FAQs
What is the Accord?
The Accord is a legally binding agreement between international trade unions IndustriALL and UNI Global, Bangladesh trade unions, and international brands and retailers (Companies). International NGOs, including the Clean Clothes Campaign and the Workers’ Rights Consortium, International Labour Rights Forum and Maquila Solidarity Network are witnesses to the agreement. The International Labour Organisation (ILO) acts as the independent chair.
What is the aim of the Accord?
The aim of the Accord is the implementation of a programme for reasonable health and safety measures to ensure a safe and sustainable Bangladeshi Ready Made Garment industry for a period of five years.
How much will it cost us as a brand to sign up to the Accord?
Below is the cost for companies to sign up to the Accord. Please note that this is the cost to cover the inspections and training programme.
Please note this is subject to revision and may change. This is currently fixed for the first year.
|
Band |
Annual FOB US $ Value at Cost Price ex Bangladesh |
Contribution Year 1 (2013/14) |
Contribution Year 2 (2014/15) |
Existing Members Contribution Per Annum Years 3 to 5 (2015/18) |
New Members Contribution Per Annum Years 3 to 5 (2015/18) |
|
|
7 |
> |
500,000,000 |
500,000 |
850,000 |
383,000 |
500,000 |
|
6 |
250,000,000 |
500,000,000 |
375,000 |
637,500 |
287,500 |
375,000 |
|
5 |
100,000,000 |
250,000,000 |
175,000 |
297,500 |
135,000 |
175,000 |
|
4 |
50,000,000 |
100,000,000 |
75,000 |
127,500 |
57,500 |
75,000 |
|
3 |
25,000,000 |
50,000,000 |
37,500 |
63,750 |
28,750 |
37,500 |
|
2 |
10,000,000 |
25,000,000 |
17,500 |
19,750 |
13,550 |
17,500 |
|
1 |
1,000,000 |
10,000,000 |
10,000 |
17,000 |
7,750 |
10,000 |
|
0 |
< |
1,000,000 |
1,000 |
1,700 |
775 |
1,000 |
How will the cost of structural repairs be funded?
Under the Accord, Companies are responsible for ensuring sufficient funds are available to pay for structural repairs or renovations. This includes negotiating commercial terms with suppliers to ensure that it is financially feasible for factories to maintain safe workplaces and comply with any structural repairs or safety improvements, and where appropriate, the use of alternative means such as joint investments, loans, accessing donor or government support.
When are the inspection scheduled?
In September 2014, the Accord completed the initial inspections of 1103 RMG factories producing for Accord signatory companies. A new round of initial inspections of factories that were added by signatory companies after August 2014 have started in January 2015. The Accord will continue to inspect any new factories added to its list of factories.
The Accord is conducting follow up inspections at all factories to verify safety improvements. We plan 2-3 visits to each factory to verify all issues.
What happens if an inspection shows that a building is unsafe?
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. In such cases, the Accord requests that the Review Panel, established through the Ministry of Labour and Employment led National Plan of Action, be convened. The Review Panel was established for inspections which lead to determinations that a building evacuation or suspension to operations is required. In order to overturn the initial production suspension / evacuation recommendation of the inspection, a unanimous decision of the team of 4 Review Panel engineers (1 Accord, 1 Alliance, 2 Government of Bangladesh/BUET) must be reached.
Workers will be notified and will continue to receive salary payments while the building is repaired to standard.
What happens if the factory owner refuses to suspend manufacturing?
If the factory owner refuses to suspend manufacturing, Company members of the Accord are obligated to withdraw their business. Where this results in termination of workers’ jobs, Companies will make reasonable efforts to ensure these workers are offered preferential hiring processes for employment through other factories that supply them.
What happens if a company that has signed the Accord decides to pull out their business from Bangladesh?
In signing the Accord, Companies demonstrate their commitment to continue sourcing from Bangladesh for at least the five year period of the Accord.
Does the Accord recognise the Alliance for Bangladesh Worker Safety?
We urge all brands to join the Accord as it provides a tripartite, transparent, and robust governance structure and mechanism. However, we are committed to working with all relevant stakeholders including members of the Alliance, to ensure a safe and sustainable Bangladeshi Ready Made Garment industry.
How would the Accord ensure that small and medium-sized Companies’ needs are represented within the Accord?
The Accord structure takes into account that different Companies, regardless of their overall size, source in different volumes from Bangladesh. This is reflected in the membership cost for Companies.
All Companies have equal voting rights and election opportunities for representation on the various working groups of the Accord.
What does the agreement between the Accord and the Fair Factories Clearinghouse cover?
The Fair Factories Clearinghouse (FFC) provides a secure platform for sharing and analysing factory information submitted by Companies. In addition, the FFC will host and develop an online tool for Companies to access factory-based data.
What is the Accord’s position on unauthorised sub-contracting?
Unauthorised sub-contracting is one of the many recognised challenges for the Accord and it is impossible for the Accord alone to end the practice of unauthorised subcontracting. Where factories of unauthorised subcontractors are identified and confirmed as supplying an Accord signatory, they will be subject to the same process of inspection as primary suppliers.
