Families of some of the 1,134 Rana Plaza victims hold a candlelit vigil for the dead.

Benetton agrees to pay Rana Plaza compensation

20.02.2015

In reaction to news that Benetton will compensate victims of the 2013 Rana Plaza building collapse in Bangladesh, IndustriALL Global Union and UNI - the two global unions that have been campaigning on behalf of the victims - issued the following response.

 

IndustriALL General Secretary Jyrki Raina said:

"We are pleased that at long last Benetton has promised to pay into the Rana Plaza Trust Fund. Now, it’s time for Benetton to show us the colour of their money. 

“We call on Benetton to do what’s morally right and compensate with compassion. We expect to see a significant contribution to the Rana Plaza Trust Fund by Benetton in keeping with a major brand that sourced from Rana Plaza and has a considerable investment in Bangladesh."

UNI Global Union General Secretary Philip Jennings said:

“We understand that Benetton promises to step up and take their share of the responsibility for the victims of the Rana Plaza tragedy.

“For a company with a profit of more than US200 million dollars and turnover of US1.6 billion dollars, we expect Benetton to show their most generous colours. UNI and IndustriALL are ready to talk to ensure fair compensation.”

Although IndustriALL and UNI are welcoming the move with caution, they highlighted some outstanding issues that urgently need to be resolved with regards to Benetton’s payment.

·         Almost two years since the Rana Plaza tragedy, the global unions questioned Benetton’s decision to delay its payment further and to confirm the amount it intends to pay. The unions call on Benetton to clarify these points well ahead of the second anniversary of the disaster on April 24th 2015.

·         The process on who will decide the amount that Benetton will pay remains unclear. Benetton says an “independent, globally recognised third party” will advise the company but refuses to reveal its identity.

The two global unions also urged caution regarding Benetton keeping its promises of payment and pointed out that Benetton was initially involved in the U.N.-backed Rana Plaza compensation arrangements from the beginning but pulled out before the trust fund was set up.