Primark and Loblaw pay out to factory victims in Bangladesh

City A.M. Reporter
BRITISH clothes retailer Primark and Canadian grocer Loblaw laid out plans yesterday to pay more compensation for the collapse of a Bangladeshi factory that killed almost 1,130 people, as protesters demanded that other brands follow suit.

The disaster on 24 April has galvanised most of the clothing industry’s big names to try to improve safety standards but they have failed to agree on a compensation fund for victims despite months of wrangling.

Primark, the only retailer to pay compensation so far, said it would pay another three months of wages to workers and their families of its Rana Plaza supplier, a pledge matched by Loblaw Cos for those who produced garments for its Joe Fresh brand.

Both called on other brands to follow suit, but said if they do not, they will together make sure the all those affected, including from other brands, are paid for three more months.

Primark, whose low prices have helped it expand to more than 250 stores in Britain and Europe, has already paid six months salary to all 3,621 workers affected by the collapse and their families, committing some $2m in short-term financial support and food distribution.