The increase in minimum wages and strict compliance guidelines which includes fire and building safety norms to be adhered as per the Accord and the Alliance Guidelines has put every exporter under pressure. However, some respite has come from the Alliance for Bangladesh Worker Safety, which will pay 50% wages to workers for two months if productions are suspended due to remediation works. “As it’s a shared responsibility, 50% wage will be paid by owners and 50% by Alliance. Wages will be paid for eight weeks,” said M Rabin, Executive Director of Alliance (Bangladesh operation).
The Alliance, an initiative of North American retailers, has so far completed inspections of over half of the 700 factories manufacturing for them in Bangladesh. “As we reflect back on the terrible tragedy that occurred at Rana Plaza last year, we are reminded of what is at stake and steadfast in our promise to bring change to the women and men whose livelihood depends on the safety of these factories,” said Ellen Tauscher, Independent Chair of Alliance and a former congresswoman.
Tauscher said she had visited factories and talked to workers who told her that they felt safe now because of the initiative. “The signatory brands could leave Bangladesh considering sector’s scenario but they did not do this and contributing to the development of fire and building safety, which is a big investment,” said Ellen replying to a question on price hike of the RMG products by the brand. She said the Alliance was trying to manage low-cost loans for remediation works and had already talked to the International Finance Corporation (IFC).
According to Rabin, the Alliance inspected over 400 factories and found flaws in only three of them. “We recommended the review panel to take necessary actions about the flawed units as per the Government direction, says Rabin, who claims that the Alliance has trained more than 4 lakh factory managers and workers and target to train over 10 lakh factory staff by July 2014. To promote empowering workers, Alliance will introduce a workers helpline in 50 factories by May and plans to introduce the system in a total of 150 factories by the end of 2014.
Meanwhile BGMEA President Atiqul Islam urged the Accord to take similar steps in contribution to workers’ wage during interim periods and also in arranging staff training. The Accord is an independent agreement designed to make all garment factories in Bangladesh safe workplaces. It includes independent safety inspections at factories and public reporting of the results of these inspections.
Where safety issues are identified, retailers commit to ensuring that repairs are carried out, that sufficient funds are made available to do so, and that workers at these factories continue to be paid a salary. The Accord is a legally binding agreement which has been signed by over 150 apparel corporations from 20 countries in Europe, North America, Asia and Australia; two global trade unions, IndustriALL and UNI; and numerous Bangladeshi unions.
