Six years on from Bangladesh’s Rana Plaza tragedy, one in five survivors’ health is deteriorating

Despite the international outcry following the building collapse at Rana Plaza, which killed 1,134 mainly female garment workers, more than half of survivors remain unemployed due to the physical injuries and psychological impact of the disaster. The unemployment rate among the survivors has increased by almost 10% in the last two years, according to an annual survey of survivors’ health, wellbeing and economic security, published by ActionAid today.

We have tracked 1,400 Rana Plaza survivors since 2013, interviewing 200 of them this year and found:

  • 5% said that their physical health condition is getting worse;
  • 51% remain unemployed due to their physical injuries and poor mental health;
  • Of the unemployed survivors: 74% could not get back to work due to physical injuries and 27% due to poor mental health – as a direct result of the incident;
  • 5% are still suffering from trauma;
  • Only 15.5% of the employed survivors have returned to the garment industry.

About Rana Plaza

Rana Plaza was the world’s deadliest industrial accident since the Bhopal gas leak in India in 1984. Yet, Bangladesh remains the world’s second-largest exporter of fast fashion to Europe and the US. Under the radar of international attention, around 500 workers have been injured and several dozens killed in Bangladesh’s garment industry since Rana Plaza.[1].

Farah Kabir, Country Director of ActionAid Bangladesh, said: “Today’s new research from ActionAid shows that survivors still remain economically insecure as a result of the Rana Plaza tragedy. Compensation is piecemeal, which has slowed down the rehabilitation of the injured. Promised funding for a hospital for the injured has not been forthcoming. Six years on from the crisis, injuries which may have been treatable have now set in as life-long ailments.”

Women Garment Workers

ActionAid Bangladesh has long campaigned on the working conditions in the garment industry. Here, the majority of the four million workers employed are women from rural villages. They are often not literate[2] and have historically been prevented from unionizing, remaining the lowest paid workers in the world.

Women make up the lowest grade positions in the garment industry. Only 0.5% of management positions being occupied by women[3]. These women lack job security, compensation for injuries sustained at work, pension and insurance. Worse still, a growing body of evidence more recently shows female garment workers suffer regular sexual harassment and abuse at work[4].

Yet these four million workers are producing a $30 billion USD industry for Bangladesh, with ready-made garments comprising 83.49% of Bangladesh’s exports[5]. Although global inequality is played out on the factory floors. ActionAid’s 2010 research from India showed that a worker in a factory would earn less than 2 cents for every $5 T-shirt sold internationally.

Some progress was made following the international pressure after Rana Plaza, when corporate brands were pushed to sign a legally binding agreement to ensure retailers and factory owners comply with safety inspection standards. The Bangladeshi government also updated its Labour Act to compel companies to establish “employee welfare funds” and end the human rights breaches which saw workers being prevented from forming unions. Yet, Western brands continue to use subcontracting to foster a degree of separation from liability for wage and labor violations.

Time for Change

  • ActionAid, as part of the Clean Clothes Campaign[6] in Bangladesh, is calling for the government of Bangladesh to establish and legislate for an employment injury insurance system. This would mean compensation would be distributed immediately following a workplace incident.
  • ActionAid’s women’s labour movement is also campaigning to improve purchasing practices of buyers from developing countries. And we offer education and collective bargaining training to women who are marginalized within the workplace.
  • To address the high prevalence of Gender Based Violence (GBV) increasingly revealed to be perpetrated against women at work, ActionAid and partners are also demanding the International Labour Organisation (ILO) agree a convention against violence and harassment in the workplace.

ENDS

[1] Solidarity Centre 2018

[2]  Uddin, Mohammad Nazim (October 2014). “Role of Ready-Made Garment Sector in Economic Development of Bangladesh”. Journal of Accounting, Business & Management: 54–70.

[3] Centre for Policy Dialogue (CPD). 2018. “Ongoing Upgradation in RMG Enterprise: Results from a Survey”

[4] Human Rights Watch April 2019

[5] Data of 2017-18. Source: Export Promotion Bureau, Compiled by BGMEA

[6] Clean Clothes Campaign

Photo Credit: Rana Plaza Survivor Jakia Begum (38) at her home in Dhaka. Photographer Credit: Najmul Nahid/Actionaid

Protesters holding End Fossil Fuels banner at a climate demonstration, advocating for renewable energy solutions.

Protestors at COP 28 in Dubai. Photo: Konrad Skotnicki.

Climate protest with diverse crowd holding signs about environmental action in a city square.

Belfast Climate Change March, 2019. Photo: Trócaire.

The Profit Driving the Crisis

Despite their overwhelming contribution to global emissions, fossil fuel companies continue to attract significant financial backing—driven by their enduring profitability. This is starkly illustrated by the case of ExxonMobil, the top fossil fuel investment held by asset managers based in Ireland. In 2023, ExxonMobil reported €33.63 billion ($36 billion) in profit. That is almost twice the GDP of Botswana (€18.1 billion) and nearly three times Namibia’s GDP (€11.5 billion).

Ireland plays a hugely disproportionate role in facilitating investments into fossil fuel companies like ExxonMobil. In 2023, the investments made into fossil fuel companies by investment managers based in Ireland generated an estimated 72.5 million tons of CO2e. This is more than the CO2e emissions for the entire country of Ireland—and more than ten times that generated by Sierra Leone.

The Global Human Impact

The climate crisis is here, now, and it is causing disproportionate harm in the Global South. In Bangladesh, rising sea levels and increasingly severe cyclones are displacing coastal communities, with projections indicating that 17% of the entire country could be underwater by 2050. The legally binding Paris Agreement on climate change explicitly acknowledges the importance of tackling private finance. Its three overarching goals are: keeping below 1.5C of warming; increasing adaptation and making finance flows consistent with low emissions and resilience.

This gives a clear mandate for action:  both tax reform and corporate regulation are needed to tackle financial flows, and both nationally in Ireland and at EU level, ‘polluter pays’ taxes are lacking and regulation of the financial sector remains weak and fragmented. While EU regulation exists, it is designed more to nudge investors toward more sustainable investment practices by increasing transparency and reporting levels than to enforce strict standards. And it is moving in the wrong direction: the recently passed EU Corporate Sustainability Due Diligence Directive excluded investments; and now the EU Commission’s Omnibus legislative proposal threatens to undo the limited gains made on climate plans, as well as blocking future attempts for stronger action at national level.

The Risk of Inaction

Fossil fuel investment is too profitable to remain weakly regulated. If Ireland continues with its current strategy of encouraging FDI at all costs, and relying on weak EU regulation, we are headed for catastrophe. The Inter-governmental Panel on Climate Change has repeatedly warned that every fraction of a degree beyond 1.5°C brings irreversible consequences: collapsed ice sheets, vanishing coral reefs, and extreme weather events that will make vast regions of the planet uninhabitable. And yet, companies are developing oil and gas fields that could push global warming beyond 2°C.

Our research found that 91% of the investments made into fossil fuel companies by investment managers based in Ireland were to companies that have plans for fossil fuel expansion like these. Ireland cannot afford inaction on this issue.

About This Research

The figures in this report regarding investment from Ireland are based on new research commissioned by ActionAid Ireland and Trócaire. In the paper, we uncover the scale of fossil fuel investment through Ireland, who the investors are, and in which fossil fuel companies they are investing.  We analyse the current regulatory framework and explain why it is inadequate—and moving in the wrong direction. And we make specific recommendations for change, which are summarised below.

Summary of Recommendations

Regulate the private financial sector
Ireland must end its outsized role as an enabler of destructive fossil fuel investment. Ireland should introduce a strong gender-responsive national human rights and environmental due diligence framework which includes the regulation of investors with respect to human rights and the environment and climate. The transposition of the EU Corporate Sustainability Due Diligence Directive could achieve this if downstream activities are included and the Omnibus proposal is rejected. Ireland should prohibit investments in fossil fuel expansion and require investors to implement climate transition plans consistent with a 1.5°C climate limit.

Endorse the Fossil Fuel Non-Proliferation Treaty
Ireland should endorse developing a Fossil Fuel Non-Proliferation Treaty to curb fossil fuel expansion and commit to a fair and funded phase out of fossil fuels.

Support tax justice
Ireland should support bold and fair new global tax rules through the UN Framework Convention on Tax, should adopt all OECD BEPS measures, and should conduct an updated and comprehensive spillover analysis of its tax policy. Ireland should take coordinated action globally, at the EU level and domestically to introduce a range of new taxes to mobilise finance needed for climate justice, based on ‘polluter pays’ and social equity principles such as wealth taxes for the highest earners, climate damages tax on investors, fossil fuel production taxes and levies on aviation and shipping.

Finance a just transition
Ireland must also meet its fair share climate finance obligations under Article 9.1 of the Paris Agreement, and pay our ecological debt to the Global South. Ireland should support conditionality-free debt cancellation for countries on the front lines of the climate crisis, commit to a new UN Framework Convention on Sovereign Debt, moving debt negotiations from the IMF to the UN, and to a debt workout mechanism that is fully representative and fair.

Further reading