KIK to compensate victims of Pakistan fire tragedy
Discount giant agrees deal
German company KIK last week signed an agreement with the Pakistan Institute of Labour Education and Research (PILER) to make an initial payment to the victims and their families of US$ 1 million for immediate relief, and to negotiate a long term compensation package with all other involved stakeholders.
The Ali Enterprises fire on 11 September 2012 killed 262 workers according to the official death toll, and injured at least 20 others.
The factory, which was producing jeans for export, was not legally registered with the Pakistan government and had failed to provide the majority of workers with employment contracts. The high death toll resulted from inadequate fire exits, blocked staircases and barred windows, preventing many workers from escaping the blaze.
Said Karamat Ali, Executive Director of PILER: “KIK is the major buyer of Ali Enterprises. Pakistani trade union activists and international labour solidarity organisations including Clean Clothes Campaign persuaded the company to pay compensation to the affected families.”
Ali Enterprises had received an SA8000 certification for decent working conditions from the SAI-accredited Italian auditor RINA only one month prior to the tragedy.
Ineke Zeldenrust, International Coordinator at Clean Clothes Campaign: 'We welcome this agreement and look forward to having the full compensations and relief package, which we estimate will be at least 20 million Euro, to be negotiated soon. We continue our campaign towards other international stakeholders, notably auditing organisations SAI and Rina, to also take their responsibility and pay their share of the compensation needed.”
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