The Accord on Fire and Building Safety in Bangladesh has not provided any financial assistance yet for remediation works and workers’ wages to the factories which faced closures or production suspension after safety-checks.
Under an agreement with the factories, the Accord is supposed to give a part of costs required for improving the buildings’ safety standards.
Rob Wayss, executive director of Accord (Bangladesh Operation), said the signatory Western retailers and brands will offer the funds through “negotiated commercial terms.”
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data showed productions in a total of 31 factories were suspended due to structural flaws and nine of them resumed operation after necessary remediation works.
Although the closures are temporary, over 14,000 workers of those factories feel uncertainty about getting back their jobs and wages during the interim periods.
However, Alliance, an initiative by North American retailers, gave 50% wages to workers of their source factories which faced temporary closures. It will continue to pay for an eight-week interim period.
“Accord signatories have not given any fund for remediation. But they are bound to help safety improvement works under an agreement,” said BGMEA vice president Shahidullah Azim.
A factory owner alleged that the buyers have directly refused to pay any sort of funding for remediation works.
“I held several meetings with buyers and talked with over financial help to remove structural flaws. But they refused to pay any money,” said Rezwan Selim, managing director of Softex Cotton Limited which faced closure for non-compliance.
A BGMEA director whose factory also had to suspend production said the Accord and Alliance spend thousands of dollars to inspect a factory but are not paying for remediation works.
“It’s very unfortunate, the Accord and Alliance are spending thousands of dollars to inspect a factory but not paying funds for remediation,” he said seeking anonymity.
Rob Wayss admitted that the Accord signatory brands are bound to partly pay for remediation under Article 22 of the Accord.
“Brand signatories are responsible to ensure that sufficient funds are available to pay for renovations and other safety improvements as directed by the Chief Safety Inspector,” he said.
According to him, such funds may be generated through negotiated commercial terms, joint investment, direct payment for improvements, government and other donor support or any combination of these mechanisms.
However, it’s owners’ obligation to maintain workers-employers relations and pay them regular wages during production suspension under Article 13, Rob Wayss said.
Meanwhile, Alliance for Bangladesh Worker Safety has started paying 50% wages to workers under an agreement for eight weeks when factories will be renovated.
It already paid 50% wages of RSI Apparel Limited.
M Rabin, managing director of Alliance, they were paying half the wages but no fund for remediation was giving as owners have not made any such demand.
