U.S. retailers detail Bangladesh safety pact

Wal-Mart was one of 17 U.S. retailers and suppliers to agree to a five-year safety pack needed to improve workplace conditions at dozens of garment factories in Bangladesh.

The safety initiative sets aggressive timelines and accountability for inspections, training and worker empowerment.
•100% of alliance member factories must be inspected in the first year.
•Common safety standards will be developed within the next three months.
•Inspections results are transparently shared
•All alliance factories must also actively support the democratic election and successful operation of Worker Participation Committees (WPC) at each factory.

As part of the agreement, Wal-Mart, Gap, Target and other U.S. companies have given $42 million in funding toward safety initiatives. Another $100 million in loans are being made available as well.

Wal-Mart and Gap refused to sign an accord with 72 other retailers, mostly European, which was agreed to following the deadly fire and factory collapse that killed 1,127 workers.

Gap and Wal-Mart did pledge their own efforts to improve safety standards which gathered steam among other U.S. retailers, resulting in this five-year agreement.

“There are two strong plans created to improve working conditions in factories – the Bangladesh Worker Safety Initiative that we are announcing today, and the plan created by stakeholders in the EU. The next step is for all of us to work together, in collaboration with government, factory owners, and NGOs to change increase safety and improve the quality of life of the women and men in our supply chains whom we depend on to make our products. Our progress against these plans is essential, and we look forward to making progress together,” said Jay Jorgensen, global chief compliance officer at Wal-Mart.

Other retailers signing this agreement include Macy’s, Kohl’s, Sears, J.C.Penney, L.L. Bean, Nordstrom, Carter’s, The Children’s Place Retail Stores and Gap.