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'Factory building inspections in Bangladesh have not gathered the momentum that is needed'

• By  Textile Excellence
• February 16, 2014

The Accord on Fire and Building Safety in Bangaldesh is in the process of establishing the legal infrastructure to ensure proper utilisation of funds, for inspecting and renovating factories to make them safe for workers. In the meantime, the Accord, alongwith various other human and worker rights groups, is working towards persuading brands to pay compensation to victims, even after eight months of the Rana Plaza accident.In an interview with Reena Mital, Roy Ramesh Chandra, Secretary General, Industriall Bangladesh Council, and President of United Federation of Garment Workers, talks about the Accord's work towards trying to get compensation for workers, and the role of various stakeholders in building a sustainable RMG industry.

Almost a year after Rana Plaza accident, how has progress been in terms of compensation to workers?

It has been eight months since the Rana Plaza 'industrial homicide', and the situation is frustrating. There have been lots of discussions, seminars, in the country and globally, a lot of concern generated at all levels. But workers' compensations are conspicuous by their absence. There has been some charity, from the Prime Minister's Relief Fund, 777 workers were paid, BGMEA, on behalf of manufacturers paid one month's salary to all workers. But this is not part of the compensation. We have been asking the brands, manufactures and the government to do the needful as per the ILO Convention, that has not happened. We are now hearing reports of suicides by victims of the accident, as they are unable to get proper medicare.To push stakeholders to own responsibility and pay their dues to the victims and their families, a coordinating committee was formed with ILO as a neutral agency. IndustriAll Global Union, brands, Ministry of Labour, BGMEA, employers federation, IndustriAll Bangladesh Council are members of this committee. We are now asking for a coordinated, integrated, comprehensive compensation as per global standards. We are in the process of setting up a trust fund at the global level, and we have estimated that funds of around US$ 40 million will be needed to compensate workers. The infrastructure for the fund is under preparation.

What is taking so much time, despite so much pressure?

Till date, only a few brands have come forward to contribute towards the fund. Therefore, we have decided, that from February 24-April 24, we will have vigorous campaigns asking brands to come forward with their funds. We are asking global human and worker rights organisations to join us in this endeavour.

How has the Accord progressed over the months?

I am honoured to be part of this effort, I am a member of the steering committee of the Accord.

In 2011, after the Hamim incident, I had called a multi-stakeholder meeting in April 2011, and suggested that stakeholders contribute a portion of their profits to upgrade the industry, and make it fire-proof and safe for workers. At that time, only two brands had come forward, and as per the MoU, we needed two more brands. That was proving a difficult task.However, after Tazreen and Rana Plaza incidents, the IndustriAll Global Union took a strong step forward and set a deadline for brands to sign the agreement. We had 40 brands coming forward by the deadline, to sign a legally binding agreement with trade unions. This has happened for the first time in the history of the trade union movement. The number of brands joining the Accord has increased to 146 today, with more brands continuing to come under the fold of the Accord. These signatory factories cover around 2,000 factories, and over 2 million workers, and account for 70 percent of the apparel exported.Alliance, on the other hand, is a voluntary declaration by some 40 brands to comply with norms, etc. The Accord and Alliance do not cover all the factories. So, the ILO came up with the tripartite plan of action, under which the remaining factories will be inspected.

How are the factory inspections progressing?

Inspections have not gathered the kind of momentum that is required. The Accord has been able to inspect only 10 factories as sample. The tripartite and government inspected around 100 factories.To ensure that the flow of funds for these inspections and renovations is through a legal procedure, a legal entity - The Accord Foundation - has been formed, with office in Amsterdam. The process is on to establish the Accord Foundation in Bangladesh. The necessary infrastructure for the working of the foundation is being put in place.A serious technical problem is that of common standards that should be established by the Accord, Alliance and the government. These should be based on the local laws and the existing ground reality.

Everyone keeps insisting that buyers pay higher prices for goods, so that exporters can pay their workers better. What about other costs which can be reduced?

I feel wages account for 12-15 percent of the cost component of a garment. Garmenters need to implement smart production processes to reduce the other cost components too. For a sustainable industry, a healthy workforce is necessary. But brands too need to change their practices. Even today, they are looking for lowest prices, how low do they want to go? Do they want to source at the cost of workers' blood? This is not acceptable.Stakeholders have to realise that Tazreen and Rana Plaza incident is the high price of low cost.We have been telling BGMEA  to fix bottomline prices, to curtail price undercutting, but this is difficult to implement. Brands need to source responsibly and follow certain ethical norms.

Do you see the situation improving anytime soon?

Things are changing a bit. The consumer movement against unethical business practices is stronger. That pressure can ensure that workers in developing countries earn better wages and enjoy fundamental rights. We have to remember that entrepreneurs here are afraid only of the brands, and brands are afraid of their consumers.                       

Textile Excellence