Fashion chain giants signed Bangladesh accord

H&M, Zara, and other giant fashion chains signed Bangladesh accord to help finance safety in factories in the country.

09:14 15 May 2013

Some of the biggest global fashion chains, which include Zara and H&M, have signed an accord to improve safety conditions on Bangladesh factories that they are using.

This legally binding agreement came after Rana Plaza collapsed on April 24th killing at least 1,127 workers. The plaza, which is located at the outskirts of Dhaka, is where textile factories that supply Western retailers can be found.

Meanwhile, Bangladeshi government has announced plans to relax law on forming unions.

On Monday, the government announced that it now allows four million garment workers to form trade unions without the permission of factory owners.

In addition, the government announced plans to raise the minimum wage for the workers. Reports confirmed those who were working at the Rana Plaza were paid as little as £25 ($38) a month.

Aside from Zara and H&M, other major Western retailers like UK’s Primark Stores and C&A, has also announced that they will support an International Labour Organisation-backed agreement on fire and building safety.

On the other hand, US firm Gap Inc declined to sign the accord. It said that it would only sign if changes were made to rules on how disputes were resolved.