Author Archive: Nurul Azam

Worker Compensation: What happens to workers when factories close?

When our 28 members joined the Alliance, they signed a Member Agreement that outlines the commitments each company agrees to uphold throughout the tenure of Alliance membership. Responsibilities include the creation of a Worker Safety Fund, part of which is used to support workers that are temporarily displaced due to factory safety concerns or remediation activities. After a critical safety coIMG_20141211_100910ncern has been identified, the factory may have to suspend partial or full production based on the inspection findings and recommendations of the National Tripartite Committee Review Panel. In order to reduce the impact these closures place on workers, the Alliance shares in the compensation to workers so there is no loss of income while the factory is being remediated. This compensation also helps support workers during their employment search if the factory is permanently closed. Supporting worker compensation is an important initiative of the Alliance because it ensures workers will receive their wages or separation benefit while also reducing the burden placed on factory owners, who are already facing potentially high remediation costs. To date, the Alliance has disbursed hundreds of thousands of dollars (USD) to more than 4,300 workers at four factories.

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