Bangladesh Accord arbitration cases closed

The Permanent Court of Arbitration (PCA) in a press statement yesterday announced that two landmark cases against multinational fashion brands brought under the Bangladesh Accord on Fire and Building Safety have been officially closed.

The tribunal hearing the cases, which were filed by the global unions IndustriALL and UNI, issued termination orders this week.

The fashion brands have met all terms of settlement, including payment of more than USD 2.3 million towards remediation of unsafe conditions in readymade garments factories in Bangladesh. The Accord will distribute the money among all eligible factories.

“These cases prove the Accord’s power to hold companies accountable and make work safer along the supply chain,” said UNI Global Union general secretary Christy Hoffman.

“Owing to the legally-binding nature of the Accord, tens of thousands of potentially deadly hazards have been fixed and more than one million workers have been trained. That is why we will continue to rigorously enforce the Accord and look at innovative, effective ways to resolve disputes with brands,” the press statement says.                            

The arbitrations were filed in July 2016 and October 2016 to bring recalcitrant brands into compliance with the terms of the Accord. The unions alleged that the multinational brands did not require the contracted factories to remedy hazards in a timely manner, leaving thousands of workers in dangerous conditions. The unions also charged that the brands did not ensure financial resources for the contracted factories to fix the ongoing safety issues.

The first brand reached a settlement in December 2017 and the second in January 2018.

“Prior to the Accord, a settlement of this size and scope on supply chain worker safety was unthinkable. The Accord has the power to fundamentally change the way garments and textiles are produced,” said IndustriALL Global Union general secretary Jenny Holdcroft.

Both settlements were made possible by pro bono representation provided to the two global unions by Marney Cheek and her team at Covington & Burling.

The Accord, which covered 2.5 million workers in Bangladesh’s readymade garments industry, was established by IndustriALL and UNI in 2013 following the Rana Plaza disaster that killed over 1,100 garments workers and injured more than 2,000. It was the first agreement with a legally binding mandate requiring fashion brands to require their contractors to eliminate fire, structural, and electrical safety issues. It expired on May 31, 2018.

A second agreement with nearly 200 brand signatories, the 2018 Transition Accord, went into effect June 1 of this year. It extends the Accord’s protections until May 31, 2021 unless a joint monitoring committee (comprised of Accord brand signatories, Accord trade union signatories, the Bangladesh Garment Manufacturers and Exporters Association, the International Labour Organization, and the Government of Bangladesh) unanimously agrees that a set of rigorous conditions for a handover to a national regulatory body have been met prior to then.

 

 

Bangladesh Accord arbitration cases closed

The Permanent Court of Arbitration (PCA) in a press statement yesterday announced that two landmark cases against multinational fashion brands brought under the Bangladesh Accord on Fire and Building Safety have been officially closed. The tribunal hearing the cases, which were filed by the global unions IndustriALL and UNI, issued termination orders this week. The fashion brands have met all terms of settlement, including payment of more than USD 2.3 million towards remediation of unsafe conditions in readymade garments factories in Bangladesh. The Accord will distribute the money among all eligible factories. These cases prove the Accords power to hold companies accountable and make work safer along the supply chain, said UNI Global Union general secretary Christy Hoffman. Owing to the legally-binding nature of the Accord, tens of thousands of potentially deadly hazards have been fixed and more than one million workers have been trained. That is why we will continue to rigorously enforce the Accord and look at innovative, effective ways to resolve disputes with brands, the press statement says. The arbitrations were filed in July 2016 and October 2016 to bring recalcitrant brands into compliance with the terms of the Accord. The unions alleged that the multinational brands did not require the contracted factories to remedy hazards in a timely manner, leaving thousands of workers in dangerous conditions. The unions also charged that the brands did not ensure financial resources for the contracted factories to fix the ongoing safety issues. The first brand reached a settlement in December 2017 and the second in January 2018. Prior to the Accord, a settlement of this size and scope on supply chain worker safety was unthinkable. The Accord has the power to fundamentally change the way garments and textiles are produced, said IndustriALL Global Union general secretary Jenny Holdcroft. Both settlements were made possible by pro bono representation provided to the two global unions by Marney Cheek and her team at Covington Burling. The Accord, which covered 2.5 million workers in Bangladeshs readymade garments industry, was established by IndustriALL and UNI in 2013 following the Rana Plaza disaster that killed over 1,100 garments workers and injured more than 2,000. It was the first agreement with a legally binding mandate requiring fashion brands to require their contractors to eliminate fire, structural, and electrical safety issues. It expired on May 31, 2018. A second agreement with nearly 200 brand signatories, the 2018 Transition Accord, went into effect June 1 of this year. It extends the Accords protections until May 31, 2021 unless a joint monitoring committee (comprised of Accord brand signatories, Accord trade union signatories, the Bangladesh Garment Manufacturers and Exporters Association, the International Labour Organization, and the Government of Bangladesh) unanimously agrees that a set of rigorous conditions for a handover to a national regulatory body have been met prior to then.