Some of the world’s leading clothing retailers have promised to open up their Bangladesh factory suppliers to safety inspectors, as part of a new safety accord. But an opposing group of major US retailers have snubbed the accord, announcing the formation of their own working group instead.

The legally-binding Accord on Fire and Building Safety in Bangladesh, spearheaded by a coalition of trade unions, aims to improve safety standards in the country’s garment industry in the wake of the Rana Plaza factory collapse in April.

There are more than 70, mainly European signatories, on board who will conduct fire and building safety inspections of the factories where they source their goods.

Signatories, which include several big names such as Inditex (Zara), Carrefour and H&M, have also committed to paying for any necessary upgrades if the factory buildings prove to be unsafe.

“This historic, legally binding accord will effect tangible change on the ground and help make the Bangladeshi garment industry safe and sustainable," said Jyrki Raina, General Secretary of IndustriALL, which played a key role in creating the pact.

"A profound change is possible only with a strong coalition between trade unions, international brands and retailers, Bangladeshi authorities and employers, and with worker involvement in the workplace with guaranteed freedom of association."

But a group of powerful US retailers, led by Walmart, were reluctant to sign anything legally-binding, preferring instead to pursue voluntary agreements.

As a result, they have teamed up former US senators George Mitchell and Olympia Snowe to form the Alliance for Bangladesh Worker Safety.

Details about the Alliance are still emerging but it will announce its own proposals for improving workers safety.

Rana Plaza

The European-led safety accord was prompted by the Rana Plaza factory collapse on 24 April in which 1,129 people were killed after cracks were spotted in the eight-storey building.

The Rana Plaza collapse may have been the worst industrial disaster since the Bhopal Disaster in 1984, but scores of Bangladeshi garment workers have been killed in working in sub-standard structures that are put up cheaply, quickly and often without permission.

In 2005, 64 workers at the Spectrum Garments factory in Savar, the same town where the Rana Plaza collapse took place, were killed when the structure collapsed.

And in November 2012, at least 117 workers were killed in the Tazreen factory fire in Dhaka.

To date, no factory owner has ever been prosecuted for any garment factory deaths.

Suspensions

Bangladesh’s garment industry – which is the second largest in the world after China – is beset with chronic health and safety issues, poverty wages and labour violations.

Since April, there have been a number of measures designed to tackle some of the industry’s most pressing problems. Last month, the US suspended trade privileges extended to Bangladesh over concerns about dangerous working conditions and labour rights.

And as a result of international pressure, the government of Bangladesh will review proposed amendments to the country’s draft labour legislation.

On Monday, the Bangladesh government agreed to an EU and ILO initiative – a "Sustainability compact" designed to improve labour rights and factory safety.

It commits the government to upholding union rights and increasing the number of labour inspectors by 25 per cent (bringing the national total to 800) by the end of the year.

It is also thought that Bangladesh will soon pass new legislation to make it easier to set up unions in garment factories and compensate workers involved in accidents.

However, the EU trade commissioner Karel de Gucht warned Bangladesh that its current duty and quota-free export trade preferences with the EU could be in jeopardy “should there be no or insufficient progress for Bangladeshi workers."

"I want to make it clear that Bangladesh ... cannot take for granted the trade preferences it currently enjoys," he said during a press conference, pointing out that garments make up 90 per cent of the country’s exports to the EU, and account for some 2.5 million jobs.

Currently, 60 per cent of Bangladesh garment exports go to Europe, with the remaining 40 per cent destined for the US.