Loblaw to compensate victims of Bangladesh collapse

SLM

The Velvet Hammer
Mar 5, 2011
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Loblaw to compensate victims of Bangladesh collapse

Loblaw has said that it will provide compensation for the families of victims who worked at the Bangladeshi garment factory that collapsed last Wednesday leaving more than 380 people dead and hundreds missing.
The company, whose Joe Fresh clothing line was produced in the factory, said that it aims to ensure that victims and their families "receive benefits now and in the future."
Spokeswoman Julija Hunter said the company is still working out the details, but plans to deliver support "in the best and most meaningful way possible."
The death toll from the disaster has risen to at least 382 — and is expected to continue rising as crews dig deeper under the rubble.
Loblaw was one of several Canadian retailers that met today with the Retail Council of Canada to talk about working conditions in Third-World sweatshops.
Organizers of the emergency meeting said it would be private and closed to the media. They said they plan to make comments tomorrow morning.
Loblaw and Sears Canada had confirmed that they would be taking part in the meeting. Wal-Mart Canada and Reitman, both members of the Retail Council of Canada, are also believed to be in attendance.
Loblaw is the only Canadian company that has publicly admitted to carrying items made in the collapsed factory, which a garment manufacturers' group say employed 3,122 workers.
About 2,500 survivors have been accounted for.
The company had earlier expressed condolences to those affected by the tragedy, and said it was working with other clothing retailers to provide aid and resources to the neighbourhood of Savar, where the collapse took place.
Senior Loblaw representatives were also headed to the area to meet with local officials to discuss what may have caused the collapse, the company said Friday.
"We are committed to finding an approach that ensures safe working conditions, drives lasting change in the industry and help prevents other tragedies," the company said in a press release.
Other companies whose apparel was made at the factory are also taking action in the wake of the collapse. On Monday, major U.K. retailer Primark also announced that it would offer compensation and emergency food aid to victims.
Queen's University marketing professor Tandy Thomas says retailers like Loblaw and Primark must take the lead in making sure that working conditions in developing regions are up to a certain standard.
"These are the companies that really have the power to say 'you're not gonna get our business unless you do things correctly,'" Thomas said. "And the evidence has shown that that kind of pressure tends to bring about a faster response than waiting for local governments to institute change."
The deadly collapse has renewed concerns about the conditions of workers who make clothing for some of the biggest brands in the world.
At the Eaton Centre shopping mall in downtown Toronto, some shoppers said they were now more conscious of the products they buy.
How can you tell if your shirt was made in a sweatshop?
One man said that he discussed the Bangladesh collapse with his wife and daughter over the weekend, and they talked about what they could do as consumers when it comes to third-world labour conditions.
"There are a lot of questions around how did this happen, what part did we play, what part did the manufacturers play — or the retailers? Do we want them to do extra due diligence?" he said. "And we came to the conclusion that, yeah, we kinda do."
A female shopper said that she began making more ethical choices as a consumer three years ago, when her friend described witnessing labour conditions in Thailand.
Garment workers in the shattered building in Bangladesh are said to have been paid only $38 a month.
"At first it was [difficult], but I think it helps when you know someone or see first-hand or hear first-hand experiences. Then it just sheds a different light on it," she said. "When I see something made in Bangladesh or made in India, I put it down or I think twice."
Another male shopper, who is originally from Bangladesh, blamed last week's collapse on the building owner, who is now in police custody and could face up to seven years in prison. But he added that retailers also have a responsibility to work only with manufacturers that ensure good working conditions.
"Visit the factory. If everything's proper, then go for the order. Not before that," he said.


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That's to good to read, hope they follow through as thoroughly as they are able.
 

Mowich

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Dec 25, 2005
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Let us hope that these victims compensation is just and fair because the compensation for the Bhopal disaster was anything but.
 

SLM

The Velvet Hammer
Mar 5, 2011
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I'm encouraged to hear that they are taking the reports of these working conditions seriously and are looking for a way to press for better ones.
 

Sal

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Sep 29, 2007
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I'm encouraged to hear that they are taking the reports of these working conditions seriously and are looking for a way to press for better ones.
agreed, hopefully they will lead the way
 

tay

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May 20, 2012
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The 'media', all the 'Candian media' has been all over 'Joe Fresh' owned by the 'Weston' empire. An empire originated and supported by Canadians for over 100 years.

I have never been in a Joe Fresh but apparently they sell cheap clothes from Bangladesh.


What I noticed in all the media reports is that there was scant mention of WalMart (canada) or Target (canada) amongst others I'm sure, who buy from the lowest wage country going as well.


Possibly it's because Joe Fresh is a 100% Canadian enterprise it got 99% of the attention but at least their people are saying the right things.....


Canadian apparel manufacturers continue to lose market share to offshore suppliers. Their share dropped to 32.6 per cent in 2005, a decline of 12.1 per cent from the previous year. Also, the domestic shipments share of the market in 2005 showed a 27.5 per cent decline from five years ago and a 44.9 per cent decline from 10 years ago.

http://www.thestar.com/...


“We were the first group ever to do monitoring in El Salvador, back in the 1980s, when Gap was producing in a horrible factory there,” says Kernaghan, now director of the Institute for Global Labour and Human Rights, an advocacy group.

http://www.thestar.com/...


Here in Canada, Galen Weston, executive chairman of Loblaw Companies Ltd., announced Thursday that his company will send Canadian employees to monitor factories in Bangladesh where Joe Fresh clothing is made. In addition, a team of senior company officials, including supply chain experts, will travel there next week to discuss safety with Bangladeshi officials and unions.
Loblaw has also set up a fund for victims and their families.

Weston said a new standard has been established at Loblaw in the wake of the tragedy — all products under their brand control must be made in facilities that respect local construction and building codes.

Joe Fresh clothing is made at 47 factories in Bangladesh.

http://www.thestar.com/...



Building owner, factory owner and engineer accused, as death toll in disaster reaches 622


Bangladesh factory victim's widow files murder complaint | World news | guardian.co.uk
 

tay

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May 20, 2012
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The search for bodies in Bangladesh's collapsed Rana Plaza has ended, leaving the official death toll at 1,127. The question now is whether the country's garment industry will see real change; there are promising signs, but will the promise be fulfilled as the disaster recedes from the headlines?


The government of Bangladesh is convening a minimum wage board to issue recommendations on raising the minimum wage in the garment industry; it's currently at $38 a month, having been raised by 80 percent in 2010 after worker protests. Despite that big raise, it remains low by global standards. So, will the wage board—which will include factory owners, workers, and the government—raise wages by a meaningful amount, or will the momentum for change slow in the three months before its recommendations are slated to come out?

Additionally, the government is announcing that workers will now be allowed to form unions without first getting permission from the factory owners they work for. That's a good step, but there's a distance between saying workers no longer need permission and creating conditions that realistically make it possible for them to unionize:

British retailers Primark and Tesco and Dutch company C&A have signed onto the safety agreement. Now how about some American companies?


Each of these changes is promising but not in itself sufficient. Workers need not just the possibility of an increased minimum wage but the reality, even after international attention fades. They need not just the legal right to form unions without permission, but to be protected from beatings and firing and the government itself. And it's fantastic that the number of companies signing the safety and fire agreement has doubled, but it needs to double again, and more.


http://www.nytimes.com/2013/05/14/business/global/hm-agrees-to-bangladesh-safety-plan.html



Walmart, the third largest public corporation in the world, and 13 other North American retailers have refused to sign an agreement with other European retail chains that will improve safety and working conditions for factory workers overseas.

The agreement, requires retailers pay $500,000 per year towards safety improvements over a five year period. "The Walmart heirs have that much lost in their sofa cushions each year,". Other North American retailers who have refused to sign include: The Foot Locker, Macy's, Sears, JcPenny's, North Place, The Gap, Kohl's, Nordstrom, Carters/Osh Kosh, North Place, Cato, The Children's Place, American Eagle and Target.


This is not the first time Walmart has refused to improve the well being of workers in factories. In 2011, Walmart rejected a proposal made by a group of Bangladeshi and international unions proposing safer garment factories.


At that time, Walmart’s representative said it was “not financially feasible" ...to make such investments.” (Not financially feasible?)


November 24, 2012 a fire in a Bangladesh clothing factory resulted in the death of 112 workers. There were no fire escapes or exists in the eight-story building, and many victims jumped to their deaths. After the fire, Walmart said it could not confirm that it had ever sourced apparel from the factory. Photos taken by Bangladeshi labor activists showed Walmart-branded clothing in the factory.

Wikipedia lists massive amounts of offenses on its Walmart page and in the Employee and Labor Relations paragraph on Walmart’s main Wikepedia page.

Some of the international companies that have signed the safety pac include: Benetton, H&M, Zara, Next, and PVH (Tommy Hilfiger and Calvin Klein). The deadline for signing the pac has passed.



http://en.wikipedia.org/wiki/Criticism_of_Walmart#Employee_and_labor_relations


http://en.wikipedia.org/wiki/Walmart