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German retailer KiK must pay promised compensation to Pakistani factory fire victims

Author: IndustriALL, Published on: 9 September 2015

On the third anniversary of Pakistan’s worst-ever industrial disaster, global unions IndustriALL and UNI, together with the Clean Clothes Campaign, are calling on a major German retailer to honour its promise to provide long-term compensation to victims.  Two-hundred-and-fifty-four people burnt to death and 55 were seriously injured when a factory supplying budget-clothing brand, KiK, exploded into flames on 11 September 2012... In the aftermath of the disaster, KiK... signed a Memorandum of Understanding (MOU), legally committing the company to make an initial payment of US$ 1 million to the victims and their families for immediate relief. As per the agreement, KiK paid $1 million to the interim fund. However, it has so far failed to fulfill its obligations under the MOU to engage in good faith negotiations to determine long-term compensation for victims....[T]he company has engaged in various stalling tactics to avoid paying long-term compensation for loss of income, medical costs, pain and suffering, and more.

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