Accord has terminated business relations with eight more readymade garment factories in Bangladesh. In all, the European brands’ and buyers’ organization has cut business relations with 97 garment factories in Bangladesh for laxity in implementing workplace safety measures and submitting corrective action plans.
After the Rana Plaza building collapse in 2013, which killed more than 1,100 people, mostly garment workers, EU retailers formed the Accord to improve factory safety in Bangladesh. After completing the initial assessment the initiative provides corrective action plans to the factory owner with a certain timeframe to fix safety faults. However, authorities of most factories remain behind schedule.
If any factory seeks financial assistance for remediation, Accord would facilitate negotiation over the issue between the lead buyers and manufacturers. Alliance is a coalition of North American retailers. Both Accord and Alliance have conducted safety inspections in more than 2,300 garment factories from where they procure products.
These groups are interested in structural, electrical and fire safety initiatives at the factories from where they procure products. Accord’s tenure expires in May 2018. More than 15 brands and retailers including H&M, C&A, Loblaw, Primark, Inditex and PVH and two global rights groups - UNI Global Union and IndustriAll Global Union - on June 29 signed an agreement in Paris to extend Accord's tenure for three more years till 2021.