April 19, 2024

U.S., Urging Worker Safety, Outlines Steps for Bangladesh to Regain Its Trade Privileges

Three weeks after announcing it would suspend Bangladesh’s trade preferences, the administration released an “action plan,” which calls on Bangladesh to significantly increase the number of labor, fire and building inspectors and to improve their training. The plan urges Bangladesh to impose stiffer penalties, including taking away export licenses, on garment factories that violate labor, fire or building safety standards.

In addition, the administration recommended that Bangladesh create a public database of all garment factories for reporting labor, fire and building inspections, including information on violations found, penalties assessed and violations corrected, with the names of the lead inspectors.

The administration suspended Bangladesh’s trade privileges after a widespread outcry that the country was doing too little to safeguard worker’ rights and safety in light of the Rana Plaza factory building collapse in April that killed 1,129 workers and the Tazreen factory fire in November that killed 112.

The action plan calls for establishing “an effective complaint mechanism, including a hot line” for workers to anonymously report fire, building and workers’ rights violations.

With regard to the garment industry, the Obama administration said Bangladesh should enact and carry out measures to address concerns that factories were suppressing workers’ rights to unionize and bargain collectively. The administration urged Bangladesh to ensure that unions and their supporters do not face reprisals and to “expeditiously” grant recognition to unionization efforts when enough worker signatures have been gathered to meet legal requirements.

Union leaders in Bangladesh say that after they gather the needed 30 percent of worker signatures at a company to qualify for union recognition, the country’s labor department gives those lists of names to factory owners, who then often proceed to fire union supporters or bully them into withdrawing their names from the list — so that there is no longer the 30 percent needed. Labor leaders say that is a major reason so few of the nation’s 5,500 garment factories and four million garment workers are unionized.

On Monday, the Bangladesh government adopted a new labor law that it said would be critical in making it easier for workers to unionize. One provision bars government labor officials from giving that list of union supporters to factory owners. Nonetheless, Bangladeshi labor leaders pointed to several new provisions to assert that the law was in ways a step backward and made it harder to unionize.

The Obama administration called on Bangladesh to publicly report information on the status and outcomes of individual unionization efforts and on whether the government had officially registered them, including the time taken to process unionization applications and the basis for any denials. It said Bangladesh should make sure that its export-processing zones allow full freedom to unionize.

The administration also said Bangladesh should proceed with a “transparent investigation” into last year’s killing of Aminul Islam, a prominent union organizer. Bangladeshi news media have reported that government officials might have been involved.

Article source: http://www.nytimes.com/2013/07/20/business/global/us-urging-worker-safety-outlines-steps-for-bangladesh-to-regain-its-trade-privileges.html?partner=rss&emc=rss

After Bangladesh, Seeking New Sources

The relentless search for new locations has taken on more urgency after the deadliest industrial accident in the global garment industry’s history, a multistory factory collapse in Bangladesh that left 1,127 people dead. Buying from Bangladesh, said Mr. Model, “has been politically incorrect ever since problems started there, so a lot of major players had already been looking for alternatives.”

When a senior executive from one of the largest American mass-market retailers called him last week with worries about suppliers in Bangladesh and plans for a trip to Vietnam and Cambodia to seek alternatives, Mr. Model was ready with advice: “I told him to add a stop in Indonesia.”

Many Western executives are taking such trips this spring. A lethal factory fire in Bangladesh last November, 33 regional or national strikes there since January, hundreds of deaths in factional street fighting there since February, and the Rana Plaza collapse in late April have left multinational corporations scrambling for other options.

“Right now, the name of Bangladesh just gives a bad rep to a company,” said Mr. Model, the dapper chief executive of Joseph Model Associates, which designs and distributes the Annabelle New York brand of high-end apparel and also makes private-label brands for various department store chains.

Western executives are checking on potential new suppliers in southern Vietnam, central Cambodia and the hinterlands of Java in Indonesia. The JW Marriott Hotel in Jakarta, a favorite of Western garment buyers, is so full these days that it is hard to book a room on short notice. Indonesian garment executives say they have seen a steady procession of arrivals in recent weeks and months, always asking the same questions about political stability, labor laws, safety compliance and wages.

“At first it was because of China getting too expensive, then came the Bangladesh fire tragedy, and then there have been so many steps in Bangladesh’s troubles,” said Ade Sudradjat, the chairman of the Indonesian Textile Association. “Some buyers feel uncomfortable placing orders in Bangladesh.”

Many multinationals are exploring their options in case street clashes and politically motivated national strikes worsen in Bangladesh, which is the world’s second-largest garment manufacturer after China. The country’s Islamist movement has become increasingly militant in recent weeks and begun demanding greater application of Islamic principles to daily life and government.

Garment manufacturing makes up a fifth of the economy in Bangladesh and four-fifths of its exports, which means that one of the world’s poorest, most densely populated countries is desperately dependent on continued export orders to stave off soaring unemployment and possibly further political unrest. Some executives say that many multinationals will continue buying from Bangladesh, although some may diversify their orders to more countries.

“People are on the one hand looking at contingency plans in case the unrest gets worse,” said Bruce Rockowitz, the group president and chief executive of Hong Kong-based Li Fung, one of the world’s largest sourcing companies. “There are some people who want to move completely away from Bangladesh, but there are only a few of them.”

Tessel Pauli, a spokeswoman for the Clean Clothes Campaign, dismissed retailers’ worries about civil unrest as a disingenuous excuse to avoid improving safety standards there. “Political turmoil has been existing in Bangladesh over the last decade,” she said, while adding, “Of course, they should make it clear to the government that bloodily suppressing street demonstrations should stop immediately.”

Article source: http://www.nytimes.com/2013/05/16/business/global/after-bangladesh-seeking-new-sources.html?partner=rss&emc=rss