Result achieved

Linked projects

Outcome summary

The Government of Sindh province, after consultation with the social partners and other stakeholders, endorsed a modality for distribution of additional employment injury benefits to the victims of the Ali Enterprise factory fire of 2012, named the Baldia Arrangement was reached in September 2016.

Outcome achieved

The Government of Sindh province, after consultation with the social partners and other stakeholders, endorsed a modality for distribution of additional employment injury benefits to the victims of the Ali Enterprise factory fire of 2012. The so-called Baldia Arrangement was reached in September 2016, prior to the fourth anniversary of the factory fire, to secure the funding of the compensation rights of workers in line with the national legislation and ILO’s Employment Injury Benefits Convention, 1964 (No. 121) (gap calculated at USD 5.15 million). The agreement is being implemented under the KiK-IndustriAll-CCC-ILO agreement. The signatories are KiK (a German clothing company), IndustriAll Global Union, the Clean Clothes Campaign and the ILO. In consultation with the Tripartite Coordination Committee of Sindh province and with national-level stakeholders, the federal Government and the Sindh provincial government notified the tripartite Oversight Committee meant to guide the further implementation of the agreement through the Sindh Employees Social Security Institution (SESSI). The arrangement and its implementation is guided by Convention No. 121. The implementation of the Baldia Arrangement highlighted potential gender discrimination due to the fact that dependent fathers who receive employment injury benefits on behalf of the parents. Challenges arose when transferring benefits to the mother in case of the death of the father.

ILO's contribution to the outcome

The ILO, in agreement with the tripartite constituents and with support from the German Government [RAS/14/03/FRG], provided advisory support starting in May 2016 for the facilitation of a solution surrounding the rights of workers to compensation in cases arising from the Ali Enterprises factory fire. The ILO worked together with international stakeholders in reaching the Baldia Arrangement, including the formulation of policy recommendations on the improvement of the employment injury compensation system. National constituents had the opportunity to provide comments on the policy recommendations. The ILO also provided legal and technical advice for the proposed oversight mechanism, with a view to reinforcing national tripartite capacities to enforce social security obligations with national enterprises. With further support from the German Government [RAS/17/50/DEU] the ILO provided technical assistance to SESSI to upgrade its management and governance systems, build capacity of its staff and adopt computer-based systems for swift processing of compensation cases. The ILO completed the legal review of the Social Security and Compensation Act for the Islamabad Capital Territory.
2016 PAK227 Employment injury