The Accord has warned of curtailing business relations with more than 550 readymade garment (RMG) units of Bangladesh unless they make required remedial works for ensuring workplace safety, sources said. The platform of more than 200 European retailers and buyers also requested the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to take necessary measures to avert the final stage of business termination, they added. Of 550, some 449 units are in the process of stage one of notice while some 104 are on stage two and received warnings. Some 35 units out of 104 have made very poor progress in line with the corrective action plan (CAP). If a supplier factory fails to implement the Accord’s corrective actions and cooperate fully in its inspection and related programmes, the supplier will receive notice and warning that its business with Accord’s signatory companies will be terminated if non-compliance persists, they said. “If the notice and warning process does not lead to sufficient progress, business with the supplier will be terminated by Accord’s signatory companies,” according to Accord. Mahmud Hasan Khan, vice president of the BGMEA, said, “We have already issued letters to some 100 factories informing them that Accord has put their names in stage two of its escalation process due to slow remediation progress.” If they fail to expedite their remediation works, Accord’s signatory members might discontinue business relations with those units, the letter reads. The BGMEA also asked those units to explain the reasons of their slow progress specifying the major problems they are facing. Accord so far terminated business relations with some 48 garment factories while Alliance, another platform of North American apparel buyers, suspended business with some 92 units.
