May 18, 2024

Wal-Mart Toughens Fire Safety Rules for Suppliers

At least two suppliers were using the Tazreen Fashions factory in Bangladesh to produce garments for Wal-Mart in the weeks before the fire there. After the fatal blaze, Wal-Mart said those suppliers had used the factory without its knowledge after it had stopped authorizing production there. It did not say why. Wal-Mart said it had ended its relationship with those two suppliers.

In a letter sent to its suppliers on Tuesday, Wal-Mart said they must “fully and accurately disclose” in advance any factories they or any of their subcontractors plan to use. Under the policy, suppliers will be subject to termination even if an undisclosed factory is used “without the supplier’s knowledge” by anyone in the supplier’s supply chain. David Schilling, a program director at the Interfaith Center for Corporate Responsibility, praised the move, saying, “It’s an important step toward increased transparency and accountability of suppliers.”

Wal-Mart also announced tougher requirements on fire safety, saying “facilities found to have fire safety-related violations must initiate corrective actions immediately.” The company said that the repairs must be completed no later than 30 days after the violations were identified.

Three inspection reports that worker advocates found at the Tazreen factory after the fire showed that it had serious, continuing fire safety violations from May 2011 through April 2012.

Wal-Mart also told its suppliers that if they want to use additional factories, those factories will be required to “prequalify,” meaning they must first pass ethical sourcing standards on fire safety and other criteria.

Some labor rights groups said Wal-Mart’s new policy did not go nearly far enough.

Scott Nova, executive director of the Worker Rights Consortium, a monitoring group financed by American universities, said: “There are giant gaps. There is no commitment on covering the costs of the fire safety repairs and renovations that we all know are necessary.”

“There is also no real transparency,” he said. “There’s no way of knowing for two months, six months, a year, what the inspection reports find, and they won’t tell the workers the results of the inspections at their factories.”

Brooke Buchanan, a Wal-Mart spokeswoman, said the company would publicize the names of factories dropped for noncompliance. But she said there were no plans to list or publicize the names of all the factories that Wal-Mart and its suppliers use — something that worker rights groups have advocated to make it easier to monitor factories.

To help suppliers finance needed safety improvements, Wal-Mart is considering participating in a revolving fund that would provide loans to Bangladeshi factory owners, Ms. Buchanan said.

The letter to suppliers was first reported Tuesday by The Wall Street Journal.

Wal-Mart said all of its Bangladesh factories must have an “electrical and building safety assessment” by an independent, certified agency. Since 2005, factory fires in Bangladesh, many caused by electrical problems, have killed 600 workers.

After the Tazreen fire, many surviving workers said the eight-story factory had barred windows that prevented workers from escaping. In its new rules, Wal-Mart said any barred windows must have an emergency mechanism to allow for escape.

Wal-Mart also told its suppliers, “All floors and buildings, including dormitories, must have a secondary exit, and preferably an external fire escape route.”

But Mr. Nova voiced dismay that Wal-Mart’s new policy did not explicitly require fireproof staircases or external fire escapes in multistory factories. “The failure to have such effective means to exit was an important reason so many workers died at Tazreen,” he said. Ms. Buchanan said she expected inspectors to call for such measures when visiting multistory factories.

Dara O’Rourke, a specialist on labor policy at the University of California, Berkeley, praised Wal-Mart’s new requirement that fire safety violations be addressed immediately. “This is a critical step towards motivating factories to fix the problems they find in audits,” he said.

Wal-Mart is also requiring factories to have proper access for fire trucks and firefighting equipment, and that suppliers have a worker in each country where they operate responsible for ensuring factory compliance.

Article source: http://www.nytimes.com/2013/01/23/business/wal-mart-toughens-fire-safety-rules-for-suppliers.html?partner=rss&emc=rss

Tazreen Garment Factory Used by 2nd Walmart Supplier

Two days after the Nov. 24 fire, Walmart said in a statement that it had stopped authorizing production at Tazreen and that despite that move, a single supplier, later identified as Success Apparel, had “subcontracted work to this factory without authorization and in direct violation of our policies.”

The documents — found in the factory by officials from the Bangladesh Center for Worker Solidarity — show that a subcontractor for an additional Walmart supplier, International Intimates, was having women’s robes and nightgowns made at the factory for Walmart’s winter season. The documents show that the factory was also making women’s nightwear for Sears.

The documents contain a June 2012 e-mail from International Intimates’ subcontractor to officials at the Tazreen factory confirming plans to produce a robe and nightgown for Walmart, as well as a robe and pajama set for Sears. The documents also contain a production report from September 13 showing plans to produce 117,000 of these garments for Walmart.

Another document, dated Nov. 24 — the date of the fire — shows that Tazreen’s parent company, the Tuba Group, billed the subcontractor, I.T. Apparels, for the “chemise robe” production.

The documents were found in factory offices that were largely undamaged by the fire and were made available to The New York Times by an intermediary, the Worker Rights Consortium, a factory monitoring group based in Washington that is financed by American universities.

Kevin Gardner, a Walmart spokesman, said that the retailer had stopped authorizing production at the plant “many months ago,” but on Monday he again declined to say when or why Walmart had ended such authorization.

“We are still investigating the facts,” Mr. Gardner said. “If we determine that other suppliers were using a deactivated factory to produce merchandise for Walmart, that’s a violation of our supplier standards. If that is the case, it is unacceptable and we will take appropriate action.”

Documents found at the factory earlier showed that orders in the name of three other American apparel suppliers had been produced at the factory for Walmart within the last year or so.

In a statement, International Intimates said it was “conducting a thorough review of this incident.” The company added, “It is critical to note that Tazreen Fashions is NOT one of our approved partners and no one was authorized to make our products there.”

Judy Gearhart, executive director of the International Labor Rights Forum, a Washington-based nonprofit group, said, “I don’t understand why Walmart is spending so much time focusing on trying to claim that they didn’t know that work for Walmart was being done in this factory when Walmart should be focusing on trying to insure decent compensation for the families and to prevent future fires in its supply chain.”

Mr. Gardner said Walmart was working with “key stakeholders,” including Bangladesh garment manufacturers, the Bangladesh government and others “to improve fire safety standards in Bangladesh.”

Scott Nova, executive director of the Worker Rights Consortium, said the new documents raised additional questions about Walmart’s role at the factory.

“If Walmart’s claim that they were the victim of one rogue supplier had any shred of credibility, it’s gone now,” he said. “Walmart is limited to one of two options — to say, yes, we know these suppliers were using the factory or, two, we have no control over the supply chain that we’ve been building in Bangladesh for more than 20 years.”

In a statement, Success Apparel said that it had placed an order with a Walmart-approved subcontractor, Simco, and that Simco, without its authorization, in turn subcontracted 7 percent of that order to Tazreen’s parent, the Tuba Group.

A spokesman for Success Apparel acknowledged that it was the company that Walmart had terminated as a supplier.

In a statement, Sears said that it did not know that one of its suppliers had been using Tazreen and that it, too, had terminated that supplier.

Article source: http://www.nytimes.com/2012/12/11/world/asia/tazreen-factory-used-by-2nd-walmart-supplier-at-time-of-fire.html?partner=rss&emc=rss