Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


             European, US Retailers Split on Bangladesh Reform Plan

   by Reuters

   Major U.S. retailers, including Gap Inc., declined to endorse an accord
   on Bangladesh building and fire safety backed by Europe's two biggest
   fashion chains, a trans-Atlantic divide that may dilute garment
   industry reform efforts.
   ''Three weeks after the collapse of a building housing garment
   factories, which killed more than 1,100 people, Western brands that
   rely on Bangladesh to produce clothing cheaply disagreed over how best
   to ensure worker safety.
   Gap said it was ready to sign on "today'' to an agreement already
   endorsed by European companies, including Italian clothing retailer
   Benetton, Britain's Marks & Spencer, Sweden's H & M Hennes & Mauritz AB
   and Spain's Inditex SA, but first wanted a change in the way disputes
   are resolved in the courts.
   "With this single change, this global, historic agreement can move
   forward with a group of all retailers, not just those based in
   Europe,'' Eva Sage-Gavin, an executive in Gap's global human resources
   and corporate affairs department, said in a statement.
   A series of deadly incidents at factories, including a fire in November
   that killed 112 people, has focused global attention on safety
   standards in Bangladesh's booming garment industry, the world's biggest
   exporter of clothing after China.
   Wal-Mart Stores Inc., the world's biggest retailer, called on
   Bangladesh to shut one factory and examine another after its own
   inspections found safety problems.
   Major brands and retailers set a May 15 deadline to join the agreement
   after talks in Germany last month. As of Tuesday morning, the only U.S.
   company to announce it had signed on was PVH, which owns brands
   including Calvin Klein.
   Europe accounts for about 60 percent of Bangladesh's clothing exports,
   so even without participation from the big U.S. retailers, the
   agreement may bring some change in a country that has seen at least
   three deadly garment factory disasters in the span of six months.
   Mohammad Atiqul Islam, president of the Bangladesh Garment
   Manufacturers and Exporters Association, said the deal was a bit of
   good news in the "worst time for us."
   "We believe this decision will motivate other big buyers across the
   West and the USA to join their hands with us,'' he told Reuters.
   Li & Fung Ltd, which supplies dozens of major retailers, including
   Walmart, said it was "continuing to look at'' the European pact, but
   declined to give details. Bangladesh is second only to China in Li &
   Fung's global supply chain.
   "We don't think the answer is to move away from Bangladesh," Bruce
   Rockowitz, Li & Fung's group president and chief executive, told
   reporters after a shareholder meeting in Hong Kong on Tuesday.
   "The answer is actually to invest more and try to make safety better
   and work with the government on doing a better job on monitoring
   buildings," he added.
     __________________________________________________________________

   [1]http://www.voanews.com/content/European-us-retailers-split-on-bangla
   desh-reform-plan/1660749.html

References

   1. http://www.voanews.com/content/European-us-retailers-split-on-bangladesh-reform-plan/1660749.html