German company to compensate Baldia Factory victims
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German company to compensate Baldia Factory victims

A German retailer, KiK will compensate the victims of the Baldia Factory fire where 259 workers were burnt alive, four years ago. The German retailer has agreed to pay over US$ 5 million.

According to a statement published by the International Labour Organization (ILO), “KiK has voluntarily agreed to pay an additional US$ 5.15 million to fund the gap to top up the statutory benefits due from the Sindh Province Employees’ Social Security Institution to meet the requirements of Convention 121.”

“An agreement in excess of US$5 million has been reached to provide compensation for loss of income, medical and allied care as well as rehabilitation, to the victims of one of the worst industrial accidents in Pakistan. It results from the ILO facilitation and coordination of consultations during a recent mission to Pakistan from 25 July to 5 August”, the statement read.

Since May 2016, ILO enabled talks with the German retailer KiK, IndustriALL Global Union and the Clean Clothes Campaign on the request of the German Federal Ministry of Economic Cooperation and Development and Ministry of Overseas Pakistanis and Human Resource Development. There after, they came to land at the compensation arrangement, in accordance with the ILO’s Employment Injury Benefits Convention 121.

KiK, which was one of Ali Enterprises’ main customer, had previously paid US$1 million as an emergency compensation in December 2012, after the incident took place. However the current decided compensation, the company would start paying the compensation from early next year.


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