Home Apparel Sainsbury’s quits Accord, Marks & Spencer, 2 others may follow

Sainsbury’s quits Accord, Marks & Spencer, 2 others may follow

One of the major British retailers Sainsbury’s, has decided not to sign up to the new Accord while Marks & Spencer, John Lewis and Debenhams are yet to decide over signing the new factory safety deal in Bangladesh, due to tough retail environment in the UK.Guardian reported that several others companies are holding back from signing new version of Accord amid concerns over costs and possible lack of support from factory owners and the Bangladeshi government.Following the Rana Plaza building collapse in April, 2013 that killed more than 1,100 people mostly garment workers the European brands and retailers formed Bangladesh accord on fire and building safety. The initiative invested more than $55 million in safety monitoring, training of health and safety committees and site inspections by 200 trained engineers.Its signatories have also contributed funds for safety measures including improving structural design and installing fire doors and sprinkler systems.More than 1,600 factories are covered by the programme, which comes to an end in May, with just over 80 per cent of the necessary safety work identified by initial inspections.About 60 major international brands using 1,200 Bangladeshi factories – including H&M, Zara’s owner Inditex and Primark – have signed up to a new version of the Accord.According to the Guardian report, two industry sources said the tough retail environment in the UK meant retailers were looking to limit corporate social responsibility spending. The original accord cost the largest brands $5,00,000 a year before further commitments to support any work needed in factories from which they source. The new deal will last for three years maximum with reviews every six months to assess whether the Bangladeshi government is ready to take over its work. Sainsbury’s said while it would not be signing up, it remained supportive of progress in Bangladesh.‘We remain committed to this issue and will continue to support local manufacturers, helping them reach the highest standards in safety,’ a spokesperson of Sainsbury’s told to the Guardian.M&S, John Lewis, Debenhams and Next said they were in discussions and still considering their options ahead of May.Jenny Holdcroft, assistant general secretary of the international union IndustriALL, said brands need to stay with the accord otherwise all the hard work and money they have invested will quickly be undermined.She said that those brands that did not contribute were letting other more responsible companies ‘carry the can’ for continuing the safety work, Guardian reported.

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