There seem to be no end to the controversies involving Alliance and Accord’s (representing the US and European retailers respectively) compliance audits! The much-hyped exercise by the western retailers’ representatives aimed at improving the overall safety scenario of garment manufacturing units in the aftermath of Rana Plaza tragic incident, has hit rough weather yet again amidst allegations of ‘unwarranted interferences’ flying thick and fast.
Started with much fanfare, and amid high expectations, promising to deliver safe and secure working environs for the 4-million-strong workforce – the mainstay of the thriving US $ 22 billion Bangladesh apparel industry that accounts for 80 per cent of the country’s exports, the ‘safety inspections’ have been in the eye of the storm from the very onset. It all started in 2014 with the closure of 10 factories after a safety inspection by Accord that evoked angry reactions from the industry which claimed there wasn’t much wrong in terms of structural and fire compliance of the manufacturing units while their owners squarely blamed the auditors of forcing a Government-formed review committee to shut the factories without even filing proper reports in writing.
One of the aggrieved owners went on to claim that Accord has neither the expertise nor equipment required to inspect factories, while another (Softex Cotton Ltd.) filed a legal suit demanding compensation worth US $ 100 million against it. Towhid Islam, Managing Director of Attune (another manufacturing unit that faced the heat from Accord) was rather perplexed to receive a ‘closure notice’ that too for a manufacturing unit which had incidentally been closed for over 15 years, long before the compliance audits even came into being. “I have no idea how the team could call for closing a factory that has been closed many years ago,” observed a surprised Towhid. The allegations that have been levelled against Accord principally were:
a) It lacked expertise and wherewithal to properly inspect factories,
b) Notwithstanding tall claims, Accord did not pay any compensation to the workers of the closed factories, and
c) Accord was on a mission to destroy Bangladesh’s highest foreign currency earning industry to benefit other nations.
Whether it’s on such a mission or not, the compliance audits nevertheless stirred the proverbial hornet’s nest! The unfortunate closures were followed by the publishing of reports (of Alliance and Accord) on their findings and achievements in one year of operations. Even as Accord underlined cooperation and openness from the industry in accepting the existing compliance bottlenecks and shortcomings and working towards correcting the same, it expressed its surprise at the resistance coming in from rather unexpected quarters – certain industry representatives, workers and their unions, which it feels was based on apprehensions rather than reality.
Amidst allegations of ‘unwarranted interferences’ BGMEA opts out of steering committee
Former 1st Vice-President of BKMEA and now Director of EAB fires new salvo
However, despite claims of cooperation, it’s beyond question the industry has been more than upset with the way it carried out the audits, amidst numerous allegations of malpractices. Accord, in particular, had been under fire for its way of working that had rendered several factories shut on grounds which many claim were ‘mala fide and lacked proper verification’. Expressing his utter displeasure at the compliance audits, Muzaffar U. Siddique, MD of Simco Group and President, Board of Governors (BIFT), observed that when the industries have been grappling with issues such as increasing wages, gas and electricity shortages, these audits were nothing short of ‘add-ons to the existing miseries’ besides expressing regret that a person from a different country had been mandated to decide on the closure of manufacturing units in his own nation.
Alliance on the other hand, terming its audit an exercise to upgrade the manufacturing units to preferred supply sources, made clear any issue of non-compliance, not corrected within a specific time-frame, may have an adverse impact on the business. But at the same time it also pledged US $ 5 million for the displaced workers and US $ 100 million for those units and their owners, which otherwise due to financial constraints could ill-afford to carry out compliance work, a gesture that Accord preferred rather not to offer to the manufacturing units. This apart, another woe to have befallen the industry by the audits has been the alleged duplication of audits with differing results, carried out even in those factories which had already been audited by the buyers soon after the Rana Plaza mishap but subjected to inspections yet again by Accord and Alliance. “When my buyers have given me a clean chit, why should I allow Accord and Alliance to assess my factory again,” questioned Siddique who smells a ‘deep-rooted controversy’ against the country’s export that is dependent majorly on apparel. How far-fetched is his assessment of the proceedings, leaves much to speculation considering the muchhyped compliance audits unearthed, that out of the total number of factories audited it’s a meagre 2-3 per cent of the manufacturing units which actually were found wanting in conforming to the compliance criteria.
“Earlier Accord used to come to inspect factories only, now they are interfering in the internal affairs of the manufacturing units… The other day, one of our entrepreneurs complained to BKMEA that they (the retailers group) objected to further construction to his five-storey factory building as prior information was not passed on to them regarding it.” – Mohammad Hatem, Director of Export Association of Bangladesh (EAB)
Nevertheless, if all these issues like the outcome of the ongoing assessments were not enough, it is now being alleged that the so-called ‘initiatives’ are now trying to go beyond their areas of purview and are ‘interfering in the internal affairs of the manufacturing units’. Making no bones of his displeasure, the immediate past 1st Vice-President of BKMEA and now Director of Export Association of Bangladesh (EAB) Mohammad Hatem maintained, “Earlier they used to come to inspect factories only, but now they are interfering in the internal affairs of the manufacturing units… The other day, one of our entrepreneurs complained to BKMEA that they (the retailers group) objected to further construction to his five-storey factory building as prior information was not passed on to them regarding it.” Coming down heavily on the alleged high-handedness of Accord, Hatem said, “Accord comprises only of buyers and trade union leaders and has no representation from factory owners and entrepreneurs… It is very unfortunate that despite the decision if any production unit is declared unfit and closed down post-safety inspections, Alliance/Accord would bear 50 per cent of the workers’ salary while the remaining would be borne by the factory owner, but Accord is not adhering to it.”
Further adding to the convolution of the ongoing row, President of BGMEA, Atiqul Islam, heading the largest garment manufacturer and exporters body of the country, has resigned from the board of the Alliance for Bangladesh Worker Safety leaving it without any representation from BGMEA on the Alliance Board. People privy to information pertaining to the tussle observed BGMEA’s decision to pull out of Alliance’s steering committee, stems from the fact that BGMEA could not speak against it being in the committee, prohibited as per the agreement.
Also expressing his displeasure with the inspection agencies is Finance Minister AMA Muhith, who has reportedly spoken out against them, terming Accord and Alliance ‘an encumbrance for Bangladesh for their stringent conditions’ and likening them to a ‘noose around the neck’. He reportedly also promised that the Government would sit down with the two parties soon to resolve the problems.
With so much of ‘bad blood’ already in the fore, it is perhaps time to sort out the differences amicably at the earliest keeping in mind the best interests of the country’s garment industry and the immense potential that it offers, before it becomes a case of too little and a bit too late!
Bharat Tex Special Report 2026 
