Accord on Factory and Building Safety in Bangladesh
| Foundation | |
| Headquarters | Netherlands, Amsterdam |
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Area served
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Bangladesh |
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Key people
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| Services | Inspection |
| Website | bangladeshaccord |
The Accord on Fire and Building Safety in Bangladesh (the Accord) was signed on 15 May 2013. It is a five-year independent, legally binding agreement between global brands and retailers and trade unions designed to build a safe and healthy Bangladeshi Ready Made Garment (RMG) Industry. The agreement was created in the immediate aftermath of the Rana Plaza building collapse that led to the death of more than 1100 people and injured more than 2000. In June 2013, an implementation plan was agreed leading to the incorporation of the Bangladesh Accord Foundation in the Netherlands in October 2013.
The agreement consists of six key components:
The accord was sponsored and created by the IndustriALL Global Union and the UNI Global Union in alliance with leading NGOs, the Clean Clothes Campaign and the Workers Rights Consortium. It is an expanded version of an earlier 2-year accord that had been signed only by PVH and Tchibo.
Following the 2013 Savar building collapse on 24 April 2013 that resulted in over 1,100 deaths, there was wide global interest by both the consuming public and clothing retailers in establishing enforceable standards for fire and building safety in Bangladesh. The German government sponsored a meeting of retailers and NGOs at the beginning of May, and the meeting set a deadline of midnight of 16 May 2013 to sign up to the agreement. Numerous companies had signed up by the deadline, covering over 1,000 Bangladeshi garment factories.
In addition to schemes of building inspection and enforcement of fire and safety standards the accord requires that contracts by international retailers with Bangladesh manufacturers provide for compensation adequate to maintain safe buildings. Retailers agree to continue to support the Bangladesh textile industry despite possible higher costs. It is estimated that the total cost may be $1 billion, about $500,000 per factory. Close co-operation with the International Labour Organization and the government of Bangladesh is required. A steering committee which governs the accord is established as are dispute resolution procedures such as arbitration. The accord calls for development of an Implementation Plan over 45 days.
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