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Primark to Pay $9 Million to Bangladesh Rana Plaza Victims

When it’s deliver-or-die, supply chains become the lifeblood of a company. To that end, the fashion industry has embraced technology to navigate today’s hyper-complicated supply chain, with myriad solutions shaping the first, middle and last mile. Call it Sourcing 2.0.

British clothier Primark has agreed to pay an additional $9 million in long-term compensation to victims of the Rana Plaza building collapse that killed more than 1,100 people in Bangladesh last year.

The company announced the compensation Tuesday saying the $9 million will go to the 580 employees–or their dependents–of New Wave Bottoms, a Primark supplier that had occupied the second floor of the Rana Plaza factory, according to AP.

An additional $1 million will go to a fund run by the International Labour Organisation (ILO), which will go to other workers affected.

Campaigners from labor rights unions have been urging brands to contribute to the ILO-run fund, but so far, only a few brands including Britain’s Bon Marche, El Corte Ingles, Mango and Zara, have contributed. Some have said they will sort out their own compensation plans and others have claimed that a lack of knowledge of their lines being outsourced to unapproved factories absolves them from blame.

Primark said it hopes to make the payments over the next year, bringing its total money disbursed as a result of the tragedy to $12 million. The company has already paid $2 million in short-term financial aid and food distribution.

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