Primark said total payments now stand at $14m

Primark said total payments now stand at $14m

Value fashion giant Primark said it has completed paying more than 95% of long-term compensation payments to the 668 victims of its Rana Plaza supplier New Wave Bottoms.

The supplier occupied the second floor of the eight storey Rana Plaza building, which collapsed in Bangladesh on 24 April 2013.

Primark said total payments now stand at $14m, of which long-term payments amount to $11m and have been made in full, in cash, directly by Primark. Payments have been delivered to victims through BRAC Bank and bKash.

Payments began 12 months ago and there are still a small number of claimants yet to receive compensation because either the individuals require a high level of support and/or the victims and/or their dependants have only very recently come forward, the retailer said.

The balance of $3m comprises aid to workers in its competitors’ supply chain. Around $2m has already been paid to these workers, or their families, in aid and cash, and a payment of $1m has been made to the Rana Plaza Donors Trust Fund, chaired by the ILO

"This process has taken time to complete because the company was determined that its approach to compensation should be as fair, rigorous and sustainable as possible," a Primark spokesperson said. "Some 95% of payments have been made. The company is supporting victims, or their dependants, in the handful of cases where final payments remain outstanding. The company would like to thank its partners for their assistance and support."

Primark said payments have been made according to the impact of the injury and the level of disability resulting from the collapse, and in the case of the dependants of the deceased and missing workers, according to actuarial estimates of lost earnings.

The news comes as the two year anniversary of the disaster approaches. Three organisations negotiating victims' compensation have joined forces to launch a 'countdown campaign', calling for the US$8.5m gap in funding to be filled.