KIK signs compensation agreement for victims of Ali Enterprises fire tragedy

published 09-01-2013 23:00, last modified 23-07-2013 10:30
AMSTERDAM - German discount giant KIK this 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 agreement was presented a press conference in Karachi on 5 January in which various local trade unions, including the National Trade Union Federation, participated. 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.”

The initial payment will be used to compensate the families of those victims who have not received any government compensation as the bodies have not been identified due to the severity of the burns and the decomposition of the bodies. “KIK also expressed a willingness to compensate workers who faced severe injuries in the fire leading to disability and loss of future employment. The remaining workers will be assisted in the next step after a compensation amount is agreed upon through a consensus between all stakeholders including employers and other international companies,” added Karamat Ali.

Ineke Zeldenrust, International Coordinator at CCC: 'We welcome this agreement and look forward to having the full compensations and relief package, which we estimate will be at least EUR 20 million, 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.”

In order to facilitate the compensation process, PILER requests the Sindh High Court to constitute an independent commission to oversee the compensation process and determine all necessary details for the purpose. KIK also agreed to work for better labour rights in Pakistan.

See also
Four years since Aswad fire compensation by brands can no longer wait Four years since Aswad fire compensation by brands can no longer wait

Today four years ago, a fire broke out in the Aswad Composite Mills textile mill in Bangladesh, ...

Textile mill fire in Bangladesh signals need for expanded safety inspections and remedy Textile mill fire in Bangladesh signals need for expanded safety inspections and remedy

A devastating fire in a Bangladesh textile mill at the beginning of this month reaffirms the need ...

Landmark compensation arrangement reached on 4th anniversary of deadly Pakistan factory fire

After four years of campaigning and months of negotiations, an agreement has been reached to pay ...

Compensation arrangement agreed for victims of the Ali Enterprise factory fire in Pakistan Compensation arrangement agreed for victims of the Ali Enterprise factory fire in Pakistan

An agreement in excess of US$5 million has been reached to provide compensation for loss of income, ...

Payment on claims from survivors and families affected by Tazreen factory fire completed

Clean Clothes Campaign and the International Labor Rights Forum are delighted to report that a ...

Initial statement regarding fire at Matrix Sweaters Factory

The Clean Clothes Campaign, the International Labor Rights Forum, the Maquila Solidarity Network, ...

Who pays for our clothing from Lidl and KiK?

A study from July 2008 into the impact of buying practices of the discounters Lidl and KiK in ...

Hazardous workplaces: Making the Bangladesh Garment industry safe

The safety record of the Bangladesh garment industry is one of the worst in the world. This ...

Fatal Fashion - Analysis of Recent Factory Fires in Pakistan and Bangladesh

The Clean Clothes Campaign (CCC) and the Centre for Research on Multinational Corporations (SOMO) ...

Three years after Tazreen factory fire CCC stands with affected workers Three years after Tazreen factory fire CCC stands with affected workers

The Clean Clothes Campaign is today marking the third anniversary of a devastating fire at the ...

more ...