Winnipeg Free Press - PRINT EDITION

Loblaw offers help for victims

Bangladeshi families to be compensated

  • Print

TORONTO -- The only Canadian retailer to publicly acknowledge it used a manufacturer in a poorly made Bangladeshi building that collapsed and killed hundreds of people last week said Monday it will pay compensation for the families of victims.

Loblaw Inc. -- which had some products for its Joe Fresh clothing line made in one of the garment factories in the building -- said it aimed to ensure victims and their families "receive benefits now and in the future."

"We are working to ensure that we will deliver support in the best and most meaningful way possible," company spokeswoman Julija Hunter said.

"Our priorities are helping the victims and their families, and driving change to help prevent similar incidents in the future."

At least 382 people died after the illegally constructed eight-storey Rana Plaza collapsed in Savar, Bangladesh, on Wednesday. About 2,500 survivors have been accounted for.

A Bangladesh court on Monday gave police 15 days to interrogate the owner of the building, Mohammed Sohel Rana, who was arrested Sunday as he tried to flee to India. He will be held for questioning on charges of negligence, illegal construction and forcing workers to work there. His father, Abdul Khaleque, was also arrested on suspicion of aiding Rana to force people to work in a dangerous building.

Loblaw (TSX:L) had already said it was working with other retailers to support local efforts and provide aid in Bangladesh. The company was also sending senior officials to Bangladesh to get answers on what caused the collapse.

The compensation announcement came as Loblaw and other companies met with the Retail Council of Canada's responsible trade committee on Monday to discuss how to prevent similar tragedies in the future.

Retail Council president and CEO Diane Brisebois has said one of the challenges has been that Canadian agencies don't have the power to mandate certain codes or regulations are followed in another country.

Loblaw has said its vendor standards were designed to ensure products are manufactured in a socially responsible way, but current measures do not address the issue of building construction or integrity.

While details of the meeting weren't expected until Tuesday, some observers hoped the gathering would help companies figure out how to push manufacturers to provide safe workplaces and allow for the empowerment of employees.

Some even suggested the federal government could make retailers list third-party certifications on product labels so shoppers know their purchases were made under conditions that met a certain standard.

"What's needed is enhanced oversight by Canadian retailers," said Kernaghan Webb, a law professor who heads Toronto's Ryerson Institute for the Study of Corporate Social Responsibility.

"They could use this as an opportunity to say 'Let's take a fresh look at our entire set of commitments on everything' -- minimum wage, issues of whether or not workers can unionize, health and safety -- and they could revise those."

Ensuring manufacturers allow employees to organize in committees or unions, and pushing for checks on the structural integrity and fire safety of factories are high priority items, said Webb.


-- The Canadian Press, with files from The Associated Press

Republished from the Winnipeg Free Press print edition April 30, 2013 B4

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes


  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.


Make text: Larger | Smaller


Andrew Ladd talks about his injury

View more like this

Photo Store Gallery

  • Aerial view of Portage and Main, The Esplanade Riel, Provencher Bridge over the Red River, The Canadian Museum for Human Rights and The Forks near the Assiniboine River, October 21st, 2011. (TREVOR HAGAN/WINNIPEG FREE PRESS) CMHR
  • Marc Gallant/Winnipeg Free Press. Local- Peregrine Falcon Recovery Project. Baby peregrine falcons. 21 days old. Three baby falcons. Born on ledge on roof of Radisson hotel on Portage Avenue. Project Coordinator Tracy Maconachie said that these are third generation falcons to call the hotel home. Maconachie banded the legs of the birds for future identification as seen on this adult bird swooping just metres above. June 16, 2004.

View More Gallery Photos


Are you concerned about the number of homicides so far this year?

View Results

Ads by Google