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3 Retailers Give Aid to Bangladesh Workers 3 Retailers Give Aid to Bangladesh Workers
(14 days later)
Walmart, Gap and Children’s Place this week became the first three United States companies to contribute toward a $40 million fund for victims of the Rana Plaza factory collapse in Bangladesh last April, in which more than 1,100 workers died.Walmart, Gap and Children’s Place this week became the first three United States companies to contribute toward a $40 million fund for victims of the Rana Plaza factory collapse in Bangladesh last April, in which more than 1,100 workers died.
Those retailers made their donations indirectly through BRAC, a Bangladeshi humanitarian relief group, which announced that it had contributed $2.2 million to the Rana Plaza victims’ fund thanks to contributions it had received from those companies and their affiliates. Those retailers made their donations indirectly through BRAC USA, the North American affiliate of the Bangladeshi development organization BRAC, which announced that it had contributed $2.2 million to the Rana Plaza victims’ fund thanks to contributions it had received from those companies and their affiliates.
Sixteen companies have contributed to the victims’ fund, known as the Rana Plaza Donors Trust Fund, which aims to pay lost wages, medical bills and other compensation to the disaster’s approximately 4,000 victims, including the injured, the families of the dead and unemployed survivors. Other contributors to the fund include El Corte Inglés, Inditex, Loblaw, Mango and Primark.Sixteen companies have contributed to the victims’ fund, known as the Rana Plaza Donors Trust Fund, which aims to pay lost wages, medical bills and other compensation to the disaster’s approximately 4,000 victims, including the injured, the families of the dead and unemployed survivors. Other contributors to the fund include El Corte Inglés, Inditex, Loblaw, Mango and Primark.
Walmart said that it, along with the Walmart Foundation and Asda, a British supermarket subsidiary, had contributed $3 million to BRAC, one-third of which went to the Rana Plaza victims’ fund. The Gap Foundation and Children’s Place each gave $500,000 to BRAC. Walmart said that it, along with the Walmart Foundation and Asda, a British supermarket subsidiary, had contributed $3 million to BRAC USA, one-third of which went to the Rana Plaza victims’ fund. The Gap Foundation and Children’s Place each gave $500,000 to BRAC USA.
Jan Saumweber, Walmart’s vice president for responsible sourcing, said in a statement that, “While we did not have production at Rana Plaza at the time of the building collapse, our contribution” to the victims’ fund “underlines our longstanding commitment to raise standards in our supply chain in Bangladesh.”Jan Saumweber, Walmart’s vice president for responsible sourcing, said in a statement that, “While we did not have production at Rana Plaza at the time of the building collapse, our contribution” to the victims’ fund “underlines our longstanding commitment to raise standards in our supply chain in Bangladesh.”
Irene Zeldenrust, the international coordinator of the Clean Clothes Campaign, a European anti-sweatshop group that pushed hard to create the victims’ fund, estimated that the fund had commitments for $14 million of the $40 million sought. The International Labor Organization is overseeing the fund.Irene Zeldenrust, the international coordinator of the Clean Clothes Campaign, a European anti-sweatshop group that pushed hard to create the victims’ fund, estimated that the fund had commitments for $14 million of the $40 million sought. The International Labor Organization is overseeing the fund.
“This is the first time Walmart has contributed to any compensation fund for loss of income and medical costs — that is a positive step,” Ms. Zeldenrust said. “But this amount is pitifully low. We’re hoping that they consider this just an initial contribution. It is a token amount considering Walmart is the largest retailer in the world.”“This is the first time Walmart has contributed to any compensation fund for loss of income and medical costs — that is a positive step,” Ms. Zeldenrust said. “But this amount is pitifully low. We’re hoping that they consider this just an initial contribution. It is a token amount considering Walmart is the largest retailer in the world.”
Both Walmart and Children’s Place denied having production in any of the five factories inside Rana Plaza at the time of the collapse. But labor groups had pressured Walmart and Children’s Place to contribute to the fund because they had been linked to production there. Documents recovered after the collapse showed that a Canadian supplier for Walmart had used Ether Tex, a factory on the fifth floor, to make jeans for Walmart a year before the collapse. And customs documents showed that in the eight months before the collapse, the New Wave factory inside Rana Plaza had produced more than 120,000 pounds of clothing for Children’s Place.Both Walmart and Children’s Place denied having production in any of the five factories inside Rana Plaza at the time of the collapse. But labor groups had pressured Walmart and Children’s Place to contribute to the fund because they had been linked to production there. Documents recovered after the collapse showed that a Canadian supplier for Walmart had used Ether Tex, a factory on the fifth floor, to make jeans for Walmart a year before the collapse. And customs documents showed that in the eight months before the collapse, the New Wave factory inside Rana Plaza had produced more than 120,000 pounds of clothing for Children’s Place.
Gap was never linked to production at Rana Plaza. Bill Chandler, a Gap spokesman, said: “Rana Plaza underscores the need for government, factory owners, development organizations, labor groups and retailers to take action to improve the lives of garment workers. This week’s donation by the Gap Foundation was just one action of many to see lasting change occur in Bangladesh.”Gap was never linked to production at Rana Plaza. Bill Chandler, a Gap spokesman, said: “Rana Plaza underscores the need for government, factory owners, development organizations, labor groups and retailers to take action to improve the lives of garment workers. This week’s donation by the Gap Foundation was just one action of many to see lasting change occur in Bangladesh.”
Children’s Place issued a statement saying that its “donation to aid the victims of the Rana Plaza tragedy is incremental to the company’s ongoing work and contributions to realize a safer workplace for Bangladesh garment industry workers.”Children’s Place issued a statement saying that its “donation to aid the victims of the Rana Plaza tragedy is incremental to the company’s ongoing work and contributions to realize a safer workplace for Bangladesh garment industry workers.”
Ms. Zeldenrust said her group would campaign in France, Italy and Germany this week to press Benetton, Carrefour and other retailers to contribute to the fund. Primark, an Anglo-Irish, retailer has pledged more than $7 million to help Rana Plaza victims.Ms. Zeldenrust said her group would campaign in France, Italy and Germany this week to press Benetton, Carrefour and other retailers to contribute to the fund. Primark, an Anglo-Irish, retailer has pledged more than $7 million to help Rana Plaza victims.