In August, after long negotiations and a lot of public pressure, the successor to the so-called Bangladesh Accord was ratified. The new agreement, called the International Agreement for Health and Safety in the Textile and Clothing Industry, came into force on September 1, 2021. 159 companies in the international fashion and textile industry have since signed it after some initial difficulties. What problems did the new agreement have, why did the companies sign it and what does the accord mean for Bangladesh? We asked around.
Largest modernization initiative in the industry
The original Bangladesh fire and building security agreement was signed in 2013 in response to the collapse of the Rana Plaza building, which killed 1,134 workers. Rana Plaza was by no means the first disaster in the country’s clothing industry due to poor building security. However, its dimensions caused a rethink among all actors, and within a few weeks the foundation stone for a comprehensive restructuring of the textile industry in Bangladesh was laid with “The Bangladesh Accord on Fire and Building Safety”.
“The Accord kicked off the largest modernization initiative in the clothing industry,” says Julia Thimm, human rights officer at Tchibo, summing up. The Hamburg company was one of the first to sign the agreement. Over the past few years, over 1,600 factories that supply more than 200 brands and employ more than two million garment workers have carried out inspections, monitored repairs and trained workers on safety issues under the agreement.
Handover of control to national hands
Over the years there have been various updates to the temporary agreement. Since only the international fashion companies, but not the factories in Bangladesh, were represented in the Accord body alongside trade unions and NGOs, they tried again and again to gain more influence. In 2021, the next big step of the agreement should finally be implemented: the handover of the accord to a national organization, the newly founded RMG Sustainability Council (RSC), in which the factories are then also represented, as well as the opening of the accord to a international expansion.
What should definitely be retained even with a new agreement: the legally binding nature of the agreement. Thimm: “Right from the start, the Accord was designed as a legally binding agreement between trade unions and brand-name companies, and that is exactly part of the success. Simply appealing to companies to implement the measures would not have achieved these results by a long way. This means that brands are held jointly responsible and legally prosecuted if they fail to ensure that their suppliers in Bangladesh adhere to safety standards respect, think highly of.
Brands vs trade unions: Adaptation of the regulations
The new International Agreement for Health and Safety in the Textile and Clothing Industry, which came into force in 2021, continues this legally binding effect undiminished, which is another reason why the negotiations lasted longer than expected (in addition to the fact that the corona pandemic made negotiations generally difficult and many resources are in Claimed).
On the one hand, NGOs and trade unions were concerned about whether the RSC would already be able to take on the task – also because the country and its clothing industry had been hard hit by the Corona crisis. On the other hand, efforts were made on the part of the brands to found their own umbrella organization that would act as a contractual partner to the agreement. This means that not every single company would have to become a contractual partner of the Accord unions and would not be directly in the line of fire in the event of violations. According to the trade unions involved, however, this was one of the key success factors of the contract – the individual responsibility of the brands and the independent monitoring of the brands. For them, renouncing these regulations meant a step backwards into the time before Rana Plaza, when occupational safety measures were solely voluntary. Their public threat to get out of the contract eventually helped the brands give way.
But it was also about attracting more brands to the Accord by lowering the hurdles and thus increasing its effectiveness, says Alexander Kohnstamm from the Fair Wear Foundation, for example. After all, the effectiveness of the Accord depends not only on the rigor of its regulatory framework, but also on the number of companies that want to implement it. In particular, the big US brands such as Gap, VF, Amazon or Levi’s stayed away from the agreement from the start – and have not signed to this day.
Is a Safe Industry a Competitive Advantage or a Disadvantage?
The implementation of the Accord by the factories did not always go smoothly in practice. Especially at the beginning there were teething problems because the knowledge about the necessary construction work in the country itself was not yet available to the extent required. In addition, workforces also had to be trained so that they could do the right thing in an emergency.
Many factories had to invest a lot of money to meet the requirements. Understandably, this was not always rated positively. “Bangladesh has invested a lot. It is the only country in the world that has implemented regulations to this extent, ”explains Rabea Schafrick, Head of Sustainability at Brands Fashion, who has also supported the Accord for a long time. “I also understand the statement from companies in Bangladesh who are now saying: We have done everything you wanted, now leave us alone. Other countries do not have to do this. That is also a competitive disadvantage. “
Success model: cooperation does more than individual measures
The brands involved nevertheless rate the Accord as a great success story. “The Accord is unique and, from my point of view, clearly a model for success,” explains Rabea Schafrick. “It’s an example of how collaborative effort can really make a difference. The Accord has brought immense improvements to the country in the area of occupational safety and fire protection. Many countries are not as advanced as Bangladesh today. ”
Tchibo also emphasizes what they have in common: “I think that the Accord has brought more than individual CSR measures by companies can ever do,” says Julia Thimm from Tchibo. “For us, the merger via the Accord is cheaper than the alternative, namely having to initiate individual measures in all of our suppliers ourselves.”
The Otto Group has also signed and does not want to endanger what has been achieved by continuing the contract: Fire protection ”, says Tobias Wollermann, Group Vice President Corporate Responsibility of the Otto Group.
Bangladesh is now a leader in security
Ultimately, Bangladesh itself also sees the changes as positive. Faruque Hassan, President of the Association of the Garment Industry in Bangladesh (BGMEA) since 2021: “We have set an example for the whole world of how cooperation and partnership can turn things around for the better. We continue to make great strides in our collaboration with ILO BetterWorks, the UN and many other NGOs that work for worker safety, women’s empowerment and many other initiatives. If there was a paternalistic mentality, history would have been different and we could not have got that far. ” Since the inception of the Accord, exports have risen from $ 21 billion to $ 34 billion – it is difficult to say whether they have increased despite or because of the Accord.
Hassan: “The commitment shown by the industry, the efforts and resources that have been invested and the improvements that we have made in terms of safety and worker empowerment are recognized worldwide. We have redesigned our factories and are now leaders in safety, sustainability and ethical manufacturing. ”
Departure into new markets
Not only Bangladesh has (had) a lot of catching up to do in the area of building and occupational safety. In other countries, too, there have been terrible accidents in the clothing industry and dangerous working conditions still prevail. However, the reputations of these countries have remained largely unscathed and they are not under the same scrutiny as Bangladesh.
First and foremost Pakistan, where more than 250 workers lost their lives in a factory fire in 2012. There, in particular, the trade unions and workers’ organizations have been calling for the agreement to be extended to their country for many years. Precisely because companies in this country take responsibility much more seriously than they did a few years ago, Pakistani workers’ organizations fear that they will soon be left behind without better standards.
With the new set of rules of the International Accord, this is exactly what is now possible. Initial explorations and feasibility studies are already underway. Ultimately, the parties to the Accord will then vote to decide which countries are eligible.