emerging bangladesh 6th issue

Accord & Alliance“It’s time to change the mindset.”

Willam Hanna

Mesbah Rabin, AllianceBernardo Cruza, BSCI Steering CommitteeDr. Ishtiaque Ahmed, BUETSultan Uddin Ahmed, BILSAlonzo Suson, Solidarity Center (AFL-CIO)

Rob Wayss, AccordSrinivas Reddy, ILOMd. Atiqul Islam, BGMEARoy Ramesh Chandra, IndustriALL BangladeshHeather Cruden, Canadian High Commissioner

EmergingApril-June 2014Bangladesh

The Business Magazine of the Bangladesh German Chamber of Commerce & Industry (BGCCI)

www.bgcci.com

Building SafetyFire Safety Electrical Safety

Exclusive Interview

EU Ambassador

Interviews with

-Sakhawat Abu KhairPresident, BGCCI

Emerging Bangladesh

Volume 2 Issue 2

April-June 2014

The business magazine of the Bangladesh German

Chamber of Commerce & Industry Emerging

Bangladesh will be published four times p.a. by the

Bangladesh German Chamber of Commerce & Industry

Publisher

Sakhawat Abu Khair on behalf of Bangladesh German

Chamber of Commerce & Industry. It is distributed free

of charge to members and qualified non-members in

Bangladesh and abroad.

Bangladesh German Chamber of Commerce &

Industry German House, 1st Floor, House: 10/C,

Road 90, Gulshan 2, Dhaka-1212, Bangladesh

Tel +88 02 8826480, Fax +88 02 8824858

[email protected],

www.bgcci.com,

www.eurochamber.bangladesh.com,

*All opinions expressed in articles do not

necessarily reflect the views of BGCCI

Managing Editor

Tawhidur Rashid

Photography

Din Muhammad Shibly

Design & Layout

Linework

Printed at

Binimoy Printers Ltd.

CONTENTS

Opening Remark P. 4

BGCCI Events P. 6

Exclusive interview: H.E. William Hanna, EU Ambassador P. 10

In retrospect: An interview of former German Ambassador H.E. Dr. Albrecht Conze P. 16

Features P. 64

Why Bangladesh needs its own unique approach to factory safety

Safety First, At Any Cost

Financial Woes: Too High to Share?

Cover Focus: Accord & Alliance P. 19

Rob Wayss, Executive Director, Bangladesh Accord on Fair and Building Safety

Mesbah Rabin, Managing Director, Bangladesh Accord on Fair and Building Safety

H.E. Heather Cruden, High Commissioner of Canada to Bangladesh

Md. Atiqul Islam, President, BGMEA

Srinivas Reddy, Country Director, ILO Bangladesh

Md. Shahidullah Azim, Vice President BGMEA

Dr. Ishtiaque Ahmed, Professor, BUET

Alonzo Glenn Suson, Country Director, Solidarity Center (AFL-CIO)

Roy Ramesh Chandra, Secretary General, IndustriALL Bangladesh Council

Sultan Uddin Ahmmed, Assistant Executive Director, Bangladesh Institute of Labour Studies

Bernardo Cruza, Chair of BSCI Steering Committee

P. 40 P. 28 P. 34P. 20

03{Emerging Bangladesh} bgcci.com

Dear BGCCI members and readers,

The RMG industry in Bangladesh has achieved many a milestone over the

years. However, there are many challenges that still lie ahead. In the 90s, the

industry focused on the elimination of child labor; this was followed by social

compliance and audits. Now we are talking about building, fire and electrical

safety and the establishment of trade unions. In future, environmental

responsibility is expected to take center stage. This issue of “Emerging

Bangladesh” should give you an insight about the work in the area of building,

fire and electric safety.

A new chapter of transparency, trust and problem-solving needs to be opened.

Workers, unions, brands and factory owners should engage in dialogues for

communicating positively. Clear goals, ownership and financial commitments

need to be defined and agreed on in order to be successful. It might be easy to

do the inspections; but it will not be easy to communicate the results to the

workers, and make sure that remediation efforts by the factory owners are done

properly.

The biggest task will be to ensure the safety in the factory and maintaining the

standards through top and middle management over time. All stakeholders

should understand that practicing corporate social responsibility helps

economically, ecologically and socially in the long run. Also from the buyers'

side it needs to be understood that price cannot be the only decisive factor and

the buying and the compliance department need to act hand in hand.

It took us over 100 years in Europe to establish a proper labor industrial

relations dialogue. Here in Bangladesh, it's high time all stakeholders

understand their roles, responsibilities and duties to stay competitive in the

future. This issue should give our readers a neutral perspective of the

challenges all the stakeholders are facing. As the biggest bilateral business

chamber we would like to offer our mediation and communication skill since

we established trust amongst all stakeholders to support the RMG sector. We

extend our heartfelt thanks to all stakeholders to make Bangladesh a safe hub

of high-quality RMG products.

Finally, I would like to thank H.E. William Hanna, the European Union (EU)

Ambassador in Bangladesh for his commitment to foster trade between

Bangladesh and EU with outstanding trade figures. From BGCCI, we wish

him a very warm farewell and thank him for his great cooperation with us.

Daniel SeidlExecutive Director, BGCCI

Changing bricks sounds easy but changing mindsets is challenging.

FROM THE EDITOR

“Change the mindset”

As the biggest

bilateral

business

chamber we

would like to

offer our

mediation and

communication

skill since we

established

trust amongst

all

stakeholders

to support the

RMG sector.

{Emerging Bangladesh} April - June 201404

OPENING REMARKS

It's only normal that factories found unsafe for workers would A wage earner's death is a great be closed down temporarily or permanently. The question is

can the owner bear the whole expense. There is no denial of loss to his or her family. However, at the the fact that to transform those factories into safe ones, we same time it raises fingers against the safety and compliance need the help from buyers. The buyers cannot blame owners issues of the factory, which spells loss of the factory or the on pocketing the entire profits so far, as they have also been brand s/he was treading sweat for. In 2013, we have seen two responsible for giving consignments to factories, which were such tragic incidents, which smeared ink on the image of our not complaint. Therefore, they must play a part in this. They country, thanks to the negligence and myopic vision about the can directly provide cash incentives and/or instead of walking sector. Simply put, both of these man-made disasters could out and placing the order somewhere else, they can commit to have been avoided. Why did we fail to do so? I believe, what our be with them through out the troubleshooting phase. Besides, RMG sector was missing is a norm in everything-productions, we have to understand that BGMEA cannot help financially, marketing, workers and building safety, compensation, you but they can act as a leader and bring financial help from banks name it! Though delayed, but these inspections were and NGOs; they can convince the buyers to participate in the imperative to establish that norm in every sphere of the sector. payment of compensation. Factory owners on the other hand This will set us on a platform, standing where we can claim need to be more active. They can even ask for advance from about our efforts and achievements: the rectification measures buyers to keep things afloat. I strongly believe with a buoyant will help us build a better image of the country as the second banking sector like ours, under the guidance of the Central largest apparel exporter in the world after China. Bank, local banks should come forward to offer loans with Accord, Alliance and NTPA are evaluating the building, fire single digit interest rate. The government can impose single-and electrical codes of the factories. These three elements are digit bank loan interests, as they did in the agro-sector. It may usually not scrutinized by general auditors. However, most of not be adequate, but it would greatly help in the long run. The the buildings where old factories are housed were built before government can give incentives to encourage more banks to 2006, the year our National Building Code was formulated. follow. This does not necessarily mean that those buildings would not

comply with the codes but of course, many of them may have

plenty of minor structural errors to fix. In addition, various

documents like soil test results, designs/drawings, compliance

reports etc. were not properly archived, which are necessary to

make a proper call about the fate of the buildings. I believe the factories of today will learn all necessary lessons Nevertheless, factories, which were built 15-20 years ago, and so will those of tomorrow. Even if we consider safety should not be deemed structurally poor in general, as they were practices to be buyers' priority, for our own sustainable growth, built according to then-building code. They must be made safe we must ensure ethical practices. We must make clothes that through load management. Many owners added new floors are clean and not drenched in the blood of our workers! onto the existing ones. We cannot shut them down, nor should Another good thing that is happening is the increase of trade we burden them with overweight. union formation around the country. This is something that The same thing happened with electrical codes, where norms has long been feared about, thanks to the bitter pill that we had were not followed, i.e no earthing measures to counter voltage to swallow in the jute sector. Henceforth, both owners and fluctuations; no machines bolted to buildings, etc. Lag of workers have a lot to learn in this field. Making the workers wires- which were supposed to be covered in concrete trays as aware of both rights and responsibilities, we can ensure their bridges, so that short circuits may not occur-can be found in freedom of association and collective bargaining. Trade bodies many factories. Things like these are of course, serious too have their roles to play by encouraging factories to violation of rules and both Tazreen Fashions and Rana Plaza maintain their database of workers' information. As I have said showed us where such delinquency could lead to. time and again, there is no alternative to good governance; it's At present, a lot has been said about the compensation of time we take it seriously for our RMG sector. It's time we set remediation in factories. We have to consider two things here. the norm and stick to it!

A sector that provides 13% of the GDP cannot function

perfectly on its own; it needs a vision, a roadmap to implement

that vision and the interest of all stakeholders to work sincerely

for the betterment of the sector. We must not forget that for

RMG, the whole nation is the stakeholder.

Let's ItFixOn the wake of inspections being done by Accord, Alliance and National Tripartite Plan of Action

(NTPA), Sakhawat Abu Khair, President of BGCCI briefs about his observations and suggestions and

why it is important to change the mindsets of businessmen to fix the burgeoning problems in our

RMG sector.

Sakhawat Abu Khair


BGCCI EVENTS

BGCCI, along with Gold Partner Energypac, the sales & Energypac's business footprint. Mr. Heinz Bruckmann,

service partner in Bangladesh of MTU Onsite Energy, Director of Sales & Sales Engineering, MTU Onsite Energy

organized a Business Networking Lunch at the Westin (Asia and Pacific) presented on MTU gas power system. The

Hotel for the business community of Bangladesh on April event was participated by the reputed business community of

29, 2014. Bangladesh and representatives from both print and electronic

The seminar shed lights on the present energy situation of media.

the country through a speech from Prof. M Tamim, In the event distinguished representatives from the MTU Asia

Professor of Petroleum and Mineral Resources Pte Ltd. talked about their gas generator which is highly efficient

Engineering, BUET and a renowned energy expert in the for the textile and other industrial sectors of Bangladesh,

country. specially where the gas pressure is low. They have successfully

Energypac as one of the leading power engineering implemented the usage of the generator in a number of Asian

company and engineering solution provider of the country and European countries. They would like to expand their

exchange views with the business leaders of the country on services in an emerging country like Bangladesh, they

energy development and improvement issues. mentioned. For further information, please contact Aminur

Director of Energypac Power Generation Ltd Mr. Rashid, Head of Marketing, PED, Energypac Power Generation

Rezwanul Kabeer gave the welcome speech. Chief Ltd. at [email protected]

Operating Officer Mr. Rajiur Rahman, presented on

In the picture ( clockwise from the the left):

Mr. Daniel Seidl, Executive Director, BGCCI; Mr. Rezwanul Kabeer, Director, Energypac Power Generation Ltd; Mr. M Tamim, Professor of Petroleum and

Mineral Resources Engineering, BUET and a renowned energy expert; Mr. Heinz Bruckmann, Director of Sales & Sales Engineering, MTU Onsite Energy

(Asia and Pacific); Mr. Sakhawat Abu Khair, President, BGCCI; Mr. Rajiur Rahman, Chief Operating Officer, Energypac Power Generation Ltd; Mr.

Bishwajit Mazumder, Assistant Manager, Sales & Application Gas Power System, MTU Asia Pte Ltd.; Mr. Ng Chin Siong, Steven, Senior Manager, Gas

Power Systems, MTU Asia Pte Ltd, a Rolls-Royce Power System Company

BGCCI organized Business Networking Lunch for Energypac-MTU

07

Bangladesh German Chamber of Commerce and Industries admire your extraordinary energy. I have met wonderful

(BGCCI) held a farewell lunch for the German Ambassador to people, I have learned a lot, and I am leaving with happy Bangladesh Dr. Albrecht Conze on 26 May. He has taken up a memories.”new position at a very short notice. Representatives from 130

Praising the BGCCI as a jewel in the crown of the Bangladesh-BGCCI member companies and distinguished guests from

German bilateral relations, Ambassador Conze hoped that media were present at the event.BGCCI will continue working to bridge the trade gap between “Following a proposal by the High Representative of the Bangladesh and Germany and will help Bangladesh to increase European Union for Foreign Affairs and Security Policy,

Catherine Ashton, the Political and Security Committee its imports from Germany in the future. (PSC) of the European Council has appointed me as the The President of BGCCI Shakhawat Abu Khair and Head of EUCAP Sahel Mali, the newly established

Executive Director of BGCCI Daniel Seidl were present at the European civilian mission for the stabilization of the

lunch among many others.Republic of Mali. I am expected to move to Bamako within

Later, a few distinguished members of BGCCI Executive weeks, and therefore have to leave Bangladesh on the 1st of Committee for the year 2014-2015 visited the departing June”. In these words, Dr Conze explained to the audience

the extraordinary circumstances behind his sudden Ambassador H.E. Dr. Conze at his residence and presented departure from Bangladesh. him a nice gift. The members expressed their deep gratitude Conze further added that the new assignment would allow him for the direction and cooperation the chamber has received to contribute to the EU efforts to enhance political stability in

from H.E from time to time. The Ambassador too welcomed the Sahel zone, a critical region for Africa's security.

them for their wonderful support and dedication to work for Remembering his tenure in Bangladesh, Ambassador Conze the betterment of the chamber and making it the biggest and said, “Since August 2012, I have discovered and came to

most active of them all.appreciate a nation always on the move. I have learned to

In the picture:

Former German Ambassador Dr. Conze flanked by BGCCI Executive Committee Members.

On his left: M. Nooruddin Chowdhury, DHL Global Forwarding (Bangladesh) Ltd.; Sakhawat Abu Khair, Robintex Group; Farooq Siddiqui, Karben

Solar Energy Ltd.; Syed Golam Mowla, Multi Freight Ltd.; Yesmin Ipphat, LW Hair & Skin Beauty Spa Salon; Indranil Lahiri, Siemens Bangladesh

Ltd.; Mohammad Ali Khokon, Maksons Spinning Mills Ltd.; Mahbubul Alam, Sarah International; Rashed Maksud Khan, Everest Fine Porcelin Ltd.

(former EC Member).

On his right: Rafiq Hassan, Northern Tosrifa Group; M. Maksud, Corona International; Daniel Seidl, Executive Director, BGCCI; Magnus Schmid-GIZ

Office, Dhaka; Jonathan Reinhard, Digital Factory International Ltd.; Syed Raushan Zaman, S R Zaman Communication.

BGCCI Bade Farewell to H.E. Dr. Albrecht Conze

BGCCI EVENTS

{Emerging Bangladesh} bgcci.com


A three-day workshop was held in Dhaka to create a training has the potential to translate into tangible export orders breakthrough in the export market for small and medium and other re lated f i r m-level economic benef i ts. sized businesses of Bangladesh. GIZ has organized this The chief guest and the Honourable European Union's

capacity-building workshop on, “Researching and Ambassador to Bangladesh, Mr William Hannah was the keynote

speaker at the inaugural ceremony of the workshop. He Analysing Export Markets”.

recounted, “The latest data shows that Bangladesh exported to The workshop was sponsored by International Trade

Centre (ITC), European Union (EU) EU worth about 11 billion euro in 2013. This is about 57%

Bangladesh and the Bangladesh

German Chamber of Commerce and

Industry (BGCCI). The workshop

continued through June 3-5, 2014 at the

German House in Gulshan 2, Dhaka.

GIZ is implementing the project

“ P r o m o t i o n o f S o c i a l a n d

Environmental Standards in the

Industry” (PSES) on behalf of the

Federal Ministry for Economic

Cooperation and Development (BMZ)

and is successfully cooperating with

ITC during the last few years.

The course was aimed to build capacity

o f s m a l l a n d m e d i u m s i z e d

organizations that are ready to enter the

export market but need targeted increase over the last three years since 2010. We want this success technical assistance in business development, to take the story to continue. This project will help in that direction.” next step. It also provides guidance regarding the selection A varied group of attendees participated in this training from and research of markets and tools to better access finance. different Bangladeshi organizations, industries, associations, The aim was to provide greater knowledge and experience chambers contributing to various sectors like garments, textile, of the market analysis and research process through the electronics, handicrafts, jute, leather, pharmaceuticals, application of ITC's web-based tools. In the long run, this agribusiness and footwear.

BGCCI Co-sponsored Three-day ITC Workshop with ITC and EU

BGCCI EVENTS

08

BGCCI, on behalf of the Deutsche Gesellschaft fur unmet need for demand-driven curricula prevails resulting in a Internationale Zusammenarbeit (GIZ) GmbH, has lack of skilled human resources in mid-level management in the conducted a pre-feasibility study, which found that an RMG sector and low participation of women. In order to address

these issues, BGCCI started a project named

Inclusive RMG Skills Training for Women.

Adnan Nafis- Head of Trade Promotion &

Consultancy of BGCCI was the Head of the

Project. The main objective of the project is to

develop detailed and specific curricula for six-

month diploma courses for mid-level

management representatives of the RMG sector

and textile industry in compliance with National

Technical and Vocational Qualification

Framework (NTVQF). As part of the project

activities BGCCI prepared report on “Training

Needs of Mid-Level Managers of the RMG

Industry of Bangladesh” and then developed 5

training curricula for mid-level managers. Finally,

BGCCI has drafted 2 training modules for mid-

level managers.

BGCCI Finalized Two Training Modules for Mid-level Managers in RMG

In the Picture: With the BGCCI core team behind the formation of curricula, Prof .Md. Abul

Kashem-Chairman-Bangladesh Technical Education Board (BTEB) and Dr. Engr. K.M.

Alauddin-Curriculum Specialist-Bangladesh Technical Education Board

Q {Emerging Bangladesh} April - June 201410

EXCLUSIVE INTERVIEW

big success story. It has created millions in jobs How do you see the achievements of this and export earnings. It is one of the success country? What made them become an factors of growth in this country. achiever?However this success has been built on shaky The hardships of the people of Bangladesh, their foundations and that was seen by the Tazreen hard work, and I'd say the third factor is market blaze and the Rana Plaza tragedy. So we had to access, particularly the European Market. I see work together to address the foundations. There these three factors coming together. Our was a need for all of us to look very seriously at European market is open to all goods from the question of factory safety, labor rights and Bangladesh, everything but arms, with no duties corporate social responsibility. After Rana Plaza, and tariffs. When you produce in Bangladesh, our Commissioner Karel De Gucht took a very when you're in the European market, all you have strong position and said two things. “What to do is get the goods there and make your happened at Rana Plaza was unacceptable, don't presence felt.take the European market access for granted,”-a So our European companies are sourcing here warning that we seriously have to address. We've and it has been a tremendous success. To give you done that together and for the European Union an indication, in the three years since I arrived, the key moment was the agreement on the exports from Bangladesh to the European

thSustainability Compact on the 8 of July in markets has gone up by 57%. The first success

Geneva last year, where the government, ILO, EU was the market access which experienced a

and others were present. The Americans also turning point two years ago, when we changed the

rules of origin to allow imported cloth resulting in attended the meeting and the government agreed

a huge surge in exports. So that has been a very for commitment in three areas,

“ European market is open to

all goods from Bangladesh,

everything but arms, with no

duties and tariffs.”

H.E. William Hanna, EU Ambassador shared his views with us about

Bangladesh, its impediments to attract more FDI and why democracy is

vital for an emerging economy.

Interview by Daniel Seidl & Tawhidur Rashid. Edited Excerpts:Daniel Seidl & Tawhidur Rashid


Clockwise from the left:H. E. William Hanna i) with Daniel Seidl his EU

Dhaka office ii) At the 10-Year celebration event of BGCCI, June 2013 iii) At the GSR Conference, February 2013 iv) ITC workshop, June 2014 v) ITC

Workshop, June 2013

WILLIAM HANNA


1)Labor laws, to allow freedom of association with need to be safe for the workers. You go to the

collective bargaining in the industry factory in the morning and return in the evening

2) Factory Safety - to ensure, all factories were being safe. So I think we need to keep up the work

inspected together and it is not all over and there is still some

3) Corporate social Responsibility: the corporate reluctance in some quarters to understand how

sector and the private sector will have to step up and important this reform is.

take responsibility.

Since then we have been implementing those What will happen after these inspections?commitments and following them up pretty closely. It will not happen overnight but change is coming. I One year after the compact signing, I think we can think the driving force of change is there. The say that a lot has been done from the right direction institutions slowly understand their duties and when but we have to continue working together to achieve more and more factories get approval and are safe a lasting reform and sustainability of the RMG and secured, others will realize that's what has to be sector. done. There is still reluctance and change in the way We have seen couple of progresses made so far. management looks at labor relations. It's a structural The labor laws were changed and the change that won't happen immediately, but it is establishment of many new trade unions occurred. necessary and I think the best thing is the They still face difficulties but they are being companies will understand and adopt it.established. I think if we look at the factory What we are talking about here is applying the inspections, this has been a key issue. The factories rules and this is terribly important in Bangladesh. I are being inspected by the Accord, the Alliance have seen existing rules being not applied in many

and by the government through assistance from sectors and that's one of the biggest problems of

the British, Dutch and Canadian funds. The tests this country. You could look at other sectors. For

have shown problems which are manageable: it is example, testing many foods in a lab funded by

only a small percentage of the factories which are EU we have found that many items are

structurally unsound, only a small number of adulterated, thanks to lack of inspections. In this

factories which had to be closed down. Although connection, I would like to mention about the

some workers may have to change workplaces, I shrimp sector few years ago. There were problems

think we are very confident they will find jobs and we banned the shrimps and people got the

message and cleaned up the shrimp industry. We quickly within the industry because the industry

did that to protect our European consumers and I has a huge demand for skilled workers.

don't see why Bangladeshi consumers should be There have been a number of standards, and I hope

less protected than the Europeans. they are being resolved because we really need one

I think it is true that by applying standards, we can set of standards. For me that is a key point as in

really help both improve the situation for people factories that are being inspected, the owners have

and workers in Bangladesh. It can lead to change to take remedial measures-this is the tipping point.

Bottom line is that all the factories in Bangladesh which is good for everybody and which makes

“ Since then we have been implementing those

commitments and following them up pretty closely.

One year after the compact signing, I think we can

say that a lot has been done from the right

direction but we have to continue working

together to achieve a lasting reform and

sustainability of the RMG sector.”

EXCLUSIVE INTERVIEW

Q


WILLIAM HANNA

manufacturing industries in Bangladesh sustainable investments issues, and that's good for a country.

However, for the European Union there are some in the future.

obstacles, which we want to discuss. I think other

countries share the same muse. When we have The mindset of Bangladeshi businessmen dialogue with others we come down with certain are changing. First, we came for constraints like infrastructure, corruption, energy -compliance and social standards; now we the classic bottlenecks that need to be addressed.

talk about fire and building safety. The next Bangladesh could do well on its own. It is well

one will be trade unions and then we talk situated geographically. It has demographic

about environment this is great but how dividend. There are lots of youths, so it has a lot of does the Govt. of Bangladesh take any kind advantages in terms of vocation in this region, but it of responsibility in this? needs to address some of these problems to move Change takes time and I think there is a need to faster.look at the longer consequences. It would not

happen overnight. I think we need to work on it and Some say that countries like China and one of the things we want to do in the European India will keep exploiting Bangladesh and Union is to increase the level of dialogue with the

turn it into their sweatshops, as their own Government on other issues which are about

garments demand is so big. They also governance and human rights. We want to have a

claim that Bangladesh will remain the way dialogue and we don't want to sanction and then as it is now. Do you agree with such walk away. claims?The motive of the Sustainability Compact is staying I don't know why people have such claims but I engaged. Now that requires everybody to work think Bangladesh has opportunities for different together and I think that's the approach. So we investors. At the same time, there is a need for would like to stay engaged with the Government to developing infrastructure. There are risks associated discuss various other issues. For example the with investments as well, that's why I think it's very investment climate in this country. There are many important to have a strategy. I think what we would areas where that climate could be improved and it like to see is a long term strategy. Our biggest requires some rules to be changed and some rules to assistance from the European Union is giving the be applied to make it more attractive for investors to opportunity to the RMG sector, but you know it is come.not just open for RMG sector; it is for many other

sectors. Do you think it is possible?And there are other sectors besides the leather There needs to be opening up to foreign investment. industry. Which are full of opportunities. I think our There is a lot of interest from Europe, but we need to member states Germany is one but the Nordic address certain issues. So I am hopeful that in our countries, Britain, Netherlands, Spain - are all keen dialogue with the Government later in the year we will to see future opportunities here. talk on these issues on how we can work together. We

all know what they are on and one area for example You have been travelling all over the world which is very important to us is the service sector.

This is an area where Europe is very strong and if we working. What will come next after RMG? can bring in companies, it means sharing of a lot of Besides leather, what will be the next know-how and high quality investment which will industry coming up?assist transfer of technology to take Bangladesh I know that some of our European companies are forward. looking at this country in the longer term. They

want to be present here seeing the longer-term How do you see countries like China, advantages. They may not be investing money at India, and when you talk about GSP, the this stage because of the difficulties of investing

US, in this ball game? in the climate change. I think they'll be in future.

I think it is interesting to see there are high levels They do not want to miss the opportunities. They

of contacts with Japan and China on various other are just cautious. As of industry practices, green


technology is the future. I found it to be the most challenging job I ever had. I've

served as Ambassador in Africa and North America and now As we call ourselves a European German chamber in Asia. We have been living in interesting times. I'd say never we see a lot of trade delegations simply don't come a dull moment in this country. You see all the advantages; all to Bangladesh, because the Government of the potential in this country. Then you also see the constraints Bangladesh has not been considered to be more so sometimes it can be frustrating and I'm disappointed about democratic. What's your take on that? the democratic situation. However, in the long term the I think we made our position clear back in December and

country's potential is so great that the country will be able to January about what happened in the elections. We don't want to

overcome these difficulties.engage in boycotting, we want to keep engaged. What we need

The EU is an organization which exists through seeing the to do is to try and find ways to understanding that. For bigger picture, seeing the need for unity, for dialogue, all investments to come, the country should also think about

within Europe and the world. We have to keep our faith and improving the climate by ensuring issues like security and

governance. work together as in today's world countries need to work It's much easier to sell a country where democracy is in place; together. They need to find ways forward. They cannot be there is a check and balance; rule of law has to be there and if fighting each other all the time. It is easier to persuade people difficulties arise, those have to be addressed. We have to

to vote for a simple message, which says, “the problems are all understand that investors for whom time is money, are also

the others”. looking forward to other destinations like Sri Lanka, Vietnam

It is much tougher to explain that working together will and Cambodia. Bangladesh is competing with these countries. produce these results, and perhaps we need to work on our Henceforth, in Bangladesh, we have to look at obstacles

internal communication. It is difficult all over Europe because objectively and try to solve the problems. We cannot just force

investors to come here and risk their money. some countries are seeing it and others are seen to be moving

away from it.I feel there is a paradigm shift coming up that there In Bangladesh, with all due respect, I sometimes have a feeling is more trade and aid cooperation taking place. The that on purpose they don't want to give incentives to attract private sector is working more with the

foreign direct investments. They on purpose want to close the development sector, which is new to me. How do

market, because they think if they open up, expats will you see this change?

overrule them like they have always been overruled. I think What's important is that our different instruments should

there is perhaps an ideological reluctance. People think that work in a coherent fashion. We have been discussing this

will lead to exploitation. My feeling is the exploitation that I within the European Union with the different countries to try see here is not so much coming from outside; it is something, out their luck here. We can use development cooperation to

which has to be addressed inside; so it is again the same help with the RMG, safety, and health, that's reasonable in a

coherent approach. However, it is also important that we can phenomena in Europe. It is easier to play the blame game, help identify areas where the country could diversify. I see which is common in everywhere else around the world. It is trade, investment and corporations as different ways through easier to say those people outside are going to exploit you. which we can achieve the objectives of cooperating with the

country. If the country grows and becomes richer, that Where will you go next?interests our companies to explore and try out there luck here.Ghana, and I’m looking forward to it. Ghana has so far a

stable democracy and alternation of accepting that the It would be nice if the Government of Bangladesh

opposition gets its term to govern. Therefore, that is the had the same approach and understood the bigger

picture. How did you find your last years in whole thing about democracy. I hope I get there and stay

Bangladesh? stable amidst all the problems.

“ The EU is an organization which exists through seeing the bigger

picture, seeing the need for unity, for dialogue, all within Europe and

the world. We have to keep our faith and work together as in today's

world countries need to work together.”

EXCLUSIVE INTERVIEW


IN RETROSPECT

he country will have to focus on quality and reacted because you had to react. But more and more leading

not quantity if it wants to become an businesses have understood this was the chance for

emerging economic power, said German Bangladesh to move to a higher degree of quality.” After

Ambassador Albrecht Conze. The outgoing Rana Plaza, the society has adapted to the new situation, and T German ambassador spoke to The Daily more and more people have understood, particularly in the

Star at a farewell lunch organized in his honor by private sector, that they have to take up the challenge of

Bangladesh German Chamber of Commerce and Industry improving the quality of factories as a first step, he said.

at the Westin in Dhaka. “Bangladesh has enormous capacity “And you did improve. Bangladesh needs to sell clean

to react for the better. If you continue in the vein, you will clothes, not dirty clothes.”

jump on quality. That will be your cutting edge because you To have a garment factory that is certified by the Accord on

still have affordable wages.” Fire and Building Safety in Bangladesh or the Alliance for

Conze spoke at lengths about the twin disasters of Rana Bangladesh Worker Safety is kind of a trademark. “It is

Plaza and Tazreen fire and the lessons learnt from it. “You something that you can put into your good books, something

“Bangladesh must sell clean clothes,

not dirty ones.”

German ambassador shares his parting advice with Md. Fazlur Rahman of The Daily Star


that can make you proud, because it shows you have huge movement towards ever-larger middle class. That

done something for your workers' safety.” is the real success story of this country.” He also said,

What first looked like an imposition from the Western “You can be independent and autonomous and that is

markets on Bangladesh now looks like a chance for a matter of pride. If all forms of governments are on

Bangladesh to simply improve the quality of the your side and governance is better, the country can

industry, the German diplomat said. “You will have to move faster.”

move to a higher degree of quality everywhere if you The diplomat said Bangladesh needs to act now and

want to become an emerging country. I think that is implement things. “If you can manage it not just at the

on the way, and I am very satisfied about that.” factory level but as a society, I am not worried about

The country, the private sector and the media reacted the future of a country that I have come to love.”

very positively to the crisis following the Rana Plaza His assignment in Bangladesh saw two industrial

building disaster and the Tazreen Fashion fire, he said. accidents in the garment sector and almost year-long

To restore the image of a leading supplier of clothes, political unrest. But he said normalcy has returned to

the diplomat said, a reformed Board of Investment is the country with new challenges. “I have witnessed a

needed. “You need to be more proactive in inviting tremendous amount of movement. Even though it was

investments and offer solutions to land and energy politically a very critical time, the country has

because these are the two biggest bottlenecks in continued to move forward. It has impressed me.”

bringing foreign investments, and German investment Conze also said the development partners should not be

in particular.” smarting over how the recent elections were conducted

He said the country needs to make intelligent choices in the country, defying international calls for an all-

in case of energy supply and the way the country inclusive poll. “We, together with a number of other

finances itself. “You need to have a better revenue diplomats, especially within the EU, spent a lot of energy

generation for a better budget.” trying to bring the parties together last year and trying to

The ambassador also spoke of the country's intent to help them find conditions under which BNP would

issue international bonds. “I think the bond will be participate.” But in the end, things happened as they did,

over-subscribed and will sell very well. Once you are and everyone should now talk less about the past and

part of that club of countries that are on the more about what is next, he said.

international bond market, you will move up the “As Europeans, we have said what we have said. We are

scale.” With these elements, he thinks, Bangladesh not changing our mind about that. But this is not at the

would be able to leave behind its reputation of being a center of our attention now. Turning a page does not

poor country. mean you approve of everything that has happened in

Conze tipped Bangladesh to become a middle-income the past.” Conze also praised the country's business

nation sooner than the government targeted date of community who showed sheer resilience in the face of

2021. “I believe Bangladesh will be a middle-income political unrest. “In spite of a very difficult period in

country well before the 50th anniversary of the 2013, Bangladesh's business community has continued

nation,” he said, adding that if the politics is sorted, to work as well as maintained growth rate. Overall, they

the growth rate of 6 percent can go up to 8 percent. have succeeded. It is quite impressive.”

“I have no doubt about that because I have seen the Conze, who will leave the country next Monday, a year

energy everywhere.” Nevertheless, it would require before his tenure ends, said he is very sad to be leaving

“very strong, transparent and strategically thinking” early. “And please take my candor and frankness as an

leadership, he added. “I hope you will succeed in expression of my admiration, appreciation and love.”

getting out of poverty even faster than you have His next charge would be to head a new peace building

predicted yourself.” mission of the European Union in Mali, where police

A strong Anti-Corruption Commission will help, as forces are demoralized and need motivation to stabilize

the country needs strong institutions that will make it the country. “This is a challenge of a size that I could

more attractive for people to behave correctly than to not reject.” Conze, now 59, joined Germany's foreign

misbehave, Conze said. “With stronger institutions services in 1981 and served in Hong Kong, Beijing,

you will have more growth.” Vienna, Warsaw, Tunis, Khartoum, Moscow and

He said when he came to Bangladesh two years ago he Harare, before moving to Dhaka in late 2012.

thought the country was very poor. “But it is a hybrid thcountry. Yes, there are millions in the countryside who The article was previously published on 27 May, 2014 in the

live under the poverty line. At the same time, there is Daily Star

“I believe Bangladesh will be a middle-income country

well before the 50th anniversary of the nation.”


AThe Bangladesh Accord on Fair and Building Safety and the Alliance for

Bangladesh Workers Safety. The two most important names in the RMG sector at

present.

The former is a legally binding agreement signed by over 150 apparel corporations from

20 countries in Europe, North America, Asia and Australia; two global trade unions,

IndustriALL and UNI; and numerous Bangladeshi unions. Clean Clothes Campaign,

Worker Rights Consortium, International Labor Rights Forum and Maquila Solidarity

Network are NGO witnesses to the Accord. The International Labour Organisation

(ILO) acts as the independent chair.

The latter is an initiative of 26 primarily North American companies. Besides safety

issues, worker empowerment initiatives including safety training, a new safety training

curriculum for factory managers and workers, and a confidential helpline through

which workers can anonymously report concerns-are also on their agenda and

progresses have been made in those areas too.

Both Accord and Alliance are inspecting thousands of RMG factories in Bangladesh to

check their structural integrity and safety measures to avoid and tackle any outbreak of

fire, the most common reason of which is electrical short circuit. The factories which

will not be covered by them are being inspected by National Tripartite Plan of Action.

This issue's cover story focuses on these inspections. Through a series of interviews, we

have tried to find out the latest information for our readers to update them about the

progresses that have been made. We also wanted to know how businessmen perceive

those inspections. They are the pivotal factor in the paradigm shift in the RMG sector

because sooner they adopt to the positive changes and decide to maintain the safety

status, the better it is for all of us.

Read on with Tawhidur Rashid to know about how Bangladesh RMG industry is

reaching its tipping point towards a brighter future.

Cover Focus

Accord & Alliance

Special thanks to all the key personnel who have been featured in these interviews for sharing information and views on various issues. Special acknowledgments to Sakhawat Abu Khair, Daniel Seidl and Adnan Nafis of BGCCI for their guidance and cooperation; Wafiur Rahman for his help in transcribing the interviews; Din M Shibly with photographs and Athir Rahman for helping with the graphical representations of facts and figures.


Tell us something about your

inspections, which many believe, will

put Bangladesh's RMG sector on a

trajectory of sustainable growth.The Accord signatory brands and retailers are

required to disclose to the Accord and

publicly which factories are producing their

products in Bangladesh. Our independent

engineers are inspecting every one of these

factories. From these inspections, findings

reports are issued and our Chief Safety

Inspector authorizes corrective action plans.

The factory owner and the brands then

become bound to fix all of the items

identified in the inspection and captured in

“The remediation requirements from the Accord inspections must all be done.

Finances for completing the remediation must be identified by the owners and brands so the safety items get fixed.”

Rob Wayss, Executive Director, The Bangladesh Accord on Fire

& Building Safety informs us about their progress in inspections

of RMG factories, the necessary steps to be taken by owners

and the much talked about remediation issues.

COVER FOCUS


the corrective action plan. Our engineers then inspection had instructed the owners to reduce

verify that the items are being fixed correctly. All these weights and/or distribute these weights

of this information is disclosed publicly on our across the floor or multiple floors. Other

website and the CAPs are updated as the items instances would be too many water tanks on the

get fixed. We will similarly disclose if things are roof, the suggestion being to partially drain the

not being fixed. water to reduce weight load, distribute them

evenly around the roof rather than keeping them With the factories that are being inspected now together on one side, and in some instances, we are intensively engaged in developing strengthening columns or beams to ensure the corrective action plans to correct the things that building can support the weight. are being identified in the inspections. We are

confident that the corrections will take place. We In the electrical area, we witnessed certain cases

have a team of engineers that will work with the where they had wires, which were determined to be

engineers who the factory owners will hire to extremely hot. We have asked them to install more

design the items that need to be fixed in their circuits to minimize the number of wires at use.

factories. Approximately 1600 factories will be

inspected by the Accord for fire, electrical, and What about the problems that required structural safety. There are timelines in the long-term rectifications?corrective action plans associated with each item A number of buildings require sprinkler systems, needing to be fixed. Factories will become safe which would require nine months to a year, for and will be kept safe in these areas over the 5- installation. We expect that there may be some lag year course of the Accord. This will put the in acquiring the items and getting them into the Bangladeshi RMG industry on a completely country. The factories that have been found to be different trajectory, from what it was in structurally vulnerable were instructed for November 2012 and April 2103 after the fatal immediate evacuation. Some of the fixes were Tazreen fire and Rana Plaza building collapse. significant. Coming up with the most practical

solutions is sometimes quite challenging. In some As for the immediate corrective instances, it might be more effective for some

measures, what were the problems factories to relocate, given the costs required to fix

the problems. Some owners are already identified that required immediate considering relocating to another facility. Rented attention?buildings can be a challenge as the property There are issues like removing weight and owners have to be involved to make the repairs.managing load. During inspections, it was found

that many factories had stock areas, where they What do you suggest to rectify the had rolls and rolls of fabrics stacked from floor problems found in rented buildings?to ceiling. It is a tremendous amount of weight,

We try to engage the property owners in all in one bay of the building. The engineers for

We are confident that the corrections will take

place. We have a team of engineers that will

work with the engineers who the factory owners

will hire to design the items that need to be

fixed in their factories. Approximately 1600

factories will be inspected by the Accord for

fire, electrical, and structural safety.

ROB WAYSS


COVER FOCUS

Signatories

Union Signatories

Witness Signatories

Multiline Group RNB Retail and Brands ABSandrydsNew Frontier GmbHAustralia

Olymp Benzer GmbH StadiumCotton on GroupOSPIG Textil Logistik GmbHForever New SwitzerlandOtto GroupK-Mart Australia Charles VogelePuma SwitcherPacific BrandsRAWE ModenPretty Girl Fashion Group Pty VistaprintRewe GroupSpeciality Fashions Australia TurkeyS.OliverTarget Australia MaviSchmidt GroupWoolworths Australia LC WaikikiSteilmann Holding AG Austria United KingdomTchiboFashion Team HandelsgmbH Arcadia GroupUncle Sam GmbHBelgium BonmarcheVianiaC&A Danielle Group plcWunsche GroupMalu N.V. DebenhamsHong KongJBC NV Fat FaceCronytex SourcingJogilo N.V John LewisEntrade Manufacturing Co. LimitedTex Alliance Marks and SpencerHeli Far East LtdVan Der Erve MatalanMosgen LimitedCanada MilordsTopgrade InternationalLoblaw MothercareItalyDenmark N Brown GroupBenettonBestseller New LookChiccoCoop Danmark NextPrenatalDansk Supermarked OTL Brands LtdJapanDK Company PrimarkFast RetailingIC Companys A/S River IslandNetherlandsTexman Sainsbury'sDe BijenkorfFinland Shop Direct GroupCoolcatReima TescoFashion LinqStockmann USAG-StarFrance Abercrombie & FitchHemaAuchan American Eagle OutfittersHolland House FashionCamaieu Fruit of the LoomMS ModeCarrefour J2 Licensing, IncN-TexE Leclerc

Knights ApparelO'NeillGroupe CasinoL.A. T Sportswear, IncTeidemGermany Lakeshirts, Inc.Texsport BVAdidasOuterstuff LtdThe Sting B.V.Aldi NordNew Agenda by PerrinV&DAldi Süd PVHVeldhoven GroupBaumhueter International GmbHScoop NYCVinginoBelotexT Shirt International, Inc.We Europe BVBrands FashionTop of the WorldWibra Supermarkt B.V.ChiccaTopline, Inc.Y'Organic BVColombus Textilvertrieb GmbHZephyr HeadwearZeemanDaytex Mode

NorwayDeltexHelly Hansen IndustriALL Global UnionDistraVarner RetailEIWOTEX GmbH UNI Global UnionVOICE Norge ASErnsting's Family IndustriALL Bangladesh CouncilPolandEsprit Bangladesh Garment and Textile LPPFlorett Textil GmbH & Co Workers LeagueSpainFull Service Handels GmbH Bangladesh Garment Workers El Corte InglesG.Gueldenpfennig GmbH Independent FederationInditexGebra Non Food Handelsges GmbH Bangladesh Garment Textiles Leather MangoHanson Im-und Export GmbH and Shoes Workers FederationMayoral Moda Infantil, S.A.U.Klaus Herding GmbH Bangladesh Independent Garment Padma TextilesHess Natur-Textilien GmbH Union FederationSri LankaHorizonte Bangladesh Revolutionary Garment Comtex GmbHHorst Krüger GmbH Workers Federation

Hueren OHG Professional Outfitters Sweden National Garment Workers FederationJolo Fashion AX Stores United Federation of Garment Juritex Gina Tricot AB

WorkersFace to Face GmbH & Co.KG H&MKarstadt Hemtex

Workers Rights ConsortiumKik Textilien ICA SverigeInternational Labor Rights ForumKilltec Sport Intersport ABClean Clothes CampaignLidl KappAhl

New Wave GroupMetro Group Maquila Solidarity Network


April 24, 2013Rana Plaza

Collapse

May 15, 2013Signing of

the Accord

October 17, 2013

100 brand signatories

and appointment of Executive

TeamOctober 23, 2013

Website launched

December1, 2013

First inspections carried out

December3, 2013

Start of operations

by the Executive

TeamJanuary 14, 2014

Factory safety

standards announced

February 1, 2014

Office opened in

Amsterdam February12, 2014


March6, 2014

Worker participation

proposal agreed

March 11, 2014

First inspection

reports published

March, 2014

250 factory inspections

a month

April, 2014

Start of implementation plan for workers

participation program

April 3, 2014First advisory

board meetingApril 7, 2014

Steering Committee

week in Dhaka

May, 2014

New Bangladesh office opened and training

coordinator hiredMay 15, 2014Accord first anniversary

August, 2014

1500 factories to be

inspectedSeptember, 2014


to be signed

Timeline of Accord

ROB WAYSS


conversations with the factory owners. Right now, signatory brands in the factory. The standard was

developed through technical discussions of the we have some cases where the owners are

Accord, Alliance, and the National Effort in technical cooperative. We are hopeful they will actually

implement the corrective measures. We will verify meetings facilitated by the ILO. that these have been done. In some shared There are a number of items in the building code, buildings where there are also non-Accord which cannot be met in many of the existing factories, we have faced challenges as the latter buildings. This is part of the reason why the refuse to accept the Accord inspections or take Accord, for example, requires sprinkler systems in part in the corrective actions. Some building hi-rise buildings (hi-rise = buildings of 23 meters owners have also expressed they will not make or more in height). repairs to their buildings. We have some cases

where factory owners are planning to move their Could you please tell us more about the facilities to non-shared buildings. In some cases, sprinkler systems, which was not on the owners are accelerating this process and speeding

national building code. How many up constructions they have ongoing.

buildings need to be under the sprinkler For “critical findings” from inspection in particular,

system? What was the reaction from the Accord requires the support of the Government. factory owners after hearing your In some cases our inspectors find significant recommendation?structural flaws in some buildings where it is Based on compromises that were required in other determined the building is unsafe for occupancy in areas based on the inability to apply the BNBC its current state. We informed and requested the fully in existing building, the Accord engineers Government to evacuate the building until remedial determined that for minimum life safety purposes measures could take place or some building strength in hi-rise buildings, sprinklers are necessary. tests could be done to verify the concrete strength. The Accord is very clear on the issue of finances The Accord works with the Government Review for remediation. Owners are expected to pay for Panel in such cases. The Government is the actual repairs to their factories, however if they require authority that can close a building; we are simply financial assistance the Accord brands in the giving them evidence that the building is not safe.

factory will sit with them and find means of . financing. The Accord does not allow required People say that it would be impossible for remediation not to be done. The finances need to owners to follow the building codes of be identified for things to get fixed. It is a simple Bangladesh to construct excellent RMG equation, but in reality, it needs a lot of discussion. factories. Do you think that is a problem?We have been holding meetings with supplier

The standard that the Accord is using to assess factories regarding this, raising awareness and

factories is as per the BNBC (Bangladeshi National understanding of the Accord details, and working

Building Code). However, the reality is that you cannot with BGMEA, as there are some factory owners

re-build a building that has already been built. Many of who do need finances for the remediation. The

those buildings do not meet Bangladeshi building brands are informed and obligated to help.

codes. Our standards established a minimum for life

safety to be followed during inspections. It recognizes Do you think the non-participation of the reality that the buildings are already built. What we BGMEA in your activities is causing any are measuring for is to create a minimal level of problem in the inspections?structural, fire and electrical safety for those workers

We regret that they did not accept to be on our and employees producing garments for Accord

During inspections, it was found that a lot of

the factories had stock areas, where they had

rolls and rolls of fabrics stacked from floor to

ceiling. It is a tremendous amount of weight, all

in one bay of the building.

COVER FOCUS


advisory board. We have factory owners who are on workers understand the provisions of the Accord in

the BGMEA advisory board themselves, so that is these suspensions to operations / temporary some consolation. We will continue to try to evacuation cases. Especially the components on: convince BGMEA that it is important for them to the remediation taking place, the workers' wages be on our board, but the decision is theirs. There being paid each month while the remediation takes has been no problem in continuing our inspections. place, and the requirement that the factory owner We have regular engagement and dialogue with maintain the workers' employment relationship with them on a technical level and on the executive and the factory. The Accord spends a tremendous political levels. We regularly meet to discuss issues amount of effort with brands, factory owners, and related to the Accord, inspections, and remediation labor partners on these issues and monitoring the programs. enforcement of the Accord in these situations. .

If the owners need support from their Accord Recently the BGMEA president said that companies or brands, then those brands are the factories closed down caused gross obligated to support. It does not mean they just uncertainty about the future of its workers. give them money, but providing them with financial Are you going to convey the message to the instruments and assistance so that they can fix the

brands and request their remediation building and pay workers' wages.

regarding this?You mentioned the government not We do not shut down the factories; we do not have

the authority. We inform the authorities regarding convening the review panels. Does it mean flawed buildings. We request immediate that the government did not shut down evacuations, which happened initially, but stalled those half a dozen factories?after some time, as the government was not

The government proposed a review panel with three convening the review panel for the last half dozen

initiatives the Accord, the Alliance and the National cases. What we do is tell the Accord brands about

Action Plan. All three of us are assessing factories on the flaws, ask them to inform the owners they must

structural, electrical and fire safety. We knew before evacuate the factory temporarily until emergency

we started that the engineers would find that some remedial measures can be taken. We require the

buildings will require immediate evacuation and Accord brands to express their support to the rectifications. The government established a review factory during this process and with the required panel for such cases where we inform the Inspector remediation. Please understand that it was for a General of the Ministry of Labor request partial/full good reason that the Accord was signed; to prevent evacuation of the said factories, and that the Review preventable building collapse and factory fires. . Panel be convened to go to the factory. The panel In the critical findings cases where we request the consists of four engineers, two from BUET, one Government Review Panel, we immediately are Accord and one from Alliance. Then that panel informing the factory owners and the brands and would inspect the factory case within 48 hours, go coordinating with the labor unions to immediately through the findings, determine whether anything have them mobilized to inform the workers that that can be done to reopen or reoccupy the building. when they come to work the next day, the If they reached a consensus, then it would happen, if government and Accord will be thereto explain not, then the building would remain closed. The what is happening. The Accord and our union

partners mobilize a communications network so government would respect the finding, issue an order

If the owners need support from their Accord

companies or brands, then those brands are

obligated to support them in whichever way possible.

It does not mean with money, but providing them

with financial instruments so that they can fix the

building and pay workers' wages.

ROB WAYSS


to close the factory, review its report another time, visit with non-certified companies or suppliers, the facility and keep it closed till remediation processes which do not fulfill your standard. The take place. For the first few instances, it worked, but factories do not want to invest by buying the the last half dozen, it was not the case. For wrong goods.approximately a month now, the Review Panel has not

If you are referring to "suppliers" who import/sell fire been convened or has otherwise not been functioning.

doors, sprinkler components, etc. or firms which install We are working with the Government, Alliance,

or construct the corrective actions in the factory, the National Effort, and ILO to try to have the Panel

requirements of the Accord are the doors must be become functional again.

graded and certified by recognized authorities and that

the installations / constructions rectify the finding. So the productions related to Accord in those Brad Loewen of Accord is trying to obtain factories have ceased? information on companies that sell these types of Yes, Accord production in such factories must be products and/or companies with skilled craftspeople halted until such time that emergency remedial who install these. BGMEA is also doing this and I measures are taken and verified. The brands work believe IFC may be as well. Our main work now is with the affected factory owners to identify how and ensuring the designs for the remediation are correct where the affected production can be placed at another before the construction starts and then working to facility. verify things are being done / installed correctly.

Is this breach of the Accord, after the brands What are the import taxes?and ILO working, but the government not The MoC recently announced that many of the working together? commonly required inputs for the remediation are now It is not a breach, we are doing what the Accord permitted to be brought in duty free. A BGMEA requires be done. The government issued a reviewing representative challenged this saying that the list of panel, used it initially, but the reality is that it is not items permitted duty free is quite limited and needs to being implemented anymore. We still continue to work be expanded. The MoC said all this becomes official with the national effort and the ILO to re-establish the when the budget is announced. You should speak with Review Panel and on a variety of other issues related to BGMEA for details on the limits of the "duty free list" safety in the RMG industry and our inspections and status of items actually being brought in duty free programs. now (or when it officially commences).

Any future suggestions regarding this? What is the latest development in the issue of The government has put forth some revised terms of concrete strength of buildings? A recent AFP reference for the review panel. The Accord will be

report claimed that Accord is differing on that required to inform the brands that Accord brands'

issue with Alliance and BUET and this too production will have to cease in those factories and the

had some connection with Government remediation, wage, and employment provisions for the halting the evacuation of flawed factories. In Accord must be enforced.. We will continue to work his interview with us, Professor Ishtiaque with the Government and others to see the Review

Panel become functional again. Ahmed from BUET said that they were We will have finished all our inspections by this working on the issue and hopeful to convince September. There will be follow-up monitoring and Accord inspection team to rely on standards verifying of the corrective actions, where all the suggested by BUET. Would you like to share concerns aboard will sit and add details if needed. The your position in this regard?factory owners will seek assistance of

engineers/architects for making the remedies. ILO is facilitating discussions between the Accord,

Therefore, it will be a continuing process in general.Alliance, and National Effort / BUET engineers to try to

resolve what concrete strength assumption will be used in Now something about the components that structural inspections for brick chip aggregate concrete needs to be fixed or installed in the flawed poured prior to 2005. The Accord remains engaged in this buildings. What are the requirements of the process and is confident an assumption will be reached suppliers to be accepted by ACCORD which is based on science and evidence and which

standard? It does not make sense to work provides an acceptable level of tolerance of risk.

COVER FOCUS


COVER FOCUS

Could you please give us a brief account

of Alliance's achievement so far?

The Alliance was supposed to inspect 626

factories, out of which we have completed

568, which is about 90%. The situation is

pretty good, from what we had previously

apprehended when we first started the job.

Out of 568 factories, we had to declare three

of them unsafe, which were temporarily shut

down. Five were referred at first to the

government for their review panel to take a

decision, out of which the three were shut

down. Rest two are continuing partial

“It should not take more than a year, by 2015 we will reach a

safety standard, where everyone will have a piece of comfort.”

Mesbah Rabin, Managing Director of Alliance for Bangladesh Worker Safety gives an account of their inspections and how his organization is trying to help our RMG sector get the much needed facelift.


production reducing live load as recommended by them how sprinklers operate their advantages,

shortcomings, etc. We are trying for a working review panel.

committee for assistance and bringing in the

technical assistance from NFPA.How many workers were there in those

three factories? Were there any obstacles to Some owners also complain that the BNBC run the inspection process smoothly?guidelines were not clear enough to follow.Approximately 1200-1500 workers were in the

BNBC and it's implementation needs Engineering factories that were shut down.

understanding. It is recommended to hire qualified Virtually there are no bottlenecks from the owners, engineers or engage consultant firms in but it is a matter of mindset. People were used to understanding and implementing BNBC on working in one style for a long period of time. So contractual basis.when we ask them all of a sudden to install

sprinklers, i.e something which was unheard of, for

most of them. They considered it to be sophisticated What kind of infrastructural deficiencies technology. There had been some misgivings, which were evident in factories that you have we have tried to overcome, clearing the mindset inspected so far?issues. Clearly it was the lack of awareness that

The Bangladesh National Building Code (BNBC) brought initial resistance, questions were made but

2006 was only recent, as 74% of the RMG once they were aware and informed about the

factories were built before that installation of sprinklers in high-rise buildings, there

was no problem.

In case of sprinklers, there are some owners

worrying that hard water will make those

rust easily and go out of function. Is there

any base of such claims?

This is what we call the lack of awareness. To up

bring the awareness, the NFPA (National Fire deficiencies. Protection Association) who has produced the

Secondly, our industry growth took place in the last standard of this new method of fire safety, they are

twenty years. As the demand increased, so did the holding a trade exposition in Las Vegas in June. We

are taking the business delegation to the US, to show volume of orders, resulting in entrepreneurs

code came into

existence. All those factories are not code-

compliant. There are countless deficiencies in those

factories. Firstly, for example in the very Rana

Plaza, the generator was placed at a higher floor,

which has a vibrating effect on the structure. When

everything was taken down, there was supposed to

be a fire rated wall around the utility corner, none of

them had those. As mentioned before, the buildings

were built before BNBC 2006, so these were the

inherent

“ Currently, we have trained more than 326

factories, covering 440,000 workers. We were

supposed to train more than 1,500,000 workers,

out of which we are almost halfway through.

These are basic fire safety awareness. We do not

expect female workers to be fire fighters or

rescuers.”

MESBAH RABIN


COVER FOCUS

Timeline of Alliance

Fire, building safety

trainers identified

Identification of

Worker Participation

Committees

July 10, 2015

Achieve transition from individual

company to Alliance Fire and Building Safety Training

Program2015 to 2018

Ongoing training,

inspections, audits

and verification,

and public

reporting

November

11, 2013

Finalize

protocols for

reporting

July

10, 2014

· Achieve 100% inspections of

Alliance factories

· Train workers, management at all Alliance factories

October

10, 2013

Available

Alliance factory

safety reports

shared with FFC

September

25, 2013:

September

10, 2013

· Developer, building safety protocols

· Engage 3rd parties to develop training program

· Adopt training standards curriculum

· Common safety standard recommended for adoption

· Factory inventories complete

· Factory lists shared with FFC

· Third party “hotline” process selected

Rana Plaza

CollapseApril

24, 2013North American

retailers and brands

announce the creation

of Alliance for

Bangladesh Worker

Safety

July, 2013


increasing their tailoring facility. That is how we have will happen, but then it will be with zero loss of life.

three types of structures for RMG factories. Firstly, Due to the lack of electrical know-hows, we have never we have rented buildings with mixed occupancy, thought that whether a room, which contains two air-restaurants and convenience stores in the ground conditioners, can take up such a load. Now as we go floors, banks on the second or more floors and RMG for inspections with electrical engineers, we see that on rest of the floors. We have factories in 18-storied most of the cables and wires are overloaded and buildings, something people across the globe cannot overheated, that may lead to short circuits. The conceive. With thousands of people working together majority of the accidents which took place in the RMG in top floors, some crazy ideas came into being, such sector, their root causes turned out to be short circuits. as bird windows. Inside the windows there, they have We did not know how to clean the MDB/SDB. And put thick Manila ropes. The owners expected that the vermin, the dust and the spider nets lead to short when there is a fire, the workers will get down from circuits and fires. We have 10 top challenges written

ththe 18 floor using that thick rope. Despite having down, such as the MCB top terminals, connections, the the knowledge that four out of five workers are fire signs, the circuit breakers covered with

thwooden/combustible materials. female (one 10 could be maternity cases), we had

these ideas. All these are time-bound factors. It should not take

more than a year or two, by 2015-16 we will reach a However, every problem has solutions. We have

safety standard, where everyone will have a piece of developed a standard, which we considered as an

comfort. Before we develop the trainers' training alternative to the BNBC 2006 guidelines. If we can

modules, we had taken a baseline survey during comply with that standard, then our RMG industry

November-December 2013 to understand what they will significantly improve. Safety is a subjective issue,

know, what they don't know and what they need to where you cannot have 100% safety. But a degree of

know. Based on this we developed a training module, such level is accepted and appreciated which

given the educational and analytical aptitude of theminimizes loss of life . Accidents may happen and

MESBAH RABIN

The current group of 26 includes the following companies: Ariela and Associates International

LLC; Canadian Tire Corporation, Limited; Carter's Inc.; The Children's Place Retail Stores Inc.;

Costco Wholesale Corporation; Fruit of the Loom, Inc.; Gap Inc.; Giant Tiger; Hudson's Bay

Company; IFG Corp.; Intradeco Apparel; J.C. Penney Company Inc.; The Jones Group Inc.;

Jordache Enterprises, Inc.; The Just Group; Kohl's Department Stores; L. L. Bean Inc.; M. Hidary

& Company Inc.; Macy's; Nordstrom Inc.; Public Clothing Company; Sears Holdings Corporation;

Target Corporation; VF Corporation; and Wal-Mart Stores, Inc.; YM Inc.

Supporting associations include: American Apparel & Footwear Association, BRAC, Canadian

Apparel Federation, National Retail Federation, Retail Council of Canada, Retail Industry Leaders

Association, and United States Association of Importers of Textiles & Apparel. In addition, Li &

Fung, a major Hong Kong-based sourcing company which does business with many members of

the Alliance, will serve in an advisory capacity.

Alliance Steering Committee

· Honorable Ellen O'Kane Tauscher, Board Chair

· Ambassador James Moriarty, former U.S. ambassador to Bangladesh

· Bobbi Silten, senior vice president of global responsibility for Gap Inc. and president of Gap Foundation

· Daniel Duty, vice president of global affairs for Target

· Jay Jorgensen, senior vice president and global chief compliance officer for Wal-Mart Stores, Inc.

· Mohammad Atiqul Islam, president of the Bangladesh Garment Manufacturing and Exporters Association (BGMEA)

· Muhammad Rumee Ali, managing director of enterprises at BRAC, the international NGO founded in Bangladesh

· Randy Tucker, global leader of the fire protection and safety team at ccrd, a Houston-based engineering firm

· Tom Nelson, vice president for global product procurement for VFC


COVER FOCUS

“We have developed a standard, which we

considered as an alternative to the BNBC 2006

guidelines. If we can comply with that standard,

then our RMG industry will significantly improve.

Safety is a subjective issue, where you cannot have

100% safety. But a degree of such level is accepted

and appreciated which minimizes loss of life.”

workers, we need to understand how much they wages to the impacted workers up to 2 months,

can absorb, retain and apply when there is an with 50-50 partnership with the owners. We have

emergency. already paid in all our cases. We have also collected

contact information of the workers compensated Currently, we have trained more than 326

so far for surveys. The survey was to find out factories, covering 440,000 workers. We were

whether they are still employed or whether they supposed to train more than 1,500,000 workers,

had taken jobs elsewhere, whether they were out of which we are almost halfway through.

pressured to give shares to someone, etc. These are basic fire safety awareness. We do not

expect female workers to be fire fighters or

rescuers. All we want is that they should be able to Is there any difference between Accord recognize the fire hazards, understand whom they and Alliance?should report to, how to operate the fire alarms, There is no difference, as the standards and pressing it, safely exit to a safer place, etc. Saving protocols are harmonized. However, their their lives is the bottom line. The mid-level approach to educate workers is different from that management and the male workers will have a of ours. As far as improvements are concerned, different module, developed in a manner where their inspections and remediation are all the same. they should be able to use the in-house fire We are getting full support and assistance from extinguishers, sprinklers, hydrant systems, etc. BGMEA. Their president is also on the Alliance's

We are ready with helplines, we have already board. We are talking about the industry's safety,

launched a pilot project to 50 factories, with soft so every representative from the stakeholders

launching to 10 factories. They accept that there will should be in the board, which we have already

be a toll-free hotline where workers can call for taken.

help, we want to hear their voices. If they have a

serious concern, they should be able to make a call. Will there be any follow up inspections in

future?How are you handling the cases of There will be follow-up inspections and audits.

compensation for remediation? Corrective action plans will be vetted by us, with

our technical inputs. The plans will be verified Alliance is a mandate, because of the structural

based on their individual timelines, with each deficiencies, if a factory has to be closed for

remediation, we are ready to pay 50% of the corrective measure having separate times.


COVER FOCUS

Canada is one of the countries that is engaging What is your take on the developments the government of Bangladesh in a group called of issues one year after the Rana Plaza “Three plus Five,” where five ambassadors from tragedy?the US, EU, Canada, Netherlands and rotating There has been tremendous progress, but there member of the EU (Germany participated) met is more work that needs to be done. Canada is the Secretaries of Labour, Commerce and one of the first countries to have their private Foreign Affairs. The companies that visited have sector companies visit Rana Plaza after the memberships in both the Accord and the tragedy. They were some of the companies Alliance. Therefore, we really feel that our role implicated and had provided significant amount on the ground is to ensure coordination between of support following the incident. We shared the two initiatives, maximize both the private their press release just after the first anniversary sector support, and make sure that the of tragedy. From the Canadian government's international buyers are taking a consistent perspective, we take a multi-faceted approach to approach to this issue.the issues that have come up in the RMG sector, Both Accord and Alliance can support the following Tazreen Fashion and then Rana Plaza. change that the Bangladeshi government and its We are looking at it from a political perspective, people want. This cannot be imposed by a human rights perspective, development and international community. Bangladesh needs to trade perspective. We have been quite active exercise leadership in this area. We are here to following these incidents, in engaging with the help. government to improve and reform the sector

ensuring workplace safety and labor rights. Not much is achieved when it comes to Canada is providing $8 million to ILO, as one of the compensation of the victims of the three countries working with ILO, the others

being the Netherlands and United Kingdom. Rana Plaza Tragedy. How to speed up This has been a way to work with the the process?government and provide necessary support to It highlights the aspect of coordination. If the them, implementing their commitments in the systems are not in place, then you obviously have national sustainability action plan. issues. A fair bit of work has been done for

“Both Accord and Alliance can support

the change that your government and the

people want. Bangladesh needs to

exercise leadership in this area. We are

here to help.”

H.E. Heather Cruden, High Commissioner of Canada in Bangladesh


compensations, but it's an area where more work needs The objective of Canada's current development assistance

to be done. A trust fund has been set up, where money program for Bangladesh is to create opportunities for children

has been put up worth $17 million approx, where $40 and youth and to stimulate sustainable economic growth.

million is to be needed. If the Prime Minister's Trust Canada's long-term, significant investments in children and

Fund can be added along, then that would be helpful. youth target child, newborn and maternal health and basic

education. In the area of sustainable economic growth, Canada

supports public financial management and skills for As the inspections by Accord, Alliance and employment. Our support to public financial management is National Action Plan are going on, BGMEA is designed to enhance efficiency, effectiveness and accountability concerned over the frustration of the jobless in the management and use of public funds in order to workers from factories that got closed down. accelerate the implementation of national development

What will happen to the workers? What is the priorities leading to greater poverty reduction and sustainable

role of the buyers here?economic growth. Our skills for employment programming

There are different modalities to help. The government seeks to create a better-trained, qualified and competent

makes the decision to shut down or not a factory, workforce, with particular attention to disadvantaged groups in

following inspections by BUET engineers with people the labor market, such as women, youth and people with

engaged by both the Accord and Alliance. The help that disabilities. Canada is also providing $19.5 million to the ILO's

is available depends on who the factory is producing for, Bangladesh Skills for Employment and Productivity (B-SEP)

and there is also a responsibility for local factory owners project. The B-SEP targets 5 emerging sectors in the

here. The Accord is helping to acquire funds for the Bangladesh economy Pharmaceuticals, Ceramics, Agro-food

remediation efforts and the Alliance is providing funds processing, Furniture and Tourism/Hospitality.

to pay for the salaries. For factories that are being closed,

that do not work under the brands representing Accord Post Rana-Plaza disaster, as per donors and policy

and Alliance, are at the risk of the factory owners.makers' suggestion, the Government is showing

positive attitude towards formation of Trade Unions. Recently the Government of Bangladesh has In last one year, we have seen more than a hundred halted the shutting down of factories. Do you Trade Unions being formed. Is that a good sign?think this will prevent both Accord and Alliance I think they are going to help improve workplace safety rights,

from achieving their goals?assuming what their roles and responsibilities are. As part of

It is important to recognize that this is a goal for our agreement with ILO, we will provide training for them. We

Bangladesh, it is not a goal imposed by the two bodies, just had a Canadian delegation; an MP was here with

or international buyers. Everybody recognized that after representatives from 5 trade union representatives. This is not

Rana Plaza, this sector needed to be reformed. The an area where we have any expertise over the subject, but they

government, the buyers, the workers and some of the were very clear that the formation of such unions is not

local factory owners have recognized that. The trick is to enough. The unions' roles would be to go for collective

work together, to achieve those reforms. If we do not, bargaining and come to a collective agreement that helps to

alternatively it will be Bangladesh's economy, the workers provide workers' safety and rights. I think we can say that it is a

and the female RMG workforce that is going to suffer.good step in a long process ahead. What we have is first-

generation RMG workers, from villages with zero to low levels Please tell briefly about Canada's current

of education, they don't know what their rights are, don't know development assistance in Bangladesh? what the role of trade unions should be and don't necessarily Canada is providing $8 million to ILO, for improving understand their own roles once the unions have been formed. workplace safety, mentioned at first. The total project is There are responsibilities from the owners' side, from the worth $24 million. government's side, etc.

H.E. HEATHER CRUDEN

“ It is important to recognize that this is a goal for Bangladesh, it

is not a goal imposed by the two bodies, or international buyers.

Everybody recognized that after Rana Plaza, this sector needed

to be reformed.”

{Emerging Bangladesh} bgcci.com 37

Being the President of the BGMEA,

what's your repercussion about the

factory inspection done by Accord and

Alliance?We are happy, as the rumors that 80% of our

factories are vulnerable, is now finally cleared.

After having these inspections, it is clear to all

that only 2% of the factories are structurally

vulnerable. In some cases, there is room for

improvement.

However, Accord and Alliance still cannot

come to common standards. In example,

Alliance will not make duplicate visits to

the factories where Accord is supposed to

“ We are happy, as the rumors that

80% of our factories are vulnerable,

is now finally cleared.”

Md. Atiqul Islam, President of BGMEA expresses his relief as

only 2% of the inspected factories were shut down contrary to a

number way bigger as speculated earlier. Edited excerpts:

COVER FOCUS

38 {Emerging Bangladesh} April - June 2014

go, but it is not happening vice versa, and the programs on fire safety awareness.very reason is not known to us. The logic behind BGMEA has done counseling measures. Alliance this is that Accord has their own set of and Accord has arranged for an exhibition in protocols, which is why they are not agreeing to August on fire safety equipments. We are going the condition of not visiting Alliance factories. to Las Vegas for the NFPA meeting as well. I'm not happy in this regard. After coming back, we will conduct awareness-BGMEA had a meeting with the government, raising orientation programs. After Rana Plaza, where the Accord agreed that they will not make we held crash courses for upper and mid-level

duplicate visits. Nevertheless, the reality is that managers of RMG factories on how to react to

the inspections are still being done in some safety hazards.

factories, which were previously being inspected

by Alliance already. In the question of concrete Accord has invited you to be on their strength of buildings, the Alliance and BUET advisory panel, which you have turned engineers are content with the majority of the down. Any resentment behind such findings, whereas Accord is not on the same decisions?page with them.

We turned it down because we were asked to be

part of the advisory body, not the steering Installation of sprinklers in buildings committee. Decisions are made in the steering above 23 meter seems to be a big issue committee. No matter what, BGMEA is the for many building owners. How to main steering body of the RMG sector. But

resolve that issue? being in the advisory panel, we can merely

advise. At the same time, noted industrialists are The issue of constructing sprinklers for

also advising us not to be on that board. As far buildings below 23m is not in Bangladesh

as the buyers are concerned, they are saying that National Building Codes. This is also a

the agreement is between the buyers and the concern to all the factory owners as to why

owners, so there is no place for BGMEA in all they should install this kind of thing. But we this. Now if you ask me whether we would like would request the owners to construct it. We to join the steering committee if asked, my sat with them along with Alliance/Accord answer is: we would not mind doing that. officials, explaining that if they need, then Because for us the betterment of the sector financial assistance will be sought for them. It means much more than anything!can be optional, but not mandatory. Accord is

exerting pressure on us in this regard

nevertheless. The compensation of remediation is still

unresolved. What's your take on that? Tell us something about BGMEA's The Accord steering committee should take

As far as the buyers are concerned, they are

saying that the agreement is between the

buyers and the owners, so there is no place

for BGMEA in all this. Now if you ask me

whether we would like to join the steering

committee if asked, we would not mind

doing that. Because for us the betterment of

the sector means much more than anything!

MD. ATIQUL ISLAM


responsibilities of the workers, but I am very

surprised to see that there are industry leaders,

trade union leaders, none of whom are doing

enough to look after the interest of common

workers. After talking with our Commerce

Minister, I have suggested them to follow the

same compensation format that Alliance is

offering. Nonetheless, they keep saying that it is

on part of the owners to pay the workers. There

is no point in paying workers month after month

when the factory is closed. Also, closed down

factories make workers frustrated.

Do you think the Rana Plaza disaster

gave BGMEA a new vision?This is not only for BGMEA. When buyers place

assignments on factories, they do not look into

the compliance factors. So we cannot be blamed

for everything. Rana Plaza is the cost of cheap

price so far. While placing orders, buyers should

look into all aspects; only then the paradigm shift

will be possible. BGMEA is advising the buyers

to place orders where there is ethical buying

practice/compliances. This year's prices are 7-8%

less than last year's, which is not right. All over

the world, prices are going up, not the other way

around. In the minimum wage board, the wage

hikes are done annually. Utility/production prices

are going up as well. So this means that they are

not giving us ethical prices. The government

cannot do anything in this regard. Buyers must

understand that they have to pay justified prices,

based on all the expenses and aspects that

involve the workers.

Trade unions are on the rise. Does that worry

BGMEA or its stakeholders?

In the last 10-12 years, there have been 38 trade

unions, but now that number shot up close to

150. Workers participating in these are of 20-35

years; they do not know about their rights or

responsibilities. I have asked the ILO and other

labor agencies to integrate one formula on how

to train such union leaders and workers. We want

legal and constructive trade unions. Anything else

will be destructive for our sector. We request the

political parties not to politicize the union

leaders.

5600

384

4

0.12

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Are you happy with the outcomes of the factory inspections?These inspections of 1300 factories so far (out of almost 3600 factories) and their outcomes are very significant fulfilment of the commitments made by the private sector. On their outcome, I am very happy to see how things are progressing. There were 19 factories, which required invoking of review panels and temporary suspension of those factories to ensure workers' safety. It is a positive trend, for the EU compact. It is a good partnership for brands and

“This is only a beginning, an important one though, it has to begin somewhere. It can only be started by

the workers.”

The Director of the ILO Office in Dhaka, Srinivas B. Reddy talks about his optimism on the surge of Trade Unions in Bangladesh and how factory owners are embracing inspections and suggestions by Accord and Alliance, both of which are signs of change in mindset of local entrepreneurs. Edited excerpts:

COVER FOCUS


retailers taking responsibilities to ensure safer improvements can easily be made if

workplaces. The rest of the factories including occupational safety can be prioritized, people the sub-contracted ones will be taken care of by first, i.e keeping all the staircases and passages the National Tripartite committee. As a way free. The moment a factory is inspected, the forward, we have to ensure the rest of the inspectors are engaging in a dialogue with the factory inspections carried out, along with their owners. Improvements are done well before the remediation is carried out according to the 3 reports filed. The owners want to see genuine initiative plans and funds be made available. improvements. They used to perceive all these as

burdens, but now they look at this as an

Is there any difference between the opportunity to show it to their buyers and say

that Bangladesh contains international standard inspections being carried out by Accord, RMG factories.Alliance and NTPA?

I do not agree with this. All the three initiatives

will follow the same standards, which we Accord is yet to close the deal on paying ensured by facilitating a dialogue among the 3 for remediation compensation. ILO is a partners to agree on harmonized minimum neutral Chair in Accord. How do you see standards based on structural, electrical and fire this?safety, which was made in November last year.

From Accord, their steering committee is Inspections made by BUET engineers are on par

responsible to make decisions. From ILO, we are with the other bodies. We offered technical

a neutral chair. The government made a request assistance by hiring an international engineering

to them to consider payment of wages during firm, Arup, who is working side by side with the

the suspension period during the remediation BUET engineers, to ensure quality assurance.

stage. There is a need to address the issue of The whole idea of bringing international wages-any worker told that they do not have to expertise is to ensure that every inspection is on show up for work the next day is justified to par with the three incentives. I have seen worry. All stakeholders need to address this instances where Accord/Alliance engineers have issue. We have to find a solution to this.witnessed findings from BUET engineers, which

they had missed out.Government have amended the Labor

Law. Do you think that is going to usher Evacuations of factories spread a fear the much desired change in ensuring among factory owners. Do you think it's labor rights in this country?a problem of mindset that we have?Implementation of those amendments has If you look globally, at the overall findings, you started already in a positive manner. What have both infrastructural issues, as well as

happened in July 2013 was removal for behavioral aspects. The teams found that certain

“ Bangladesh has huge potential in terms of

availability of skilled workers. It continues to

be competitive, but we should also see

wage increases as productivity gains. The

industries should invest in productivity

development, and the workers should be

strengthened through improved skill sets.”

SRINIVAS B. REDDY


restrictions for creating trade unions. The government has shown inclination to implement the legislation by promoting active registration of unions in a simple and transparent manner, the result being 146 unions. Similarly, they are finalizing the rules, which they will publish by July. Mandates are also being made to keep mandatory safety committees with employers/workers' representatives.

Provision of formation of Trade Unions has witnessed a surge of trade unions in Bangladesh, a situation like never before. What is next? Are we going to the right direction?We are going in the right direction, in terms of empowering both the employers and employees on issues of freedom of association. This is only a beginning, an important one though, it has to begin somewhere. It can only be started by the workers. This is not the end of it. Unless the unions receive support from both the parties, they will not be able to sustain. The success of these unions will be seen in the next 2/3 years whether they have implemented any plans on collective agreements. Strengthening the capacities of these unions, continue to work on capacity of the employers to change their mindset towards trade union so that they may hold constructive dialogues, to address rights and responsibilities and graduating from registration to collective agreements these are some of the one-dimensional supports that we are offering to them. We are constructing programs with BGMEA so that they accept that unions are good for business.

BGMEA has increased the minimum wage of the workers, which leads to many buyers fretting over this. Is Bangladesh going to face soon what China facing today that is the soaring hike of wages demotivating buyers to place orders?Bangladesh has huge potential in terms of availability of skilled workers. It continues to be competitive, but we should also see wage increases as productivity gains. The industries should invest in productivity development, and the workers should be strengthened through improved skill sets. This would be a win-win situation that will increase their wages. All these aspects accumulated will bring benefit to the workers.

We just launched a program with Canadian International Development Agency (CIDA), which addresses this issue, regarding the RMG sector. These programs will increase the workers' skill developments and improve their wages. It is a very important enterprise-based pilot. Training happens within the garment factories. This will be followed by initiation into the leather industry. With BGMEA, there will be a center of excellence that will act as both a training and resource center.

The banner in your room, which talks about 'Decent work', looks quiet fascinating. How long will it take to ensure 'Decent Work' everywhere around the world?It is a dynamic concept. What we are saying is based on the country's context and society where we are operating. But globally, decent work means work with rights. When it comes to context, we need to see the work deficits. As part of our engagement with any country, we identify and develop a program called decent work country program that addresses the key deficits, be it rights, entitlements, etc. Globally, it is to ensure that the international labor standards are implemented and maintained.

Funding of the programme called “Improving

Working Conditions in the Ready-Made

Garment Sector” (RMGP). It is being

implemented by ILO and GoB and funded by

Canada, Kingdom of the Netherlands and the

United Kingdom.

$24.21 million

Number of new labor inspectors recruited to

ensure compliance as ILo and PSES Porgram

of GIZ shook hands to develop capacity of the

Department of Inspection for Factories and

Establishments (DIFE).

41

The numbers of workers suffering fatal

accidents and dieing from work related

diseases across all sectors each year in

Bangladesh, says an ILO estimation.

11.7 thousand &24.5 thousand

The number of key outcomes that are being

implemented by the Bangladesh Decent Work

Country Programme (DWCP) for the period of

2012-'15. The program was developed in close

collaboration with ILO's tripartite constituents:

the Government, Bangladesh Employers'

Federation and National Coordination

Committee for Workers Education.

12

Source: http://www.ilo.org/dhaka/lang--en/index.htm

COVER FOCUS


How are the businessmen responding

toward the factory inspection by

Accord and Alliance?Previously, the factory owners' perception was

that the notion of compliance was a

requirement from the buyers, which was not

the case at all. Now the mindset has changed,

now they are aware about raising the safety of

their workers and workplaces. We are not

striving merely for occupational safety, but

also for environmental safety.

Before the tragedy, we had various cells, naming

Arbitration cell, Fire Safety cell, etc. After the

Rana Plaza collapse, we took 10 civil engineers

and 2 electrical engineers from BUET to

monitor the factories. A lot of factories were

“We are not striving merely for

occupational safety, but also for

environmental safety.”

Md. Shahidullah Azim, Vice-President, BGMEA talks about how

the mindset of businessmen in RMG sector is changing to

ensure safety at workplace and BGMEA’S plan to establish a

clean image of Bangladesh in this sector. Edited excerpts:

COVER FOCUS


inspected, now we have 35 trainers, who are all retired USD100 million fund, though we are not seeing it at

armed forces personnel. We have 3600 operational work. The funds should be put on vulnerable

factories, from where we take 10 from each factory, and factories, which have not been closed down yet. We

train 36,000 personnel on safety measures. We held want a low-interest loan with long-term pay backs

roundtable discussions at the Daily Star, conducted by from the bank.

BRAC University. Talks were held to groom RMG-

efficient graduates into the sector. What happens when owners cannot pay

month-to-month wages to its works?thBGMEA refused to be in the advisory By the 10 , workers should receive their basic pays.

committee of Accord. What was the reason But it's not only about the wage. Owners also have to

behind such stance? think about compensation and remediation costs for

corrective measures. They cannot simply take loans if When Alliance was formed, I represented BGMEA in they tell banks that they are shut down. We advised Washington on behalf of our president. He advised Accord to tell their buyers to pull out orders from the to observe Alliance's activities. I witnessed 50-60 factories. This can be done through another approved buyers in a hall-room, where I faced questions on our factory, which would, in turn, save the owners from lack of budgetary measures for prevention of such incurring huge losses.tragedies. I covered whichever way possible, refuting But some labors misguide the authorities. When a with rectifying measures taken through tax waivers on factory was closed in Ashulia, they shifted 80% of the safety equipment, new labor law amendments, wage workforce to another factory location, to resume boards, etc. work. But 20% were retained for immediate payment What we wanted from them was our membership in demands. their board (Alliance's.) We have a UD (utilization Many factories have been closed down due to declaration,) without which factories cannot import or compliance issues. We wish to be mission-oriented, in export in any form. We used that as an instrument for the long run we want to employ as many workers as remedying faulty buildings, such as shifting factory possible, but some leaders take undue advantage of generators from top to bottom floors, or else revoking these situations. their UD statuses. I tried to convince people in that

meeting that to do anything in Bangladesh, they need to

do it through BGMEA. They followed my advice. The number of Trade Unions are rising after As for Accord, they requested us to sit on the Advisory the amendment of Labor Law last year. board, rather than in the Steering Committee. Now an What is your take on that?advisory body is a non-functional body. We will not We do not mind if they possess constructive qualities. have any contribution there, only consenting to What they teach workers now is about rights, but not whatever they do. That is something what we cannot responsibilities. There must be a balance of both. We do. Now they have proposed to sit with us on a welcome constructive trade unions. There is a labor monthly basis, to discuss various issues. arbitration cell in BGMEA now, where orientation

programs involving the trade union leaders and Has there been any specific procedure factory owners are held. followed in case of compensating for the

remediation cases? China is facing the aftermaths of wage We sat at the 5+3 Committee recently, held in the hikes: buyers are looking for cheaper Commerce Ministry. We asked the Accord officials on options. Bangladesh is their number one the compensation procedures, but did not receive any choice after China. Is that a blessing or substantial numbers from them. No owner is ready to

blemish?compensate three month's worth of wages to their

It is true that buyers come to us for the cheap wages workers. They think about month to month expense

we offer. If our wages rise unexpectedly, then buyers payments, after receiving consignment payments and

would go elsewhere. Still we have to withstand several such. No one sits idle with huge amount of wages in

hurdles, such as lack of electricity, low gas pressures, Bangladesh. If Alliance helps in sharing the 3 months

political unrest, etc. We have to stay and compete in wages, it would be a great help.

the global market. After all this monitoring, we hope At the Alliance meeting, they said that they had a

to clean this industry and enjoy a smooth transition.

SHAHIDULLAH AZIM


COVER FOCUS

Please give us an account of the team

of Professors who are inspecting the

RMG factories.There are about 30 BUET professors all

together from Structural Engineering and

Geotechnical Engineering background. We

also have Professors from other public and

private universities. For inspections in

Chittagong, we will have some more

professors from CUET (Chittagong

University of Engineering & Technology)

also to enhance our capacity to cover as many

factories in the shortest possible time. Under

ILO sponsorship, we are doing preliminary

assessment of factory buildings in the RMG

sector. The objective is to ensure that

“I am hopeful that based on core

test results we would be able to

agree on a harmonized concrete

strength value.’’

Dr. Ishtiauqe Ahmed, Professor of Bangladesh University of

Engineering and Technology (BUET) details about the core

issues of building inspections conducted by BUET and the

controversial low set values for concrete strength of RMG factory

buildings. Edited excerpts:


accidents like Rana Plaza collapse or fire hazard like almost similar percentage of buildings we have with

conditions worse than that of buildings in the Tazreen does not happen anymore. Besides

structural integrity assessment, BUET is also Yellow category. These buildings may have visible

conducting fire and electricity assessment of those distress marks like cracks or are overstressed. Red

buildings. Faculty members from Mechanical, category buildings are those really found to be

Electrical, Architecture, Civil and IPE are vulnerable. They need immediate evacuation and conducting those assessments. they amount to around 1% of all buildings so far

inspected.

Who formed these teams of professors? While examining, to understand if a building is

going to collapse or not, we calculate the Factor of ILO or the Government of Bangladesh Safety -- a ratio of capacity to existing load. Ideally (GoB)?this is around 2, according to our National Building It's an agreement between ILO and BUET. BUET Code. Any building falling below 1.5 is categorized formed these teams. as Amber. There are factories where the owner

could not provide us any documents like drawings, How many factories have you completed design reports etc; in this kind of situation, we inspecting so far? How many of them were suggest to go for Detailed Engineering Assessment found to be structurally flawed?(DEA). Buildings under Amber category require

Under the ILO agreement, we have completed so far DEA within six weeks. Structures having safety

the inspection of more than 200 factories under the factor more than 1.5 fall in Yellow Category. These National Tripartite Plan of Action. At present, the buildings will not require DEA unless they have assessment we are making is preliminary and based special problems like visible structural deficiency on visual identification of problems. For structural like lacking enough beams or shear walls, i.e. absence integrity assessment, we have classified these of lateral force resisting system.buildings into four categories. The ones coded

Green are safe and more than 55% of our inspected What kind of problems do the Red category buildings are in this category. In the Yellow category buildings have?are buildings, which have minor structural problems. These extremely vulnerable buildings and may For example, there are buildings, which were collapse any moment. Some of them have factor of designed as five-storied in the beginning but there Safety around 1. had been an extension of one more storey-the

capacity shows it is still befitting with the initial

Are most of them overloaded? Could you please design but detailed examination is needed; or say, the

tell us what makes them so vulnerable?structure appears to be sound but lacks proper

regulatory approval. We have found around 22% of Not all of them are overloaded. Most of them are

basically built as under-designed. For example, some buildings in Yellow category. In Amber category,

DR. ISHTIAUQE AHMED

if your assumed concrete strength is low, more

and more buildings will fall into Red/Amber

category. Now we have 1% of buildings in RED

category, which may become around 5 to 10%

in that case. Also, more and more buildings will

certainly be in Yellow category making the

overall situation worse.


of them have having 10X10 sq. inch columns, That is a wrong interpretation of BNBC. BNBC does

whereas the required measurement with a proper exempt buildings built prior to adoption of BNBC.

design is 12X20 sq. inch. A few of them had extra But if one has made a change of use in his building, storeys built above the actually designed structure-the for example, in case of residential building converted same kind of problems that we saw in case of Rana into a factory, then the requirements of the code Plaza. becomes a binding on it.

Tell us something about the location of these What would happen to the buildings that had buildings, which are extremely vulnerable. been converted into a factory prior 2006?Are all of them inside or outside Dhaka? If that building was built for dwelling purposes but The buildings we have inspected so far are mostly later was converted, then it has to be reviewed as per inside Dhaka and a few are in the areas surrounding directions given in the building codes. But if the Dhaka, like Savar, Ashulia, Gazipur etc. The latter areas owner decides to use it again as a residential one, then have more purpose made buildings and henceforth no change will be needed.more complying with required standards. On the

other hand, within the Dhaka city, we have more So, you mean any buildings that was converted converted buildings i.e. residential buildings being after 2006 should have been corrected, if needed used as factories. These factories have more problems

by now.than the purpose made ones.

Absolutely. One more provision we have in the

building code: if a structure proves hazardous to Bangladesh National Buildings Code

public safety, it has to be checked by building official (BNBC) came into existence in 2006 whereas and be corrected.most of RMG factories are housed in

buildings made before that year. This is why Who would these building officials be?many fear that buildings built prior to RAJUK (Rajdhani Unnayan Kartripakkha) is the adoption of BNBC are more vulnerable authoritative body to conduct these inspections for leading to shutdown of 40-50% of our Dhaka. Similar building officials are there for other

buildings. Do you agree with this? parts of the country.

Should be evacuated immediately

BUET's Color Coding to Identify Vulnerable Buildings

Have Visible Stress Mark

Safe buildings Structure looks ok but lacks proper regulatory approval

55%

22% 22%

1%

Total number of buildings inspected : More Than 200

COVER FOCUS


value of 2500 psi (as assumed value) in November Has it done any such inspections so far?2013 for preliminary assessment by all three parties.Well, it does not have the capacity to do it on their

own. However, it usually does if a building is

reported to have structural flaws. Unfortunately, the Was this for brick aggregate buildings or organization does not have the capacity and adequate stone chips buildings?technical manpower. It is impossible for them to Back at that time, we did not distinguish between keep checking the huge number of buildings we have brick and stone chips. But of course in case of stone in this city. And for buildings outside the city, there is aggregate buildings, it would be more than the a confusion regarding which authority to provide assumed value. We thought that value would be good development control permission. It is important that enough to follow for assessments made without an effective means development control is established testing.. This ordinarily means , if measured, we will through engineering professionals. have concrete strength of 2500 psi or more, which

means we are on the safe side. We also thought Recently there was a claim about an ongoing buildings having less concrete strength would

dispute on the issue of concrete strength set certainly show other signs of distress; hence, 2500 psi

was a good assumed value to start with.up by Alliance, Accord and BUET. If the Then all of a sudden, both Accord and Alliance Accord standard is followed, around 40-50% changed this value for their inspections and brought it of RMG factories will be closed, which to 2200 and 1500 psi for stone aggregate concrete sounds alarming. and brick aggregate concrete respectively in last

There is a serious information gap in here. All three December.

parties, Accord, Alliance and BUET on behalf of the Arup, an internationally reputed engineering

National Tripartite Plan of Action had a meeting last consultancy firm, has the responsibility to oversee

November to come up with a condition where each BUET's inspections on behalf of ILO. The same firm

and every assessment follows a harmonized set of is also making assessment for the Accord. When they

standards. At that time, the three parties agreed on a came to share their views on BUET assessment in

level of concrete strength based on BUET's January 2014, they argued that we should not take an

recommendations, as the latter has the better set of assumed value of 2500 psi; instead they suggested we

knowledge than any other parties about the concrete should take a lower value of 2200 psi and 1500 psi quality and construction practices of Bangladesh. depending on aggregate type. . The basis of their Someone coming from outside may l not immediately argument was brick chip concretes are no better than have an idea about the aforementioned things; they 1500 psi, as obtained from some results of a few core will have to collect a lot of data, which fortunately is tests of some RMG factory buildings. We were not abundant in BUET as people from construction ready to agree with their contention. We pulled out a industry send samples of construction materials to lot of data from our laboratory and argued that our BUET for testing for quality control purpose. This is data showed the values would be 2050 psi (rounded to why we have test results of thousands of samples of 2100 psi) for brick chips and 2370 psi (rounded to 2400 concrete in our labs. We have a huge database of psi ) for stone. Finally, Arup agreed with us we used concrete sampling, which has been collected over the these values for BUET's preliminary assessment. But last 30-40 years. This is why we are confident in Accord continued to use the lower set of values.suggesting about any number regarding concrete

strength that is achievable ordinarily on sites. We But that's certainly not a harmonious recommended and both Accord and Alliance agreed conditions for three parties doing the same on a level of assumed concrete strength for thing with a common goal.preliminary assessment. But in such preliminary

You are right. It was confusing for us at first, assessments, without any test being conducted we

would not be able to know about the concrete since Arup agreed for BUET to go along with

strength of the members of a particular building. the aforementioned values, why wouldn't they do

Concrete strength is measured in a unit called psi- the same for Accord. Referring to the results

Pound Per Square Inch. It means how much load (in based on their collected core sample, the latter

pound) is required to crush a concrete area (in square was claiming that the condition of buildings were

inch) . So, for preliminary assessments, we set up that poor and so were concretes used

DR. ISHTIAUQE AHMED


to make them. A string of bureaucratic discussions ensued. definitely doesn't mean all our previously made buildings

As a committee member of Alliance, I suggested Alliance to should be marked Amber or Red based on assumed

follow the same values as BUET was using. Alliance later concrete strength while they have a long history of

adopted these values for their February 2014 onward satisfactory performance.inspections. We are still in discussions with Accord and till

now they have come to a value close to this: 2050 psi and Those 1% buildings in Red category, how much 2370 psi for the two types of concrete time would they need to fix the problem?We are going to meet again soon and I am hopeful that It depends on the nature of the defect. Since the buildings based on core test results we would be able to agree on a

were found in vulnerable condition, first it had to be harmonized concrete strength value.

evacuated. Then, Detail Engineering Assessment (DEA)

would have to be done to find out the probable area of Do you agree that if Accord standard are to be

concern to pinpoint how to proceed, i.e. whether all the followed, 40-50% of our factories will need to be columns or a few only require strengthening. closed down?These are highly technical issues and many people are not Have you done any DEA so far? What did you supposed to understand these; this is why there is a higher

find out through these DEA?chance of misinformation and misunderstanding.

Besides inspecting more than 200 buildings under ILO, , Regarding the above mentioned claim, I would say with

BUET team have inspected some more than 200 other lower value of assumed concrete strength, more and more

factories at the request of the factory owners, of which also factory buildings would be subjected to further tests and

1% was in RED category. It started in May 2013 as the rigorous assessment. We feel that would be an overkill an

factory owners needed to show safety certificates to their exercise totally unnecessary. Because if your assumed

buyers and they rushed to us. The DEAs we have done so concrete strength is low, more and more buildings will fall

far are for factories examined under independent inspection into Red/Amber category. Now we have 1% of buildings

by BUET. Around 20 DEAs have been so far completed in RED category, which may become around 5 to 10% in and more are in the pipeline. These entire set of buildings that case. Also, more and more buildings will certainly be in fell into both Yellow or Amber category and one or two Yellow category making the overall situation worse. That's needed immediate evacuation. another reason we are still arguing and trying to set up a

harmonized standard with a reasonable value. By when do you expect to finish inspecting all the There is no denying in the fact that till now our

factories under National Tripartite Action Plan?construction practices has weakness: in some cases, there is

By the end of next year, insha-allah. no engineering monitoring or supervision. But this

Concrete Strength Confusion

BUET Suggested 2500 psi to be assumed concrete strength for visual inspections(November 2013)

Accord and Alliance reduced the value to 2200 psi and 1500 psi for stone aggregate and brick aggregate

concrete respectively (December 2013)

Arup argued with BUET and suggested to accept Accord and Alliance's assumed value (January 2014)

BUET data showed 2400 psi and 2100 psi to be safe assumed value for stone aggregate and brick aggregate

concrete respectively (January 2014)

Arup agreed with BUET's suggestions and approved the above mentioned psi values for BUET's inspections

but not for Accord (January 2014)

Alliance Accepted BUET's value for their inspections (February 2014 onwards)

BUET trying to convince Accord to accept a value close to: 2050 psi and 2370 psi for the two types of concrete (June 2014)

COVER FOCUS


Tell us something about your

organization, Solidarity Center?

Solidarity Center is the International Affiliate

of the American Federation of Labor (AFL-

CIO). We have 53 programs with offices in 27

countries from Latin America, South America,

Africa, Europe, Asia and South East Asia. We

work in these countries to promote labor

rights and democratic unions. That's how the

name “Solidarity Center” originated. We

believe trade union (TU) rights are the part of

democracy. We try to ensure freedom of

association and collective bargaining for

workers.

“With the help of workers who are organized and productive,

Bangladesh can continue producing millions of products for its buyers.”

Alonzo Glenn Suson, Country Director of Solidarity Center

(American Center for International Labor Solidarity) speaks about

the positive changes ushered in the area of Trade Union and

how Bangladesh can build a better image in the world increasing

its workers' productivity. Edited excerpts:

COVER FOCUS


unions come together and form Federations; What was your impression about that explains of the number of federations Bangladesh's labor right movement Bangladesh had at that time. It was 2002 and when you came here four years ago?what happened is some of the factories moved I was stationed in Cambodia before coming to out of Dhaka to Savar or Ashulia. Whenever this Dhaka. The amount of population Cambodia kind of things happened, the unions got busted have is available in Dhaka alone; also the country as that resulted in change in the whole set up of has only 300-400 RMG factories, whereas workers. Another way of busting unions is Bangladesh has 10 times of that number of terminating the trade union leaders from the factories. I hoped there would be a good number factories. Other reasons that ushered the of labor unions active but as per our survey termination of TUs were companies going done at that time, out of 136, only 7 TUs were bankrupted, TU leaders being bought up or active. But in Cambodia, around 65% of the being promoted to senior supervisory posts, etc. total number of RMG factories had TUs. In In short, organizational capacity building to comparison to Cambodia what we found here thrive the culture of TU was totally missing at was pretty shocking for us. that time. Then by the year 2004 or 2005, Initially we started to work in three industries: formation was TU was made forbidden by then the shrimp industry, Export Processing Zone law, which was lifted later. There was no (EPZ) and RMG industry. Then we have shifted previous record of registration of TUs. In many our focus to RMG industry as we believed other cases, the registrations were being rejected by the industries would be encouraged if TUs flourish government or leaders of the TUs were in RMG as that's the biggest private sector.terminated-which mostly discouraged exercising

the activities of TUs.What was the condition of those active

TUs at that time?Post-Rana Plaza disaster there is a surge They already had units for collective bargaining. in the formation of Trade Unions in There were several federations. The biggest one

was BIGUF. We found that 45-50 registered and Bangladesh RMG sector. Is that a good unregistered federations were there. It showed sign?that a big disconnect was prevailing since among This is certainly a good sign. But we have to the many federations, only 7 factory level unions ensure the sustenance of these unions. The were actively functioning. more the number, the better the chances of

survival of Trade unions. This is an important What was the reason behind such factor behind the growth of TUs. Another

important thing is there has to be a level playing disconnect?field. There are compliant factories who are According to the Labor Law, two or more

“it's true that most of the workers are young;

it's true that many of the TU leaders are

women and their education level is not high-

but it's also true that they are smart, have a

lot of energy and learns quickly. This whole

practice is going to put them on equal

footing with the rich owners of the factory or

educated managers.”

ALONZO GLENN SUSON


spending more for compliance and wages; throughout the five years, it's possible to achieve

what you mentioned in your question.whereas there are companies who are doing

the opposite. Now the BGMEA should take a There are five units of collective bargaining in the

strong stand to create this level playing field to RMG sector right now. The victories achieved by encourage more and more companies to TUs recently were simple in nature, for example: become complaint. In that case, provisions like drinking clean water, not something from a toilet; or labor unions will prosper. Also, we need getting their salary every month on right time; or proper implementations of the Labor Law. On getting the right amount of maternity leave that is the flip side, if these labor unions are written in the Labor Law. These are their basic functioning, then they can organize workers in rights and now that these are being ensured, it's a a better way-not to call for a strike or engage big deal for the workers: they are happy. As a result, in subversive activities, but to work together this will increase confidence among the workers as for better productivity. well as their leaders. There are various types of

discussions going in among the workers, leaders, What do you think of the amendment factory owners. However, it's true that most of the of the Labor Law that was done last workers are young; it's true that many of the TU

year? leaders are women and their education level is not

There are some good sides. Including the high-but it's also true that they are smart, have a lot health and safety issue is surely praiseworthy. of energy and learns quickly. This whole practice is Generally, the Bangladesh Labor Law is a going to put them on equal footing with the rich good law. In areas like Profit sharing or owners of the factory or educated managers. Freedom of Association, certain issues are yet Therefore, if this practice sustains, then definitely not very clear. But what concerns me most is we are going in the right direction and further big the implementation of the law. Also, the Labor achievements are possible.Ministry has to be stronger than ever and the And if you consider the case of branding Labor Court has to be active to take action Bangladesh positively in abroad that it's not full of against the previously mentioned 20% of cheap sweatshops, you will also need the help of cases, where serious violation of labor rights these trade unions. Because with the help of has occurred. workers who are organized and productive,

Bangladesh can continue producing millions of Now that Accord and Alliance are products for its buyers. inspecting factories, ILO is working to As we all know, Bangladesh is looking forward to train up workers about their rights and moving up the value chain to produce higher value

responsibilities. If everything goes in of clothing. To achieve that we have to change the

way the workers work. this promising pace, what do you think

how long will it take to achieve a good What is Solidarity Center doing right at the atmosphere in our industrial sector moment?where TUs can thrive and ensure We are assisting workers and federations organize rights of all labors?Trade Unions. The last 15 months’ data showed us It's a long process and I am glad that it has that 9 federations working most actively and we are started. But I am still concerned about the helping them financially to carry on their work. Out registration process of the unions. Because of of 55 federations, who will the factory owners deal the prevalence of corruption in various levels with? They will work with those who have the of administration, we have to think about this

utmost reach to the workers. We are working in that issue. All Accord, Alliance and NTPA have set

a time frame and that is five years. Now in the area: we are helping in capacity building of these

federations.area of labor rights, if we work properly

COVER FOCUS

54 {Emerging Bangladesh} bgcci.com

ALONZO GLENN SUSON

Total PendingUnion

Total RegisteredUnion

Total RejectedUnion

Total WithdrawnUnion

Total UnionSubmitted

Name of the Federation

22 162 52 4 240Total

Organizing Trade Unions in the RMG Factories 2010-2014

Organizing Trade Unions in 2014

Organizing Trade Unions Information as per Federation


COVER FOCUS

Both Accord and Alliances have been

doing inspection. What's your take on

the findings of these inspection?Accord is a global trade union federation, on

terms with 174 buyers/brands. We wanted to

make the buyers accountable because they

reap the maximum profits from the global

RMG supply chain. So in order to keep the

Bangladeshi RMG industry safe and

sustainable in the long run, they need to

invest a portion of their profits over here.

After the Tazreen fashions and Rana Plaza

incidents, the industries came to a bilateral

agreement. The Alliance did not want to

come to any legal bindings, rather be

independent and voluntary like Accord. After

“The whole world is watching us very closely. If we can carry out the independent inspection and remediation process, then it

would increase the credibility of Bangladeshi RMG sector in the eyes of the brands.”

Roy Ramesh Chandra, Secretary General of IndustriALL

Bangladesh Council shares with us his notes of optimism about

the Accord and Alliance inspections and why the findings and

corrective measures can change the image of our RMG industry

in abroad. Edited excerpts:


the Accord inspections, the industry is sure to benefit the independent inspection and remediation process,

then it would increase the credibility of Bangladeshi from it. After the Rana Plaza tragedy, the Bangladeshi

RMG sector in the eyes of the brands.RMG sector was subjected to negative images, saying

that they were unsafe workplaces; workers were giving

their lives on a regular basis, etc. There is still an unresolved issue of who is As of the inspections done so far, 19 factories have going to pay for the compensation of been shut down temporarily, but in 7 buildings in workers.total. So one building contained multiple factories. Based on what we have, almost 14,500 workers have This is less than 2% of the entire factory volume, and been displaced, but their wages are being paid, with dispels the unfair negative brandings. The Accord the owners paying. Our demands are very clear, the mandate states that the first party to guarantee workers must be paid. There have been some workers' wages after factory shutdown falls on the instances, such as Jeans Care in Tejgaon, which owners' shoulders. But from trade unions, we want reopened in 3 days. There are other instances, such as the buyers to help the owners who inevitably face a Softex in Mirpur--Accord inspectors had instructed harsh financial crisis once his factory shuts down. We them to reduce the loads. The owners got panicky and want them to come forward. The brands have to help decided to move out of the rented building. The out, discussing with their supply chains. buildings owned by owners, meant purely for RMG The Alliance is willing to pay one month's wages to factories, are not seen to be vulnerable. Rather it is the help things, but what we demand is at least 6 months'

shared buildings, the rented/leased buildings which wages. Secondly, after all this, after all the inspections,

are shown to be more vulnerable. The Accord the brands have agreed not to pull out their existing

engineers identified and inspected the risky, contracts in Bangladesh for the next five years,

vulnerable buildings during its initial inspections. especially the signatory brands. This guarantee is a

boost to the industry. After the inspection, if repair Do you think the standards being followed

work needs to be done, then the buyers will have to by Accord and Alliance for structural

come forward, talk with their suppliers and provide integrity and fire safety is too high financial support by increasing production volumes, benchmark for Bangladeshi factories? ensuring soft loans from brands and direct Recently the government has halted shutting investments in the form of cash incentives.

rd down of factories.These inspections are independent 3 party

Engineering is a science. Buildings are made in such inspections, so there is no room for biasness in any

manner. Previously, some factories' owners had paid way that the structural mechanics are global. The

BUET engineers to have their factories inspected. Bangladeshi national building code is up to date; with

Initial fear is there currently among the industry 95% of its mandates are common standards across

owners and workers, but this will not last. The whole the globe. What Accord engineers are instructing is

for installing fire safety measures and sprinkler world is watching us very closely. If we can carry out

ROY RAMESH CHANDRA

If the international community and the

government can improve the union officials'

skill development, capacity building, raising

the issue of collective bargaining, we can

have an integrated plan of action to educate

these leaders.

{Emerging Bangladesh} April - June 2014 57

COVER FOCUS

systems, which is very minor. the state's responsibility from the very beginning, ensuring

In no way can Bangladesh afford another Tazreen tragedy. the safety and security of their people. If the government

If we are to increase our international production, we need had properly enforced the national building codes, or

to do this much. The Accord is not closing down factories. taken care of the vulnerable buildings, then these

If they sense imminent dangers, they file their reports to the questions would not have arose. In the case of Tazreen

review panel, where 4 engineers and 2 officials can see into garments, there were chemically contaminated fiber wires

it and refer to the government, who is the only authority to in the circuit box. It would have only taken a second to

close it down. ignite fire if there was a spark. In Rana Plaza, there was a

Regarding shutting down factories, probably the scheduled 9-storied building on a five-storied approval. Cracks were

review panel meetings did not take place. What Accord found on the previous day, steps were still not taken. It is

would do is close down the signatory brands' producing only after the relentless failures of the state mechanism

factories. Brands must acknowledge consumer concerns. If that the Accord and Alliance is here today. It was the

they do not save the industry, then there is no point keeping state's duty to take care of them; it's the state's failure that

it. Hence, remediation is necessary. GSP is revoked in the forced them here.

US, with the EU lurking soon. If by any negligence the There is no guarantee that an accident will not occur after a

EU's GSP is revoked, it would simply bring the industry factory inspection. But this will take care of the

down. Some greedy factory owners cannot be the basis of misconceptions about our RMG sector internationally.

risking an entire industry.

Last year the wages of the RMG workers were There is a boom in the number of trade unions in raised significantly. Do you think if this Bangladesh. Is that a good sign? continues, the wage hike will deter buyers to move The first objective of the trade unions is to guarantee the out for cheaper destinations as it has happened in workers' constitutional rights. According to the ILO case of China?convention and the labor laws, they have the right to do that. In China, there have been wage hikes, their government They did not have this right till now, as previously the does not want to keep low-waged industries, their incomes government and the factory owners did not believe in their are increasing, balancing it with their living costs and such. existence. The fact that many unions exist now is not In our country's wages, it has increased by 77%. But it is not agreeable. There are over 5000 factories, whereas there are adequate till now, where it should be $120. But their actual only 146 unions. So in this rate, it would take at least 40 years wage has gone down, thanks to price hikes, utility/rent, etc. to put one union in each of the factories. After they came into The sister industries also are affected from this wage hike. being, there has been no incident of worker unrest. Hence, if If 440,000 workers in a year can buy a pair of sandals, that trade unions can come up with constructive activities, then it explains how many they are buying. But in a field of 5000 would increase factory productions and decrease workers factory owners, they buy them from Thailand, Singapore, coming down to the streets for their rights. Italy, etc. The workers' spending capacity affects our local But it is true that they are not educated about their rights industries to a great deal. and responsibilities. Unions are institutions for workers' Their wages are only 12% of the total RMG costs. If this democratic processions. If you did not learn in school then can be made feasible, then double wage hikes will not affect how can you teach? If the international community and the the entire mechanism. Despite rumors where buyers are not government can improve the union officials' skill paying much to the owners, they must find a way to development, capacity building, raising the issue of compensate their earnings from the remainder 88%. If the collective bargaining, we can have an integrated plan of owners do not hire foreign personnel in the place of action to educate these leaders. Bangladeshis, send them by Economy class instead of We have to substantiate the implementation of our laws. If Business class, reside in a 3-star hotel instead of a 5-star the government can get rid of the obstacle in the way of the while business visits, then this cost-effectiveness can take trade unions, which are often brought by the owners, then place. the unions can progress at their natural speed. The The government can provide infrastructural support in this government has to be neutral at all point, as well as regard as well, through utilities, transportation, etc. The upholding their international commitments. wages are still very low here. China covers 38% of the

global RMG market, whereas Bangladesh covers merely Some people are saying that the government 4.8%. So there is no room for decrease in our market sales, should take ownership of the factory inspection. but in order to increase, we must have the necessary

What's your take on that? infrastructural support. The recent EPB report stated a 20%

There is no need to create ownership in this regard. It is increase in RMG business.


After one year of Rana Plaza, what is

the status regarding the progress in

workers' rights?

The Rana Plaza devastation has been the

result of years of mismanagement and

negligence. Therefore, fulfilling worker rights

in a year is difficult. What was required was to

take rapid initiatives, some were made, but

most were not taken, i.e compensation and

rehabilitation of those affected by the disaster.

Nobody can say clearly that compensations

have been handed out in full. Only in Prime

Minister's Relief Fund has there been few

records of more than 900 victims receiving

“The factories, which are compliant

and safe, should receive more

state benefits.”

Sultan Uddin Ahmmed, Assistant Executive Director, Bangladesh

Institute of Labour Studies (BILS) speaks about the progress

Bangladesh has made in the area of workers' right after the Rana

Plaza disaster and his musings on the Accord and Alliance

inspections. Edited excerpts:

COVER FOCUS


some sort of compensation or support from the aspect, but in my opinion, there has been a lapse.

Efforts to strengthen laws and safety inspections government, that too from BDT 0.1 million to

in factories should have been made before the 1.2 million. But whether they were in the form

of compensation or rehabilitation, it is not made Tazreen garments blaze or the Rana Plaza

clear. collapse.

This implies that we could not protect all the We have been hearing for the last 15 years that families affected by the disaster. This is a big big corporations around the world conduct their failure in many eyes, as the missing ones who own social audits, but they don't have any suffered the most in this tragedy, and the ones accountability for their actions. Today the ones who died, we could not save them or help them who made any sort of social audits for Tazreen at all. Second failure would be the lack of garments or Rana Plaza are beyond progress in giving compensations. If we had accountability. We are doing the same. The fixed the minimum workers' wages at BDT 6000, factories that both the Accord and the Alliance then even those who were slightly injured or not are calling structurally flawed, what would injured at all, could return to work in three happen if they close down?months time, thus we could compensate at least

for one year two maintain the livelihood of the Do you think that the Department of family. In an average we had found out that the Inspections for Factories and families whose wage-earners had died, engage to

Establishments (DIFE) should be search the loved ones. So the first responsibility

strengthened?was to give at least three months' wages to those

Everything has to be under their umbrella. They who lost jobs and continuous monthly wages to

have been upgraded, but their lack of manpower those families where there was a death till they

is hindering their progress. There should be a received compensation.

proper committee structure so that they will be Then we would have been able to say that there

accountable to tripartite committee. The labor was progress. But now there is more empathy

task force is working vigorously, but not heard involved, with too many parties donating at around anywhere. random. But their donation money is not

reaching to all the workers. The ones who were Accord officials are retorting by saying able to collect their support were the only ones that it is a misconception that they are benefitted from all this. Secondly, no family responsible for the closure of factories.assessments were made on those whose money

Theoretically, they are correct, but practically and times were wasted in finding their loved

ones. Third is the issue of security, due for they are closing factories. The moment they are

which both the Accord and the Alliance were informing the brands of its structural or other

formed. There have been initiatives from this risks, the client companies or their brands

If we had fixed the minimum workers'

wages at Tk. 6000, then even those who

were slightly injured or not injured at all,

could return to work in three months time,

thus we could compensate at least for one

year two maintain the livelihood of the

family.

SULTAN UDDIN AHMED


immediately informs the factory owner to saying that the brands are not paying the workers

their wages. Corruptions one year after Rana Plaza close down. Nobody actually waits for the red

tragedy is unfortunate, that trade bodies are tape formalities to take place. The reality is

speaking on behalf of those unscrupulous factory quite different.

The Accord brands give contracts to those owners. Loopholes in the law are providing benefits

factories where hundreds of brands outsource to those owners on whose premises the bodies of

their productions. If you rule out brands from more than 1135 dead workers had piled up. They

the Alliance and the Accord, not many brands are rallying up support for receiving monetary

are left, so the factories must close down. The benefits, as their factories would have to be closed

first dozen cases which the government had down.assumed that the factories contained Accord The factories, which are compliant and safe, should and Alliance brands were closed down, and receive more state benefits. Ones who have minor the next dozen were cases where they assumed risks, support can be given to them to make them that the brands were not in production. So the risk-free giving penalty wages through subsidy. But state of assumption must be ruled out. The there should be no debate on the most risky process is not undertaking through any legal factories their workers should be paid their dues framework. The foreclosures must be done and everything else be done in due diligence. legally.

If any worker is displaced due to factory As workers are deprived of their rights, closures, then laws dictate that a worker of have you received complaints from trade more than 10 years in employment will unions or taken part in any mitigation receive monthly 1.5 wages for his/her

regarding this?service years, and must be given 4 months

Mediation or mitigation is not in our legislation, but of notice in advance, despite sudden

we are active and vocal about their concerns. closures. The owners have to pay for all

this. Despite their ignorance, they cannot The question regarding putting the injured

avoid this responsibility. They can ask the workers or affected families in financial government for subsidy or any other means. safety nets is yet to see the light of day. The moment a worker is laid off, he/she Why is that?must be paid all her dues within the next 7 The same cause for which we could not prevent the days. It is ludicrous to think that both the

Rana Plaza tragedy. We have not learned anything owners and the government are going to

from it, let alone educating our workers. The rely on the Accord and Alliance and accept

government has not taken action against the that they will do everything for them. The

owners. Their membership in BGMEA and legal factories, which are deemed unsafe and

license should have been revoked. But the last risky for production, had been built illegally

in the first place. disaster has inspired some degrees of initiatives.

After Rana Plaza, the illegal factories and their The ones who are abusing labor rights must be

owners should be penalized. But the reality is brought under legal jurisdiction, something which

that everyone is tuning with what they are only the government can do.

If a BUET team gives approval at a building

and a catastrophe happens afterwards, we

cannot sue the team that inspected the

building. There is a state department for this,

but nobody knows about this.

COVER FOCUS


What are the challenges that may be should have an integrated approach?The worst part was the non-existence of such encountered regarding the screening unions beforehand. It is imperative to let it grow. of false or double identities?The mushrooming of the trade unions is unhealthy, The question lies about the status/future of but necessary as there was none in earlier times. the 11 bodies whose DNAs did not churn out Someone has to fill that void. There will be anarchy, any result. Departments must be made but I agree with the BGMEA president to educate responsible for all the activities. Government the union leaders and inform them about their offices should be set up for better rights and subsequent practices. There are industrial accountability. If this does not happen, education schools regarding this in Tongi. Forming problems will go on.is not enough; they need to maintain organizational Brands like Primark had donated to 3600 of structure, official structure, collective bargaining for

their workers their compensations of wages workers' rights, etc. They have to convince the

worth 9 months. If brands can, then why not workers into making them believe that they are

the government? This is why the safety net fighting for their rights. If they function properly,

was necessary. The injured workers are still then expansions can be there. It is not agreeable

clueless as to their futures as far as that factory owners have to maintain

compensation is concerned. International communication with the workers, only after being

bodies' promotions are such that the workers instructed by the American government. Unions

have received full compensation, which is why must be formed out of need.

the yield to stand beside the workers and fight Secondly, the union leaders must realize that they

for their rights has become dim. had to be formed due to long struggle of trade

unions, global pressures and demands. They must What about the lackings in social audits? be kept active, go in collective bargaining. Contracts The audits were made but not conforming to must be rolled out for educating them.the rules and regulations of the law. There was

no accountability of the companies involved in Do you think sustainable growth for workers the matter. They are out of the radar currently. rights is foreseeable in the near future?If a BUET team gives approval at a building

If we have to ensure minimal worker rights such as and a catastrophe happens afterwards, we

notice before layoffs, proper pay hikes, etc, this has cannot sue the team that inspected the building.

to be done initially through the government. The There is a state department for this, but nobody labor department keeps tab of complaints filed by knows about this. The closure of half a dozen fired workers, but no such databases are kept to factories and non-closure of the latter half monitor related activities. A spark is enough to dozen implies that the decisions are taken at the agitate the RMG industry and negative branding. behest of someone/a group's interest. How can Union processes must be taken seriously, in both Accord and Alliance work when one is factories and in the tables of factory owners. There paying half the compensation it should and the must be ownership regarding this. Lastly, law-other not paying at all? breakers must be brought to justice regarding their

wrongdoings in the industry. Lack of proper There is a surge of trade unions, not national mandates such as databases,

compensations, etc must be established. witnessed before. Do you think they all

If any worker is displaced due to factory closures, then laws

dictate that a worker of more than 10 years in employment will

receive monthly 1.5 wages for his/her service years, and must

be given 4 months of notice in advance, despite sudden

closures. The owners have to pay for all this. Despite their

ignorance, they cannot avoid this responsibility.

SULTAN UDDIN AHMED


COVER FOCUS

Bernardo Cruza, the Chair of BSCI Steering Committee briefs about how Bernardo Cruza

or more than a decade, the mission of the upheld throughout the production process and that they

Business Social Compliance Initiative take action when negative impacts are identified.

(BSCI) has been to support companies in Many companies sourcing from Bangladesh have

their commitment towards improving taken their share of responsibility. Technical

working conditions in their global supply chains. Its new inspections of factories has thus become a new

Code of Conduct aims at setting out the values and requirement for doing business in this country. 175

principles that BSCI participants strive to implement in companies have signed the Accord on Fire and

their supply chains. Respect for human rights and Building Safety in Bangladesh. Among them 40% are

protection of workers stand out in the set of BSCI participants. But the Accord is not the only

fundamental rights at work as established by the initiative; a group of North American apparel

International Labour Organization (ILO) conventions, companies have launched The Alliance for Bangladesh

declarations of the United Nations (UN) as well as the Worker Safety, while the Bangladesh government has

guidelines of the Organization for Economic Co- agreed the National Tripartite Plan of Action on Fire

operation and Development (OECD). Safety for the Ready-Made Garment Sector in

The mind-set of European entrepreneurs has changed Bangladesh. We need therefore to look at the bigger

radically in the last decades. They have very different picture. Implementation of these schemes will only be

notions about the role of their businesses. Social successful if the joint goal is to be met. In many cases,

responsibility is now embedded in the daily business signatories to the Accord and Alliance share the same

operations. That provides scope for broad, fruitful and factories. Cooperation and coordination between the

close partnerships, in which the interests of our three initiatives is to be regarded a key success factor.

businesses and of society at large converge. Companies Eventually, the ultimate goal should be that ownership

behaving in a responsible manner conduct due diligence. of monitoring the safety of working conditions in the

It is the expectation of society and public authorities RMG sector lies with the Bangladesh government and

that businesses actually know what goes on in their thus with the National Tripartite Plan of Action on

value chains, that they ensure human and labor rights are Fire Safety for the Ready-Made Garment Sector in

F

BSCI CONTRIBUTES TO

THE IMPROVEMENT OF

SAFETY CONDITIONS IN

BANGLADESH FACTORIES


Bangladesh. Structural improvements can only be guaranteed

if the Bangladesh government plays its part and takes

responsibility along with factory owners. BSCI participants

can contribute to this process by making sure their trading

partners implement the corrective measures as identified and

the BSCI Code of Conduct is strictly respected.

BSCI has placed added focus on its system, by reassessing and

adapting its approach towards health and safety criteria. It has

also improved the alert system that notifies companies when

critical non-compliances have been identified in health and

safety chapters. Training activities have been developed in

cooperation with WRAP to place more emphasis on fire

safety standards. In addition, a substantial number of BSCI

participants have joined a newly created Working Group to

share their best practices on the ground.

But for a sustainable change to take place, BSCI has called on

all stakeholders to continue fruitful cooperation, especially

national authorities. The Bangladesh government should

create the appropriate regulatory framework to fulfil its

obligation to protect human rights and ensure workers' rights.

The new Labor Law adopted in June 2013 means a new step to

give workers the protection they need. In addition, BSCI has

engaged in intense discussions at political level with

representatives of the European Parliament and the

European Commission in order to get support for this

process.

Dialogue has also taken place with local stakeholders, as their

involvement is essential to remediate non-compliances often

linked to economic or cultural issues in specific sectors or at

national level. With such a purpose, BSCI has organized for

years local stakeholder Round Table meetings in Dhaka,

where discussions of particular national relevance are held.

The last Round Table in March 2013 addressed the

Bangladesh National Action Plan on fire and safety as the

main topic, along with others such as freedom of association

and fair remuneration.

Finally, BSCI has also welcomed in a statement the Rana Plaza

Compensation Arrangement and has invited its members to

contribute to the International Donors' Trust Fund that was

recently established by ILO, as the Trustee, to compensate the

victims and their relatives affected by the Rana Plaza tragedy

according to the international standards under ILO

Convention 121.

BSCI helps to put social compliance and due diligence into

practice. A correct risk assessment raises awareness over

potential issues in the supply chain related among others to

human rights abuses, wages or corruption. To this end, we

closely follow up the situation in Bangladesh, undertake the

necessary actions in the framework of capacity building,

monitoring and stakeholder engagement and inform our

participants accordingly. We all pursue to achieve real and

sustainable improvements in Bangladesh and provide its

workers a safer working environment.

The new Labor Law adopted

in June 2013 means a new

step to give workers the

protection they need. In

addition, BSCI has engaged

in intense discussions at

p o l i t i c a l l e v e l w i t h

representa t i ves o f the

European Parliament and the

European Commission in

order to get support for this

process.

Bernardo Cruza, the Chair of BSCI Steering Committee


FEATURE

Why Bangladesh needsits own unique approach

to factory safety

Accient

d

Vulnerability

vet

Por y

Here are six reasons


Though Bangladesh and other Asian countries have been seeing recurrent fire and

building collapse events in recent years, the fire at Tazreen Factory in 2012 and the

collapse of Rana Plaza in 2013 triggered intense conversations and some action

on making Dhaka's garment factories safer. While the international outcry and

pressure has been useful, it has been argued that hitting at the factories through

boycotts or relocating businesses to other countries will only hurt the millions of

poor workers worst. Efforts therefore have focused on formation of alliances of the

buyers and stakeholders involved, and steps towards safety assessments and

corrective actions based on international experiences and expertise.

The ground facts however indicate that the garment factories in Bangladesh require

a unique approach to safety, since they are set in a context very different from the

industrial contexts that standards and norms perceive. Anshu Sharma tells us why.

Though Bangladesh and other Asian countries

Anshu Sharma

2. Untrained construction workers

The construction work force is comprised of largely illiterate and almost entirely untrained masons, fabricators, carpenters, electricians and plumbers. They have learnt their trades on the job, starting their professions as apprentices to some relative who they joined on their arrival in Dhaka from home villages. No matter how qualified the architects and structural engineers who prepare building drawings, they do not translate into safe buildings because most construction workers cannot read them. Upgrading building codes and bringing in more stringent norms is therefore not of much use.

Options: A very intensive program on training of construction workers on safe construction practices and building retrofitting. Institutionalization of such programs in universities and industrial/vocational training institutes. Quick, short term mason training programs in the interim.

3. Semi-engineered buildings Options: Fix the low buildings. Since very few of even the cost ad-hoc problems best ones have proper layout plans and

About 5,000 garment factories dot on an urgent basis structural drawings that were prepared Dhaka's periphery. Many of these are through a few before building construction, it cannot multi-storeyed buildings going above sweeping decisions be said with confidence that they meet ten floors in height, while many others and actions like replacement of structural safety standards. Their are in rented floors of different kinds temporary electrical fixing with electrical systems are usually in a mess, of multi-purpose buildings modified permanent ones. Establish a as they have grown incrementally and and adapted to house factories. While protocol of watch and ward for electrical networks are built over a they may appear to be reinforced structurally weak areas that cannot series of temporary extensions by cement concrete structures an be fixed immediately. Prepare untrained hands. Many of them are in established building engineering customized, simple and intuitive residential or mixed land-use areas, typology, the way they have been emergency response plans, and train opening out into very narrow lanes constructed with ad-hoc foundations, workers accordingly. Assess and where it is hard to evacuate and poor construction quality, and retrofit to the extent possible. assemble the large number of workers incrementally added spaces and loads Abandon the most unsafe inside at any given time during a work makes them more of semi-engineered structures.shift.

1. Low literacy among building occupants

About four million men and women, a majority of them illiterate or semi-literate, work in the factories. They have low capacity to absorb detailed and complex training, and standard operations procedure based drills. Most of them can barely understand the policies, procedures, evacuation maps and signage installed in factories as mandated by various acts and protocols.

Options: Intuition based response and evacuation plans, gradual build-up to safety concepts starting from cultural shifts and basic actions, and steadily moving up to complex team responses. Unique communications design for information, education and communication.

O


6. Very low capacity to assess and correct buildings

The flurry of activities to assess structural safety of factory buildings that took place after Rana Plaza collapse exposed the very low capacity in the country to carry out such assessments. A handful of experts, mainly from the engineering universities with an already existing workload of academia, have been the backbone of these assessments, which have largely been of rapid visual nature as there is very little available expertise or equipment to meet the need. Needless to say, the capacity to take corrective action through structural retrofitting is equally low since this is not an established discipline or profession in the region. Once again, while assessments and retrofitting design may be carried out with imported expertise in coming times, the local construction workers will have very limited understanding of retrofitting designs and the technology to execute them.

Options: Immediate establishment of systems of surveillance, maintenance and response in structures so that early signs of trouble can be detected and responded to, avoiding Rana Plaza kind of disasters. Specifications and codes for structural assessment and retrofitting to be made available in easy to understand formats, and to be included in training and capacity building for local construction supervisors and workers.

4. Combination of poverty and vulnerability

The factories operate on very thin margins in order to meet the low price points for brands and shoppers. The crunch is felt hardest at the level of workers with wages that even after a recent increase of 77% are very low at USD 68 to sustain a family in Dhaka. The poverty translates into vulnerability at home through risky dwellings, temporary electricity lines, low nutrition, unhealthy water and sanitation, and an overall low quality of life.

Options: The safety approach to include off-site plans covering living and activity areas of workers, addressing multiple layers of vulnerability. Improved education opportunities to be provided to workers and their families as part of long term risk reduction measures.

5. Low incentive to factories to upgrade

safety measures

Factories are working on thin margins, but increasing work orders. There is less investment happening on improving conditions of existing production capacity, but much more is happening on adding floors, lines and machinery. Brands and buyers are also incentivizing capacity expansion much more than safety improvement. Safety, on the other hand is seen in a compliance and audit regime, with only mandates and no incentives. At the same time, there is also loss through low productivity in the lines leading to less than capacity production, and poor quality controls leading to high rejection rates.

Options: Incentivize safety and link it to 5S and lean manufacturing, so that factories see a business case in safety.

On the whole, the safety efforts are still a knee jerk reaction to Rana Plaza collapse, while the need is to take a multi-hazard

approach in one go. Dhaka, its duty bearers, its factories and its citizens also need to prepare for an overdue earthquake

before it strikes. A holistic approach with a comprehensive emergency management system ranging from multi-hazard

assessments, corrective actions, planning, standard operating procedures, training, practice, plan review and revision, and

wide-spread education is the only way ahead, but to be successful it needs to be very Bangladeshi from the word go.The author is a Board Member of SEEDS India and can be reached at [email protected]

A handful of experts, mainly from the engineering universities with an already existing workload of academia,

have been the backbone of these assessments, which have largely been of rapid visual nature as there is very little available expertise or equipment to meet the need. Needless to say, the capacity to take corrective action

through structural retrofitting is equally low since this is not an established discipline or profession in the region.


FEATURE

Over the past few years, RMG sector to more meaningful changes in the instruction for emergency evacuations

in Bangladesh has suffered from a garment sector and the broader in the gangway etc. number of major accidents in various economy. Investors' main motive is to prevent factories. On November 24, 2012, a pilferage, but they go for easy profit fire broke out in the Tazreen Fashion Causes of Fire Outbreak with the sweat of those

Common causes of fire have been factory in Dhaka, presumably caused underprivileged people who pay the worked inside-out several times, but by an electrical short circuit. At least price in their lives. The other reasons any serious attempt was hardly made 117 people were killed in the fire, the that are identified by the fire-fighting to rectify the fatal mistakes. The largest number of casualties ever in units after occurrence of fire at common causes are improper Bangladesh due to an inferno. Then on different buildings are unauthorized maintenance of fire prevention system, April 24, 2013, the collapse of another construction of building bereft of inadequate fire-fighting equipment, building, housing RMG factories, the

National Building Code, improper excessive machinery and manpower Rana Plaza commercial building in the

storage of goods without following the beyond the capacity, insufficient greater Dhaka area, caused a death toll

appropriate rules and plan, lack of gangway in the floor for the emergency of 1,129. As an immediate result of

adequate ventilation, rooftops door evacuation, inappropriate narrow and these disasters, the Bangladesh RMG

lacking, improper wiring and electrical risky alternate exits, lack of continuity industry and government, aided by

design, illegal connection, large in the alternate exit chains, lack of international support and pressure,

illiterate working force increased their efforts to

without any fire training and improve the standard of drill, lack of water in vicinity, safety in this industry. use of combustible materials Given the constant pressure for finishing and interior to lower costs and the works, no trained in-house dearth of meaningful personnel to take action in government oversight, case of fire or any other businesses are continually emergency, blocking of stair tempted to reduce costs at cases with goods and the price of worker safety.

material and combustible Worker deaths are not new

in Bangladesh, and while goods in factory floor

making it in all a dangerously they have led to

recriminations and some combustible factory ship.

important changes, fires

and other tragic accidents Factory inspections of

continue. The question Accord producing facilities today is whether the scope designed to identify fire, of the Tazreen tragedy was electrical, and building significant enough to lead structural safety risks are an

Safety First, At Any CostSifat Ishtiaq Hossain takes a look into the fire and electrical safety

issues in Bangladesh RMG industry

Sifat Ishtiaq Hossain

To put it concisely, in the garments

factories fire is usually generated

from:

· Heat fluxes in the vicinity of ignition

sources (fuel)

· Igniting objects e.g. matches,

burning paper & cigarettes, gas

burners, etc.

· Electric spark, electric short circuit,

heating element of machines or

mechanical friction


Electric Fault

Kitchen Fire

Cigarette

Naked fire

Burning Ash

Fire Works

Friction of Machine

Incendiary

Mob

Unknown

Misc

1.87

1.21 0.9


integral component of the Accord and were severe which led to findings cases.requirements. As expected, Accord recommendations that the buildings be inspections are identifying safety risks temporarily evacuated until such time Scenario in the First World in all three areas. Many of the findings, that more in-depth tests could be Countries as opposed to in such as reducing weight loads and conducted, substantial weight and load Bangladeshadhering to load management plans, is removed from the building, and/or In Hong Kong or Singapore, textile can be easily corrected and do not immediate strengthening measures are factories are designed in only three-involve significant costs. Other completed. In these cases, the Accord storied building with wide exit routes findings are a matter of cleaning up, requested that the Review Panel, at every points so that in case of any organizing, and then being disciplined established through the Ministry of emergency including fire or in maintenance practices. These Labor and Employment led National earthquake, workers are not trapped. include properly connecting and Plan of Action, be convened. The In Europe, the apparel factories are sealing electrical wires and keeping Review Panel was established for termed most risky that are left unsafe wires and circuits free of dust and lint. inspections which lead to from fire. So, textile factories over Other findings and safety requirements determinations that a building there are designed in special ways so involve more substantial costs. For evacuation or suspension to operations that fire does not trap workers in any example: installing fire doors, is required. In order to overturn the way. In UK, after recruiting a worker at automated smoke detectors and fire initial production suspension / apparel factory the company provides alarm systems, and establishing fire evacuation recommendation of the a 15 days paid training on fire fighting protected egress from factory inspection, a unanimous decision of to a worker. During the training, a co-buildings. During the course of the the team of 4 Review Panel engineers worker, a supervisor, a floor in-charge first 250 factory inspections, Accord (1 Accord, 1 Alliance, 2 GoB/BUET) and manager are designated to structural engineers have identified must be reached. The Accord has perform specific duties concerning fire critical findings in 8 buildings. The conformed to the Review Panel incident.findings were of a structural nature mechanism in all 8 of our critical In Bangladesh, the scenario is totally

different. Over here, garments

factories or units are built in an

unplanned manner. An entrepreneur

can easily hire a building floor at any

location in the country, and can start

garment business. Mirpur and

Rampura are the two most common

areas where about 600 garments

factories are set up and run without

any plan. Most of the buildings are in

multistoried in nature, and have very

limited space for workers to get out

into safety.

The figure below gives the real status

of safety equipment practiced in

apparel manufacturing organizations.

The figure 1 showed that usage rate of

safety goggle is higher in only two

factories among 10 of them, rest of

them are using very few of the safety

equipment which is not adequate to

protect the people from accident. Very

similar result has been shown in figure

2 where usage rate of hand gloves are

demonstrated. This is most exception

in the case of figure 3,4,5

consecutively , companies are

practicing equipment e.g. eye guard,

needle guard and mask in the same

proportion, however, still these

quantity of devices practice by the

factory is insufficient and there is

probability to create hazardous

FEATURE


situation while any disaster happen. over Tk. 2,410 crore for importing fire specific RMG factory buildings

Fire hose pipe is vital one for instantly equipment- sprinklers and fire doors- according to the Guidelines for

take preventive action against firing, to comply with fire safety conditions assessing Structural Integrity. Teams

usage rate of hose pipe is minimum set by the two retailers' platforms are comprised of either two structural

percentages. Overall, this is totally Accord and Alliance. Both the two engineers, or one structural engineer

deficient equipment usage by the platforms, who have launched their and one Geotechnical engineer, both

apparel manufacturer. inspection to the country's RMG with a minimum combined experience

factories, are now putting pressure on of at least twenty years. These

Safety first, at any cost the owners to comply their factories (preliminary) inspections took place in

On the night of 24 November 2012, at with the fire safety plan recommended the period from November 2013 to

Tazreen Fashions, the eight-story by Accord and Alliance. A total of August 2014.

garment factory in the Ashulia district 1,200 factories need to install The teams carried out an inspection

on the outskirts of the capital Dhaka, sprinklers, while 3,000 other factories according to the Checklist in the

estimated 1,150 people working to fill have to install fire doors as per the Guidelines. If the inspection reveals

orders for various international brands. requirement of the Accord and structural issues that need immediate

The fire reportedly originated from an Alliance. Based on sizes and the action, a process is set into action to

electrical malfunction on the ground patterns of the factories, a factory remediate the situation. In several

floor, where bales of yarn and fabric owner, on an average, will have to cases such action has taken place

were improperly stored. While many spend around Tk. 1.5 crore to install already. Another fifteen teams have

workers managed to escape to an sprinklers including setting-up costs, been set up to assess the Electrical and

adjacent building, others were burned while Tk 6.50 lakh will be needed for Fire Safety. These teams consist of five

or suffocated to death. On the worst the specific fire doors. Currently experienced members (each with at

affected third floor-sewing unit, sixty- BKMEA has 1000 running factories least five years' experience) and with

nine bodies were recovered. that need to install fire doors while 300 different engineering backgrounds

Factory inspections of Accord out of 1000 factories have to install (Electrical Engineer, Architect, Civil

producing facilities designed to identify sprinklers. engineer, Mechanical engineer, Process

fire, electrical, and building structural design engineer). It was hard to find

safety risks are an integral component Locally, BUET has been engaged enough engineers with more than five

of the Accord requirements. As in inspecting the rest of the years' experience for all positions, but

expected, Accord inspections are factories, which are not being all team members are at least graduate

identifying safety risks in all three inspected, by Accord and Alliance. engineers. It should be noted that no

areas. The country's ready-made Fifteen teams have been set up to fire safety engineer is a part of any

garment (RMG) sector needs to spend assess the structural integrity of these team.

Approximate Average Number of Safety Equipment Used in a Few RMG Factories


The teams carry out the preliminary

assessments according to the

Guidelines for assessing Fire and

Electrical Safety. The assessment

procedures, as they have been

described in the Guidelines for

structural safety, provide a mechanism

to deal with factories with an

immediate danger. If an inspection

team finds a high-risk situation, they

can advise the factory owner to close

immediately. A review committee then

decides, within 48 hours, about the

necessity to close. The closure of the

factory has to be ordered by the Chief

Inspector of Factories (Ministry of

Labor), who acts upon the

recommendations of the review

committee. The assessment reports are

presented to the ILO, acting as Chair

of the NTC. Recommendations were

key parts of the reports which were

supported by information from the

ILO. A first set of reports were ready

in January 2014. The ILO has been

processing them before they are to be

made public. The reports will form the

basis of a process of setting up

remediation plans. This process is

currently still under construction. The

first set of reports will provide

important input to this process and for

further discussion as there is no

comparable description for the closure

of a factory in the guidelines for

Electrical and Fire safety.

RecommendationsThe growth rate of RMG sector over the last decade was almost 25%.

However, it is now under severe threat due to compliance issues of

safety, health and welfare of worker. Hence, creation of further

employment opportunities in this industry can be hampered in the

near future. To prevent that from happening following measures can

be taken -

· Identifying the areas of improvement on safety (through

audit/observation), risk/hazard assessment and analysis on

equipment based analysis, job based analysis, location based analysis

· Identifying the presence of the resources including PPE (Personal

Protective Equipment) etc., and developing a useable PPE Matrix

and recommending immediate arrangement of the equipment to

implement the Safety Management Program, factory premises

including Factory Access, weigh bridge area, roads, lanes and

cleanliness related to health hazard

· Preparing Accident Record Register in MS Excel, Factory Building

Design Review and recommendation, machine safety assessment

and recommendation

· Identification and recommendation for Occupational Health,

working uniform/dress, safe for work awareness campaign among

the first line workers

· Recommendations for Awareness Campaign Materials, formation of

Safety Cell (Safety Committee) for self-inspection and carrying out

safety events at a regular/scheduled interval

· Giving complete guideline to establish an Emergency Safety Clinic

· Formation of First Aid Team, sufficient widening of fire exit doors,

and enough ventilation with proper maintenance for air circulation

should be designed for industry building

· Regular fire drills should be held

Quick scan

HighRisk?

Yes

No

Advice to closeimmediately

Review committee48 hours

Close factory

Recommendations

ILO Remediation plan ?

BUET or ILO?

Chief inspector ofFactories

Review Panel

BUET

BUET

Figure: BUET Assessment Procedures

FEATURE


FEATURE

Being a Member of the provide the funding for remediation remediation efforts.

efforts suggested by factory Accord on Fire and As a start, the Accord requires that inspections. On the other hand, the Building Safety in each signatory company should signatories of the Accord and the Bangladesh or the contribute a yearly fee that is

Alliance for Alliance tend to believe that the RMG dependent upon the company's Bangladesh Worker Safety requires owners can easily cover the costs of volume of sourcing from Bangladesh; significant financial commitment for remediation and financial support for the maximum size of the fee is limited the brand signatory (that is, the displaced workers through their own

to USD 500,000. These yearly fees are Western buyer sourcing from the capital. In order to ensure that such

used to fund the regular activities of ready-made garments industry of misperceptions do not act as an

the Accord most notably, the costs of Bangladesh). However, when it comes impediment against materializing the

conducting safety inspections in to sharing the costs of remediation ultimate goal of improving worker

factories and providing safety training work and the wages of workers who safety in the RMG industry, greater for workers. However, under no are temporarily displaced for understanding regarding the circumstances, these fees can be used remediation, two-way obligations of the Accord and Alliance to fund the remediation (such as miscommunication prevails between needs to be established among the renovations or structural repairs) RMG owners and Western buyers. RMG entrepreneurs while, at the same deemed necessary by the safety On one hand, several RMG owners time, Western buyers need to recognize inspection.operate under the false impression that that the RMG owners need significant

financial support for undertaking the the Accord and the Alliance will also However, even though the Accord

Financial Woes:

Too High to ?ShareEnsuring worker safety across the RMG industry calls for huge

investment in remediation. However, can the RMG factories and

the Brands resolve their differences to mobilize the necessary

financial support for achieving their mutual goal? Upoma Dutta

tries to find out

Upoma Dutta


does not directly pay for the

remediation efforts, there is a binding

obligation on the brand signatory to

make sure that the RMG factory has

adequate funds for the remediation. In

many cases, the support from brand

signatory takes the form of favorable

commercial trade terms (such as

increased sourcing volume from the

RMG factory) to make it easier for the

RMG factory to recoup the costs of

remediation.

On the other hand, the Alliance has set

up a USD 100 million fund named

“Affordable Capital for Building

Safety” (ACBS) to provide low-cost

capital for factory owners for

remediation efforts. This fund was

formed in light of the high cost of

bank loans in Bangladesh typically

amounting to 15 percent per annum

that deters the execution of factory

safety improvements. Even before the

ACBS was formed, Walmart, the

stalwart member of the Alliance,

committed around USD 50 million as

low-cost capital for the 75 factories

from which it sourced to help them the Alliance show that typical costs for It is important for the Accord and the undertake remediation efforts.

improving structural, fire and electrical Alliance to advocate for greater However, the success of this effort

safety systems in a single factory can support from the financial sector to from Walmart was called into question

amount to BDT 1.7 million, BDT 2.6 accelerate the pace of remediation when a few factory owners alleged that

million and BDT 4.1 million among the inspected RMG factories. Walmart never informed them of this

respectively that is, the total Low-cost financial loan products loan.

remediation costs can easily be as high tailored for the needs of Bangladesh The Alliance has also gone an extra as BDT 8 million. Certainly, the RMG factories are absolutely crucial. mile ahead of the Accord by setting Accord and the Alliance cannot New refinance schemes from aside 10 percent of its member singlehandedly ensure the funds Bangladesh Bank to encourage contributed funds for a Worker

required for such remediation efforts financial institutions to lend to RMG Compensation Fund. This Fund

across all factories. factories for remediation can be one provides financial support to workers For this very reason, support from the possible solution.who are temporarily displaced due to financial sector is imperative for In hindsight, lack of financial support remediation or permanent shutdown helping factories finance the should not be allowed to decelerate the of factories. Through this Fund, the remediation and ensure safety for pace of factory safety reforms Alliance takes care 50 percent of workers. Unfortunately, the financial undergoing in the RMG industry. displaced workers' wages (for a sector in Bangladesh is currently not After all, as the case of Rana Plaza maximum period of two months) conducive to the goal of the Accord clearly highlighted, neglected safety while the other 50 percent of the and the Alliance. On one hand, the measures can lead to huge losses in wages is borne by the factories exorbitant interest rates charged by themselves. business for RMG factories and in financial institutions make it

reputation for brands. As a result, the Nonetheless, there is no denying that impossible for RMG factories to avail

Accord and the Alliance must ensure the Accord and the Alliance despite bank loans to fund remediation

that their efforts do not stay limited to having the largest brands on board activities. On the other hand, there are

cannot ensure the full extent of just conducting safety inspections in financial institutions which are

financial support that is required to factories; they must also ensure that reluctant to offer loans for remediation materialize the safety improvements there is a conducive infrastructure for costs as they regard these costs as across the mushrooming RMG allowing RMG factories to undertake nothing but sunk costs with negative industry. The safety inspection reports the required remediation.rates of investment return.publicly disclosed by the Accord and

500,000

> 500 million

375,000

250-500million

175,000

100-250million

75,000

50-100million

37,500

25-50million

17,500

10-25million

10,000

1-10million

1,000

< 1 million

Volume of Sourcing fromBangladesh per Year (USD)

Contribution(Fee) for theAccord perYear (USD)

A Bangladesh - Germany Joint Venture

Robintex (Bangladesh) LimitedComptex Bangladesh Limited

Robin Knitware Limited

Corporate Head Office: Robintex Group, Plot # 10, Taher Tower (9th Floor) Gulshan North Circle, Gulshan - 02, Dhaka – 1212www.robintexbd.com

World Quality Commitment Award, Paris 2012Technology Award Quality & Best Trade, Berlin 2013

International Quality ERA Award, GENEVA 2013ESQR’s Quality Achievements Award, London 2013

EBA's Best Enterprise Award, London, 2014

emerging bangladesh 6th issue

Documents

bangladesh accord

issue of emerging bangladesh

german ambassador

country director

rmg industry

assistant executive

bgcci events

ishtiaque ahmed