NEWS

Bangladesh garment workers to get compensation from Loblaw

10/24/2013 08:34 EDT | Updated 01/23/2014 06:58 EST
Loblaw announced today it will provide long-term compensation to victims and their families in the Rana Plaza garment factory collapse in Bangladesh that killed more than 1,100 workers six months ago.

The company will also pay three months in wages to all workers at New Wave Style, the company that makes its Joe Fresh clothes. The money "will assist in financial needs until long-term funds begin to flow," Loblaw said.

The factory made clothes for Loblaw and other companies in the clothing industry.

The company said it supports a proposal by U.K. clothing retailer Primark for funding compensation to clothing-factory victims. It also encouraged other brands that had clothing manufactured at Rana Plaza to take part.

"Should the other brands not step forward and join in this funding, we will join Primark and immediately contribute to the payment of three months wages for the approximately 3,600 individuals involved, regardless of the brand apparel that was being produced in their workplace," a statement said.

An investigation by CBC's the fifth estate found earlier this month that dangerous working conditions remain widespread in the Bangladesh garment industry.

The industry continues to supply major retailers in Canada such as Loblaw and Wal-Mart.

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