(Updates story first published on Tuesday with response from
Accord inspection body)
By Nandita Bose
DHAKA, June 24 It took Western safety inspectors
only about an hour to tour a factory the size of three football
fields before ordering a partial shutdown of Sonia & Sweaters
Ltd, a Bangladesh clothing supplier to Wal-Mart Stores Inc
Two weeks later, the group that the inspectors represented
changed its mind and allowed the factory to stay open, even
though none of the repairs they suggested had been carried out.
Such erratic decision-making poses a new set of problems for
Bangladesh's $22 billion garments industry, whose safety record
has been under the microscope since the collapse of a factory
near Dhaka that killed more than 1,100 workers last year.
More than a year after the public outcry that spurred
Western retailers into demanding better standards from the
factories that make their clothes, it also highlights the
practical complexities of improving the conditions of millions
of poor workers whilst also safeguarding their jobs.
Export growth in the sector has slowed as buyers turn to
India, Myanmar, Vietnam and Cambodia because of concerns over
workshop safety, higher wages and political instability.
Now factory owners say they are concerned about arbitrary
shutdowns and meeting the cost of demands for remedial work,
while workers worry about who will pay their wages if their
workplace is temporarily closed.
"We went through inexplicable harassment during this whole
process, and I am sure they don't care about that," said Sonia &
Sweaters Director Mahabubur Rahman, of his experience of the
"But with their trigger-happy attitude, I am left wondering
if they at least care about the workers, who they are meant to
protect, because nobody has to explain to them what the
implication of one factory shutdown is."
The garment industry accounts for 80 percent of Bangladesh's
exports, and turmoil in the sector has put at risk the
livelihoods of nearly 4 million garment workers, mostly women.
The collapse of the eight-storey Rana Plaza building in
April 2013 brutally exposed the inadequacy of the safety regime
in Bangladesh, where 5,600 garment factories are inspected by
different local agencies that often lack sufficient technical
equipment and the required expertise.
The disaster led to the creation of the Accord on Fire and
Building Safety, an inspection group led by European retailers,
and the North American brands-led Alliance for Bangladesh Worker
Safety, which together are scrutinising around 2,100 factories.
The groups, which have a mandate to recommend the closure of
dangerous factories and demand repairs, are now embroiled in a
debate over the inspection process and the question of who pays
for upgrades and wages while factories stand idle.
Making the situation worse, almost all global retail brands
have opted to stay out of the arguments between inspection
agencies and suppliers, according to industry officials.
When the inspection groups were set up, retailers did not
commit to pay for improvements they demanded - some Bangladesh
factory owners are very wealthy and politically connected - but
agreed to discuss assistance with wages and improvements if
owners could not afford them.
Wal-Mart spokesman Kevin Gardner said, as a founding member
of the Alliance, the company's contributions have made funds
available to help factory owners make necessary repairs and to
support workers who may be temporarily displaced.
This includes an initial worker safety fund of nearly $50
million and growing, and more than $100 million in access to
low-cost capital funding to improve fire and structural safety.
Debenhams declined to comment.
Reuters obtained copies of two inspection reports on Sonia &
Sweaters which showed the factory's civil engineer tried to warn
Accord inspectors that their assessment that insufficient steel
had been used in the building columns was inaccurate.
The steel was later found to be adequate for operations to
Company managers told Reuters that documents on the
building's load-bearing capacity sent to the inspectors after
their assessment were overlooked. That oversight was only
acknowledged after the factory's senior management physically
carried the documents to the Accord's Dhaka office.
The Accord assessed the number of steel bars in each column
as 14-20, the lower range of which would be considered unsafe,
whereas company officials said it was 32-35.
"We advised them to close down the top floor immediately and
go for a detailed engineering analysis," Brad Loewen, chief
safety inspector of the Accord, said.
Loewen said the owners returned and challenged the numbers
with their own documents. The Accord stuck with its findings,
but decided to consider the steel strength of each column was 20
bars, at the top of its range, rather than 14, which meant
operations could continue, he said.
Sonia & Sweaters had cleared a safety inspection by Wal-Mart
in 2013, according to a report published by the U.S. retailer in
November last year.
The Western inspection groups, between them, have so far shut
14 factories and asked five factories to partially close,
according to government data.
Senior advisor to the Alliance Ian Spaulding said the group
has been careful with the issue of factory shutdowns and has
been working closely with the government on the issue. Five
factories have been shut down as a result of their
recommendations, he said.
FOREIGN VS LOCAL
The legal authority to shut factories rests with the
Bangladesh government, and decisions to do so are reviewed by a
government-appointed panel that includes one member each from
the Accord and Alliance and two civil engineers from the
Bangladesh University of Engineering and Technology (BUET).
That process has led to friction between local and foreign
Four Wings Ltd operated a factory that supplied clothes to
Swedish fashion retailer Hennes & Mauritz (H&M) until March,
when it was closed down on the recommendation of Accord
inspectors who feared the load-bearing capacity of the building
The two BUET engineers on the review panel opposed an
immediate closure, but were stopped from making recommendations
and asked instead for an opinion with either a "yes" or a "no",
according to a senior official at Four Wings and a professor
from BUET who had direct knowledge of events. Both spoke on
condition of anonymity.
"Everybody appreciates the fact that they are working hard
to make this industry safe, but everybody they are working with
will agree they are extremely arrogant and have a high-handed
attitude," said the BUET professor.
Ananta Garments Ltd's Mirpur factory, which employs 1,600
workers, was also shut down by the Accord on concerns over the
buildings load-bearing capacity.
"They found problems, they shut it down and we realised the
repairs they have suggested will take eight months," said Inamul
Haque Khan, managing director of Ananta Garments. "Nobody had an
answer to what happens to the workers, who pays their salaries."
He said he would pay workers' salaries for one more month
before laying them off as he could not afford to pay more.
Several garment factory owners said they were already
absorbing most of a 79-percent increase in the minimum monthly
wage to $68 that was imposed by the government last December,
because global brands are baulking at paying higher prices.
The Alliance has decided to share wage costs for two months
and is currently holding discussions to extend it to four
months. It is in the final stages of making available low-cost
loans for repairs at five to seven factories, Spaulding said.
The Accord requires factory owners to pay for repairs and
wages for six months. They are expected to discuss with their
brands, who will ensure resources are available, Loewen said.
But about a dozen garment factory owners Reuters spoke to
said the Western brands they supplied had not got involved in
talks over paying the bills. This was despite several rounds of
discussions involving factory owners, government officials,
unions and Accord and Alliance members.
The Accord issued a statement on Thursday challenging the
findings of Reuters and saying it would investigate further.
H&M, the first signatory to the Accord, said it was actively
participating in remediation processes involving its suppliers.
Spokeswoman Andrea Roos said H&M discussed resource
availability with all involved parties on a case-by-case basis.
Two of H&M's supplier factories have undergone minor
construction work as a result of inspections, she said.
French retailer Auchan, which also sources garments in
Bangladesh, did not immediately respond to a request for
Softex Cotton, which supplies Auchan, was shut down by the
Accord due to doubts over the factory's load-carrying capacity,
but later allowed to resume partial operations, even though no
repairs had been made.
Softex is now suing the Accord, challenging its legal right
to close factories and demanding $100 million in damages to
business and reputation, according to a copy of a lawsuit filed
in a Dhaka court seen by Reuters.
Softex's factory was vandalised by workers after the sudden
closure notice was issued and the company says it has been
forced to take a loan to keep paying workers' salaries.
"When there is a problem we are being notified, sometimes
not even in a proper way, and then being left to our own
devices, which is just not right," said Rezwan Selim, managing
director of Softex Cotton.
($1 = 77.4800 Bangladeshi Takas)
(Additional reporting by Clare Baldwin in Hong Kong, James
Davey in London, Dominique Vidalon in Paris and Anna Ringstrom
in Stockholm; Editing by John Chalmers and Alex Richardson)