April 26, 2013

Big brands rejected Bangladesh factory safety plan

Julhas Alam and Kay Johnson / The Associated Press

DHAKA, Bangladesh — As Bangladesh reels from the deaths of hundreds of garment workers in a building collapse, the refusal of global retailers to pay for strict nationwide factory inspections is bringing renewed scrutiny to an industry that has profited from a country notorious for its hazardous workplaces and subsistence level wages.

After a factory fire killed 112 garment workers in November, clothing brands and retailers continued to reject a union-sponsored proposal to improve safety throughout Bangladesh's $20 billion garment industry. Instead, companies expanded a patchwork system of private audits and training that labor groups say improves very little in a country where official inspections are lax and factory owners have close relations with the government.

In the meantime, the number of deaths and injuries has mounted. In the five months since last year's deadly blaze at Tazreen Fashions Ltd., there were 40 other fires in Bangladeshi factories, killing nine workers and injuring more than 660, according to a labor organization tied to the AFL-CIO umbrella group of American unions.

Wednesday's collapse of the Rana Plaza building that killed more than 300 people is the worst disaster to hit Bangladesh's fast-growing and politically powerful garment industry. For those working to overhaul conditions for workers who are paid as little as $38 a month, it is a grim reminder that corporate social responsibility programs are failing to deliver on lofty promises.

More than 48 hours after the eight-story building collapsed, some garment workers were still trapped alive Friday, pinned beneath tons of mangled metal and concrete. Rescue crews struggled to save them, knowing they probably had just a few hours left to live, as desperate relatives clashed with police.

"Improvement is not happening," said Amirul Haque Amin, president of the National Garment Workers Federation in Bangladesh, who said a total of 600 workers have died in factory accidents in the last decade. "The multinational companies claim a lot of things. They claim they have very good policies, they have their own code of conduct, they have their auditing and monitoring system," Amin said. "But yet these things keep happening."

What role retailers should play in making working conditions safer at the factories that manufacture their apparel has become a central issue for the $1-trillion global clothing industry.

The clothing brands say they are working to improve safety, but the size of the garment industry — some 4,000 factories in Bangladesh alone —means such efforts skim the surface. That opaqueness is further muddied by subcontracting. Retailers can be unwittingly involved with problematic factories when their main suppliers farm out work to others to ensure orders are filled on time.

"We remain committed to promoting stronger safety measures in factories and that work continues," Wal-Mart said in a statement after the Rana Plaza collapse. The world's largest retailer says there was no authorized Wal-Mart production in the building. One of the Rana Plaza factories, Ether Tex, listed Wal-Mart as a customer on its website.

Labor groups argue the best way to clean up Bangladesh's garment factories already is outlined in a nine-page safety proposal drawn up by Bangladeshi and international unions.

The plan would ditch government inspections, which are infrequent and easily subverted by corruption, and establish an independent inspectorate to oversee all factories in Bangladesh, with powers to shut down unsafe facilities as part of a legally binding contract signed by suppliers, customers and unions. The inspections would be funded by contributions from the companies of up to $500,000 per year.

The proposal was presented at a 2011 meeting in Dhaka attended by more than a dozen of the world's largest clothing brands and retailers — including Wal-Mart, Gap and Swedish clothing giant H&M — but was rejected by the companies because it would be legally binding and costly.

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