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Ali Enterprises: Dortmund Regional Court dismisses appeal against KiK

Seven years is not enough: No justice for Ali Enterprises textile workers and their families

Photo: © medico international/Holger PriedemuthPhoto: © medico international/Holger PriedemuthDortmund. The Regional Court of Dortmund made a very disappointing decision on 10 January 2019: The case of the factory fire at the Pakistani supplier of the German textile company KiK from Septmeber 2012 will not be negotiated – due to statutory limitation periods. The plaintiffs were four members of the Ali Enterprises Factory Fire Affectees Association. With this decision, the company avoids any responsibility towards the workers who produce its goods.

The Ali Enterprise case has a long history: In September 2012, more than 250 workers were killed and countless others seriously injured in the devastating fire at the factory in Karachi, Pakistan. The main customer was the German textile company KiK. A few weeks before the deadly fire, the factory received an SA 8000 certificate from auditing firm Social Accountability International, confirming that it would meet international health and safety standards. However, the catastrophe that followed soon revealed the devastating gaps in the practice of social auditing. Concerns about inadequate security inspections in Pakistan became clear.

After long and arduous negotiations, in which the Clean Clothes Campaign has played a major role since the beginning, the German company KiK, the only customer of Ali Enterprise known to date, agreed to a Compensation of $5.15 million pay for loss of wages, medical treatment and rehabilitation costs to the injured survivors and the relatives of those who died in the accident. Nevertheless, this agreement did not mean real justice for those affected by Pakistan's biggest industrial accident.

With the support of ECCHR and of medico international Four people affected by the factory fire went to court against KiK in Germany. In March 2015, they filed civil lawsuits against KiK at the Dortmund Regional Court and each demanded 30,000 euros in compensation for pain and suffering. In the summer of 2016, the court declared that it had jurisdiction. On 29 November 2018, the case was heard orally for the first time.

The process is an important step in demanding legal responsibility from multinational companies that fail to uphold standards along their entire supply chain, thus clearly violating human and labour rights. As the first lawsuit of its kind in Germany, it is also an important step towards legally enshrined corporate responsibility.

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