Walmart 'blacklists' 250 RMG units

Monira Munni Walmart, the largest retailer in the world, has barred about 250 Bangladeshi garment factories from producing products for it. The US-based multinational retail corporation recently made the factories' list public, which includes units owned by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders and members. However, many of the owners claimed that their factories are compliant and good ones. They claimed that Walmart did not hold any discussion before making the list public. Besides, there are many factories that are not willing to work for or did not work with Walmart, and they informed the retailer about it. Walmart in a statement said the company is committed to increased transparency in their supply chain. Transparency helps all stakeholders to improve workers' standards. In keeping with that commitment, some factories in Bangladesh are barred from producing products for the company. In addition to the regular audits that Walmart conducts under its Ethical Sourcing programme, the company recently announced that it will conduct more in-depth inspections in Bangladesh relating to electrical, fire and building safety measures of the RMG units. These facility audits are conducted by accredited and internationally recognised auditing firms, it added. BGMEA vice-president Reaz-Bin-Mahmood in this regard told the FE Sunday: "Most of the 'blacklisted' factories are no longer vendors of Walmart. They broke tie with the retailer one or two years back." The giant retailer has published the list for its own interest and without any prior discussion with the manufacturers. Walmart should not make public such a list, as most of the factories do not have any tie with the company. It is done at a time when the RMG industry needs all-out cooperation from all sides including the buyers, he added. Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) vice-president Md Hatem also said Walmart has acted irresponsibly. "It should give time to the units to rectify, upgrade and render assistance," he said. Rising Fashions Ltd managing director Mahmud Hasan Khan said Walmart barring the factories does not mean that they are not compliant, as these are also manufacturing products for other brands like H&M, Inditex and JC Penny. Mr Khan, who has business with Walmart, opposed the word 'blacklisted' and said different brands have their respective code of conducts, and the rules and regulations of one country differs from other countries. "The factories might not cope with Walmart's code of conduct. They should be given time to rectify themselves, as they are doing business with other retailers also," he noted. A factory owner said, "Two months ago I informed Walmart that I cannot participate in its audit programme in July next due to some renovation work in my factory. Despite that it has made my factory's name public." Another factory owner said he is no longer producing apparel items for Walmart for the last two years. "I am surprised and shocked to see the name of one of my factories in the Walmart's list though I'm following all the compliance directives." "It is damaging my image. It will create a negative impact on other local units also," he added. The Walmart list includes factories like - Pacific Jeans Ltd, Frank Apparels Ltd, Onus Apparels Ltd, Pastel Apparels Ltd, Sinha Knitting Ltd, KDS Washing Plant, Mascot Apparel Ltd, Oishi Fashion Pvt Ltd, Sadma Fashion Wear Ltd, and Tazreen Fashions Ltd and five other units of Tuba Group owned by the same owner.