Hennes & Mauritz AB (HM-B.SK), Inditex and C&A, some of
the world's biggest clothing companies, on Monday committed to
implement safety standards in Bangladesh's garment factories, a
sign that Western retailers could play a key role in policing the
country's main industry nearly three weeks after a factory collapse
killed more than 1,100 people.
The companies said that they have signed a legally binding
agreement calling for the appointment of a safety chief to inspect
Bangladesh's 5,000 garment factories. The five-year accord also
establishes fire safety training for workers.
Calvin Klein parent PVH Corp. (PVH) and German retailer Tchibo,
which had signed a similar pact last year that had not yet come
into force, said they were adhering to the new safety code.
Under the pact, retailers will not be allowed to place orders
with factories that don't pass safety tests, and retailers will
underwrite the costs of mandatory building repairs and renovations,
according to the Clean Clothes Campaign, a workers' rights group
involved in the accord.
The accord is seen as the cornerstone of a plethora of efforts
to improve working conditions in Bangladesh's $20 billion garment
industry.
Thirty retailers met in Germany two weeks ago following the Rana
Plaza factory collapse to agree on safety standards, and set
Tuesday evening as the deadline to find an agreement.
The participation of H&M, C&A and Inditex, the Spanish
parent company of Zara, will increase pressure on other retailers
to sign.
"In order to make an impact and be sustainable it would need a
broad coalition of brands," H&M said in a statement.
Some of the world's biggest retailers, including Wal-Mart Stores
Inc. (WMT), have yet to give their positions. Officials at
Wal-Mart, which was represented at the meeting in Germany, could
not immediately be reached for comment.
Bangladesh is the third-largest clothing exporter in the world.
But workers rights groups say factories cut corners on everything
from safety to wages to attract orders. According to the Clean
Clothes Campaign, more than 2,000 garment workers have died in the
past two decades.
"It is now time for companies to move beyond vague promises,
business-as-usual self-regulatory schemes and rhetoric," CCC
director Ineke Zeldenrust said in a statement.
Write to Christina Passariello at
christina.passariello@wsj.com
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