Accord team, review body declare two RMG units shut
Monira Munni | Saturday, 8 March 2014
The Accord's inspection team and an official review committee have declared two ready-made garment (RMG) factories temporarily shut on grounds of their structural flaws, amid uncertainty over the workers' wage benefits during the period, sources said.
Following the decision, one of the factories-Softex Cotton Pvt Ltd-has to keep its production suspended for more than a couple of months, while the other-Fame Sweater, would be able to resume production in a few days after reducing the factory load, they added.
The Accord team has detected problems with concrete columns of Softex Cotton.
Both the factories are located in an eight-storey shared building at Mirpur in Dhaka.
The review committee, comprising representatives from the government, the Accord, the Alliance, BUET, BGMEA and BKMEA, issued the instruction on suspension of both the factories after reviewing the Accord inspection team's call for immediate evacuation of the units as it had found some structural faults there.
The Accord, the largest platform of global apparel retailers, brands and companies, asked Jeans Care Ltd, another garment unit located in a shared building, for immediate evacuation while the review committee later suggested running production after cut in its load.
"Softex has been asked to suspend its production until retrofitting, while the Fame Sweater can restart its production after lessening its load," Inspector General of Directorate of Inspection for Factory and Establishments, told the FE Friday.
Replying to a question, he, also a member of the review committee, said workers should be paid accordingly by the factory owner concerned in consultation with its buyers.
Talking to the FE, owner of Softex Rezwan Selim said, "Everything of the total scenario has become uncertain including my present work orders, bank liability and the workers' fate."
He said he would pay the workers the current month's salary, but could not make any commitment on the wages when the factory remains suspended until its repair.
President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Md Atiqul Islam said, "The inspection programme has been taken to ensure a safe workplace for the workers, but if the workers become jobless due to this initiative, it will be disastrous for the sector."
The Accord should come up with a financial mechanism to provide funds either by the lead buyer or through other sources so that a remedial plan could be in place and workers do not lose their earning source.
BGMEA vice president Md Shahidullah Azim, another member of the review committee, said, "We requested the Accord representatives for funds required for strengthening of the factory and wages of the factory workers."
They have assured of talking to the Accord signatories that source from the factory, but no concrete decision is there, he added.
According to sources, Softex employs about 3200 workers and for retrofitting the factory, it requires at least three months' costing worth about Tk 25 to Tk 30 million.
It is uncertain as to who will pay the workers during the repairing period, sources added.
According to Accord's website, workers will be notified and will continue to receive salary payments, while the building is repaired to standard level, but who will pay them is not mentioned.
Regarding funds for structural repairs or renovations, it said companies are responsible for ensuring that sufficient funds are available to pay for structural repairs or renovations and this includes negotiating commercial terms with suppliers to ensure that it is financially feasible for factories to maintain safe workplaces and comply with any structural repairs or safety improvements, and where appropriate, the use of alternative means such as joint investments, loans, accessing donor or government support.
Before evacuating the factory, brands have to ensure that the workers will get their salaries with arrears, if any, and repair work takes place in consultation with the manufacturer, said Roy Ramesh Chandra, secretary general of the IndustriAll Bangladesh Council.
"If the manufacturer is not solvent enough to carry out the remedial work, brands should pay a significant amount needed for the repair," he said calling upon the Accord signatories to set an example by implementing their commitments.