Primark, Loblaw to compensate Savar victims

DHAKA: Two Western retailers have pledged to compensate families of garment workers killed while making their clothes in a Savar factory building that collapsed April 24.

The promise from Britain`s Primark and Canada`s Loblaw came after the owner of the collapsed Rana Plaza was brought before a court on Monday.

With almost no hope left of finding further survivors, heavy machinery has been brought in to start clearing the mass of concrete and debris from the site at Savar, on outskirts of Dhaka.

Eight people have been arrested - four factory bosses, two engineers, building owner Sohel Rana and his father, Abdul Khalek. Police are looking for a fifth factory boss, Spanish citizen David Mayor, although it was unclear whereabouts of him.

Primark, which was supplied by one of the factories operating at Rana Plaza, said on Monday that it was working with a local NGO to help victims of the disaster.

"Primark will pay compensation to the victims of this disaster who worked for its supplier," said the company, owned by FTSE 100-listed Associated British Foods.

"This will include the provision of long-term aid for children who have lost parents, financial aid for those injured and payments to the families of the deceased."

Loblaw Companies Ltd, which had some of its Joe Fresh clothing line manufactured at Rana Plaza, said it too was offering compensation.

"We are working to ensure that we will deliver support in the best and most meaningful way possible, and with the goal of ensuring that victims and their families receive benefits now and in the future," said spokeswoman Julija Hunter in an email.

Primark and Loblaw operate under codes of conduct aimed at ensuring products are made in good working conditions.

The International Labour Organisation (ILO), an agency of the United Nations, said it was sending a high-level mission to Bangladesh in the coming days.

"Horror and regret must translate into firm action," said ILO Director-General Guy Ryder in a statement. "Action now can prevent further tragedy."

At least 397 garments workers have been found dead and thousands others injured as an 8-storied building--Rana Plaza--collapsed in Savar bus stand area of Dhaka on April 24.