Unions Reach $2.3 Million Settlement On Bangladesh Textile Factory Safety

by MR Magazine Staff

Unions representing Bangladeshi textile workers have reached a landmark $2.3m settlement with a multinational apparel brand after it was accused of delays in remedying life-threatening hazards at its factories. The settlement was agreed after a two-year arbitration process under the legally binding Bangladesh Accord for Fire and Building Safety. The accord was set up in the wake of the fatal collapse of the Rana Plaza textile factory complex in 2013, which killed 1,135 people in what is considered the world’s worst textile industrial disaster. Many of the world’s largest brands, including Adidas, H&M, Marks & Spencer, Tesco, Top Shop and Uniqlo are signatories to the accord. There is no evidence that any of these brands is the company involved in the settlement. The brand, which cannot be named under the terms of the settlement, has agreed to pay $2m to fix issues at more than 150 garment factories in Bangladesh. A further $300,000 will be paid to the two unions that brought the case, IndustriALL Global Union and UNI Global Union, to fund their joint “supply chain worker support fund”, an initiative that supports union-backed efforts to improve pay and conditions for workers in global supply chains. Read more at The Guardian.