Benetton contributes to UN-fund for victims of garment factory collapse

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Benetton has become the final retailer to contribute to a UN-backed fund to support the victims and families involved in the Rana Plaza factory collapse in Bangladesh nearly two years after the disaster.

The Italian fashion brand had resisted calls to pay into the scheme but faced mounting pressure from campaign groups, with a petition gaining more than 1m signatures in a fortnight.

Benetton said it would confirm how much it would be paying into the fund before the second anniversary of the tragedy that killed 1,100 workers in April 2013.

The company blamed the UN-backed Rana Plaza Trust Fund for not setting up clear guidelines for payments from companies found using the site.

It said: “An independent, globally-recognised third party is working to define the principles of our fair and equitable share of compensation.”

Dalia Hashad, Avaaz campaign director that set up the petition, welcomed the news.

She said: “This is a victory for everyone around the world who wants to ensure our clothing never again costs lives. We’re hopeful Benetton will make a significant contribution so the families of Rana Plaza workers aren’t left high and dry.”

Some companies using the site, including Primark, have led the way in supporting the families, with the Associated British Foods owned fast fashion brand paying $12m towards victims.

However, others such as Walmart have been criticised for not spending enough.

So far 5,000 people affected have received 40 per cent of the money due to them and there is only enough cash left to cover 70 per cent of the pledged amount, leading campaigners to push more western brands reliant on the country for cheap clothes to make bigger contributions.