European retailers and buyers would not cut business relations with all the factories of a business group due to safety faults in one of its units, provided that the group shuts the noncompliant unit on its own.
The decision came from a meeting between Bangladesh Garment Manufacturers and Exporters Association leaders and the steering committee members of Accord on Fire and Building Safety in Bangladesh held at the BGMEA office in the city on Monday.
‘In today’s meeting, we have discussed the long-pending issues like termination of business with the factories of a business group due to faults in one of its units and providing additional corrective action plan to the factories during verification inspection,’ BGMEA president Siddiqur Rahman told reporters following the meeting.
The BGMEA president said that no discussion on the extension of Accord’s timeframe took place at the meeting.
‘In a tripartite meeting between the government, Accord and BGMEA the issue ‘whether the timeframe of Accord would be extended or not’ would be discussed on October 19.’ Siddiq said.
He said that the Accord Steering Committee agreed that if any group announced shut down of its noncompliant unit before the business termination by the buyers’ platform, the business of others factories of the group would not be hampered.
According to the statistics of Accord, the platform has so far cut business relations with 98 RMG factories on grounds of safety issues.
Out of 98, the Accord terminated business relations with 40 readymade garment factories of 11 business groups due to 11 noncompliant units.
Data showed that the EU buyers’ group severed business relations with highest 7 factories of a group due to one noncompliant production unit.
The BGMEA president said that the Accord also agreed to provide certificate to the factories as remediated after completion of initial CAPs and the additional CAPs would be completed gradually.
Siddiq said that the readymade garment factories which are common on the list of both Accord and Alliance for Bangladesh Workers’ Safety faced difficulties in obtaining certificates from the Accord as the inspectors provided additional CAPs after completion of initial CAPs.
Mahmud Hasan Khan Babu, vice-president of the BGMEA, said that they discussed over the reactivation policy of Accord for the terminated factories.
The BGMEA has a long-pending dispute over the reactivation policy of the Accord as the platform does not allow to re-establish participation of the terminated factories in the Accord process before four months while Alliance factories can come back within three months, he said.
Babu said that no decision came on this issue from the meeting but the Accord Steering Committee members said that they were considering the matter.
Senior Advisor of H&M Karl Gunnar Fagerlin, chief human resources officer of
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