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 and Debenhams.
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 inspection.
“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% 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.
Safety Shutdowns
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 continue.
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 members.
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 was inadequate.
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.
Who Pays?
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 comment.
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.
Sources : Prothom alo