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Loblaw moves forward on Bangladesh safety accord

Loblaw and 69 other international retailers say they are moving ahead with a new accord to improve working conditions for Bangladesh clothing makers. Getty Images

A group of 70 big-name retailers including Canadian giant Loblaw Cos. Ltd. has set a timetable for inspecting and renovating factories in Bangladesh, the source of a rash of industrial accidents in recent months that have killed hundreds of textile workers.

The group, led by Swedish retailer H&M and Italian clothing maker Benetton among others, said Monday it will have inspected and addressed safety issues in at least 800 garment factories in Bangladesh within nine months as part of binding agreement each has signed on to since mid-May.

“Loblaw will be actively participating in the accord, which means when we are working with factories we will ensure they meet accord fire and building safety standards, as well as adhere to the other elements of the agreement,” a spokesperson for Loblaw said.

The country’s largest grocer and owner of the Joe Fresh discount designer brand signed on to the international effort after garments destined for its stores were discovered in the rubble of a collapsed building in April that killed 1,129 workers.

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The eight-storey factory, which was located in Savar and produced garments for several Western companies, was operating in violation of building codes.

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Labour and human-rights groups ramped up pressure on several of the biggest Western retailers following the disaster as well as a factory fire last November that killed another 112.

“Our mission is clear: to ensure the safety of all workers in the Bangladesh garment industry,” Jyrki Raina, general secretary of IndustriALL Global Union, a Geneva-based labour union told the Associated Press.

The union is one of several involved in the negotiations.

The agreement requires that the companies conduct independent safety inspections, make their reports on factory conditions public and cover the costs for needed repairs.

It also calls for them to pay up to US$500,000 annually in the administrative costs of the program. It also requires them to stop doing business with any factory that refuses to make safety upgrades and to allow workers and their unions to have a voice in factory safety.

The accord is missing some major names however, predominantly among U.S. giants like Walmart and Gap, two among a group that is reportedly readying their own agreement to improve working conditions in Bangladesh, which has grown into one of the world’s largest clothing production hubs but is riddled by corruption and industrial mismanagement, according to experts.

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The April factory collapse that killed hundreds has left scores more injured and without income, something Loblaw has said it is moving independently to address through compensation for victims, as well as other measures.

“Loblaw has committed to a three-pronged program for the victims and their families to provide support now and in the future, which includes direct financial assistance, rehabilitation for injured workers and a community-based program,” company spokeswoman Julija Hunter said Monday.

Loblaw has partnered with Save the Children “to develop a program that will help improve the lives and livelihoods of children and youth from families dependent on the garment factory industry in the Savar area,” Hunter said.

“ The program will focus on education, training, safety awareness and health and is aimed at both empowerment and improving the quality of life of affected children and youth.”

The Brampton-based company hasn’t disclosed how much money it’s committing to the independent relief efforts yet.

“We are working on each program and initiative within the overall relief plan and we will share the details for each at the appropriate time,” she said.

With files from the Associated Press

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