+RA+I:;
A;5 5ISB!RSEME;+ :1 1!;5S
The 9ameem ;roup shall contract with a ban$ in Bangladesh to establish a Compensation
40
!und for those affected by the ThatKs -t 8portswear fire. The ban$ shall be responsible for transferring compensation to the ban$ accounts of the beneficiaries. Contributions by brands shall be deposited to this account. greement shall be reached at the meeting in "ha$a on whether the payments shall be made in a lump?sum or in the form of instalments. -ssues to consider include how to ensure that payments are made in a timely manner2 how to ensure that women are not denied access to their entitlement2 and how to ensure that the long?term needs of dependants are provided for. -f payments are made in instalments then the amounts owed shall be ad6usted to reflect the accrued rate of interest. -f necessary the 9ameem ;roup shall assist the beneficiaries in opening a ban$ account.
RES$:;SIBI=I+<
1:R +&E $A<ME;+ :1 ':M$E;SA+I:;
.hile the present document deals with the immediate needs of the those affected by the ThatKs -t 8portswear tragedy, the signatories to these demands recognise the need for longer?terms solutions to deal with compensation. .e strongly support the urgent creation of an industry fund aimed at facilitating the payment of compensation in the event of fatal accidents in the sector. -n the meantime, however, in the absence of such a scheme, and ta$ing into account the fact that buyers in general do not at present have ade)uate systems for detecting and addressing deficiencies in wor$er safety, the liability for compensation for general damages and lost wages shall be shared between 9ameem, B;+, , the government and the brands as follows> Brands #7C of the total compensation amount 9ameem 2BC of the total compensation amount B;+, 1BC of the total compensation amount ;overnment 'C of the total compensation amount mounts already paid shall be deducted from the amounts owed. The contribution of the brands shall be pro?rated based on their percentage of orders from brands that had a regular sourcing relationship with ThatKs -t 8portswear in the lead?up to the accident.
:I;+ RE%IE> $R:'E5!RE
greement shall be reached at the meeting in "ha$a on the establishment of a 6oint group to review on a regular basis the implementation of this agreement and any related issues.
REA'&I;G
A +IME?B:!;5 AGREEME;+
@WA the agreed provisions as well as the specific responsibilities and commitments of
41
9ameem, B;+, and the brands shall be set down in a signed agreement along with a timetable for implementation aimed at ensuring that compensation payments are finalised as early as possible and no later than @...A
XXXXXXXXXXXX
These demands have been agreed by the member unions of the Bangladesh National Council and :nity Council unions as follows> @aA Bangladesh National Council members>

Bangladesh Lute M Te*tile .or$ers !ederation @BLT.!A :nited !ederation of ;arment .or$ers @:!;.A !ederation of ;arment .or$ers @!;.A Bangladesh Te*tile M ;arment .or$ers 4eague @BT;.4A ;arments Tailors .or$ers 4eague @;T.4A Bangladesh -ndependent ;arment .or$ers :nion !ederation @B-;:!A National ;arments .or$ers !ederation @N;.!A Bangladesh ;arments, Te*tile M 4eather .or$ers !ederation @B;T4!A 8hadin Bangla ;arments 8rami$ Farmachari !ederation 8,. 9andicrafts ,mployees !ederation @8,. A Bangladesh Latiyo 8rami$ Farmachari !ederation @BL8F!A Bangladesh 8hoe M 4eather .or$ers !ederation @B84.!A
@bA :nity Council members>

National ;arments .or$ers !ederation @N;.!A 8ommilito ;arments 8rami$ !ederation @8;8!A Bangladesh ;arments 8rami$ Lote @B;8LA
The demands are supported by the following unions and labour rights groups in Bangladesh> lternative +ovement for =esources and !reedom 8ociety @ +=!A SN;5T Bangladesh ;arment and -ndustrial .or$ers !ederation @B;-.!A Strade :nionT
The demands are also supported at international level the following organisations>

-nternational Te*tile, ;arment and 4eather .or$ersK !ederation @-T;4.!A Clean Clothes Campaign @CCCA -nternational 4abour =ights !orum @-4=!A .or$ersK =ightsK Consortium @.=CA
EC$=A;A+:R< ;:+E :; +&E !;I:; 5EMA;5S 'om(arison wit, ot,er com(ensation settlements a# S(ectrum
42
-n pril 2007, the 8pectrum factory collapse $illed &# wor$ers and left B0 in6ured. The 9ameem compensation pac$age is based on the learnings of the 8pectrum case. The 8pectrum formula for the families of the deceased was as follows> a lump?sum payment for pain and suffering of 1&B,000 Ta$a per wor$er2 and a pension for life for the surviving spouse or in the absence thereof for the surviving head of family, calculated at 70C of the average of the minimum earnings in the te*tile sector in Bangladesh and the employeeKs consolidated earnings at the date of the accident, with a minimum of 1,700 Ta$a per month.
-n the case of the in6ured wor$ers, compensation was paid partly as a lump sum and partly as a pension based on the severity of the in6ury, as follows> 70C of the average of the minimum earnings in the te*tile sector in Bangladesh and the employeeDs consolidated salary at the date of the accident @as a minimum 1,700 Ta$aA for life, in the case ;roup 1 victims @permanent disabilityA2 for 10 years for group -- @serious damage but with possibility of recoveryA, & months for ;roup --- @temporary in6uriesA and nothing if included in ;roup -I @superficial in6uriesA. b# Garib D Garib -n !ebruary 2010, 21 wor$ers were $illed when a fire bro$e out at the ;arib M ;arib factory. The employer, the B;+,

and the government provided the following assistance>
;arib and ;arib provided 17,000 ta$a to each family for funeral costs ;arib and ;arib provided 200,000 to the family of each deceased wor$er @or 100,000 according to some reportsA2 B;+, paid 100,000 to the family of each deceased wor$er.
9M+ provided a Yvoluntary support programmeK which benefited the families of 1% of the 21 wor$ers who died in the fire @i.e. families with under?age or old?age dependantsA, as follows>

<ayment of 2,000 Ta$a per month to the nineteen under?age children of those that died, until they reach the age of 1B. 5ne?off payment of 100,000 Ta$a @plus interestA to the above?mentioned children when they turn eighteen. <ayment of a 100,000 Ta$a lump sum to parents who are unable to wor$ due to old age and are thus dependent on the income of the wor$ers who died in the fire. ssistance to the relatives @over the age of 1BA of the deceased or in6ured wor$ers who are currently out of wor$ to find employment with an 9M+ supplier or to provide them with training at the 9M+ centre in Bangladesh. Care, if needed for the si* in6ured wor$ers. ll si* received support for physical medical treatment.
The ;arib M ;arib scheme did not have the support of trade unions or labour rights groups
43
5etails of &ameem formula for t,e families of t,e deceased
The families of the deceased wor$ers shall receive 700,000 Ta$a @five hundred thousandA as compensation for pain and suffering. Compensation for loss of earnings shall be calculated as 70C of the minimum wage in the garment sector * 27 years with an ad6ustment for the pro6ected average annual inflation rate.
700,000 Ta$a, which is described as Ygeneral damagesK corresponds to what was described as a Ylump sum paymentK in the 8pectrum settlement. The amount has been increased to reflect the fact that the minimum wage has increased from '%0 Ta$a at the time of the 8pectrum collapse to %,000 Ta$a today. The annual minimum wage is calculated as %,000 Ta$a @current minimum wage grade (A * 12 months U #000 @festival bonusA V #0,000 Ta$a. 4ost wages are paid over 27 years. -n comparison, at 8pectrum compensation for loss of earnings was paid over the lifetime of the beneficiary. The average pro6ected life e*pectancy of the 8pectrum beneficiaries was 27 years. n average annual inflation rate will need to be calculated from reliable sources and in an agreed manner. 5ur calculations have been based on the figures provided on the -nde* +undi website Shttp>HHwww.inde*mundi.comHbangladeshHinflationZrateZ@consumerZpricesA.htmlT which lists the consumer price increase inflation inde* since 200% as follows @source> Cfact boo$A. 200% 200# 2007 200& 200( 200B 200' 2010 2011 @date @date @date @date @date @date @date @date @date of of of of of of of of of information information information information information information information information information 2002A 200%A 200#A 2007A 200&A 200(A 200BA 200'A 2010A %.10C 7.&C &C (C (.2C '.10C B.'C 7.#C B.1C
This gives an average inflation rate of &.(C. 8tarting with an annual amount of 20,000 @70C of the minimumA the figures are as follows over 27 years> 20,000 21,%#0 22,((0 2#,2'7 27,'2% 2(,&&0 2',71% %1,#'1 %%,&00
44
%7,B72 %B,27# #0,B1( #%,771 #&,#&' #',7B% 72,'07 7&,#70 &0,2%2 &#,2&( &B,7(% (%,1&B (B,0(0 B%,%00 BB,BB2 '#,B%( -*.--* A/Thus on the basis of &.( C inflation per annum the total would amount to> 700,000 U 1,211,B01 V 1,(11,B01 Ta$a 'om(ensation for inBured wor6ers .or$ers who suffered permanent or serious in6uries or severe psychological trauma should receive compensation for pain and suffering @700,000 Ta$a2 based upon the same calculation as for the families of the dead wor$ersA in addition to the compensation for loss of earnings according to the severity of their in6uries, as set down below> Those with lasting in6uries shall be awarded compensation as follows>

<ermanent disability> compensation based on 70C of the minimum wage in the garment sector in Bangladesh * number of years till the age of retirement. 8erious damage but with the possibility of recovering> compensation based on 70C of minimum wage in the garment sector in Bangladesh for an indefinite duration until a medical assessment deems they are capable of re?employment2 Temporary in6uries> compensation based on 70C of the minimum wage in the garment sector in Bangladesh for si* months2 8uperficial in6uries of a temporary nature and low level of seriousness, which do not prevent common labour activities from being carried out> no compensation for loss of income.
<lease note that article 1' of -45 Convention 121 on ,mployment -n6ury Benefits states that the rate of benefits shall be such as to attain for the standard beneficiary at least the following percentage of the total of the previous earnings of the beneficiary or the breadwinner and of the amount of any family allowances payable>
Category
Standard beneficiary
Percentage
45
1. Temporary or initial incapacity for wor$
+an with wife and two children
&0 &0 70
2. Total loss of earning capacity or +an with wife and two corresponding loss of faculty children %. "eath of breadwinner .idow with two children
46
+ndnotes
i Written by Sam Maher, with special than s to !KM "asim, Li# $ar er, Tessel $auli an% &ne e 'el%enrust for comments( ii http)**www(the%ailystar(net*ma+a#ine*20,0*,2*0-*special(htm iii .ase% on an analysis of /n+lish-lan+ua+e newspapers 0Le1is"e1is2 by &L34 an% 5lean 5lothes 5ampai+n 020,22 iv 5lean 5lothes 5ampai+n 020,22( Deadly Denim: sandblasting in the Bangladesh Garment Industry, p -, v http://www.workersrights.org/university/memo/040210.htm vi &L6 3eport of the 5ommittee of /1perts on the !pplication of 5onventions an% 3ecommen%ations 020,,2 p 70vii &L6 3eport of the 5ommittee of /1perts on the !pplication of 5onventions an% 3ecommen%ations 020,,2 p 70, - 707 viii .ase% on a list of %eman%s compile% for the 7th !nniversary of the Spectrum %isaster) see www(cleanclothes(or+*news*action-for-safe-factories-in-ban+la%esh-on-7th-anniversary-of-spectrum%isaster8,
i! .S5& 020062( Annual report. p 2, 9cite% in Miller, : 020,22( Last night shift in Savar: the story of the
Spectrum s eater factory collapse. !lnwic ) Mc"i%%er ; <race= ! 3u++ie, > 020,,2(Guiding !rinciples on Business and "uman #ights: Implementing the $nited %ations &!rotect, #espect and #emedy' (rame or). ?" @uman 3i+hts 5ouncil, para 6 !i &L6 020,02( *mployment In+ury Benefits. &L6 Moscow, p 7( !ii &bi% p 6 !iii 5entre for 5orporate !ccountability 0200A2( ,btaining -ompensation for .or)place Death or In+ury in Bangladesh. :ha a(
!iv The .an+la%esh <overnment enacte% a law in 2006, calle% .an+la%esh Labour Welfare 4oun%ation !ct
2006, un%er which a Welfare 4oun%ation 4un% has been create% for the welfare of all the wor ers of the country( The function of the .oar%, which is to a%minister the fun%, amon+ others, is to provi%e assistance to the family of the wor er who %ie% of an acci%ent( @owever, to %ate the .oar% has not un%erta en any concrete action( !v .an+la%esh Labour !ct 020062 section ,6, !vi .an+la%esh Labour !ct 020062 section ,77 !viiSeverance pay is the money wor ers are entitle% to receive if ma%e re%un%ant( <iven the e1tent of the %ama+e to the Spectrum factory many wor ers lost their employment an% as a result shoul% have been provi%e% with severance pay base% upon their len+th of service( ! previous briefin+ on severance in cases of 4actory 5losures is available from http://www." e#n" othes.org/news/new$resour"es$" e#n$" othes$ news etter$nr24/115
!viii &t was estimate% by wor er representatives that eventually 7B to 6- families receive% all outstan%in+
compensation payments on !pril ,6, 20,,( ?nfortunately &n%ite1 has not provi%e% the e1act numbers %espite numerous reCuests from 555( !i! Wor er representatives estimate this number at B wor ers, unfortunately 555 has not receive% the e1act number from &n%ite1 %espite numerous reCuests over the last years(
This briefin+ has been pro%uce% with the financial assistance from the /uropean ?nion( The contents of this briefin+ are the sole responsibility of the 5lean 5lothes 5ampai+n an% can in no way be ta en to reflect the views of the /uropean ?nion(

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Clean Clothes Campaigni, November 2012

Hazardous workplaces: Making the Bangladesh Garment industry safe

Section A Prevention of future tragedies

#nternational standards: the right to safe work

%hy is the Bangladesh Garment #ndustry so unsafe&

Action taken so far to improve safety in Bangladesh

)he role and responsi*ility of different stakeholders to prevent future tragedies

Brands and retailers

,nsure that B;+, HBF+, standards.

members are fully informed in regard to safety

electrical e)uipment should be properly maintained.

ompensation and 3e!mediation

3esponsi*ility for providing redress

Surviving a fire 4 living with the conse5uences6666

+sta*lished standards for compensation provision

Bangladesh national legislation,iii

BGM+A insurance scheme

omparison of compensation schemes

Provision for immediate medical and financial needs

Addressing redundancy and re!employment of survivors

+sta*lishment of compensation funds

ompensation payments to families of deceased workers

ompensation for in7ured workers

8ump sum vs ongoing payments

:ther actions for remedy )ransparent investigations and improvements to factories

Accounta*ility and prosecutions

+nsuring ongoing employment for survivors

Support for trade union organising

3ecommendations for future action

Appendi, # Safety incidents in Bangladesh since $<<9

Appendi, ### =oint Memorandum of >nderstanding on 2ire and Building Safety

Appendi, #1 e,planatory note Hameem compensation model

5EMA;5S :; ':M$E;SA+I:; "%ersion amended following t,e meeting# $REAMB=E

:1 5E'EASE5 A;5 I; !RE5 >:RKERS

':M$E;SA+I:; $A<AB=E +: +&E 1AMI=IES :1 +&E 5E'EASE5 >:RKERS

':M$E;SA+I:; 1:R I; !RE5 >:RKERS

:1 +&E '&I=5RE; :1 5E'EASE5 >:RKERS

:$$:R+!;I+IES 1:R 1AMI=< MEMBERS :1 +&E 5E'EASE5

A;5 5ISB!RSEME;+ :1 1!;5S

1:R +&E $A<ME;+ :1 ':M$E;SA+I:;

:I;+ RE%IE> $R:'E5!RE

@bA :nity Council members>

and the government provided the following assistance>

5etails of &ameem formula for t,e families of t,e deceased

1. Temporary or initial incapacity for wor$

+an with wife and two children

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