The Accord on Fire and Building Safety in Bangladesh is a legally binding agreement signed in 2013 between global brands and retailers and trade unions in response to the Rana Plaza building collapse that killed over 1,100 people. It requires independent inspections of Bangladeshi garment factories, corrective action plans, funding for repairs, and empowerment of health and safety committees and workers. While over 200 companies signed on, most North American retailers formed their own non-binding Alliance for Bangladesh Worker Safety initiative due to liability concerns. Both organizations work to improve safety standards and remediate hazards in Bangladeshi factories through inspections, training, and transparency regarding inspection results.
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Bangladesh Accord Ensures Factory Safety
1. About the Accord
The Accord on Fire and Building Safety in Bangladesh (the Accord) was signed on May
15th 2013. It is a five year independent, legally binding agreement between global brands
and retailers and trade unions designed to build a safe and healthy Bangladeshi Ready
Made Garment (RMG) Industry. The agreement was created in the immediate aftermath of
the Rana Plaza building collapse that led to the death of more than 1100 people and injured
more than 2000. In June 2013, an implementation plan was agreed leading to the
incorporation ofthe Bangladesh Accord Foundation in the Netherlands in October 2013.
The agreement consists of six key components:
1. A five year legally binding agreement between brands and trade unions to ensure a
safe working environmentin the Bangladeshi RMG industry
2. An independentinspection program supported bybrands in which workers and trade
unions are involved
3. Public disclosure ofall factories, inspection reports and corrective action plans (CAP)
4. A commitment by signatory brands to ensure sufficient funds are available for
remediation and to maintain sourcing relationships
5. Democratically elected health and safety committees in all factories to identify and
act on health and safety risks
6. Worker empowerment through an extensive training program, complaints
mechanism and rightto refuse unsafe work.
Creation of the accord:
The accord was sponsored and created by the Industrial Global Union and the UNIGlobal
Union in alliance with leading NGOs, the Clean Clothes Campaign and the Workers’ Rights
Consortium. It is an expanded version ofan earlier 2-yearaccord thathad been signed only
by PVH and Tchibo.
Following the 2013 Savar building collapse on 24 April 2013 that resulted in over 1,100
deaths, there was wide global interestby both the consuming public and clothing retailers in
establishing enforceable standards for fire and building safety in Bangladesh. The German
government sponsored a meeting of retailers and NGOs at the beginning of May, and the
meeting set a deadline of midnight of 16 May 2013 to sign up to the agreement. Numerous
companies had signed up by the deadline, covering over 1,000 Bangladeshi garment
factories.
2. Terms:
In addition to schemes of building inspection and enforcement of fire and safety standards
the accord requires that contracts by international retailers with Bangladesh manufacturers
provide for compensation adequate to maintain safe buildings. Retailers agree to continue
to support the Bangladesh textile industry despite possible higher costs. It is estimated that
the total cost may be $1 billion, about $500,000 per factory. Close co-operation with the
International Labor Organization and the governmentofBangladesh is required. A steering
committee which governs the accord is established as are dispute resolution procedures
such as arbitration. The accord calls for development of an Implementation Plan over 45
days.
Signatories:
Since 29 October 2013, the Accord has been signed by over 200 apparel brands, retailers
and importers from over 20 countries in Europe, North America, Asia and Australia; two
global trade unions; and eight Bangladesh trade unions and four NGO witnesses. Some of
the notable companies are listed below. For a complete list see the Bangladesh Accord
website.
Abercrombie & Fitch
Adidas
Åhléns
Aldi North
Aldi South
American Eagle
Outfitters
Antigua Apparel
Arcadia Group
Artsana
Auchan
Benetton
Bestseller
Bonmarche
C&A
Camaieu
Carrefour
Coop Danmark A/S
Cotton On
Dansk Supermarked
G-Star
Groupe Casino
Gruppo Coin/OVS
H&M
Helly Hansen
HEMA
Hugo Boss
Hunkemöller
IC Companys
Inditex (parent of
Zara)
John Lewis
KappAhl
Karstadt
KiK
Kmart Australia
LC Waikiki
Lidl
Loblaw
LPP
New Look
Next
Otto GmbH
Pacific Brands
Primark
Puma SE
PVH (parent of Calvin Klein,
Tommy Hilfiger and Izod)
Rewe Group
River Island
s.Oliver
Sainsbury's
Schmidt Group
Sean John
Shop DirectGroup
Stadium
Stockmann
Suprema
Tally Weijl
Target Australia
3. De Bijenkorf
Debenhams
E.Leclerc
Edinburgh Woollen
Mill
El Corte Inglés
Esprit
FastRetailing
FatFace
Fruit of the Loom
Mango
Marks and Spencer
Matalan
Mavi
Metro Group
Monoprix
Morrisons
Mothercare
N Brown Group
Tchibo
Tesco
Voice Norge AS
Zeeman
Rival American plan:
Most North American retailers did not sign the accord. Companies like Gap Inc. and
Walmart cited liability concerns. According to spokespersons for the retail industry,
American courts, which allow class actions, contingent fees, and do not require losing
plaintiffs to pay legal fees, might permit liability claims against retailers in the event of
another disaster which might result in substantial enforceable judgments, in contrast to
European courts which generally do not allow class actions, forbid contingent fees, and
require losing plaintiffs to pay winning defendants' legal fees and costs. However, as John
C. Coffee, professor of corporate law at Columbia Law School, pointed out, Kiobel v. Royal
Dutch Petroleum Co. might apply thus foreclosing suits by Bangladesh workers under the
Alien Tort Claims Act, but this seems unlikely. It is more likely that liability would be based
on contractlaw.
On 10 July 2013, a group of 17 major North American retailers calling themselves the
Alliance for Bangladesh Worker Safety announced the Bangladesh Worker Safety Initiative.
The Initiative drew criticism from labour groups who complained that it was less stringent
than the Accord and lacked legally binding commitments to pay for improvements.
Latest:
In two years, the Accord have inspected more than 1500 factories for fire, electrical and
structural safety. Many safety issues were identified at each inspected factory. Accord said,
fixing all these hazards is a huge work for the RMG industry, butsafety remediation work in
those factories is underway. There has been especially good progress on electrical
remediation which is positive as most factory fires are caused by electrical hazards. The
Government of Bangladesh has said that the Accord will not be extended at the end of its
five year term.
4. Alliance for Bangladesh Worker Safety
The Alliance for Bangladesh Worker Safety
Founded July 2013; 4 years ago
Location Dhaka, Bangladesh
Website bangladeshworkersafety.org
The Alliance for Bangladesh Worker Safety, also known as "the Alliance" or AFBWS, is a
group of 28 major global retailers formed to develop and launch the Bangladesh Worker
Safety Initiative, a binding, five-year undertaking with the intent of improving safety in
Bangladeshi ready-made garment (RMG) factories after the 2013 Rana Plaza building
collapse. Collectively, Alliance members representthe majority ofNorth American imports of
ready-made garments from Bangladesh, produced in more than 700 factories.
Background:
After the 2013 Savar building collapse, Walmartbecame a founding member ofthe Alliance
for Bangladesh Worker Safety. Monsoon was a member of the Ethical Trading Initiative
(ETI) from before the 2013 Savar building collapse due to structural integrity and failure.
The building had housed a number ofseparate garmentfactories employing around 5,000
people,severalshops,and a bank.The factories manufactured apparelfor brands including
Benetton, Monsoon Accessorize, Bonmarché, the Children's Place, El Corte Inglés, Joe
Fresh, Mango, Matalan, Primark and Walmart.
Formation of the Alliance:
The Alliance was organized through the U.S. Bipartisan Policy Center (BPC) with
discussions convened and chaired by former U.S. Senate Majority Leader George J.
Mitchell (D-ME) and former U.S. Senator Olympia Snowe (R-ME). The collaborative
formation process involved apparelindustry companies and stakeholders,including the U.S.
and Bangladeshi governments, policymakers, international NGOs, and members of civil
society and organized labor in Bangladesh. On July 10, 2013, the group announced the
5. Bangladesh Worker Safety Initiative. The Initiative is a binding, five-year plan focused on
fire and building safety inspections, worker training, and worker empowerment.
The Alliance for Bangladesh Worker Safety has elected former US Representative Ellen
Tauscher as independentchairperson.
Alliance work in Bangladesh:
Factory inspections and public reporting:
The Alliance helped develop a common Fire Safety and Structural Integrity Standard –
founded on the requirements of the 2006 Bangladesh National Building Code (BNBC),
though the Standard exceeds those requirements in some cases. The Standard was
developed and is being implemented to ensure that all Member factories are held to the
same safety requirements. The Standard was developed by technical experts from both the
Alliance and the Accord on Fire and Building Safety in Bangladesh, and finalized in
December 2013. The Standard has been harmonized with the guidelines developed by the
Bangladesh University of Engineering and Technology (BUET) for the National Tripartite
Plan of Action (NTPA).
The Alliance has retained a committee ofindependentfire and structural safety experts from
Bangladesh, Europe and North America who are credentialed authorities in fire or building
structural safety. The Committee of Experts (COE) is responsible for overseeing the
implementation of the Alliance Standard, which includes approving qualified inspectors,
conducting spot audits of remediation efforts and validating inspection reports. The Alliance
has publicly announced thatitaims to inspectall factories producing for its members by July
10, 2014.
The Alliance is working with the Fair Factories Clearinghouse, a non-profitorganization that
provides software to facilitate information-sharing. Alliance Members use this public platform
to provide and exchange information about factories they use, fire and building safety
training programs and curricula, and submit monthly reports on safety inspections and
progress update on remediation plans being undertaken.
The Standard is used to evaluate all Alliance factories. The Board ofDirectors issues semi-
annual public reports detailing its work and progress toward meeting in-country fire and
building safety objectives, as well as training and worker empowermentgoals.
In early September, 2015 the Alliance has recognized six RMG factories of Bangladesh to
international standard as they finished all reformation works.
6. Worker participation:
In November and December 2013, the Alliance conducted a Worker Baseline Survey
among more than 3,200 workers in 28 garment factories in Bangladesh. 10 focus groups
were conducted off-site with 101 participants in three Bangladeshi regions to obtain more
information on fire and other health and safety issues.
The purpose of the survey and the off-site interviews was to better understand the current
level of awareness ofhealth and safety risks and whatworkers believe needs to be done to
improve safety and reduce risk in the factories. It is also a tool thatwill inform the necessary
detail of our training programs.
The Alliance's worker helpline and education program will be implemented by three worker
empowerment-focused,organizations,working in partnership. Clear Voice, the organization
that provides tools for communication with workers, was founded by an early worker rights
and human rights pioneer, Doug Cahn. Clear Voice will partner with Phulki, one of
Bangladesh's leading worker rights non-governmental organizations (NGO), and Good
World Solutions, whose focus will be on applying its Labor Link technology to train workers
on their rights and survey them on their wellbeing.
Beginning March 2014, the helpline program will be piloted in 50 factories Dhaka and
Chittagong, with in-factory orientations to accompany the launch ateach location. Helplines
will roll out to 100 factories by March 2015, with the goal of becoming functional in all
Alliance factories by 2017.
Local operations:
On December 9, 2013, the Alliance opened an office in Dhaka, Bangladesh, where the
Alliance is focused on inspection implementation, development of a worker training
curriculum, establishing a worker empowerment helpline, and building local capacity for
completing factory improvements. As of February 2014, the Dhaka office serves as the
primary hub for staff and organizational activities. All staff members in the Dhaka office are
Bangladeshinationals who bring decades ofcombined experience in Bangladesh's garment
industry. As of March 2014, the team includes a managing director, managers for fire and
structural safety, assessments, training, worker outreach and empowerment, factory liaison
and remediation, as well as other supportstaff.
7. Alliance governance:
The Board of Directors is entrusted with oversight responsibility for Alliance Members'
compliance with Initiative requirements, such as meeting financial obligations and self-
imposed deadlines for achieving inspections, information-sharing and worker training
agreements.
The Board has the authority to investigate possible non-compliance, and take appropriate
action against delinquent companies, by a two-thirds majority vote, including termination of
membership in the Alliance.