On April 24, 2013, near Dhaka, Bangladesh, the Rana Plaza factory building came crashing down, killing more than 1,100 people and leaving more than 2,600 injured, marking the worst ever industrial accident to hit the garment industry. The building housed several factories making clothing for European and American consumers and had suffered a fire five months earlier that killed more than 100 workers. After the fire, importers vowed to do more to ensure the safety of factories where goods they sell are manufactured. The collapse brought worldwide attention to deathtrap workplaces within the garment industry and revived questions about the commitment of local factory owners, Bangladeshi officials and global brands to provide safe working conditions.
Shortly after the Bangladesh crisis, Friends Fiduciary, with more than 200 other global institutional investors representing over $3.1 trillion in assets under management, appealed to companies to: join the Accord on Fire and Building Safety that includes trade unions, companies, and non-governmental organizations; commit to strengthening local trade unions and ensuring a living wage for all workers; publicly disclose all their suppliers including those from Bangladesh, and; ensure appropriate grievance mechanisms and effective remedies, including compensation, are in place for affected workers and families.
During the past three years, an unprecedented number of global brands and retailers have collaborated to address the immediate and short-term threats to worker safety in the garment sector. While positive changes have been made through the Accord for Fire and Building Safety, with thorough inspections to detect fire, electrical and structural issues, Friends Fiduciary and other members of the Interfaith Center on Corporate responsibility (ICCR) continue to be concerned by the lack of timely remediation. As investors, we renew our appeal to apparel brands and retailers to use the full measure of their influence to respect and protect the human rights of workers in the garment sector of Bangladesh and throughout their global supply chains, and to provide a remedy when those rights have been violated. It is our hope that collaborative action will lead to the transformation of the Bangladesh garment sector and serve as a successful model to replicate in other markets and sectors.