WALMART AND SEARS REFUSE TO COMPENSATE BANGLADESH FIRE VICTIMS

 photo: D. Acken

In a late development in the voluntary settlement case that would see hundreds of fire victims or their families compensated for the fire in a Bangladeshi garment factory, Walmart and Sears co.s have both refused to offer voluntary compensation for their part of the responsibility in the fire.  

The American companies have also refused to attend a meeting in Geneva to discuss the compensation from all the companies that had their garments made in the factory that went down in a terrible blaze last year. 

The terrible tragedy emphasized the needs for large companies like Walmart and Sears to oversee the production abroad of product they sell, and ensure that these foreign places of manufacturing are not just a cheap place of production, so that the people working in them are treated humanely and safely, which is not the case in most instances. 

Both companies have declined any responsibility by saying that Tazreen factory was contracted by their suppliers without their knowledge or authorization, and therefore are removed from having to financially remunerate the victims' families.

But the meeting is important because it should send  the message to retailers around the world that it is not tolerable that they do not know or fake ignorance of the sources of their products. If the meeting fails, it wills send a message that large corporations don't care about how these people who make their clothes live or die. 

Statistics have shown that more than 700 people have died in Bangladesh in the last 8 years alone in similar unsafe, crammed textile houses.

In response to the criticism, Wal Mart has donated 1.6 million to fund an n.g.o. called the Institute of Sustainable Communities, to establish an entity that would oversee environmental and health concerns.

Most factories however, are in such disrepair that the 1.6 million would not even come close to improving these outfits and guarantee the safety of its workers.  

Li & Fung, an exporter based in China, who acted as a supplier for Walmart and other companies has agreed to pay 1,280$ to each injured workers involved in the tragedy.  European Retailer C&A, another suppliers has agreed to pay 1,200 per family of the victim.  C & A will also provide 50$ monthly payments for each of the children of the dead.  Italian retailer Piazza Italia has agreed to comply with any compensation plan is agreed upon at the meeting."

Source: Bloomberg  4.15.13