January 01, 2018
Statement endorsed by 147 investors representing $3.7 trillion appeals to global brands to recommit to three-year extension to fulfill Accord’s mandate to remediate fire and safety violations in apparel sector.
Members of the Bangladesh Investor Initiative issued a statement today calling on companies sourcing from the Bangladesh apparel sector to renew their commitment to protect worker health and safety by endorsing the three-year extension of the Accord on Fire and Building Safety in Bangladesh (Accord).
The investors, including Seventh Generation Interfaith Coalition for Responsible Investment and its members, say additional time is needed to complete the remediation plans and worker training indicated by audits at the over 1,600 factories covered by the Accord. The statement will accompany letters being sent to the 160 companies that have not yet become signatories to the three-year extension of the Accord, urging them to participate.
The investors are part of the Bangladesh Investor Initiative organized by the Interfaith Center on Corporate Responsibility to press brands and retailers sourcing in Bangladesh to join the Accord and remediate human rights risks in their supply chains. The statement was endorsed by 147 institutional investors that collectively represent $3.7 trillion in managed assets.
Said Henrike Kulmann of Allianz Global Investors GmbH, “The new agreement between global trade unions and companies ensures that the industry continues to remediate safety issues found in garment factories and build effective worker safety committees. They are an important component to mitigating risks to workers and supply chain disruption as well as reputational risks to global brands sourcing in Bangladesh. We call on all companies sourcing from Bangladesh to become Accord signatories to mitigate these serious human rights and business risks.”
For the 1,600 factories have been inspected under the Accord, 82 percent of the identified safety issues have been fixed, the majority of them electrical. “Investors have been particularly pleased to see that, in addition to fixing specific problems, the Accord has worked to address the systemic issues that led to disasters like Rana Plaza,” said Lauren Compere of Boston Common Asset Management, “It is critical to ensure that future safety problems are detected before they become life-threatening events. The detailed comprehensive work achieved by the Accord is a positive signal to investors that safety risks are being carefully and sustainably managed.”
The investor statement recommends brands undertake the following:
“To date, only 60 of the 220 signatories of the Accord have signed the new agreement to extend the program until May 2021,” stated David Schilling, senior program director of ICCR. “While much has been achieved in making garment factories in Bangladesh safer, there is more to be done, including the establishment of worker safety committees in each factory. The success of the Accord to date is built on the unprecedented collective action of brands and trade unions. Continued solidarity is needed to finish the job and prevent hard-earned gains from disappearing.”
June 06, 2017
The Human Thread is delighted that the first 13 global companies (with many more pending and expected) and two global unions have agreed on a 2nd Accord on Fire and Building Safety in Bangladesh. The new agreement will enter into effect when the current Accord expires in May 2018. The Accord is an unprecedented, legally binding agreement between companies and trade unions to make factories in Bangladesh safe. While much remains to be done, the original Accord has been an important vehicle for improving workplace safety.
The original Accord was signed in the aftermath of the Rana Plaza disaster and would last five years.
In addition to the brands and the two unions, the agreement also has four non-governmental labor rights organizations as “witness signatories.” Sarah Newell, Campaigns Associate at the International Labor Rights Forum, one of the witness signatory organizations, said:
The renewal of the Accord is based on clear evidence that this model, where companies take active responsibility for the safety and rights of workers in their supply chains, works. As we saw with the first Accord, it will take consumer pressure for brands and retailers to commit to making these changes. If as much progress is to be made in the next four years as in the past four, it’ll take conscientious consumers supporting workers by urging brands who source clothing from Bangladesh to sign onto the new Accord and follow through on their commitments.
Here at The Human Thread, we agree Ms. Newell, and we want to underscore the importance of “conscientious consumers” in advancing worker safety, rights, and wages.
For more information, Reuters covered the new Accord here. A press release from the Accord is here. The full text of the agreement is available here. ILRF’s statement on the renewal is found here. The four witness signatories’ statement is found here. The statement from ICCR is available here.
November 11, 2016
After the devastating consequences of the Rana Plaza building collapse in 2013 killing 1,134 people, two organizations emerged for inspecting and auditing safety in workplaces. The Accord on Fire and Building Safety in Bangladesh was created with independent and transparent reports of safety inspections and progress. The Accord’s Corrective Action Plans (CAPS) are detailed factory-level spreadsheets documenting inspection results, the required repairs and renovations, designated deadlines for each identified remediation item, and progress status on each item. The Accord CAPS are available at http://accord.fairfactories.org/ffcweb/Web/ManageSuppliers/InspectionReportsEnglish.aspx. It also in includes a critical voice for labor within the factories on health and safety issues. The other organization, the Alliance for Bangladesh Worker Safety, established by global retailers including Gap, Target and Walmart, does not make the inspection reports public and lacks the free selection of workers for their representatives in factory health and safety committees. In spite of the Alliance’s lack of transparency, where side-by-side comparison is possible, a new study reports that the Alliance is giving passing grades to factories that have failed to implement critical safety repairs.
In 2013, when Gap, Target, Walmart, and 23 other North American companies refused to join with unions in a legally-binding agreement to improve workplace safety in Bangladesh, they announced their own corporate-controlled alternative. The report “Dangerous Delays on Worker Safety,” which was researched and written by the International Labor Relations Forum, the Worker Rights Consortium, Clean Clothes Campaign, and Maquila Solidarity Network, is the first independent investigation into the Alliance’s track record. It exposes a startling disconnect between the Alliance rating system and the actual conditions in the factories. Of 107 factories examined that are labelled by the Alliance as “On Track,” the report finds that:
These statistics, if accurate, are terrifying, and they have real world consequences. The report’s analysis alleges that there are 120,000 garment workers employed in the 62 factories that produce items for Walmart that do not have fully viable fire exits.
The Guardian has an excellent article on the report found here: Retail group approves Bangladesh factories as safety concerns persist, report finds.
If this is true, critical changes must happen within the Alliance as they have been publicly overstating progress and approving factories despite safety concerns. Right now, 29 companies are members of the Alliance: Ariela and Associates International LLC; Bon Worth; Canadian Tire Corporation, Limited; Carter’s Inc.; The Children’s Place Retail Stores Inc.; Costco Wholesale Corporation; Fruit of the Loom, Inc.; Gap Inc.; Giant Tiger; Hudson’s Bay Company; IFG Corp.; Intradeco Apparel; J.C. Penney Company Inc.; Jordache Enterprises, Inc.; The Just Group; Kate Spade & Company; Kohl’s Department Stores; L. L. Bean Inc.; M. Hidary & Company Inc.; Macy’s; Nine West Holdings, Inc.; Nordstrom Inc.; Public Clothing Company; Sears Holdings Corporation; Target Corporation; VF Corporation; and Wal-Mart Stores, Inc.; YM Inc.
As consumers, as people of faith, we share the concern with which the report concludes: “The Alliance’s approach to reporting safety progress legitimately raises the question whether the Alliance is prioritizing the protection of its member brands’ reputations over the protection of workers.”
Update: the Honorable Ellen O’Kane Tauscher, independent chair of the Board of The Alliance for Bangladesh Worker Safety (Alliance), has issued a statement in response to the report found here in the Alliance website: http://www.bangladeshworkersafety.org/en/410-alliance-continues-to-improve-safety-in-bangladesh-garment-industry