Pakistan – little change five years after deadly fire

The Ali Enterprises Factory Fire Affectees Association (AEFFAA) and National Trade Union Federation (NTUF) held a gathering on 11 September outside the factory where the fire took place.

Speakers at the event said that justice has not been delivered to the victims, as the factory owners have been relieved of all charges. At the time of the accident there was no emergency exit at the factory and the only gate used was locked after the fire started. The absence of fire alarms contributed to large number of deaths.

While international and local brands and the employer are directly responsible for the accidents in factories, negligence of the government authorities helped them to get away.

AEFFAA representatives said that although German company KiK, who sourced most of the products made at Ali Enterprises, paid US$5.15 million to the International Labor Organization after reaching an agreement with IndustriALL Global Union and Clean Clothes Campaign in 2016, there are issues concerning the compensation payments.

Nasir Mansoor, president of IndustriALL affiliate NTUF said:

“The government has not learnt its lesson from the fire. Precarious work and dangerous working conditions are still the norms. A majority of the factories do not allow workers to form unions, who can contribute to improve workplace safety. Employers force workers to work beyond eight hours shift, do not provide written contracts, nor register them with the social security and pension institutions. This has to change.”

Christina Hajagos-Clausen, IndustriALL textile and garment director said: “Pakistan’s government should take immediate steps to improve safety in garment factories. Workers’ right to form unions must be respected and will help to resolve number of issues faced by workers.”

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

On 11 September 2012, more than 250 workers lost their lives and over 50 were injured in a fire at the Ali Enterprises garment factory in Karachi.  Workers burnt to death trapped behind barred windows and locked doors. Others jumped for their lives from the upper floors, sustaining permanent disabilities.

German retailer KiK, Ali Enterprises’ only known buyer, has now agreed to pay an additional US$5.15 million to fund loss of earnings, medical and allied care, and rehabilitation costs to the injured survivors and dependents of those killed in the disaster.

Previously KiK paid US$1 million to a relief fund after signing a Memorandum of Understanding (MoU) with Pakistani labour organization PILER in December 2012. In the MoU, KiK also committed to funding long-term compensation for victims.

However, it has taken joint campaigning by the National Trade Union Federation (NTUF), PILER, IndustriALL Global Union, to which NTUF is affiliated, Clean Clothes Campaign (CCC) and other allies including UNI Global Union, to secure proper compensation.

The new funding Arrangement follows negotiations facilitated by the International Labour Organization (ILO) between IndustriALL, CCC, and KiK, at the request of the German Federal Ministry of Economic Cooperation and Development.

The Arrangement is intended to supplement payments due to victims by public social security schemes in Pakistan to meet compensation levels required by ILO Employment Injury Benefits Convention 121. Additional periodical payments to victims are expected to begin in early 2017.

Nasir Mansoor, deputy general secretary of the NTUF said: "This historic agreement is unprecedented in the context of Pakistan’s labour movement. After four years of struggle the victims of this tragedy get justice and their pain and suffering are acknowledged internationally. We are thankful to IndustriALL and CCC who represented the workers’ case successfully. The ILO has also played a vital role to make this landmark agreement possible. Let it remind us that safety in the workplace is a right, not a privilege."

Saeeda Khatoon, a widow and vice president of Ali Enterprise Factory Fire Affectees Association, lost her only son in the fire. She said: “It is a day of respite for the victims’ families as their cries have been heard. We know that our nearest and dearest will never come back, but we hope that this kind of tragedy will never ever happen again. The government, brands and factory owners must seriously observe labour and safety standards in factories.”

Karamat Ali, executive director of PILER, said: "While the payments will not bring back lost loved ones, we hope that they will ease these families’ financial hardship. We ask the Pakistan government to declare 11 September as workers’ safety day to raise awareness and improve workplace safety."

Jyrki Raina, general secretary of IndustriALL, said: “At last, we have a compensation agreement to provide some kind of justice to the survivors and families of the deceased. We commend KiK for taking responsibility and ensuring that victims will receive compensation that meets international standards. Now it’s high time to start building a safer garment industry in Pakistan, as we are currently doing with the Accord in Bangladesh.”

Just weeks before the fatal fire, Ali Enterprises received SA 8000 certification from the auditing firm Social Accountability International, meaning it had purportedly met international standards in nine areas, including health and safety. The ensuing tragedy underlines the failure of social auditing models and raises serious concerns about the standard of safety inspections in Pakistan as well as the implementation of labour laws and building safety codes.

Ineke Zeldenrust of Clean Clothes Campaign stated: “We very much welcome KIK's recognition of its duty to provide remedy. This Arrangement is an excellent example of how buyers can and should take responsibility for workplace related deaths and injuries in their supply chain, especially in countries where workplaces are known to be unsafe. Garment workers in Pakistan continue to be at risk. All buyers must now focus on ensuring that proper and effective due diligence and remediation measures are put in place in order to prevent terrible incidents like these in the future."

The Arrangement is the third in a line of compensation agreements negotiated by the labour movement following large-scale disasters in the garment industry at Tazreen fashions in 2012 and Rana Plaza in 2013, both in Bangladesh.

A short summary of the Arrangement:

An ILO statement on the Arrangement can be seen here.  

For more information, please contact Leonie Guguen, Communications Officer, IndustriALL Global Union, [email protected]. Tel: +41 79 137 5436.

Pakistan: Factory fire victims welcome renewed talks on compensation

Two-hundred and fifty-four workers burnt to death trapped behind locked exits at the Ali Enterprises textile factory in Karachi in September 2012. A further 54 people were seriously injured.  During the meeting, representatives of workers and families affected by the tragedy thanked the International Labor Organization (ILO) for agreeing to take on the role of facilitation and coordination of the compensation for the victims.

The meeting also thanked the governments of Germany, as well as trade unions and civil society organizations for their efforts to persuade the German discount retailer KiK to resume talks. KiK, was the only publicly known customer at the factory. 

The meeting underlined the importance of the involvement of the Association of Ali Enterprises Factory Fire Affectees in any talks or agreement. It also passed a resolution to make living wages the basis for calculating compensation.

Lawyers from Germany briefed the gathering on the development of the lawsuit filed in Germany. The three affectees who have filed the case against the KiK will visit Germany to meet trade unions, MPs, government officials and human rights organizations to seek their support. 

Nasir Mansoor, general secretary of IndustriALL affiliate National Trade Union Federation (NTUF), called on the government of Pakistan to take immediate steps to stop reoccurrence of similar accidents; to implement international labour standards; and to obtain legally-binding commitments from employers and international brands to ensure the health and safety of workers.

IndustriALL’s textile director, Christina Hajagos-Clausen, said: “IndustriALL hopes to close this chapter as quickly as possible and achieve full compensation for the victims of the Ali Enterprises fire, as we have done for the victims of the Rana Plaza factory collapse and Tazreen fire in Bangladesh.”

The meeting was attended by a large number of the families of martyred workers and affectees, legal experts and representatives from IndustriALL affiliate NTUF, ECCHR and the Clean Clothes Campaign (CCC).

Pakistan holds action day for victims of Ali Enterprises fire

Some 254 people burnt to death and more than fifty seriously injured after being trapped in the Ali Enterprises garment factory fire in Baldia town, Karachi, on 11 September 2012.

IndustriALL affiliate, the National Trade Union Federation of Pakistan, together with the Association of the Affectees of the Baldia Tragedy, organized several rallies as part of the 14 April nationwide action day in Lahore, Faisalabad, Multan, Hyderabad, Hub and Karachi itself. 

Other IndustriALL affiliates, including the Textile Powerlooms and Garment Workers Federation, as well as a number of civil society groups in Pakistan, also organized demonstrations around the action day.

Discount retailer KiK, Ali Enterprises' only confirmed customer, is yet to pay the long-term compensation it promised to victims and their families, despite a commitment signed in a Memorandum of Understanding in December 2012.

“It is unfortunate that the German retailer KiK, which entered into agreement with workers’ organizations and agreed to pay compensation, is running away from fulfilling its commitment,” said IndustriALL general secretary, Jyrki Raina, in a letter of solidarity to Pakistani affiliates.

“IndustriALL Global Union will work with its affiliates in Pakistan to ensure that KiK fulfils its responsibility towards the victims of the disaster.”

KiK, which has 3,200 stores across Germany, Austria and Eastern Europe, is the only company that is linked to the three most deadly disasters to hit the garment industry in recent times – the Ali Enterprises factory fire in Pakistan; the Tazreen factory fire in Bangladesh (2012); and the Rana Plaza factory building collapse, also in Bangladesh (2013).

Despite international pressure, KiK continues to stall efforts to negotiate a proper compensation scheme. 

Three years after Tazreen fire, brands must pay compensation

On 24 November 2012, approximately 120 garment workers burnt to death and 300 more were badly injured in the fire. Exits were locked and more than 100 workers were sustained serious injuries as a result of jumping for their lives from the upper floors of the factory building.

The anniversary falls just as Walmart, Tazreen’s biggest customer, can expect massive sales during Thanksgiving week. The U.S. brand still refuses to pay compensation to victims’ families and the injured.

One year ago, IndustriALL Global Union together with the Clean Clothes Campaign, C&A and the C&A Foundation signed an agreement, brokered by the International Labour Organization, to set up the Tazreen Claims Administration Trust to give compensation to victims from a dedicated Fund.

The Trust, which is based on the successful claims procedure used for thousands of Rana Plaza victims, will make payments to cover loss of income and medical treatment.

Brands and retailers with revenue over US$1 billion are being asked to pay a minimum of US$100,000 into the Fund. 

Only C&A, Li & Fung (which sourced for Sean John’s Enyce brand) and discount German retailer KiK have paid so far.

Other brands that sourced from Tazreen and have not paid are U.S. brands Disney, Sears, Dickies and Delta Apparel; Edinburgh Woolen Mill (UK); Karl Rieker (Germany); Piazza Italia (Italy); and Teddy Smith (France).

Monika Kemperle, IndustriALL’s assistant general secretary, said:

“The Tazreen Claims Administration Trust provides real hope to victims who can expect to start receiving payments in the coming months. While we thank the brands that have already paid, we are completely dismayed that Tazreen’s biggest customer, Walmart, won’t fork out after three long years.

“Once again, Walmart is ignoring its responsibilities and failing victims.”

KiK is the only brand to be involved in all three of the ‘big three’ tragedies to hit the garment industry in recent history – Tazreen, Rana Plaza also in Bangladesh, and the 2012 Ali Enterprises factory fire in Pakistan which killed 254 people.

While the processes to pay compensation to the victims of Rana Plaza and Tazreen are underway, the Ali Enterprise case has yet to be properly addressed.

Kemperle added:

“There is no reason why a model similar to the compensation process used for Rana Plaza and now Tazreen, cannot be applied to the victims of the Ali Enterprises fire. Again, appalling safety standards and locked exists led to a terrible loss of life. It’s about time KiK delivers on its promise to pay long-term compensation to victims.”

Ends

For more information on the Tazreen Claims Administration Trust go to 

www.tazreenclaimstrust.org

Click here for more information on the Ali Enterprises fire. 

For further information, please contact:

Leonie Guguen, Communications Officer, IndustriALL Global Union

e: [email protected] 

t: +4179 137 5436 

 

German retailer KiK must pay promised compensation to Pakistani factory fire victims

Two-hundred-and-fifty-four people burnt to death and 55 were seriously injured when a factory supplying budget-clothing brand, KiK, exploded into flames on 11 September 2012.  Desperate workers were trapped in the inferno behind locked exits and barred windows.

In the aftermath of the disaster, KiK, with 3,200 stores across Germany, Austria and Eastern Europe, signed a Memorandum of Understanding (MOU), legally committing the company to make an initial payment of US$ 1 million to the victims and their families for immediate relief.

As per the agreement, KiK paid $1 million to the interim fund. However, it has so far failed to fulfill its obligations under the MOU to engage in good faith negotiations to determine long-term compensation for victims.

Additionally, the MOU required KiK to pay a sum of US$ 250,000 for future labour standard enforcement; this has also yet to be paid.

Since it signed the MOU on 21 December 2012, the company has engaged in various stalling tactics to avoid paying long-term compensation for loss of income, medical costs, pain and suffering, and more.

Rifit Bibi’s husband, Muhammad Asghar Khan, burnt to death at the Ali Enterprises fire leaving her a widow with four young children to support.

“I get a tiny amount of PKR. 5000 (US$ 47) a month as a pension, which is not enough to buy food for my children. Life is miserable since my husband died,” she said.

Shahida Parveen, a 37-year-old mother of three, lost her husband Muhammad Akmal in the disaster. Her three sons, aged 11 and under, are afraid of a future working in a factory in case they die in a fire: “They want to work in offices, for which they need a good education.  But I don’t have enough money to afford their education,” said Parveen.

Jyrki Raina, general secretary of IndustriALL Global Union, said:

We are sick and tired of KiK’s broken promises and attempts to block negotiations for compensation. It is an insult that three years on, the survivors and families of the dead are still waiting for KiK to act. KiK must get into line and pay what’s due to the victims of the worst industrial accident in Pakistan’s history.

KiK has a track record of sourcing from some of the most dangerous factories in the world. It is the only company that is linked to the three most deadly disasters to hit the garment industry in recent times – the Ali Enterprises factory fire in Pakistan; the Tazreen factory fire in Bangladesh (2012); and the Rana Plaza factory building collapse, also in Bangladesh (2013). 

A total of 1,500 garment workers are dead as a result of these tragedies.

UNI Global Union General Secretary Philip Jennings said, “KIK is the only retailer involved in all three recent major factory disasters – Ali Enterprises in Pakistan and the Tazreen fire and Rana Plaza building collapse in Bangladesh. Why is KIK refusing to pay compensation to the victims of Ali Enterprises and their families – does KIK really believe that the lives of these workers are worth less than those in Germany? We cannot build a sustainable supply chain in the garment industry if companies like KIK do not commit. KIK it is never too late to do the right thing.”

Ineke Zeldenrust from the Clean Clothes Campaign said:

“KIK signed an agreement more than two years ago to negotiate in good faith so that all the victims would receive full and fair compensation according to internationally agreed standards. They are now failing to live up to their promise to the families of the 254 people who died horribly producing KIK jeans, after they also failed to live up to their promise to their consumers produce under safe conditions. Now is the time for us to act, and make KiK pay.”

Ends

For more information, please contact Leonie Guguen, Communications Officer at IndustriALL Global Union. Email: [email protected]. Tel: +41 (0)79 137 54 36. www.industriall-union.org

German retailer KiK targeted by families of fire victims

Relatives of five workers who perished in the Ali Enterprises fire in Baldia Town, Karachi have sent the legal notice to Germany’s biggest discount textile chain through a German lawyer. KiK was the factory’s only known customer.

In January 2013, KiK signed a compensation agreement with the Pakistan Institute of Labour Education and Research to make an initial compensation of US$1 million to victims but the company has continuously delayed the payments under various pretexts.

KiK claims to take to control of the enforcement of labour laws and security standards of its suppliers. However, according to reports doors were locked and windows barred at the Ali Enterprises factory with victims unable to escape the fire.

At a Karachi rally organized by IndustriALL Global Union affiliate, the National Trade Union Federation (NTUF), and the Baldia Factory Fire Affectees Association on 14 December, speakers called on KIK to pay compensation as per International Labour Organization (ILO) standards. 

Organizers also urged Pakistan’s Prime Minister, Nawaz Sharif, to fulfill his pre-election promise to pay government compensation to the families of victims.

Addressing the rally, which included the children of the victims, NTUF deputy general secretary Nasir Mansoor said that the safety situation in Pakistan’s garment factories had not improved despite the Baldia tragedy:

“Our factories and industries are still sweatshops and torture places for workers, and resultantly industrial mishaps are happening continuously. Due to non-functional labour inspection the occupational health and safety arrangements in factories are almost non-existent. Local industrialists and their international companies feel it their right to violate local and international labour laws and standards. They suppress the right of workers to form their own unions and earn huge profit by making quality products through cheap labour and selling them in American and European markets on huge profit margin.”

Rally participants demanded that KiK pay Rs 500,000 (US$ 5,000) per family as interim relief and pay the final compensation according to ILO standards without delay.

The protestors also demanded that compensation of Rs 300,000 (US$ 3,000) promised by Prime Minister Sharif when he was opposition leader should also be paid immediately otherwise a hunger strike protest camp would be established in January. 

Unsafe garment industry needs trade unions

The factory was a disaster waiting to happen. Ali Enterprises was not registered under Pakistan’s factory Act; the building structure was not legally approved by the Building authority; the majority of the workers did not have appointment letters; all worked under an illegal third party contact system with working hours ranging from ten to 14 hours a day without overtime; the majority of workers were not registered with the Social Security Institute and Old Age Benefits Institute which is mandatory. And as there was no trade union, there was no right to collective bargaining.

In an ironic twist of events, the factory had received a clean sheet from an international social auditing company merely two weeks before the inferno broke out, certifying that all was according to standard.

The fire turned the factory into a death trap. More than 600 workers were trapped inside the factory which had no functional fire extinguishing system, all windows were closed and covered with iron rods and all exit door were forcibly locked preventing the workers to escape before all merchandise was recovered from the fire.

After spending five months in jail, the owners of Ali Enterprises were released on bail.

Few unions in the garment industry

The garment industry accounts for 65 per cent of Pakistan’s economy. 60 per cent of the country’s total workforce in the garment sector with everything raw cotton to ready-made garments.

The deadly fire two years ago sparked a small-scale debate on work safety and working conditions, but it in a country with 60 million workers without basic labour rights the discussion soon died out.

Traditionally, factory owners and local administration have come down hard on attempts to form trade unions. As a consequence, less than two per cent of the garment workers are unionised.

IndustriALL Global Union affiliate National Trade Union Federation, Pakistan (NTUF) joined forces with other labour and human rights organizations to find those responsible for the tragedy.

A commission was established to find cause and responsibility of the fire. A report was submitted to the government with the findings, but even two years after the tragedy the government refuses to make it public.

Some families of deceased workers have received partial compensation, while many are still waiting for the compensation. Following pressure from international and domestic trade unions and labour organisations, the German brand Kik, who sourced from the factory, has committed to provide 1 million USD as initial compensation.
 
Nasir Mansoor, Deputy General Secretary of NTUF says:

“We achieved this thanks to a great show of global solidarity, but we still have a long way to go. In countries like Pakistan where injustice becomes law, workers have no choice than to start resistance.”

IndustriALL Assistant General Secretary Monika Kemperle says:

“Unsafe textile factories are not only found in Bangladesh. The problems are many and complicated in Pakistan and there is no Accord on Bulding and Fire Safety to set legally binding standards.”

Increasing union membership and achieving collective bargaining are important steps. We support the work of our affiliate to make the garment industry in Pakistan safe.

German brand KIK sourcing from Pakistan factory

The fire at Ali Enterprises, the garment factory located in Hub river road, Sindh Industrial Trading Estate (SITE) in Karachi killed more than 289 workers many of whom were trapped and unable to escape.

There has been widespread outrage and condemnation of the government of Pakistan who failed to ensure basic safety conditions were met at the factory. More than 8,000 people have demanded action to the Prime Minister via the Labour Start campaign here: http://www.labourstartcampaigns.net/show_campaign.cgi?c=1570

The owners of the factory have been charged with murder, although they have yet to be apprehended by the authorities. An affiliate of IndustriALL Global Union, the National Trade Union Federation (NTUF) in Pakistan is calling on authorities to look at charging KIK and any other confirmed buyers from the factory with criminal negligence.Following the terrible disaster, NTUF,social movements and left political parties held a protest march on 15 September.

The rally marched through the Karachi industrial area and finished with a large protest meeting in front of the burnt factory. The participants of the march demanded the arrest of the factory owners, compensation for the families of dead and wounded workers, and the institution of criminal cases against responsible government officials.

The participants criticized the international brands and companies whose negligence and non-respect of related ILO conventions, national labour legislation and international standards on occupational health and safety at the workplace culminated in the worst industrial accident killing more than 300 workers, the majority of whom were less than 30 years old.

The participants also condemned the attitude of the ILO high official in Pakistan who limited communication to labour department officials who, according to workers, were responsible for the tragedy and failed to meet workers’ representatives to get first hand information.

The rally participants appreciated the solidarity expressed by the international union movement especially the IndustriALL Global Union for launching a protest campaign demanding safety at textile factories. To support the Labour Start campaign launched jointly with IndustriALL Global Union follow the link http://www.labourstartcampaigns.net/show_campaign.cgi?c=1570.