German retailer KiK has agreed to pay over US$ 5 million in compensation to the families of 259 workers burnt alive in the tragic incident of the Baldia Factory fire.
According to a statement issued by the International Labour Organization (ILO), KiK has voluntarily agreed to pay an additional US$5.15 million to fund the gap, which will top up the statutory benefits due from the Sindh Province Employees’ Social Security Institution to meet the requirements of Convention 121.
The tragic fire at the Ali Enterprises garment factory in Baldia on 11 September 2012 took the lives of more than 255 workers and left 57 workers injured, in the worst industrial disaster in the country.
It added: “An agreement over US$5 million has been reached to provide compensation for loss of income, medical and allied care, as well as rehabilitation, to the victims of one of the worst industrial accidents in Pakistan. It results from the ILO facilitation and coordination of consultations during a recent mission to Pakistan from 25 July to 5 August”.
On requests of the German Federal Ministry of Economic Cooperation and Development and Ministry of Overseas Pakistanis and Human Resource Development, the International Labour Organization (ILO) has been enabling talks with the German retailer KiK, IndustriALL Global Union and the Clean Clothes Campaign since May 2016 to arrive at the compensation arrangement, by the ILO’s Employment Injury Benefits Convention 121.
KiK, Ali Enterprises’ main customer, had already paid US$1 million in emergency compensation in December 2012. The company will start paying the compensation early next year.
Gerd Müller, German Federal Minister for Economic Cooperation and Development, said: “What had not been possible in four years of controversy between the parties has now been achieved through our mediation work and will provide tangible assistance to the victims and bereaved family members.
Commenting on the agreement, Deputy Director General of the ILO Gilbert Houngbo said: “It is satisfying that the ILO facilitated resolution to the long-standing discussions on compensation for workers around the fire of Ali Enterprises is now completed.
Lamenting on the state of industrial and labour laws in Pakistan, stakeholders called for more robust social insurance schemes and a pressing need to improve garment factory safety and inspection procedures and compliance with social security laws to prevent another such tragedy. (PhotoNews / The News)
