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July 11, 2013

Labor Rights Groups Reject U.S. Retailers' Safety Plan for Bangladeshi Factories 
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A group of major North American retail giants have unveiled their own
version of a safety plan for garment factories in Bangladesh. The
proposal calls for $42 million in spending on worker safety, $100
million in available loans, and factory inspections within 12 months.
But unlike a safety plan adopted by mostly European retailers, the new
commitments are not legally binding. Major U.S. companies including
Wal-Mart, Gap and Target advanced their version after refusing to
endorse the European agreement. Both measures followed the factory
collapse that killed more than 1,100 garment workers in April and a fire
that killed 112 last November. In addition to shunning binding
standards, the U.S. version also calls for "shared accountability" in
paying for the required safety improvements. The European plan puts the
onus for safety funding on the retailers themselves. In a statement,
five labor rights groups, including the Worker Rights Consortium and
United Students Against Sweatshops, criticized the U.S. retailers,
saying: "Wal-Mart, Gap and companies like them simply do not want to
make any promises they actually have to keep. ... Under [their] scheme,
brands and retailers are not obligated to pay one cent toward the
renovation and repair of their factories in Bangladesh."

 

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