This Article is From Jun 01, 2013

US retailers plan Bangladesh safety effort

US retailers plan Bangladesh safety effort

The nine-story building that collapsed in Bangladesh

Washington: US retailers have tapped two former senators to lead a plan to improve safety in Bangladesh after a massive factory collapse, but activists on Friday called the effort a public relations stunt.

The initiative comes as US retail giants Walmart and Gap resist a safety agreement backed by a growing number of European brands that would require independent inspections and empower unions in the South Asian country.

Associations of retailers from the United States and Canada said that George Mitchell, the former US Senate majority leader who brokered a peace agreement in Northern Ireland, and former senator Olympia Snowe would guide discussions on "a new program to improve fire and safety regulations" in Bangladesh.

The Bipartisan Policy Centre, a Washington think tank co-founded by Mitchell, said Thursday that the group of retailers would release a plan in early July.

The effort comes after 1,129 workers died when the nine-story Rana Plaza crumbled on April 24 despite previous safety concerns, shining a light on factory conditions in Bangladesh, the world's second largest garment producer.

Walmart, the world's largest retailer, and Gap argue they are already making their own investments to ensure top-notch safety standards.

Walmart, which has committed to inspect all 279 of its Bangladeshi suppliers and publish the results, said in an emailed statement that it hoped to work with stakeholders "to improve the standards for workers across the industry."

"Taking part in the development of this broader safety plan with other brands, retailers and the Bipartisan Policy centre, building upon our previously announced commitments, is part of that work," it said.

Labour activists say US retailers oppose the so-called Accord on Fire and Building Safety because it would set a precedent of binding commitments and union representation, potentially exposing them to lawsuits.

Walmart is known for its strong opposition to organized labour unions.

Walmart and Gap "can't admit that this is about money so they have to create the appearance that they're making a serious effort without actually incurring any obligation," said Scott Nova, director of the Worker Rights Consortium.

"That's what this is designed to do. It's a public relations exercise."

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