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Ethical Trading Initiative

Will Horror and over a Thousand Dead be a Watershed Moment for Bangladesh?

Duncan Green's picture

​A huge and chaotic conversation over how to respond to the appalling Rana Plaza factory collapse in Bangladesh (where the death toll has now passed an unprecedented 1100) is producing some important initial results, in the form of the international ‘Accord on Fire and Building Safety in Bangladesh’, launched last week.

I got a glimpse of the background on Wednesday at a meeting of the Ethical Trading Initiative, which brings together big brand retailers, including garment companies, trades unions and INGOs like Oxfam to work on wages and conditions in company supply chains. The Accord got some pretty rave reviews – ‘absolutely historic’, said Ben Moxham of the UK Trades Union Congress; comparable to the 1911 Chicago factory fire, according to one of the big clothes retailers at the meeting.

So what does it say? The Accord covers independent safety inspections, publicly reported; mandatory repairs and renovations; a vital role for workers and trade unions, including a commitment to Bangladesh’s Tripartite Plan of Action on Fire Safety (a national initiative). A key, and controversial aspect is that the Accord will include a legally binding arbitration mechanism, which wins a lot of trust from civil society and trade unions, but has spooked a number of companies based in the litigation-tastic USA (not all though –  part of Tommy Hilfiger’s in there, while Abercrombie and Fitch have said it they will join).