KARACHI: Following an accord between the International Labour Organisation (ILO) and the Sindh government, Sindh Employees Social Security Institution (SESSI) has initiated the process for disbursement of pension to legal heirs of Baldia factory fire incident.
The funds amounting to $5.15 million, including a margin of $0.25 million, has been provided by KiK Textilien, a German firm after an agreement with Pakistan Institute of Labour Education and Research (PILER) in 2012 under which the KIK had initially paid $1 million for emergency relief during the same year.
The ILO, under the Convention 121 – Employment Injury Benefits Convention, has played an important role in finalisation of long-term compensation, which would be distributed in the form of pension.
The German company has transferred the amount for long-term compensation to the ILO and that fund still lies with the ILO, which would provide part of it to the SESSI for disbursement.
During the initial period of implementation of the Baldia Arrangement, whose duration will be determined by the ILO in consultation with the other parties during provisional period, the fund will provisionally be held and administered by the ILO in accordance with the ILO’s applicable rules, regulations and procedures and actuarial practice.
During the provisional period, the ILO will transfer the required money from the fund as authorised and requested by the Oversight Committee, provided the ILO is satisfied that the funds are used in accordance with the Baldia Arrangement the MoU singed on Wednesday.
Under the MoU, the SESSI can invest funds in secured investments expected to be capable of a foreseeable annual real rate of at least 2 percent and taking into account the market conditions; without assuming any further financial liability towards the Baldia victims than that provided under the MoU.
An Oversight Committee with tripartite mechanism has been established to look after the process of disbursement of the pensions. Members of the Oversight Committee include representatives from the government, Labour and HR Department, Ministry of Overseas Pakistanis and Human Resource; Employers’ Federation of Pakistan (EFP), SITE Association of Industry, Pakistan Workers Federation (PWF), National Trade Union Federation (NTUF); Pakistan Institute of Labour Education and Research (PILER) and All Enterprises Factory Fire Affectees Association (AEFA). The provincial government will report to the Oversight Committee on the status of the account of the fund.
Published in Daily Times, March 23rd 2018.