The family of each of the deceased female workers will receive BDT1.049m (US$13,300)

The family of each of the deceased female workers will receive BDT1.049m (US$13,300)

Retailers Inditex and New Look have paid compensation to the families of victims of the Smart Export Garment factory fire, where seven workers lost their lives at the end of January.

The agreement was negotiated by the regional office of the Industriall global trade union federation, the Industriall Bangladesh Council of trade unions (IBC) - with the amount agreed and the payment made less than a month after the blaze.

The family of each of the deceased female workers receives BDT1.049m (US$13,300), with an additional 10% allocated to meet children's educational costs.

The injured workers, as well as those who lost their jobs, will also receive compensation. The workers earned an average monthly wage of BDT4,000 (US$50).

As well as payments from Inditex and New Look, employers' associations Bangladesh Garment Manufactures & Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) will each pay BDT100,000 (US$1,270) to every family.

The Bangladeshi government also says it will announce its compensation package "very soon."

Industriall general secretary Jyrki Raina has also pledged to pursue a similar compensation package with the brands and buyers that sourced from Tazreen Fashion, where another fire killed 112 workers in November.

The compensation was agreed in the same week that a multi-stakeholder group met in Dhaka to discuss the need for urgent progress on workers' rights, minimum wages and fire safety in the Bangadeshi garment industry.