Bangladesh Accord cuts ties with four more apparel suppliers
The Accord has cut ties with the four factories after they failed to make adequate progress in CAP implementation
The Accord on Fire and Building Safety in Bangladesh has severed ties with four more ready-made garment suppliers after they failed to implement workplace safety measures – with one failing to submit a Corrective Action Plan (CAP).
In separate statements, the Accord said it has terminated business with Han a Hats & Caps Ltd, Kento Aisa Limited, Danys Knit wear Limited and Hanwen BD Ltd.
Kento Aisa Limited and Danys Knit wear Limited were both inspected for fire, electrical and structural safety by the Accord in 2014, but failed to make adequate progress in CAP implementation.
Han a Hats & Caps Ltd, which was inspected in 2015, also failed to progress in CAP implementation; while Hanwen BD Ltd, which was also inspected in 2015, failed to submit a Corrective Action Plan.
None of the factories can produce for Accord signatory companies until they meet the conditions for requalification.
The moves come as the Accord continues to conduct independent engineering inspections for fire, electrical, and building structural safety at all factories in Bangladesh producing for its member companies.
It also oversees the development of CAPs by factories, monitors remediation through follow-up verification visits, and provides technical advice, resources and guidance during remediation.
Where corrective actions to eliminate safety hazards are identified, the factory is required to implement these to a mandatory and time-bound schedule, the Accord explains.
If a supplier fails to implement these corrective actions and cooperate fully in the Accord's inspection and related programmes, the factory will receive notice and warning that its business with Accord signatory companies will be terminated if non-compliance persists.
The Accord adds that if the notice and warning process does not lead to sufficient progress, business relations with the supplier will be terminated by signatory companies.
A recent study has shown high interest rates, a lack of financial literacy and an unwillingness among factory managers are proving to be the main barriers to obtaining remediation financing in Bangladesh's Ready Made Garment (RMG) sector.
The report, 'Remediation financing in Bangladesh's Ready Made Garment Sector,' jointly commissioned by the International Finance Corporation (IFC) and the International Labour Organization (ILO), notes that interest rates ranging from 9% to 18% are one of the main barriers to carrying out remediation work to ensure factory buildings are safe.
The group, which has now been signed by over 200 apparel brands, retailers and importers from over 20 countries in Europe, North America, Asia and Australia, reached its third anniversary in May of this year.
During this time, based on the Accord's progress reported as of July 2016, it has inspected 1,646 factories for fire, electrical and structural safety, with an additional 105 newly listed factories included in the current, ongoing round of initial inspections.
The group adds 63% of the safety hazards identified through the initial inspections have now been reported or verified as repaired.
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