Ministry of Textile Industry
The age of conditional market access
 Disney Pull Out due to low WGI and non-initiation of
Better work Program in Pakistan
 A documentary “Made in Pakistan: Textile Slavery” by
Stefano Valentino” with the caption:
A journey into the hell of child exploitation
 More companies likely to follow Disney Pull Out
 What steps should Pakistani companies take?
Bangladesh
 Alliance for Bangladesh Worker Safety
 Accord on Fire and Building Safety in Bangladesh
Accord on Fire and Building Safety
in Bangladesh
 The Accord is an independent agreement designed to make all
garment factories in Bangladesh safe workplaces. It includes
independent safety inspections at factories and public reporting of
the results of these inspections.
 The Accord is a legally binding agreement. It has been signed by
over 150 apparel corporations from 20 countries in Europe, North
America, Asia and Australia; two global trade unions, IndustriALL
and UNI; and numerous Bangladeshi unions. Around 1540 factories
have been registered under the program.
 Clean Clothes Campaign, Worker Rights Consortium, International
Labor Rights Forum and Maquila Solidarity Network are NGO
witnesses to the Accord. The International Labour Organisation (ILO)
acts as the independent chair
Contd.
 As signatories to the Accord, Companies will each
contribute an equitable share of the funding required, up
to a maximum contribution of $500,000 per annum. The
share is based upon a sliding scale, relative to the
individual Company’s volume of sourcing from
Bangladesh, relative to the annual volume of other
Company signatories.
 Signatory companies to this agreement are committed to
maintaining long-term sourcing relationships with
Bangladesh, as is demonstrated by their commitment to
this five-year programme.
Contd.
 Where a building or structure is found to pose an
immediate threat to worker safety, the Accord will
recommend that the building be temporarily evacuated
until such time that more in-depth tests can be
conducted, substantial weight and load is removed from
the building, and/or immediate strengthening measures
are completed. Workers will be notified and will continue
to receive salary payments while the building is repaired
to standard.
 If the factory owner refuses to suspend manufacturing,
Company members of the Accord are obligated to
withdraw their business.
Alliance for Bangladesh Worker
Safety
 The Alliance for Bangladesh Worker Safety was founded by a
group of North American apparel companies and retailers and
brands who have joined together to develop and launch the
Bangladesh Worker Safety Initiative.
 The Alliance was organized through the Bipartisan Policy
Center (BPC) with discussions convened and chaired by former
U.S. Senate Majority Leader George Mitchell and former U.S.
Senator Olympia Snowe
The Alliance
 The current group includes the following 26 companies:
 Ariela and Associates International LLC
 Carter’s Inc.
 Costco Wholesale Corporation
 Gap Inc.
 Hudson’s Bay Company
 Intradeco Apparel
 The Jones Group Inc.
 The Just Group
 L. L. Bean Inc.
 Macy’s
 Sears Holdings Corporation
 VF Corporation
 YM Inc.
- Canadian Tire Corporation, Limited
- The Children’s Place Retail Stores Inc
- Fruit of the Loom, Inc.
- Giant Tiger
- IFG Corp.
- J.C. Penney Company Inc.
-Jordache Enterprises, Inc.
- Kohl’s Department Stores
-M. Hidary & Company Inc.
-Public Clothing Company
-Target Corporation
-Wal-Mart Stores, Inc.
- Nordstrom Inc.
Alliance Board of Directors
 Honorable Ellen O’Kane Tauscher, Board Chair
 Ambassador James Moriarty, former U.S. ambassador to Bangladesh
 Bobbi Silten, senior vice president of global responsibility for Gap Inc. and president
of Gap Foundation
 Daniel Duty, vice president of global affairs for Target
 Jan Saumweber, vice president of ethical sourcing at Wal-Mart Stores, Inc.
 Mohammad Atiqul Islam, president of the Bangladesh Garment Manufacturing
and Exporters Association (BGMEA)
 Muhammad Rumee Ali, advisor to executive director, BRAC, the international NGO
founded in Bangladesh
 Randy Tucker, global leader of the fire protection and safety team at ccrd, a
Houston-based engineering firm
 Tom Nelson, vice president for global product procurement for VFC
Salient Features
 Around 587 factories have been registered, 57% of which are also
members of Accord.
 The Alliance has created a fund called Worker Safety Fund which is
basically based on cash contributions on a tiered fee structure
derived from the preceding year’s dollar volume of each Member’s
FOB exports of RMG from Bangladesh.
 Member companies have committed not to source from any factory
that has been deemed unsafe by qualified inspectors
 The Alliance has committed 10 percent of total Member dues to
support workers from Alliance factories that might be temporarily
displaced during remediation work.
Response from Pakistan
 A business roundtable for textile and apparel sector was arranged
on the side line of Pak-US Trade and Investment Framework
Agreement (TIFA) Council meeting held in Washington DC in
collaboration with USTR office in May, 2014. It was considered that
Pakistan may look into development of exporters alliance for the US
market on the pattern of Bangladesh.
 A high-level meeting is planned in Washington DC on 17 Sept, 2014
to discuss Better Work Program and other alternates. Meeting is
jointly convened by ILO and IFC.
 A documentary is being prepared to offset the impression as well as
brand the value chain as compliant.
Way Forward
 Nominations by Associations for working group for
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Alliance
Pursue with International Buyers
Role of Associations for pursuing members for workplace
improvement system leading to ILS Audit and
Certification
Strong Reporting Mechanism
Publicity