Reliable Brokers
Online Investing
Alerts & Analysis
Easy Trading

Accord now dictates fire safety equipment sources

Update : 30 Aug 2014, 10:48 PM

The Accord on Fire and Building Safety in Bangladesh – a platform of buyers – has named 22 suppliers for import of fire safety equipment for the country’s readymade garment sector. 

Rob Wayss, Accord Bangladesh chapter Executive Director, in response to the BGMEA and the factory owners, the buyers’ platform provided the list of companies through which the RMG factory owners could import safety equipment to install in their factories.

Usually, apparel buyers determine that the manufacturers use raw materials for their products from the companies they choose, but in this case, the buyers’ platform dictated the RMG manufacturers to procure safety equipment from the list of companies it provided.

BGMEA Vice-President Shahidullah Azim echoed the same as Rob, saying the factory owners could avail themselves of the safety appliances from the list of vendors provided.

He said Accord would see to it that the equipment are certified by underwriter laboratories, a safety consulting and certification company.

Bangladesh Knitwear Manufacturers and Exporters Association first Vice-President Mohammad Hatem said the selected companies might cash in on the situation and set higher prices.

“I have opened a letter of credit (LC) for self-import of fire equipment worth $64,000 from a US-based manufacturer,” he said. 

Accord can suggest the names of any companies and there is nothing wrong in it, said Nur Nabi, sales executive of Bengal International Agencies, also a supplier of fire equipment. 

Former BGMEA President Abdus Salam Murshedy said the room for price negotiations has been shrunk due to the selective method.

He said Accord could fix up a standard certification of fire safety products rather than a mere selection of the companies.

Seeking anonymity, a factory owner told the Dhaka Tribune, “We do not want to run the risk since we have to get approval from the buyers platform finally for installation of fire safety equipment.”

It is just passing the responsibility on to the Accord as there is possibility of rejection, he added. 

On the other hand Labour and Employment Secretary Mikail Shipar told the Dhaka Tribune: “I think there is nothing unethical to suggest the names of safety equipment supplier by the Accord.”

He said if it suggested the name of a single company it could be doubted that there was something fishy about floating a single naming.

That is why the names of a good number of companies have been suggested, added the secretary.

The government in the budget has also allowed duty-free imports of fire safety equipment.  

CEO Ziaul Islam of Tri-Zone, a safety equipment supplier, said the selection has been made considering the company profile, equipment standard and their origin.

According to an estimate of BGMEA, the country’s readymade garment sector needs to spend over Tk2,410 crore for importing fire equipment – sprinklers and fire-rated doors – to comply with fire safety conditions set by the two retailers’ platforms, Accord and Alliance.

Both Accord and Alliance had launched their inspection of the country’s RMG factories and suggested corrective measures such as installing fire- rated doors, sprinklers, fire hydrant etc.

Accord has so far completed inspection of over 1,000 RMG units and found less than 2% factories flaw in all the three areas. The Accord’s inspection led full or partial closure of 10 factories.

The inspection by the Alliance for Bangladesh Worker Safety, a platform for the North American buyers, has resulted in full or partial closure of 10 of 587 RMG units.

The issue of fire, electrical and building safety came under the spotlight last year following the collapse of Rana Plaza that killed over 1,100 workers and the Tazreen Fashions fire.

Since the catastrophes, Accord and Alliance had been committed to improving safety standard, including fire, electrical and structural safety, in the apparel sector. 

Top Brokers