The accord goes further than previous voluntary efforts to monitor factories. For instance, it allows labor groups to take clothing brands that refuse to live up to their commitments to arbitration or, failing that, to court in the companies’ home countries. This would give unions a crucial tool to help ensure that industry keeps its word. American retailers like Wal-Mart, Gap and Target have refused to sign the agreement because they object to its binding nature. On Wednesday, these and 14 other companies announced a separate plan. Though it would provide loans, their program basically puts the onus for improving conditions on the factories and does not subject the American companies to legal liability. It also does not give labor unions a role in overseeing its implementation. Under the European-led deal, a foundation underwritten by clothing companies will send inspectors to identify hazards and propose safety measures at factories that make clothes for brands like H&M, Zara and Tommy Hilfiger. The cost of repairing factories and paying workers who are temporarily furloughed will be covered by the companies, loans from international financial institutions, and Bangladeshi and foreign government funds. Retailers will commit to keep buying from factories that agree to make repairs and will stop buying from any that refuse.
Posted on: Fri, 12 Jul 2013 12:01:41 +0000
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