May 9, 2024

Clothing Retailers Pressed on Bangladesh Factory Safety

With the death toll rising above 1,000 two weeks after an eight-story factory building collapsed in Bangladesh, organizations and officials say they have been growing impatient with American and European retailers and apparel brands because only two companies — PVH, the parent company of Calvin Klein and Tommy Hilfiger; and Tchibo, a German retailer — have signed onto a binding agreement on safety standards for factories. That agreement would commit companies to allow independent inspections of the apparel factories they use, to terminate business at factories that do not quickly correct violations and to underwrite needed safety improvements. For example, many garment factories in Bangladesh lack basic means for workers to flee in case of fire — specifically fire escapes and smokeproof enclosed staircases.

Avaaz, a human rights group, has collected 875,000 signatures on a petition urging Gap and HM to sign on to the plan to commit to fire safety improvements at Bangladesh factories. New York City’s comptroller, John C. Liu, who oversees city pension funds owning more than five million Walmart shares, is warning the company that it risks damage to its public image unless it does more on factory safety in Bangladesh.

And the Rev. Seamus P. Finn, representing shareholders from the Catholic organization Missionary Oblates of Mary Immaculate, has been circulating a letter among religious organizations — groups that control more than $100 billion in assets — to express displeasure with the nation’s retailers. He says the retailers have not done nearly enough to improve workplace safety for the more than three million garment workers in Bangladesh.

“What happened in Bangladesh is a game-changer because of the gravity of the situation and the tremendous loss of life,” Father Finn said. “People are really coming to life about this and saying, ‘We need to do something.’ ”

Not just Western retailers are encountering more pressure after the April 24 collapse of the Rana Plaza building outside Dhaka, the Bangladeshi capital. The nation’s government — known for lax building code enforcement — has suddenly grown tougher, closing 18 factories for safety violations. Three of those factories were run by the Nassa Group, the country’s largest clothing exporter, which counts Walmart and Sears among its customers. Last weekend, the government also announced it would hire hundreds of additional factory inspectors.

The United States government has also been pressing Bangladesh and the apparel manufacturers there over safety. In January — two months after the Tazreen factory fire in Bangladesh killed 112 workers — the United States trade representative notified Bangladesh that Washington might withdraw, suspend or limit that country’s trading privileges. The trade representative was responding in part to a complaint that the A.F.L.-C.I.O. filed, asserting that the Bangladesh government had worked in concert with its apparel manufacturers to suppress labor unions.

“There are serious concerns in Bangladesh related to freedom of association, worker safety and other issues,” a senior official in the trade representative’s office said on Friday. The trade representative’s office says it will decide in June whether to take action against Bangladesh, although under esoteric trade rules, any penalties could not be directed against that country’s apparel industry.

The most visible pressures that retailers have faced are street protests, including one in Barcelona, where demonstrators wore shirts with fake blood stains to protest Mango, Benetton and other retailers. In the United States, university chapters of United Students Against Sweatshops have helped organize a series of demonstrations this week against Gap in Boston, Los Angeles, New York and Washington to press it on factory safety.

Article source: http://www.nytimes.com/2013/05/11/business/global/clothing-retailers-pressed-on-bangladesh-factory-safety.html?partner=rss&emc=rss

Accusations Fly as Qantas Planes Return to the Skies

A flight from Sydney to Jakarta departed shortly after the Civil Aviation Safety Authority of Australia cleared it for takeoff Monday afternoon.

The resumption of service by Qantas followed 48 hours of travel chaos that left as many as 70,000 passengers stuck in airports around the globe, straining the airline’s relationship with its customers and drawing the ire of the Australian government.

In a statement, Qantas warned international customers to expect delays until at least Tuesday evening, Australian time. But it said domestic services would be running as scheduled from Tuesday morning.

Passengers booked to travel Monday from Los Angeles International airport, a major U.S. hub for Qantas, were told to report to the airport as scheduled. Still, the airline warned those who had been stranded by earlier cancellations to await further information before heading to the airport.

The tribunal’s decision in the early hours of Monday granted 21 days for Qantas and its workers to resolve their acrimonious dispute — the motivation for the airline’s halting of flights Saturday — and reach a binding agreement or face compulsory arbitration.

The action by Qantas that kept its planes out of the skies raised the stakes in the confrontation with its unions after months of tension.

The airline, one of the 10 largest in the world, was hit by a series of labor problems as employees voiced concern about wage inequality and the moving of jobs out of Australia. Workers staged various actions that included brief strikes and the refusal to work overtime.

Despite a direct appeal by the Australian prime minister, Julia Gillard, to solve the matter swiftly, hundreds of flights were canceled over the weekend and it took a court order to get the planes moving again.

Ms. Gillard tried to seize some credit for the resolution in a series of media appearances Monday. Her opponents argued, though, that she had failed to break the impasse herself because of her ties to the labor unions.

“I’ve done what I needed to do to get this dispute brought to an end, to get the planes back in the sky,” The Australian, a daily newspaper, quoted her as saying.

The opposition leader, Tony Abbott, wasted little time in blaming the government for the chaos, however, which some said was threatening to tarnish one of the nation’s most notable brands.

“I think the public has had a win, but it is no thanks to the Gillard government,” he said on Australian television.

Meanwhile, the chief executive of Qantas, Alan Joyce, who faced sharp criticism over his decision to ground the fleet, struck a contrite tone. But he also blamed the unions for the disruption.

“I apologize to all Qantas passengers that have been impacted by the industrial action by unions over the past few months and in particular the past few days,” Mr. Joyce said in a statement.

He suggested that grounding the fleet had been a tactical move by the airline to break the deadlock with the unions.

“That was the only way we could bring that to a head,” Mr. Joyce was quoted as saying by Reuters after the ruling.

Qantas had to reduce and reschedule flights for weeks because of the labor actions. But the unions said they were the injured party and accused the company of planning to outsource the company’s operations to Asia.

Qantas, which employs about 35,000 people, said the grounding of the fleet had cost it an estimated $21 million a day. It was losing $16 million a week in revenue as a result of the union actions.

Two of the leading credit ratings agencies, Moody’s Investors Service and Standard Poor’s, said Monday that they might lower the airline’s rating because of the fallout from the increasingly bitter industrial conflict.

But many investors and analysts seemed relieved that the shutdown of flights had ended and that a resolution to the disagreement with the unions might be in sight. The company’s shares closed up 4.4 percent in Sydney at 1.61 Australian dollars, or $1.06.

Qantas’s brand is unlikely to suffer in the long run, said Cameron McDonald, a Sydney-based aviation analyst with Deutsche Bank.

“It’s a fairly dramatic step,” Mr. McDonald said, referring to the grounding of flights. “The feedback that the company is giving down here is that they did what they deemed to be necessary to bring these things to a conclusion. And you’d have to say they achieved their aim.”

Article source: http://feeds.nytimes.com/click.phdo?i=f7f9d582b6a8d1a84d2b650d3bf66318