Update: The world watches as garment workers in Bangladesh see change
Photo credit - The Associated Press
In response to the global media coverage of recent tragedies within the Dhaka garment industry, consumers and the public are demanding accountability from Western retailers for their lack of corporate social responsibility throughout their supply chain. Bangladesh, in turn, has seen a drastic shift in worker's rights overnight.
The Bangladesh government amended the 2006 Labor Act, now granting the country's 4 million garment workers the right to form trade unions without approval from factory owners. The right to unionize will allow workers to voice their demands via collective bargaining tactics. The amendment also calls for the formation of a workers' welfare fund into which owners of export-oriented companies within the country will have to contribute, thus providing group insurance to workers. Wage cheating has also been addressed, and income will be deposited directly into band accounts.
“With collective-bargaining power, tragedies like Rana Plaza would not happen, since owners would not be able to force workers to work in unsafe conditions”
Further, five of Europe's largest retailers - H&M, Inditex, C&A, Primark and Tesco - have signed the five-year "Accord on Fire and Building Safety in Bangladesh". Marks & Spencer, Bennetton, and Mango followed suit, amongst others. Interestingly, there has been little activity from American retailers, aside from PVH Corp who signed the agreement last year. Wal-Mart, which is the second largest importer of Bangladeshi goods, and Gap Inc have opted out in favor of internally developed plans. Unfortunately, this implementation inconsistency could result in differing policies amongst factories within the industry.
“This agreement is exactly what is needed to finally bring an end to the epidemic of fire and building disasters that have taken so many lives in the garment industry in Bangladesh”
Officials in Bangladesh have formed a panel consisting of garment workers, factory owners, and government representatives to negotiate the increase of wages for factory workers within three months. Even after the historic protests to increase wages in 2010, Bangladesh currently has one of the lowest minimum wage amounts at just 3,000 takas (approximately $38.55 at current exchange) per month.
Previous coverage:
- 'Shot across the bows': Corporate Social Responsibility in the aftermath of recent Bangladesh Industrial Tragedies
- Bangladesh's growing garment industry mirrors China's