KiK to pay out 5.1 million dollars to victims of a fire at a Pakistan factory

The German discount textile store KiK revealed this weekend that, after four years of negotiations, it will pay out 5.1 million dollars to victims of a fire which took place at a textile factory owned by Ali Enterprises in Karachi, Pakistan, in 2012.  The agreement was reached with a number of NGOs as well as the international trade union IndustriAll Global Union and the Pakistani National Trade Union Federation, the NTUF. However, KiK specified that the payment is not to cover damages, with the company maintaining that is does not take responsibility for the incident. This weekend’s announcement has no bearing on the case brought by three Pakistani claimants, against KiK, which will be heard in Dortmund. 
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

An unprecedented agreement. The announcement that KiK had agreed to pay out an additional 5.1 million dollars — to the families of the 250 individuals who perished in the disaster, and to 50 employees which survived but were injured — was met positively by the NTUF’s deputy general secretary, Nasir Mansoor. He praised the agreement, which he described as “unprecedented in the context of Pakistan’s labour movement”. Mr Mansoor added: “After four years of struggle the victims of this tragedy get

Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
2026 TRENDS — Tackling skills shortages and mismatches
mind HR is analysing the trends that will shape 2026. Skills shortages have become a central challenge for businesses, reflecting deep-seated shifts in the labour market as roles evolve rapidly...
Italy: government kicks off transposition of EU Pay Transparency Directive
On 5 February, the Italian government approved legislation transposing the EU Pay Transparency Directive, designed to tackle gender pay discrimination — a particularly acute issue in Italy. The...
10 February 2026
Romania: government imposes strict controls on labour immigration
On 26 January, the Romanian government adopted an emergency ordinance tightening the rules on the recruitment of foreign workers. The measure introduces an official list of labour shortage...
Germany: standoff over national plan to boost collective bargaining
Under the EU Adequate Minimum Wages Directive, Germany is required to produce an action plan to boost collective bargaining coverage. That plan has stalled, however, after being blocked by the...
9 February 2026
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
United Kingdom: government urged to legislate against forced labour
After consulting victims, businesses and NGOs, the Independent Anti-Slavery Commissioner (IASC) has published a report showing that the UK is lagging behind in the fight against forced labour. The...
13 January 2026
2
EU: European Parliament calls for a directive on just transition
On 20 January, MEPs approved, with 420 votes in favour, an own-initiative report calling for a just transition directive. The text calls for the protection of workers to be guaranteed in the...
20 January 2026