Discount department store chain Kmart Australia has vowed to stick with its Bangladeshi clothing suppliers, saying it is offering people a chance to get out of poverty,
Australia-based web site www.news.com.au reports on Tuesday.
But Kmart Australia managing director Guy Russo said the retailer severed ties with 20 factories earlier this year after an internal review detected that they were ‘high-risk environments’.
Russo said Kmart would continue working with 30 garment makers which employed thousands of people.
‘Abandoning them would be disastrous for the manufacturers we have invested in and the thousands they employ, predominantly women with families to support.’
The horrible conditions faced by many impoverished Bangladeshi garment industry workers was thrust into the light after the collapse of the Rana Plaza factory in April, which killed more than 1,100 people.
Major Australian retailers turned to Bangladesh in recent years to produce the cheap goods beloved by many shoppers, as the cost of Chinese labour rose.
Media reports last month accused retailers including Kmart, Rivers, Coles and Target of ordering clothes from factories that flouted safety standards.
Russo rejected such claims on Monday.
‘We have zero tolerance of bribery, child and forced labour, physical and sexual abuse, as well as inadequate safety standards, unsafe buildings and unauthorised subcontracting,’ he said.
But Russo said there was ‘nothing wrong’ with sourcing from cheap labour forces and ‘adding a margin to cover costs’, and passing on the benefits to consumers.
‘Six hundred million people in China over the past three decades have been lifted out of poverty through a similar approach.’
Kmart last month signed the accord on fire and building safety in Bangladesh, and said its suppliers must pay above the minimum rate.
Russo said he had toured Bangladeshi factories last month and was ‘inspired’ to see safety measures including dedicated safety officers, proper exits, well-maintained fire equipment and proper complaint processes.
-With New Age input
