Factory crises Textile industry in Bangladesh

1 factory crises

1.1 s sportswear ltd fire 2010
1.2 2012 tazreen fashion factory
1.3 rana plaza collapse 2013

1.3.1 bangladesh garment manufacturers , exporters association (bgmea) report


1.4 mirpur textile factory fire 2013
1.5 aftermath of crises

factory crises

in 2000 garment entrepreneurs had reputation shirking custom duties, evading corporate taxes, remaining absent in capital markets, avoiding social projects such education, healthcare, , disaster relief but, argued authors quddus , salim, these entrepreneurs took risks needed build industry. bangladesh competes in manufacturing industry maintaining lowest labor costs in world. garment workers minimum wage set @ $37 month in 2012 since 2010 bangladesh s double-digit inflation no corresponding rise in minimum wage , labor rights, has led protests. following labour disputes in 2013, minimum wage raised equivalent of $68 month. many workers profited increase, expected attract more young girls factories.

other major fires in 1990 , 2012, resulting in hundreds of accidental deaths, included @ s sportswear limited , fire @ tazreen fashions ltd. spectrum sweater industries, phoenix garments, smart export garments, garib , garib, matrix sweater, kts composite textile mills , sun knitting. major foreign buyers looking outsourcing demand compliance-related norms , standards regarding safe , healthy work environment includes fire-fighting equipment, evacuation protocols , mechanisms , appropriate installation of machines in whole supply-chain. rmg insiders in bangladesh complain pressure comply , argue rmg factory owners hampered shortage of space in rental units. in spite of industry exports totaled $19 billion in 2011-2012. expected export earnings increase $23 billion in 2012-2013.

in effort eliminate underlying problems , avoid further deadly tragedies in rmg factories in 2010 clean clothes campaign ccc, international labour rights forum (ilrf), worker rights consortium (wrc), , maquila solidarity network (msn) contacted many of rmg international buyers , offered set of recommendations regarding measures should taken. in 2012 bangladesh garment manufacturers , exporters association announced plans expel 850 factories membership due noncompliance safety , labor standards. members of u.s. house of representatives have urged u.s. trade representative s office complete review of bangladesh s compliance eligibility requirements generalized system of preferences.

five deadly incidents november 2012 through may 2013 brought worker safety , labor violations in bangladesh world attention putting pressure on big global clothing brands such primark, loblaw, joe fresh, gap, walmart, nike, tchibo, calvin klein , tommy hilfiger, , retailers respond using economic weight enact change. no factory owner had ever been prosecuted on deaths of workers. changed 41 murder charges filed relating 1,129 deaths occurred during 2013 savar building collapse.

scott nova of worker rights consortium, rights advocacy group, claimed auditors, of whom paid factories inspect, investigated workers right issues such hours or child labor did not inspect factories’ structural soundness or fire safety violations. nova argued cost of compliance safety standards in 5,000 clothing factories in bangladesh $3 billion (2013). following 24 april deadly industrial accident, mahbub ahmed, top civil servant in bangladesh s commerce ministry, fearing loss of contracts represent 60 per cent of textile industry exports, pleaded eu not take tough, punitive measures or impose harsh trade conditions on bangladesh improve worker safety standards hurt economically crucial textile industry , lead loss of millions of jobs. 2 dozen factory owners members of parliament in bangladesh.

that s sportswear ltd fire 2010

on 14 december 2010 thirty people died , 200 injured in fire @ garment factory, that’s sportswear ltd , owned hameem group. international buyers of factories products included american eagle, gap/old navy, jc penney, kohl’s, squeeze, sears, vf asia, target store, charming shoppes, wal-mart in usa market , h & m, carrefour, zara, hema, m & s mode, etam, western store, migros, celio , pnc in europe market. in february 2010 deadly fire @ garib , garib factory killed 22.

2012 tazreen fashion factory

a fire broke out on 24 november 2012, in tazreen fashion factory in dhaka killing 117 people , injuring 200. deadliest factory fire in history of bangladesh. according new york times, walmart played significant role in blocking reforms have retailers pay more apparel in order bangladesh factories improve safety standards. walmart director of ethical sourcing, sridevi kalavakolanu, asserted company not agree pay higher cost, such improvements in electrical , fire safety in 4,500 factories extensive , costly modification , not financially feasible brands make such investments. well, walmart client 5 of tazreen apparel factory s 14 production lines. in response walmart donated on million dollars north south university, environment, health , safety academy (ehs+) improve fire safety in rmg factories in bangladesh institute sustainable communities (isc), u.s.-based nonprofit. in december 2013, factory owner delwar hossain , 12 other factory officials charged culpable homicide deaths in factory fire. first time garment factory owner in bangladesh had been charged.

rana plaza collapse 2013


collapsed rana plaza building near dhaka, bangladesh, in 2013

on 24 april 2013 on 1045 textile workers factories making clothes western brands killed when garment factory collapsed. 2013 savar building collapse in rana plaza complex, in savar, industrial corner 20 miles northwest of dhaka, capital of bangladesh. world s deadliest industrial accident since bhopal disaster in india in 1984. while 2,500 rescued rubble including many injured, total number of missing remained unknown weeks later. building owner, sohel rana, built additional 2 floors beyond approved permit six-floor building. rana, associated ruling awami league, used shoddy building materials, including substandard rods, bricks , cement, , did not obtaining necessary clearances , constructed building on pond filled sand . engineer raised safety concerns after noticing cracks in rana plaza complex day before collapse. in spite of factories stayed open fill overdue orders. when generators restarted after power blackout building caved in. 6 garment factories in rana plaza cleared re-open on 9 may 2013 after inspectors allegedly issued safety certificates. 9 people arrested including 4 factory owners, owner of complex , engineer warned of crack in building. several prominent transnational companies had products linked factories within rana plaza building including retail giants wal-mart, mango, dutch retailer c & a, benetton fashions, cato fashions, , popular british chain primark. while incident raised international concern structural integrity , safety of many bangladeshi textile factors, industry saw significant rise. on time collapse march 2014, exports increased on 16% resulting in $23.9 billion dollars.

in june 2015 after two-year investigation homicide charges filed against 42 people in 2013 collapse of factory rana plaza killed more 1,136 people in april 2013. sohel rana, building owner, refat ullah, mayor @ time of incident along owners of 5 garment factories located in rana plaza, , dozens of local council officials , engineers charged culpable homicide, carries maximum sentence of life in prison under bangladeshi law.

bangladesh garment manufacturers , exporters association (bgmea) report

bangladesh garment manufacturers , exporters association (bgmea) recognised trade body represents export oriented garment manufacturers , garment exporters of country. fundamental objective of bgmea establish healthy business environment close , mutually beneficial relationship between manufacturers, exporters , importers, thereby ensuring steady growth in foreign exchange earnings of country. after savar collapse, bgmea assembled 11-member committee investigate causes of tragedy. in final report bgmea pinned blame on inspection officials granted permits factory owners install heavy machinery on 2 floors not authorized exist in first place , on local officials neglecting ensure proper oversight of building plans. report indicated building owner sohel rana may have been able corrupt municipal officials offering bribes.

mirpur textile factory fire 2013

on 9 may 2013 8 people killed when fire broke out @ textile factory in eleven-story building in mirpur industrial district owned tung hai group, large garment exporter. president of politically powerful textile industry lobby group, bangladesh garment manufacturers , exporters association (bgmea), told reuters bangladeshi managing director of company , senior police officer among dead.

as of june 2014, efforts improve safety being coordinated under unprecedented comprehensive accord on fire , building safety ... around 180 companies - europe - international , local trade unions, bangladeshi employers, exporters , government part of agreement. in addition, alliance bangladesh worker safety - association of 26 american companies including cap , wal-mart seeks address these issues entrepreneurial standpoint, without participation of trade unions. 2 groups responsible inspecting around 2,100 factories on period of 5 years. of july 2014, progress had been made in inspecting 600 factories. spokesman stated ten factories have been submitted government established review panel , have been either closed or partially.

aftermath of crises

in june 2013 president barack obama announced u.s. trade privileges bangladesh, generalized system of preferences (gsp), suspended following deadly 24 april 2013 collapse of rana plaza, considered global garment industry’s worst accident. in 2007, american federation of labor , congress of industrial organizations (afl-cio) had submitted petition under gsp benefits office of united states trade representative (ustr) alleging number of worker rights issues in export processing zones, ready-made garments (rmg) sector, , seafood processing sector. investigated expedited concerns on labour rights , rmg factory safety concerns increased in 2012 more deadly accidents , unsolved killing in 2012 of prominent trade unionist aminul islam.

in addition, international pressure human rights organizations, labor organizations, ngos, , consumers western nations pushed corporate retailers play larger role in protecting worker safety. accord on fire , building safety in bangladesh, legally binding document, obligates retailers cooperate safety inspections , provide financial assistance building owners in order ensure standards of such inspections met. national bangladeshi government updated own legislation adding stipulations 2006 bangladesh labor act. employers set aside 5% of funds employee welfare fund , no longer able prevent formation of worker unions.

in october 2013, government of bangladesh (gob) , international labour organization (ilo) launched improving working conditions in ready-made garment sector (rmgp) program, usd $24.21 million three-and-a-half year initiative. united kingdom , netherlands jointly contributed usd $15 million. rana plaza , tazreen became symbols of wrong in rmg sector. ms. sarah cook, uk s department international development (dfid) head in bangladesh said rmgp key part of uk s approach ensure safe working conditions , improved productivity in rmg sector , sustainability of ready-made garment industry has pivotal role play in bangladesh s continued social , economic development.

the alliance bangladesh worker safety officially began operations in dhaka on december 9, 2013. five-year independent , legally binding agreement between 26 north american companies still being enforced. far, @ least 25 cases have been brought alliance review , 4 factories have officially been closed.

one of main concerns after crises structural integrity of rmg , textile factories. government of bangladesh has made changes in regard. working ilo, government has upgraded chief inspector of factories , associated establishment office “department”, hired additional labor, fire, , building inspectors, implemented additional training programs inspectors, , created database of factories facilitate inspections. many factories have been inspected since these changes made, there still 1,000 factories have not been checked either because not registered organization or have listed wrong address takes time away inspectors. pointing slow development of regulation of industry particularly after such major human disaster, dr mia rahim opines bangladesh should more focus on challenges , opportunities of local regulation of industry. suggests rmg manufacturing , supply industry should not depend on prescriptions of global buyers adopt new governance approach in local regulation framework of industry.