Bangladesh: An Update

Similar documents
TEXTS ADOPTED Provisional edition. European Parliament resolution of 18 September 2014 on human rights violations in Bangladesh (2014/2834(RSP))

Bangladesh JANUARY 2014

Labour conditions and health and safety standards following the recent factory fires and building collapse in Bangladesh

Workers Rights and Safety

Complexities of Reputation Management and Policy Making in a Globalized World: Bangladesh after Rana Plaza. Sonia Jawaid Shaikh

Bangladesh Overview December 2018

How To Protect Workers in Global Supply Chain?

And right now, these fundamental rights are under attack, north to south:

ECOSOC. Background Guide. Chairs: Matt Sanborn Website: EagleMUNC Boston College Model United Nations Conference

Rana Plaza and trade unions. New Internationalist Easier English Ready Intermediate Lesson

LABOUR STANDARDS IN THE BANGLADESH GARMENT IN- DUSTRY: A POLITICAL ECONOMY PERSPECTIVE

Asia as Global factory. Is the 21 st Century - Asian Century? OCCUPATIONAL HEALTH AND SAFETY IN ASIA. Hazards Campaign Conference July 29-31, 2016

Towards experimentalist governance in EU trade and labour rights? A case. study of the Bangladesh Sustainability Compact

Bangladesh on the path to GSP Plus with EU Star Business Report

HOW TO MAKE TRADE BENEFIT WORKERS? Core Labour Standards Plus Linking trade and decent work in global supply chains

TEXTS ADOPTED Provisional edition. European Parliament resolution of 15 November 2018 on the human rights situation in Bangladesh (2018/2927(RSP))

Protecting Migrant Workers in the Supply Chain

Shawna Bader-Blau, Executive Director, Solidarity Center. Testimony before the Senate Standing Committee on Human Rights, Parliament of Canada

Reinforcing Regulatory Regimes: How States, Civil Society, and Codes of Conduct Promote Adherence to Global Labor Standards

The main areas where the EU helps Bangladesh are economic development, human rights, good governance and the environment.

BANGLADESH SUSTAINABILITY 4: SITUATION WORSENING, TIME FOR ACTION IS NOW

Address by Her Excellency Sheikh Hasina, Hon ble Prime Minister of Bangladesh at the Business Meeting with the Business Council for International

Appendices PART 5. A Laws and the struggle for decent, healthy, and fair work B Common chemicals and materials Resources...

Domestic Workers in Bangladesh

STATEMENT OF THE NATIONAL DEMOCRATIC INSTITUTE (NDI)/CARTER CENTER PRE-ELECTION DELEGATION TO BANGLADESH S 2001 PARLIAMENTARY ELECTIONS

Issues and Comments on the Designated Supplier Program (DSP) Proposal

2 Labor standards in international supply chains

STATEMENT OF THE NATIONAL DEMOCRATIC INSTITUTE PRE-ELECTION DELEGATION TO BANGLADESH S 2008 PARLIAMENTARY ELECTIONS. Dhaka, November 19, 2008

What are the problems particular to the region/ to particular countries within the region?

JOINT MOTION FOR A RESOLUTION

UNITED STATES COMMISSION ON INTERNATIONAL RELIGIOUS FREEDOM

UN Working Group on Business and Human Rights 'Impressed' With Fair Food Program

If Corporations Are Sustainable, Why Are So Many Workers Dying: The Business Case for Workforce Sustainability

Research report. Binding Power: The Sourcing Squeeze, Workers Rights, and Building Safety in Bangladesh Since Rana Plaza

Select 2016 The American elections who will win, how will they govern?

Beyond Rana Plaza: Next Steps for the Global Garment Industry and Bangladeshi Manufacturers

Be Happy, Share & Help Each Other!!! जह हर य ल वह ख शह ल प ड़ लग ओ प ड़ बच ओ, इस द न य क स द ब ओ जल ह त कल ह

POLLING TOUR GUIDE U.S. Election Program. November 8, 2016 I F E. S 30 Ye L A

R E V: OCTOBER 31 , 2013 UEZ MARGAA RET L. RODRIG (A) whose helped Bangladesh. Bangladesh after. until. Funding

The story of the Awami League

I. Introduction. II. Background

Governing Corporate Social Responsibility in the Apparel Industry after Rana Plaza

Trade and Human Dignity in the Workplace

Guidance for candidates and agents

University of Arizona AMENDMENTS TO THE INTERNATIONAL FIRE CODE 2012 EDITION

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ) ) ) ) ) ) ) ) ) ) ) CLASS ACTION COMPLAINT

Motaleb Monowara Composite Ltd DBID (25241) CAP B Audit Date: 01/03/2015 Audit Type: Re Audit Score: Improvements Needed. Responsible Person

North. Korea. new era. there. is currently taking place. Korea GPI Consultancy, Rotterdam

Clothing Companies Cashing in on Countries in Crisis. Like any wicked problem there is no clear cut solution. Especially now that most these countries

NOT Made in USA: A Research Paper on Sweatshops and How They Could or Could Not Always Be a Bad Thing. By: Diana Joines and Christina Zahn

ASIA FLOOR WAGE ALLIANCE PUBLIC LAUNCH DECISION STATEMENT

The State of Manufacturing. John Lawyer, Vice President MACNY The Manufacturers Association

Human Rights Law The Modern Slavery Act Obligations in Transparency and Compliance. Kristy Grant-Hart. Sarah Powell

PRODUCT SAFETY AND COMPLIANCE CONFERENCE. Thursday, October 19, 2017 I The Reverie Saigon I Hồ Chí Minh City, Vietnam

Outcome of US-Bangladesh Partnership Dialogue Private Sector Forum

PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB5304 Project Name

Zero Tolerance Protocol

Tazreen Fire the Ground Realities. Asian Network for the Rights of Occupational and Environmental Victims. Asia Monitor Resource Centre

GFMD Business Mechanism Thematic Meeting

China Trade War. BDO Dunwoody/Chamber Weekly CEO/Business Leader Poll by COMPAS in the Financial Post for Publication June 6, 2005

Thank you for getting in touch and giving us the opportunity to comment on the story by Facing Finance.

Using the WPTW System: Frequently Asked Questions

Information supplied by governments on the application of ratified Conventions

Responsible Sourcing Forced Labor Risks. Costco Case Study

The Political Challenges for Free and Fair Elections in Bangladesh

Has Globalization Helped or Hindered Economic Development? (EA)

IndustriALL Global Union Shipbuidling-Shipbreaking AG Introduction & Background data

Workers Rights and International Labor Standards

BUYERS. Buyers have a responsibility to adopt the 3-pillar policy, and establish clear operational protocols stating requirements for their suppliers.

EXECUTIVE SUMMARY. Shuji Uchikawa

Mapping the Global Garment Supply Chain Presentation of a WageIndicator Report (Maarten van Klaveren and Kea Tijdens, August 2018)

GLOBAL ECONOMIC CRISIS & GENDER EQUALITY THREATS, OPPORTUNITIES AND NECESSITIES

N GAGE CONSULTING FOREIGN TRADE REPORT

CRS Report for Congress

Cambodia. Overview of Labor Legal Issues in Cambodia. I. Introduction. Kanharith NOP Attorney-at-Law

FIGHTING HUMAN TRAFFICKING: THE FORCED LABOUR DIMENSIONS

CAMBODIA S GARMENT INDUSTRY POST-ATC: Human Development Impact Assessment. CHAN Vuthy EIC Researcher

Permit to Work Systems

FIGHTING AGAINST PRECARIOUS WORK

To Norges Bank 5 June Recommendation to exclude Texwinca Holdings Ltd from the Government Pension Fund Global (GPFG)

AMENDMENTS EN United in diversity EN. European Parliament 2016/2140(INI) Draft opinion Sajjad Karim (PE592.

2015 Corporate Social Responsibility Risk Index


In Chinese Factories, Lost Fingers and Low Pay

STATEMENT OF NDI S PRE-ELECTION ASSESSMENT MISSION TO BANGLADESH S 2018 PARLIAMENTARY ELECTIONS. October 12, 2018

Central America strategic sourcing review a focus on Guatemala, El Salvador and Honduras

WORKER RIGHTS CONSORTIUM ASSESSMENT THAI GARMENT EXPORT 5 (THAILAND) FINDINGS, RECOMMENDATIONS AND STATUS. April 3, 2015

Bangladesh textile kings weave a hold on power. disaster in dhaka

Guidance for candidates

Exploitation: An Act of Cruelty or Opportunity. Today, the world produces millions of goods in order to satisfy the needs of the

The International Crimes Tribunal in Bangladesh. Critical Appraisal of Legal Framework and Jurisprudence

Preferential market access in recent years has been linked to such goals as limiting civil conflict, arms sales, job losses and worker exploitation

Peter McAllister Executive Director, ETI

Vietnam, Cambodia, Laos Annotation

Ch 28-3 Voting Rights

The Economics of Globalization: A Labor View. Thomas Palley, Assistant Director of Public Policy, AFL-CIO

Answers by the Minister of Foreign Trade and Development Cooperation to:

Sweat & Tears. Jul/Aug 2013 The American Prospect 61

Bangladesh Institute of International and Strategic Studies 1/46, Old Elephant Road, Eskaton, Dhaka Country Lecture on The Republic of Korea

SOWK 675.S1 Advanced International Development Modules. Key Words: Bangladesh; disaster; Savar; relief and rescue. Submitted by.

Transcription:

Bangladesh: An Update Avedis H. Seferian, Esq. President & CEO Worldwide Responsible Accredited Production (WRAP) Ethical Sourcing Forum New York City March 27, 2014

Agenda Bangladesh Overview RMG Industry Background & Recent Events Political Update International Crimes Tribunal Latest Elections Updated Labor Law & New Minimum Wage Industry Update ILO Better Factories, Tripartite National Plan of Action, Accord & Alliance Accord & Alliance Activities Current Scenario & Forecast Conclusion

Bangladesh Overview 160 million people in 57,000 sq. miles Population density 2,500/sq. mile Major textiles/apparel sourcing destination (#2 exporter, after China) 5,000 factories employing 4 million workers (mostly women)

Background History of health and safety concerns Poorly educated work force Inadequate training, even at managerial/supervisory level Many factories housed in buildings not meant for industrial use Weak building codes General lack of enforcement

Tazreen Fashions-November 24, 2012 Retailers and suppliers hit by fallout from deadly Bangladesh factory fire -CNN Fatal Fire in Bangladesh Highlights the Dangers Facing Garment Workers -The New York Times Paying with Their Lives: The High Cost of Cheap Clothing -Solidarity Center

Smart Garments-January 26, 2013 Fire guts Bangladesh garment factory, six killed -Reuters Another factory fire kills more garment workers -ABC News Global retailers shamed after another garment fire in Bangladesh -The Christian Science Monitor

Rana Plaza-April 24, 2013 Building Collapse in Bangladesh Leaves Scores Dead -The New York Times Big Brands Face Scrutiny Over Factory Safety After Bangladesh Collapse -Associated Press Factory collapse A wake-up call for fashion industry -ABC Australia

Political Update - ICT International Criminal Tribunals Set up in late 2009 to investigate acts of genocide committed during Bangladesh Liberation War First indictments issued in 2010; first death sentence handed down in January 2013 Massive social upheaval, violent hartals Jamaat-e-Islami declared illegal in August 2013 Senior Jamaat leader, Abdul Quader Mollah, initially sentenced to life, executed in December 2013 More protests Meanwhile, the time for general elections arrived

Political Update General Elections Customary caretaker govt. approach abandoned Opposition party BNP threatened boycott Lots of violence and hartals in lead-up to elections Infamous phone call between PM Sheikh Hasina and Leader of Opposition Khaleda Zia Oct. 29, 2013 Polls held on January 5, 2014 Voter turnout very low (22%); 21 deaths reported on election day Ruling party Awami League wins in landslide More than 50% of seats uncontested Subsequent attempts to contest results; more hartals, but BNP struggling Khaleda Zia and other leaders facing April trial for corruption Currently, AL seems fairly stable in power

Political Update New Labor Law & Minimum Wage New Labor Law approved in July 2013 in part due to ILO pressures Union registration system streamlined Minimum Wage increased 77% in November 2013 - from 3000 BDT (approx US$38) to 5300 BDT (approx US$68) per month Initial resistance on the part of the factory owners, but subsequent implementation seems to be proceeding well enough Some talk persists of factories still paying old rate

Industry Update Multiple initiatives formed in the wake of Rana Plaza May 2013 Accord on Fire & Building Safety in Bangladesh July 2013 Alliance for Bangladesh Worker Safety July 2013 National Tripartite Plan of Action Also, ILO announced: Launch of Better Work Bangladesh Still in set up stage; looking for Program Manager February 2014 - Rana Plaza Donor Trust Fund estd.

Industry Update Accord 150 apparel companies + unions + NGO witnesses Largely European Alliance 26 member companies + supporting associations Largely North American Both published updated lists of factories, as of March 2014 Accord: 1639 factories (with 2 million workers) Alliance: 770 factories (with 1.4 million workers) 378 units in common

Accord & Alliance Activities Inspections: Agreed on common set of technical standards for building fire, safety and electrical safety in November 2013 Accord begun inspections in February 2014 Ten facilities already covered; reports on website Alliance inspections have begun; first reports expected in April Training: Alliance has begun training program Accord still looking for a Chief Trainer Jointly held first ever International Trade Expo for Building and Fire Safety in Dhaka, February 23 & 24, 2014 Both will have Advisory Board meetings in April

Current Scenario & Forecast Political situation improving; now largely stable But most predict current government will not last full term Initial fears about buyers leaving not borne out Jan 2014 year-on-year garment exports grew at 6.36% Still, this is a slower growth rate than usual for Bangladesh Inspections and trainings will soon be in full swing Questions remain concerning harmonizing efforts and whether the July 2014 deadlines can be met Real test will be around repairs/upgrades Who will pay? What happens to facilities that cannot be fixed?

Conclusion 2014 will be a pivotal year for Bangladesh Upcoming anniversary of Rana Plaza - April 24 Will likely remain #2 apparel exporter in the world But facing increasing pressure from SE Asia, esp. Vietnam Should see the beginnings of a shrinking in the number of factories Expect facilities to shift out of Dhaka city and into industrial zones Increase in cost of sourcing from Bangladesh

Thank you! Avedis H. Seferian, Esq. President & CEO aseferian@wrapcompliance.org Worldwide Responsible Accredited Production Arlington, VA www.wrapcompliance.org +1-703-243-0970

BANGLADESH AN UPDATE Intertek Softlines, Bangladesh Business Assurance Presented by: Mamun Zaman Senior Manager, Operations 17 www.intertek.com

Common Violation - WCA Workplace Conditions Assessment: - Global Participating Facilities : 11889 - Bangladesh Participating Facilities : 423 - Bangladesh Total Assessment: 565 - Health & Safety Score: Bangladesh 73 & Global 84 Medium Performance Further Improvement Needed Score Global 77 Bangladesh 71 Top 5 most frequent Non-Compliances in Health & Safety Bangladesh Non Compliance Frequency Rate % Fire sprinkler is not properly installed throughout the facility and/ or not regularly maintained. 94% The facility does not have a documented emergency plan in place and conduct regular emergency drills for all employees who work with chemicals or hazardous materials OR The facility does not conduct regular emergency drills (e.g. chemical leakage, accident drill) for all employees who work with chemicals or hazardous materials. 48% Access to aisles, stairs and passageways are not kept clear at all times. 46% Electrical cords and outlets are not in good condition OR Electrical cords and outlets are not in safe condition. There are no special programs/ measures for pregnant women. 41% 44% 18 www.intertek.com

Common Violation Health & Safety Bangladesh Avg vs Global Avg 19 www.intertek.com

Common Violation Fire Safety Audit Fire Safety Audit Pictorial Presentation Wooden Electric Switch Box Emergency Exit Locked Uncovered and Loose Electric Wires Flammable Materials Kept in Production Floor 20 www.intertek.com

Common Violation Fire Safety Audit Fire Safety Audit Pictorial Presentation Shared Building Roof Top Not Vacant Aisles Partially Blocked by Unfinished Goods and Yarn Flammable Materials Kept in Production Floor 21 www.intertek.com

Common Violations ESA Audit Pictorial Presentation Burnt cable is used Cables are not organized in definite sequence inside distribution board Combustive materials are kept in front of Distribution board 22 Cable gland is not installed www.intertek.com

23 www.intertek.com