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Retailers scramble to improve garment trade safey

Thursday's fatal factory fire marked the fourth disaster in Bangladesh's highly profitable, low-cost garment industry in less than six months, and adds to the already intense pressure on Western retailers to take steps to improve workplace safety in the developing world.

Workplace safety and labour rights came under increased scrutiny in recent weeks following the collapse of a Dhaka factory building on April 24, which killed more than 1,000 people. It was Bangladesh's worst industrial accident and one of the world's worst tragedies in the low-cost needle trade.

The resulting attention on the numerous fast-fashion retailers from around the world that rely on Bangladesh's 4,500 garment factories now has many scrambling to find solutions to some of these problems, to assuage consumer concerns and prevent any further tarnishing of their reputations.

The approaches range from pulling out of the poor South Asian country to seeking a broad industry agreement to try to improve factory conditions. Here's a look at some of the actions companies have recently taken.

In March, the Walt Disney Company ordered its licensees to stop production in Bangladesh and a number of other countries, according to the New York Times last week. Disney gave licensees a year to transition out of these countries.

The decision was reportedly triggered by a fire on Nov. 24, 2012, at Tazreen Fashions, which killed 112 people. Labour advocates said Disney apparel was made in the factory, though Disney denies it.

Disney officials told the New York Times that only one per cent of its branded products are made in Bangladesh. It also said it would allow licensees to return to Bangladesh if the Better Work program, which is designed to ensure safe working conditions, is involved.

But Better Work, a Geneva-based group partially run by the International Labour Organization, has said it won't get involved in Bangladesh unless the country legislates stronger labour protections.

One investment firm applauded Disney for focusing on countries where it has the most leverage, but it also said companies with a substantial presence in Bangladesh should stay there to help fix the problems.

Labour rights groups say companies that abruptly leave a factory can put the workers there at risk because the organizations leave without fixing the structural and safety problems.

Time will tell if Bangladesh decides to try to woo Disney back. The company produces $40 billion U.S. in sales and has nearly 30,000 facilities manufacturing its branded goods around the world.

Bangladeshi officials expressed worry that other retailers would follow Disney's lead.