Apparel Online Bangladesh Magazine May Issue 2019 | Page 48
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B'desh to make RMG factories ‘decent place to
work at'
The Bangladesh Government has
established a loan fund of US $ 56
million for financing the country’s
readymade garment (RMG) sector
especially for its safety and
environmental upgradation.
The loan fund has been established
in Bangladesh Bank with the
aid of Agence Francaise de
Developpement of France. The
objective is to make the RMG
factories safer, greener and,
importantly, a ‘decent place
to work at’ in terms of social
compliance. The fund will help
the RMG factories invest in safety
retrofits and environmental
upgrades. The eligible garment
factory will get a loan of US $ 1.12
million from the loan fund at an
interest rate of 7 per cent. Those
going for larger upgrades could
even be eligible for loan up to
US $ 3.37 million.
Besides, technical assistance
worth US $ 16.04 million will be
provided to successful garment
factories, which is an initiative
between the KfW Development
Bank (Germany) and the
European Union. This programme
also focuses on training RMG
managers in the areas of safety
remediation and technical
upgrades as well as on available
financial options.
Government ‘hesitant' to assume responsibility for
factories under Bangladesh Accord
The report also claimed that
Bangladesh has not shut down
factories that were deemed unsafe
for the garment workers. It is worth
noting that Accord had identified
114 factories as unsafe but more
than half, as per reports, are still
operational.
The Government of Bangladesh
has shown strong unreadiness
to assume responsibility for all
the garment factories under
Bangladesh Accord on Fire and
Building Safety.
This was highlighted in the
recently released report issued
by the Clean Clothes Campaign,
the International Labour Rights
Forum, the Worker Rights
Consortium as well as the
Maquila Solidarity Network.
Last year, the Supreme Court
of Bangladesh had ordered the
Accord to leave the country and
had stated that the Remediation
Coordination Cell was capable
enough of taking up the
responsibility of Accord.
However, the Accord, which
was signed by 200 firms
in the aftermath of 2013
Rana Plaza disaster, had
appealed against the court’s
decision. Reportedly, each of the
745 factories under Bangladesh
Government’s inspection
programme are yet to remove
the high-risk safety hazards
that include lack of adequate fire
alarms, exposed electrical wires
as well as lockable exit ways.
48 Apparel Online Bangladesh | MAY 2019 | www.apparelresources.com
What is appalling is that 346
out of 400 factories, for which
information is available, have
completed less than 20 per
cent of necessary renovations.
Reportedly, on the other hand, 89
per cent of necessary renovations
required at factories under
Accord have been completed.
While the Accord’s fate in
Bangladesh is yet to be decided,
Clean Clothes Campaign is
collecting support statements from
international brands operating
in the country. According to one
such renowned sportswear brand
Adidas, “Despite significant
progress on safety measures for
garment workers, the Accord’s
work is not completed. Moreover,
the Government’s Remediation and
Coordination Cell neither has the
capacity nor has it demonstrated
the willingness to inspect factories
to the same standards.”