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May 14, 2013

European Firms Commit to Plan for Improving Bangladesh Factory Safety 
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Several major firms that profit from low wages in Bangladesh have signed
onto a plan requiring them to help pay for fire safety and building
improvements at factories. Those who backed the plan Monday include
Sweden-based H&M, the largest purchaser of Bangladeshi garments; British
firms Primark and Tesco and Spain’s Inditex, which owns the Zara
chain. The legally binding contract requires companies to conduct
independent safety inspections, pay for repairs and end dealings with
factories that refuse to improve safety. The apparel company PVH, which
agreed to sign on last year, is the only U.S. company to embrace the
plan. Wal-Mart — the second-largest producer of clothing in
Bangladesh — and the Gap have not signed on.

 

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