KARACHI: Pakistan Institute of Labour Education and Research (PILER) and German company KiK Textilien on Thursday mutually signed fulfillment of the agreement between them after the provision of US$ 5.15 million by the latter for a long-term compensation to the victims’ families of the Baldia factory fire incident.
CEO of the KIK Textilien and Non-Food GmbH Mr. Patrick Zahn and PILER’s Executive Director Mr. Karamat Ali signed the agreement on behalf of their respective organisations, at a signing ceremony followed by press briefing held at a local hotel. The ceremony was also witnessed by German Consul General in Karachi Mr. Rainer Schmiedchen, Country Director of International Labour Organisation (ILO) Ms. Ingrid Christensen, President German-Pakistan Chamber of Commerce and Industry Qazi Sajid Ali and President of Employers Federation of Pakistan Majyd Aziz. Habibuddin Junaidi, Convener of Sindh Labour Solidarity Committee; Ms. Anis Haroon, Member of National Commission for Human Rights also attended the ceremony.
The German company (KiK) was the main buyer of the Pakistani garments manufactured at Ali Enterprises. Over 255 workers lost their lives and 55 others were injured in the worst-ever factory fire incident on September 11, 2012. The German company accepting responsibility as a buyer had contacted PILER to provide compensation to the victims.
As an immediate relief to the victims, KiK Textilien had paid US $ 1 million, which was distributed by a Judicial Commission led by Justice (Retd.) Rahmat Hussain Jafery, appointed by Sindh High Court. Under the agreement with PILER signed in December 2012, besides immediate relief, KiK was obliged to pay for long-term compensation for the victims’ families and for that purpose it had signed another agreement with ILO in 2016 to provide US$ 5.15 million.
Speaking on the occasion, the ILO Country Director Ms. Ingrid Christensen confirmed that her organisation has received the amount of US$ 5.15 million from KiK by the end of December and a mechanism to disburse the amount is now being chalked out. ILO is working on the implementation modality, oversight mechanism and establishment of a trust (fund). She hoped that within three months ILO would be able to start disbursement of the funds. Ms. Christensen pointed out that both the German and Pakistan governments had approached the ILO to facilitate provision of compensation to the victims. Based on the principles of ILO Convention 121 (employment injury benefits) the ILO facilitated a deal between KiK, IndustriAll and Clean Cloth Campaign under which KiK would provide US$ 5.15 million additional compensation to the victims’ families. The Chief Executive Officer of KiK Textilien said his company has fulfilled its commitments. “No amount of money will bring back beloved family members or can make this incident undone. But, money can help to better deal with the consequences of the accident.”
He said his company would continue its procurement business in Pakistan. The company is going to launch a building safety plan. Currently 30 factories, out of which 20 located in Karachi are supplying their products to KiK. “We want to encourage our suppliers to take the safety of their factory buildings seriously. We want to help them in their efforts and have thus offered all our suppliers an initial evaluation of their status quo with regard to building safety, electrical safety and fire protection.” However, he made it clear that the responsibility for the safety of the factory remains with the owner, not with KiK.
Speaking on the occasion the German Counsel General Mr. Rainer Schmiedchen said that he has observed that after the Ali Enterprises fire incident a lot has changed in Karachi’s textile industry. He gave the example of two textile factories in the city, which he had recently visited. One of the factories even has an employee who was the previous head of Karachi’s fire department on its payroll. “In the factory I saw two trucks standing by, equipped with all what is needed to fight fires and incidents.” The company even employs 2 doctors for the workers and their families to provide medical assistance.
“So I think that employers have learned from the factory fire,” he added.
PILER’s Executive Director Karamat Ali appreciated the contributions by KiK for provision of compensation to the victims of Ali Enterprise factory fire. He also expressed thanks to ILO for its role in finalization of the long-term compensation deal. Mr. Ali said after the incident KiK had approached PILER by itself and offered to compensate the victims. As a result of long deliberations, a Memorandum of Understanding was signed between PILER and KiK, under which the latter promised to provide US$ 1 million as immediate relief and made a commitment to contribute for long term compensation and safety of the factories. Within a week after signing of the agreement, KiK transferred US$ 1 million to PILER’s account. PILER requested the Sindh High Court to disburse the amount among the legal heirs. The process took eight months to ascertain the legal heirs and the amount was thus disbursed through SHC Commission. Mr. Majyd Aziz, President of Employers Federation of Pakistan said that employers are closely working with the labour leaders to ensure industrial peace and increase industrial production. At the end of function, the CEO of KiK and ED of PILER signed the fulfillment of agreement with PILER.
