Rana Plaza victims are disappointed with the compensation paid by Italian clothing company Benetton as the fund remains 6.5 million euros short of its 27.5-million-euro target. They had called upon Benetton to make up the sum. According to a report published in global news media RFI, Benetton recently has paid one million euros into a fund for victims of the 2013 Rana Plaza disaster in Bangladesh. The announcement comes a week before the second anniversary of the factory building collapse that killed more than 1,100 workers and injured twice that number. The Italian firm is the latest big Western fashion retailer that sourced clothing from the eight-storey building in Dhaka to donate to a fund set up by the UN’s International Labour Organisation. But campaigners are disappointed that the fund remains 6.5 million euros short of its 27.5-million-euro target. They had called upon Benetton to make up the sum. “It’s really disappointing,” Nayla Ajaltouni, coordinator with French non-profit organisation Ethique sur l’Etiquette, which campaigns for better working conditions for garment workers, told RFI. “It’s four million less than the calculation that civil society groups made on the basis of Benetton’s production in Bangladesh and their financial capacities.” Benetton said it had given the Rana Plaza Donors Trust Fund twice the sum suggested by professional services group PricewaterhouseCoopers (PwC), which Benetton commissioned to assess its contribution. It said the specially commissioned report would be publicly available. “While there is no real redress for the tragic loss of life we hope that this robust and clear mechanism for calculating compensation could be used more widely,” Marco Airoldi, Benetton chief executive, said in a statement. Ajaltouni regretted their calculation was “not transparent” adding that Benetton had “a responsibility, as a transnational actor benefitting from economic globalisation”, to compensate more. Benetton’s contribution comes after more than a million people around the world signed a petition on the campaigning site Avaaz calling for the Italian label to donate alongside other Western brands linked to the worst accident the clothing industry has seen. Avaaz’s campaign director, Dalia Hashad told RFI that while she welcomed Benetton’s gesture, she expected more. “Thousands of people lost their lives or had their lives completely destroyed and what we really needed to see from Benetton was that they embraced the values that they publicly hold out to the world,” she said. “That they would consider these people who make their clothes part of the Benetton family. We would have liked them to take a leadership position in providing stronger compensation to really sell the fund.” Hashad said she hopes Benetton’s example, just a few days before the second anniversary of the tragedy, will encourage other brands with links to Rana Plaza to pay into the fund. “From Carrefour, Walmart and the Children’s Place to JC Penney, all of them have either not given a cent or need to give more, so that’s what we hope to see in the coming days.” Victims are beginning to benefit from compensation. “While we’ve lost trace of some of the victims who returned to their region of origin, globally the first round of compensation has been completed, which is a big victory,” Aljatouni explained. But twos years down the line some survivors are marked for life, unable to work because of their injuries but also barred from working due to discrimination, Hashad said.

Source: https://www.observerbd.com/2015/04/21/84674.php#sthash.VhsDxE3o.dpuf

The RMG sector has long proved itself to be a boon for Bangladesh. It is the mainstay of its economy, facilitating its sustained 6%-plus GDP growth over the years. Despite the epic growth of our RMG industry and its bright prospects, challenges are still there. One of the biggest challenges currently faced by our RMG industry is to ensure workplace safety and better working conditions for the millions of garment workers. While we were embarking on a fashionable dream to export $50bn by 2021, the industry was shaken by the Rana Plaza disaster. Last month, I returned to Bangladesh from Turin, Italy, having finished my post-graduate diploma. I went there on a fellowship and had the opportunity to meet 30 nationals from five continents of the world. I entered the campus with lofty thoughts about Bangladesh’s second position in RMG exports. The very next day in the orientation, when I introduced myself as a Bangladeshi national, all of my coursemates and teachers from the UK, New Zealand, and Ireland rushed to me and asked about Rana Plaza. Most of them don’t even know of our prime minister, or the famous Shakib Al Hasan. They don’t know about our mangrove forest the Sundarbans, or our longest sea-beach Cox’s Bazar, or even our historic independence. But they all know about the tragic accident at Rana Plaza. I was astonished. I told them that Rana Plaza can’t be the only example. We have so many success stories about our RMG. Every foreigner I’ve met asked me eagerly: “What about Rana Plaza? Is everything okay?” I am afraid, and wonder if the whole world thinks of Bangladesh in this way, what will be our future image be? At present, factory owners are more aware than they were earlier. There is some hope that Accord and Alliance have commented that, with regards to safety, Bangladesh’s RMG sector has improved a lot. But it has a long way to go in case of ensuring proper work environments and complete safety for employees. The McKinsey summer report 2014 found that Bangladesh remains at the top of the list of apparel-sourcing markets, and is expected to grow further in importance in the next few years. As per their forecast in 2011, Bangladesh was on the radar of all European and US apparel buyers, and is likely to grow nearly three times by 2020. It is high time for us to ensure complete safety in every RMG unit to regain the global image of the country, and its ultimate impact definitely extends to the RMG industry. Bangladesh is now on the watch-list. International buyers and consumers would like to see effective steps in place to help avert a new tragedy. Because of a few grossly non-compliant operators, the whole sector is getting a bad name, and as such, running the risk of losing markets. Under such circumstances, restoring the image of the country’s RMG sector is now an urgent national task. The government, apparel owners, workers’ representatives, and all others do need to urgently put in their joint efforts to facilitate the sustained development of the industry. Although, the Rana Plaza and Tazreen disasters were the most unfortunate things to happen in the history of our industry, these two incidents were significant wake-up calls for us — a call for a turn-around and rebuilding the industry, a call for ensuring the safety of our workers, and of ourselves. There has been a paradigm shift in the mindset of entrepreneurs. Tremendous progress has been achieved in safety inspection, awareness, and other occupational safety and health issues. So, what is our ultimate responsibility to make our garments industry secure? I think the time has come to rethink things, and there is no alternative but to ensure environmental and workers’ safety in the apparel industry for long-term sustainability. By ensuring safety through combined initiatives from both ends — garments entrepreneurs and the government — educating our mid and top level management, and creating home-grown talents through skill-based hands-on experience, we can avoid such unexpected incidents. Market diversification and duty-free market access by itself does not ensure sustainability of the sector, because many global buyers have said that they are not inclined to import clothes stitched by the blood of innocent workers.

Source: https://www.dhakatribune.com/op-ed/2015/apr/21/rana-plaza-still-our-shame

A total US$ 30 million, after the deduction of amounts received from Prime Minister Welfare fund, is required for full payment of compensation to the Rana Plaza injured workers and the family members of deceased and missing workers, said the International Labour Organisation (ILO) yesterday. That includes claims of New Wave Bottom workers paid separately by Primark, as well as long term medical care and allied costs for injured workers. The estimated amount also includes an estimation of potential supplementary payments, reports UNB. So far, the amounts either received in the Trust Fund or spent otherwise for the benefit of Rana Plaza workers and expected to be recognized as contribution to the Trust Fund total approximately $ 24 million, it said. The remaining 30 per cent of awards will be paid to the claimants as soon as funds become available at the Trust Fund. On April 8, the Rana Plaza Claims Administration has made available approximately Tk 31 crore to eligible claimants. Payments were made to injured workers, dependants of the deceased and missing workers of Rana Plaza building collapse. Tk 31 crore, which is approximately 30 per cent of total awards, was paid out through Dutch Bangla Bank accounts to 2,968 eligible claimants, including 2,277 dependants from deceased workers, 282 dependants of missing workers and 409 injured workers. The above payment is in addition to 40 per cent payment of all awards after deduction amounting to approximately BDT 29.40 crore which was paid through Dutch Bangla Bank accounts to 2,770 eligible dependants of deceased and missing workers and to injured person in five separate installments from September to December 2014. In addition, approximately Tk 15.50 crore was paid through bKash as initial payment to injured workers, dependants of the deceased and missing workers as well as non-injured workers on 23 April 2014. These payments are authorised by the multi-stakeholder Rana Plaza Coordination Committee, and paid out of the Trust Fund set up for the purpose of providing compensation to the Rana Plaza injured and the families of the deceased and missing workers. With these payments, in total approximately Tk 76 crore, equivalent to $ 9.85 million has so far been paid to the Rana Plaza injured workers, dependants of the deceased and missingworkers. This amounts to 70 per cent of the total awards approved by the Commi-ssioners, after deduction of amounts paid to the injured and families of the deceased and missing workers from Prime Minister Welfare Fund and initial payment of Tk 50,000 from the Trust Fund. The total amount for all issued awards is approximately Tk 126 crore equivalent to $ 16.4 million. As part of the entitlement under the ILO Convention 121, the Coordination Committee is about to finalise an arrangement for long-term medical care and allied costs for the injured workers. A total of 2871 claims have been received from the Rana Plaza injured workers and dependants of deceased and missing workers. Out of these, 2839 claims have been reviewed by RPCA, approved by the Commissioners, and authorised for payments. The remaining 32 claims plus approximately 20-30 additional deceased claims that may yet be filed will be included in the final instalment.
Source: https://www.theindependentbd.com/index.php?option=com_content&view=article&id=255456:70pc-of-payments-cleared&catid=108:business-finance&Itemid=152

A one-stop centre of excellence meant for upgrading both labour and product standards of the country’s apparel industry gets off to a formal start today (Tuesday). Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set up the Centre of Excellence for Bangladesh Apparel Industries (CEBAI). Industry leaders said it is conceived as a one-stop service centre where all skill solutions through skills- and needs-based training will be provided for the stakeholders. “The CEBAI will ensure professional research-based development that has become a prerequisite for planned growth and sustenance. In other way, it would develop a robust network base for the industry,” BGMEA president Md Atiqul Islam told the FE about their initiative for further enhancing the quality of the industry’s world-standard apparel products. He said Commerce Minister Tofail Ahmed would formally launce the centre today (Tuesday) at a city hotel. The chief of the apex chamber of the main export sector said the Centre of Excellence will facilitate enhanced employer engagement in training, which increases the training capacities of TTCs, TSCs, NGOs and enterprises. He said, “The CEBAI will help meet the need for skilled workforce in the garment sector by way of offering training focused on skills in areas where demand is strongest in the industry.” Mr Islam hopes training workers to standards recognized internationally will help employees of RMG sector to earn higher wages. Prime Minister Sheikh Hasina inaugurated the CEBAI during a ceremony held at the Dhaka apparel summit at Bangabandhu International Conference Centre (BICC) in the city last December.

Source: https://thefinancialexpress-bd.com/2015/04/21/89633/print

Nearly 50 claims made by the Rana Plaza victims are yet to be resolved, although two years have already elapsed since the tragic incident, according to the data released on Monday. Rana Plaza Claims Administration (RPCA) said 2,839 out of total 2,871 claims received from injured workers, dependants of the deceased and missing workers have so far been reviewed. The remaining 32 claims and plus approximately 20-30 additional deceased claims are yet to be filed. A press release issued on Monday said the remaining claims will be included in the final instalment. It said the Rana Plaza Coordination Committee (RPCC) till April 8 made payment of Tk 760 million against these claims to the injured workers and family members of the deceased and missing workers. The RPCC was formed comprising members of government, non-governmental organisations, brands, retailers and BGMEA and trade unions with International Labour Organisation (ILO) as neutral to ensure payments to the victims, their families and dependents for losses and needs arising from the accident. Payments are funded by various sources and notably through the Rana Plaza Donors Trust Fund. RPCC said the claim process was established based on ILO standards on employment injury and RPCA calculated the compensation to the beneficiaries on the basis of ILO Convention 121. It also said the amounts awarded to each claimant are different, as they are based on the last salaries of the deceased and missing or injured workers, upgraded retroactively in accordance with the latest wages for the RMG sector issued by the government of Bangladesh in December 2013, the number and age of the dependants in case of deceased and missing workers, and the disability level percentage in case of injured workers.

Source: https://thefinancialexpress-bd.com/2015/04/21/89676

A growing demand for denim worldwide and its rising production cost in China have created a new opportunity for Bangladesh, mainly due to its cheap labour. A large number of brands and retailers including G-Star, Dior, H&M, Tommy Hilfiger, Inditex and Levis have already established their production bases here in Bangladesh while a few more are now planning to explore the potential of the country. Score is one of the companies that want to expand its production in Bangladesh along with its major manufacturing units in China, Turkey and India. “We are now planning to explore Bangladesh which is becoming important all over the world,” Jan Peters, owner and managing director of Score told the FE last week. “The world is always looking at prices and China is becoming more expensive,” he said adding “Bangladesh offers good price and also taxes are low to buy merchandise from the country.” Denim– a sturdy cotton warp-faced twill textile – is used to make clothes for all seasons both for men and women with changes in style and fashion. With the annual turnover of about 800 million euro, the company sells its products mainly in Europe. Regarding labour conditions, he said the situation in Bangladesh is getting better though the world has asked for improving it further. “Bangladesh-the labour-intensive country–is rapidly developing and becoming important for the world mainly due to increasing cost in China,” Han JA Bekke, chairman of the Board of MODINT said. MODINT is a well-known trade association of manufacturers, importers, agents and wholesalers of clothing, fashion accessories, carpet and (interior) textiles with approximate 600 business members including the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). The businesses have a combined annual turnover of €9 billion in the Netherlands, of which 50 per cent is exported. The association works with its members. The MODINT chairman believed that lots of things are going on in Bangladesh after the Rana Plaza building collapse but more are needed to be done. “We are also working with trade bodies in Bangladesh as to how to improve further,” he said adding, “There are too many initiatives including those of Accord, Alliance and the government which should be combined for successful results.” The FE correspondent talked with the business leaders besides attending the week-long ‘Denim Days’ fair in Amsterdam. The European denim market is worth about 14 billion euro and the Dutch denim industry has its focus in Amsterdam following the headquarters of some well-known Dutch brands as G-Star, Scotch and Soda, as well as offices of some international brands such as Tommy Hilfiger, Pepe Jeans, Levi’s Vintage Clothes and new ones like Denham the Jeanmaker, Kings of Indigo and Glue Jeans. Within the Amsterdam metropolitan area, over 30,000 people in more than 10,000 companies are employed in the fashion industry including major brands such as Calvin Klein, Nike and Karl Lagerfed. The Denim Days Fair took place from April 13 to April 18. During the second edition of the event, more than 40 participants from different countries including China, Thailand, Pakistan, Japan, Italy, Turkey, Spain, the Netherlands, and Hong Kong gathered there to display their latest products. A day-long seminar on ”Kingpins 2029: the Transformers, Jeans Vs Water” was held with the presentation of latest technology for sustainable textile, clothing, packaging, energy and water efficient dying machines, laundry techniques and development of education, innovation, enterprise and networking projects

Tomoko Nishimoto, ILO Assistant Director General and Regional Director for the Asia-Pacific arrived in Dhaka on Sunday, ahead of the second anniversary of the Rana Plaza disaster.She will meet with Expatriates’ Welfare and Overseas Employment Minister Eng Khandker Mosharraf Hossain and State Minister for Labour M Mujibul Haque Chunnu.In addition, meetings will be held with representatives of employers’ and workers’ organizations as well as development partners.On Wednesday, Nishimoto will participate in the opening session of a national tripartite consultation on social dialogue and industrial relations in Bangladesh.Later that day she will also take part in the inauguration of the Centre of Excellence for the Bangladesh RMG sector.On Thursday, Nishimoto will speak at a high-level commemoration event “Rana Plaza two years on: Towards a safer RMG sector for Bangladesh” organized by the Government of Bangladesh and ILO with support from Canada, the Netherlands and United Kingdom.During her visit Nishimoto will also visit an RMG factory to meet disabled employees who have received skills training.

Source: https://www.observerbd.com/2015/04/20/84591.php

The reproductive health and rights of RMG workers remain uncared for and are yet to be addressed properly in order to boost their productivity, speakers said at a seminar yesterday. They said social barrier, inadequate treatment facility and service-providing agency, plus uncongenial working environment tell upon the reproductive health of the garment workers, particularly women, The speakers observed that apart from those issues, the unwillingness of women garment workers to go for health care services is also largely responsible for them to lag behind. The observation came at a seminar organised by SNV Netherlands Development Organisation at BGMEA conference room yesterday. The speakers said SNV Bangladesh is working on women project in order to provide strategies for the garment factories to address the women health issues. Several NGOs, private sector, service providers, buyers, RMG factory owners and management were present at the seminar. SNV Netherlands, a development organisation with financial aid from the Netherlands government, is trying to improve Bangladesh’s RMG workers’ reproductive health services. “Betterment of lives of low-income population is what we all want. But there is a huge gap in our communication and therefore, we haven’t been able to make a big enough impact,” said Paul Stevens, country director, SNV Bangladesh. Working with Women Project not only seeks sustainability but also offers a platform for sharing the experience gained in order to provide better solution, he added. “The objective of today’s seminar is to keep all stakeholders informed of the SRHR scenario in factories as well as to provide updates on what project is functioning for the betterment of current condition,” said Fartheeba Rahat Khan, team leader, Working with Women Project. The project can help improve the lives of garment workers and thus it will help them increase productivity, said BGMEA Vice- President Reaz-Bin-Mahmood. BGMEA looks forward to the success of the project, hopes Reaz.

Source: https://www.dhakatribune.com/business/2015/apr/20/call-address-rmg-workers-reproductive-health#sthash.H2EvplQW.dpuf

Chinese investors are keen to establish an industrial park in Bangladesh which involves a huge investment, said Commerce Minister Tofail Ahmed on Sunday. The government will help them in this regard to the hilt, enhancing trade between two countries, he told reporters after a meeting with the Chinese Ambassador Li Jun at the former’s office. Currently, most Bangladesh products enjoy quota-free access to China. A new deal is on the cards, under which all items will get duty-free access to the country, he said. Tofail said, “As Chinese investors are pulling out of readymade garments (RMG) sector in their country, they will extend all-out support to Bangladesh in this sector.” “They are already providing assistance in establishing a garments industrial park at Baushiya in Munshiganj, which will house at least 250 garment factories.” “Employment for 2.5 lakh workers will also be created, taking the country’s garments export to 3 billion US Dollar”, he added. The minister said Bangladesh has exported goods worth 746.20 billion dollar against its import of goods worth 7,544.80 US dollar in 2013-14 fiscal year. Bilateral trade balance is now in favour of China, which is now 6,798.60 US dollar. It is expected to come down once Chinese investment increases in Bangladesh, he said. Terming China a close friend and large development partner, Tofail said the country has been providing assistance in larger development projects of Bangladesh. “It has been assisting in the projects like establishing permanent trade fair campus at Purbachal, garments industrial park at Baushiya, container terminal, Shahjalal fertilizer factory and deep sea port.” “To mark the 40th anniversary of diplomatic ties with China, a high-level Chinese leader will come to Bangladesh to attend the opening ceremony of building Karnaphuly tunnel in Chittagong”, Tofail added. Senior secretary of the commerce ministry Hedayetullah Al-Mamun and other senior officials of the ministry were present on the occasion.

Source: https://www.daily-sun.com/print/metropolis/2015/04/20/499037#sthash.Adrz7XeP.dpuf

The finance ministry is unlikely to entertain a demand for Tk 10 crore by the Federation of Bangladesh Chambers of Commerce and Industry for an under-construction multi-storey building of the organisation in the Dhaka city. A senior finance ministry official said it was not known whether the ministry could entertain the demand made by the FBCCI in the revised budget. There is no allocation for the purpose in the current budget, he said. The FBCCI, the country’s apex chamber body, demanded the fund in an appeal to the commerce ministry for the under-construction building in the city’s Hatkhola area, close to the commercial district Motijheel. Officials said the commerce ministry had lobbied for the FBCCI as the ministry requested the finance ministry to arrange the fund from the block allocation. The commerce ministry forwarded the appeal to the finance ministry last week. Finance ministry officials said the FBCCI was given Tk 10 crore in the last fiscal year for the same purpose. Some of the finance ministry officials raised questions when the FBCCI was allotted with the fund in the last fiscal year. The FBCCI, however, obtained the fund because of the blessings of the present political regime, they said. They said the FBCCI’s fresh demand was not logical as the budgetary allocation should not be given repeatedly to a body which is rich itself. In 2012, the FBCCI demanded Tk 40 crore from the public coffer to construct the multi-storey building in the capital. AK Azad, who was the FBCCI president then, refused to explain why they sought fund from the government when they could easily take loan from banks for the purpose. Finance ministry officials said the Bangladesh Garment Manufacturers and Exporters Association illegally constructed a building with the blessings of successive governments on a water body in the city. Later, the organisation led by the then president Annisul Huq sold out most parts of the BGMEA building to commercial clients, they said. FBCCI leaders said they had no intention to sell any part of the proposed building to be built on some 10 kathas of land. They said the existing FBCCI office at Motijheel could not solve the accommodation problem the organisation has long been facing. The FBCCI laid the foundation stone of the proposed building on May 6, 2012 with finance minister AMA Muhith attending the function. FBCCI officials assessed that the construction cost of the building would be Tk 20 crore-Tk 25 crore.

Source: https://newagebd.net/112989/finance-ministry-unlikely-to-entertain-fbcci-plea-for-fund/#sthash.dE7B0E7l.dpuf