Seventy top retailers promised to open their Bangladesh factories to safety inspections within nine months as part of a pact finalised and released Monday in the wake of the Savar Rana Plaza collapse that claimed 1,129 lives, reports AFP. The mainly European brands will underwrite repairs and renovations if inspections reveal their factories to be unsafe, according to the legally binding agreement, signed with unions after the collapse of Rana Plaza in one of the world’s worst industrial disasters.
The signatories said that they had elected a six-person steering committee, including executives from PVH, the N Brown Group, Inditex and two large union federations based in Geneva — IndustriALL and Uni Global. The steering committee includes a representative of the Bangladesh Council of Trade Unions, says The New York Times.
‘Initial inspections at every factory will be completed at the latest within nine months, and plans for renovations and repairs put in place where necessary,’ the pact’s steering committee said in a statement.
Among the signatories, Inditex, the owner of the Zara apparel chain, uses about 350 factories in Bangladesh, H&M 260 and C&A, a Dutch retailer, 230, said Jyrki Raina, general secretary of IndustriALL, a union federation with 50 million members in 140 countries.
The country is the world’s second biggest apparel exporter, with clothing accounting for 80 per cent of its overseas shipments.
‘The terms of reference and the rules of the accord are set in place, we can now identify the best people and put together the team in Bangladesh who will be charged with carrying out this vital work,’ said UNI Global Union general secretary Philip Jennings.
Retailers will submit details of their suppliers in Bangladesh by July 15 which will then be publicly released for the first time, said the statement outlining the new accord.
A team of inspectors aim to ‘identify grave hazards and the need for urgent repairs’ at the factories. Retailers must commit for two years to the garment plants flagged for safety improvements, the statement said.
A headquarters to oversee implementation of the five-year pact will be set up in Amsterdam with another office in Dhaka, it said.
‘This historic, legally binding accord will effect tangible change on the ground and help make the Bangladeshi garment industry safe and sustainable,’ said Jyrki Raina.
Raina added that the factory fires and collapses in Bangladesh over the past few years indicated that efforts by individual retailers had ‘proved insufficient’ in addressing the issue, says a BBC report.
‘A profound change is possible only with a strong coalition between trade unions, international brands and retailers, Bangladeshi authori
ties and employers, and with worker involvement in the workplace with guaranteed freedom of association.’
The International Development Secretary, Justine Greening, said UK companies needed to play their part in helping raise standards: ‘British business must be a force for good in the developing world too, so that together we can help end aid dependency through jobs.’
She said she had been talking to business leaders from the retail industry to decide how they could work with the government to improve supply chains, in order to ensure clothes were produced responsibly and conditions were improved.
Scott Nova, executive director of the Worker Rights Consortium, a factory monitoring group based in Washington, said that prosperous Bangladeshi factory owners would be expected to help finance safety improvements and that in such situations, western companies would not be expected to shoulder the burden alone.
While leading European retailers have joined the agreement, American brands such as Walmart and Gap have snubbed the accord and opted for self-regulation.
Walmart, the world’s largest retailer and one of Dhaka’s top buyers, has promised to inspect its Bangladeshi suppliers and publish the results, while Gap says it launched its own drive last October.
The task of inspecting and improving factories could prove hugely daunting. A survey by a prestigious Dhaka-based engineering university last week found nine out of 10 Bangladeshi garment plants are risky structures, and many were built without qualified engineers.
It is not clear how much retailers are willing to spend on repairs under the pact. But a study by a local group has found the cost of renovating and retrofitting Bangladesh’s garment factories could reach $3 billion.
The group of 70 retailers has approached the World Bank and others about financial assistance for the renovation programme, a representative of the retailers told AFP.
‘We have held initial talks with the World Bank, the Dutch and Danish governments and the European Union for soft loans and other funds to finance the renovation programme,’ Andy York from British mail order retail group N Brown Group said.
York estimated more than 1,000 of Bangladesh’s 4,500 garment factories would be inspected under the pact, but the exact figure was not known.
EU trade commissioner Karel De Gucht is expected to host talks in Geneva later Monday with Dhaka officials, unions, retailers and others on safety problems in the Bangladeshi industry, including the pact.
The Bangladesh Garment Manufacturers and Exporters Association, which represents the nation’s garment factories, initially welcomed the accord and said it reflected the retailers’ long-term commitment to the country.
In recent weeks, however, manufacturers have criticised the organisers, saying the government and the factory owners should have been brought on board.
‘They should have definitely included the BGMEA and the knitwear manufacturers in the accord and its decision-making bodies. After all, it’s our factories they are going to inspect,’ BGMEA vice-president Reaz-Bin-Mahmood told AFP.
Scott Nova told AFP the BGMEA was not included because ‘this agreement is focused on the responsibility of the brands to ensure that factories are made safe’.
-With New Age input
