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The Financial Express

UK retailers yet to renew safety deal in Bangladesh factories

| Updated: January 31, 2018 12:51:59


UK retailers yet to renew safety deal in Bangladesh factories

Marks & Spencer, John Lewis, Debenhams, Next and Sainsbury’s are among a group of British retailers yet to join international rivals in renewing their commitment to a factory safety deal in Bangladesh.

Bringing together more than 200 international fashion brands, factory owners and unions, it has seen more than $55m (£39m) invested in safety monitoring, training of health and safety committees, and site inspections by 200 trained engineers.

Its signatories have also contributed funds for safety measures including improving structural design and installing fire doors and sprinkler systems.

More than 1,600 factories are covered by the programme, which comes to an end in May, with just over 80% of the necessary safety work identified by initial inspections.

About 60 major international brands using 1,200 Bangladeshi factories – including H&M, Zara’s owner Inditex and Primark – have signed up to a new version of the accord.

With only weeks to go until the fifth anniversary of the Rana Plaza tragedy, at least one major British company, Sainsbury’s, has decided not to sign up to the new deal.

The original accord cost the largest brands $500,000 a year before further commitments to support any work needed in factories from which they source.

The new deal will last for three years maximum with reviews every six months to assess whether the Bangladeshi government is ready to take over its work. Contributions will be capped at €300,000 (£263,000) annually.

Sainsbury’s said while it would not be signing up, it remained supportive of progress in Bangladesh.

“We remain committed to this issue and will continue to support local manufacturers, helping them reach the highest standards in safety,” a spokesperson said.

M&S, John Lewis, Debenhams and Next said they were in discussions and still considering their options ahead of May, reports The Guardian.

Jenny Holdcroft, assistant general secretary of the international union IndustriALL, said: “Brands need to stay with the accord otherwise all the hard work and money they have invested will quickly be undermined.”

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