Bangladesh factory safety agreement. Business Research Paper (Research Paper Sample)

Bangladesh Factory-Safety Agreement
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In April 2013, an eight-story building in Bangladesh called Rana Plaza collapsed leading to the death of an estimated 1129 people. Most of the people who died were low-wage garment workers who worked for the foreign companies. This led to apparel outsourcers face public pressure to address dangerous conditions in the factories where goods were manufactured. The Swedish “cheap chic “giant H&M, the Swedish retailer which was the world’s largest buyer of clothes from Bangladesh to be persuaded by the labor unions to lead on implementing the safety improvements. The company thereafter signed an agreement that would ensure that the western retailers to invest in improving the safety of foreign workers.
The garment factories dominated the Bangladesh economy and the clothes accounted for almost eighty percent of the country’s exports which was an estimated value of twenty billion dollars. Bangladesh was also the world’s second-highest exporter of garments. Bangladesh had become very popular in the garment industry because it was too inexpensive and retailers paid only a tiny fraction of the retail price. plan of Action. The term of the Accord required regular consultation with the plan of Action committee in order to create a unified approach in respect to inspections and safety standards. The steering Committee has also the mandate of selecting and reviewing the major officers of the Accord including the safety inspector and training coordinator .Should a conflicts arise between members of the Accord the Steering Committee has the responsibility of resolving the dispute.