1. WELCOME TO THE JOURNEY WITH
ACCORD AND ALLIANCE
Rohan Chakraborty, CBIFT
131-009-25 (FDT)
8TH Semester
2. PRESENTATION ON
“Accord and Alliance”
PRESENTED TO
Kazi Nazmul Huda
Associate Professor
Department of Business Administration
Proctor
Southern University, Bangladesh
PRESENTED BY
Rohan Chakraborty
ID: 131-009-25
Department of FDT
8th Semester
Chittagong BGMEA Institute of Fashion & Technology (CBIFT)
3. BACKGROUND
Bangladesh is the second largest garment exporter in the global market.
according to the Bangladesh Export Processing Bureu Export was around export
was around 3 thousand 424 crore 18 Lac Us Dollar in last fiscal year (2015-2016)
where sum of garment export was around 2809.41 crore Us Dollar with 10.14%
growth, in consequence of Bangladesh economy getting stronger day be day.But
the challenges like infrastructure, workers health & safety issues, labor rights,
working environment as well as recent terror attacks in Glusan & Sholakia made
a great concern towards the chain of this sector.
4. BACKGROUND
These exceptions making some frequent contravention among the buyer and
manufacturer but the concerned parties have taken necessary initiatives to
overcome these puzzles. In the way of these bewilderment Bangladesh RMG
sector started working with Accord & Alliance in order to the augmentation of
Fire, Building safety and Worker safety respectively of Bangladesh. For this
betterment Bangladesh this sector these agreement plays tremendously
momentous role after the collapse of Rana Plaza Garment Factory in April 24,2013
which killed around 1133 fatalities and 2500 plus injured which considered as
most deadliest accident in the history of RMG (Ready Made Garmnet) industry.
7. ACCORD
on Fire and Building Safety of Bangladesh
The Accord is an independent, legally binding agreement between international
brands, retailers ( Companies) and international trade unions industrial and UNI
global, Bangladesh trade unions. International NGOs including clean clothes
Campaign and the Workers’ Right Consortium, international Labour Rights Forum
and Macuila Solidarity Network are witnesses to the agreement designed to
work towards a safe and health Bangladeshi RMG industry. Its purpose is to
enable a working environment in which no worker needs to fear fires, building
collapses, or other accidents that could be prevented with reasonable health
and safety measures.
8. ACCORD
on Fire and Building Safety of Bangladesh
The Accord on Fire & Building safety in Bangladesh (the Accord) was signed
on May 15th 2013. It is a five year independent, legally binding agreement
to build a safe & healthy in RMG industry. The agreement was created in the
Immediate aftermath of the Rana Plaza Bulding collapse. In June,2013, an
Implementation plan was agreed leading to the incorporation of the Bangladesh
Accord Foundation in the Netherlands in October 2013.
The agreement consists of six key components:
1. A five year legally binding agreement between brands & trade unions to ensure
a safe working environment in the Bangladesh RMG industry.
9. ACCORD
on Fire and Building Safety of Bangladesh
2. An independent inspection program supported by brands in which workers
and trade unions are involved.
3. Public disclosure of all factories, inspection reports and corrective action plans
(CAP).
4. A commitment by signatory brands to ensure sufficient funds are available for
remediation and to maintain sourcing relationships.
5. Democratically elected health and safety committees in all factories to act on
health and safety risks.
6. Worker empowerment through an extensive training program, complaints
mechanism and right to refuse unsafe work.
10. Governance
The Accord is governed by a steering committee with equal representation of the
signatory companies and trade unions with a neutral chair provided by the
International Labour Organization ( ILO).
Regulations (adopted 24th September 2013) –Amended at SC meeting 10th July
2014.
STEERING COMMITTEE (THE “SC”)
The SC is the executive decision-making body of the Foundation. It exercises all
powers of the Foundation, including but not limited to:
● selection, contraction, compensation and review of the performance of the chief
safety Inspector, Executive Director-International Operations and the Executive
Director-Bangladesh operations.
● oversight and approval of the Budget
● oversight of financial reporting & hiring of auditors
11. ● oversight & approval of inspection program
● such other functions as are provided in the Accord; and
● other such management duties as may be reqired
ALTERNATE SC MEMBERS
Each SC member may appoint one Alternate member from among the signatories
To attend & participate in meetings of the SC and who may vote when the relevant
SC member is not in attendance.
CHAIR OF SC
The chair shall be a representative from & choose by the ILO.
TERMS OF SC MEMBERSHIP
The membership terms of the SC shall be staggered so that each year the term of
At least one company member and one Trade Union Member shall expire. Any SC
Member whose term is expiring shall continue to serve until his/her successor is
named.
12. SC MEMBERSHIP ELECTION PROCESS
One company SC Member will step down voluntarily from the SC at the end of
Year 1 & subsequent years by rotation. In the event of there being no voluntary
Resignation, a ballot of all Company Signatory Members will be undertaken.
FREQUENCY & FORMAT OF MEETINGS
Except as otherwise specified above, meetings of the SC will be closed. The SC
may invite other persons to attend its meetings as it sees fit.
SC SUB-COMMITTEE
Any delegation of powers to a sub-committee shall be recorded in the Minutes
And may be made subject to any conditions that the SC may impose, and which
may be revoked or altered as the SC shall deem necessary.
WORKING GROUPS
The SC may establish working groups to assist with the effective operation of the
Foundation, but not to exercise powers delegated from the SC. The SC may
13. appoint such members to a working group as it sees fit which may include, but
is not limited to; Signatories, Secretariat staff; brands and retailers; suppliers;
government institutions; trade unions; NGOs; or anyone else who may provide
knowledge or experience to assist with effective implementation of the Accord.
ADVISORY BOARD ( THE “AB”)
The AB will meet at least quarterly. The AB shall be chaired by an ILO
representative, appointed by the ILO.
COMPANY SIGNATORY CAUCUS
The Company Signatories will meet quarterly & produce a report within 10 days
following each meeting with recommendations to the company Members of the
SC.
TRADE UNION SIGNATORY CAUCUS
The Trade Union signatories(including Witness Signatories) will meet quarterly
and produce a report within 10 days following each meeting with
recommendations to the Trade Union Member of the SC.
14. EXECUTIVE DIRECTORS
The Executive Directors will be responsible for managing the business of the SC,
including but not limited to implementing its decisions, managing the funds
related to the obligations contained in the Accord, overseeing public
communications and undertaking other duties as prescribed by the SC.
CHIEF SAFETY INSPECTOR
The SC is responsible for oversight of the Chief Safety Inspector, who shall be
responsible to direct the inspection & remediation program and to undertake
other activities as specified under the Accord. In order to support this oversight,
the Chief Safety Inspector shall make quarterly reports to the SC in form and
substance developed by the SC.
INSPECTION PROGRAM AND STANDARDS
The inspection program, which shall be approved by the SC, shall include, but not
be limited to, the following:
● Establishment of an inspectorate
● Establishment of standards
15. ● Design and structure of program; and
● Such other elements as determined by the Chief Safety Inspector
TRAINING COORDINATOR
The Executive Director- Bangladesh Operations shall appoint a training
coordinator to establish an extensive fire and building safety training program.
The training programs shall be delivered to workers, managers and security staff
by skilled personnel selected by the Training Coordinator.
FINANCIAL SUPPORT
The SC shall set financial contributions for each Company Signatory in accordance
with their obligations under paragraph 24 of the Accord.
FINANCE/ACCOUNTS
The SC shall establish each year the draft annual accounts of the past financial
year, as well as the budget for the next financial year. The SC shall appoint an
independent third party to audit the annual accounts.
16. FAQs
● What is the aim of the Accord?
The aim of the Accord is the implementation of a program for reasonable
health & safety measures to ensure a safe & sustainable Bangladeshi Ready
Made Garment industry for a period of five years.
● 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
negotiation 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
17. 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 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
18. 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.
● 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.
19. ● Does the Accord recognise the Alliance for Bangladesh Worker Safety?
The 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 with 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.
20. ● 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 analyzing 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 are identified and
confirmed as supplying an Accord signatory, they will be subject to the same
process of inspection as primary suppliers.
22. ABOUT
The Alliance for Bangladesh Worker Safety (Alliance) is a legally binding,
five-year commitment to improve safety in Bangladeshi ready-made garment
(RMG) factories. The Alliance was organized in 2013 through the Bipartisan
Policy Center with discussions convened and chaired by former U.S. Senate
Majority Leader George Mitchell (D-ME) and former U.S. Senator Olympia
Snowe (R-ME), both of whom have a strong track record of forging consensus-
oriented solutions. The collaborative process involved apparel industry
companies and stakeholders including: the U.S. and Bangladeshi governments,
policymakers, NGOs, members of civil society, and organized labor.
23. ● What they provide?
The Alliance provides an unprecedented opportunity for apparel, retail and
branded company members to come together and put forward concrete
solutions that will be transparent, results-oriented, measurable and verifiable.
Collectively, the Alliance’s members represent the majority of North American
imports of RMG from Bangladesh. The Alliance holds each member and their
factories accountable to operate workplaces that are safe and effective in
ensuring building and fire safety.
24. VISION
Their vision is that the Alliance will substantially improve worker safety in the
Ready Made Garment (RMG) industry by upgrading factories, educating workers
and management, empowering workers, and building institutions that can
enforce and maintain safe working conditions throughout Bangladesh. We work
to achieve this vision through the implementation of initiatives in five strategic
pillars:
ꭙꭙ Standards & Inspections
ꭙꭙ Remediation
ꭙꭙ Worker Empowerment
ꭙꭙ Training
ꭙꭙ Sustainability
25. FAQs
● What is the Alliance?
The Alliance is a group of 28 global apparel companies, retailers and brands that
recognized the urgent need to rapidly improve working conditions for garment
industry workers and have joined together to help improve worker safety in
Bangladeshi ready-made garment (RMG) factories.
● What is the goal of the Alliance?
The Alliance is focused on systemic and sustainable improvements in fire,
structural and electrical safety within Bangladesh’s garment factories. We are
seeking to ensure that garment workers work in safer environments.
26. ● Do you work with other groups to accomplish your goals?
The Alliance believes that partnership across sectors and shared responsibility
from all stakeholders are critical to achieving progress. We are working with
worker organizations, factory owners, NGOs, civil society and the government of
Bangladesh to ensure that safety improvements are sustainable.
● What progress is underway now?
They focus through December 2013 was the development—and agreement across
sectors—on a common, strict standard for fire, structural and electrical safety to
which factories will be held during the inspection process, as well as the
development of our comprehensive worker training curriculum. We were
successful in developing that standard and harmonizing it across other parties
in the RMG sector.
In addition, we have also been focused on our goal to inspect 100% of the more
than 700 Alliance factories by July 2014. Inspections are now well underway—led
by Bangladesh inspectors and overseen by a Committee of Experts—with more
than 50% of inspections completed to-date
27. ● Will factory inspection findings be made public?
Yes. Member companies make inspection findings public via the Fair Factories
Clearinghouse (FFC) platform, and inspection summary reports will be updated
monthly. This information is also being provided to worker groups operating
within the factories.
● Will the Alliance help pay for factory improvements?
Individual Member companies have committed a total of $100 million in
accelerated access to low-cost capital to help factory owners to make factory
safety improvements.
● Will the Alliance provide financial support to displaced workers?
Yes. The Alliance has committed 10 percent of total Member dues to support
workers from Alliance factories that might be temporarily displaced during
remediation work. We are partnering with BRAC –one of the world’s largest
NGOs—to administer this fund, ensure transparency and manage disbursement.
28. ● How is the Alliance involving workers in its efforts to improve
factory safety?
In December, the Alliance conducted a comprehensive worker survey to identify
worker needs, perceptions and gaps in existing safety training programs. The
results of the 3,200-worker survey formed the basis of our comprehensive
training curriculum, now the standard in all of our 700+ factories.
They have developed and begun rolling out a worker helpline that allows workers
to seek information and raise concerns immediately, anonymously and without
fear of reprisal. They support and actively engage democratically elected worker
representatives within our factories. Twenty Alliance factories have now
established trade unions; we’re doing specific outreach to these unions to ensure
they are supported and involved in our efforts. In order to ensure that worker
perspectives inform all of our work, several prominent Bangladeshi union leaders
hold positions on our Board of Advisor.
29. ● Has the Alliance provided compensation to victims of factory
tragedies?
The Alliance recently organized the first Fire and Safety Expo in Dhaka, all
proceeds of which were donated to the ILO’s Rana Plaza Donors Trust Fund,
established to assist victims of the Rana Plaza tragedy. Additionally, several
individual Member companies have made substantial contributions to the
Bangladesh Humanitarian Fund, administered through BRAC USA. This fund
will be directed to three specific programs, including the ILO Rana Plaza Donos
Trust Fund.
● Are workers protected if they feel their factory is unsafe?
Yes. Alliance Members require that all factories from which they source respect
the right of any worker to refuse work due to imminent safety concerns, and that
such worker shall be protected from undue consequences.
30. ● Will Alliance Member companies source from a factory that fails
safety inspections?
By signing the Alliance Membership agreement, our Member companies have
committed to sourcing from factories that meet or are making good progress
towards meeting the Alliance Building & Fire Safety Stand. For remediation of
factories that Alliance inspectors deem unsafe, we follow the process established
by the National Tripartite Committee (NTC), which requires that any factories we
recommend for immediate closure be reviewed by a Panel of Experts for a
thorough analysis and recommendation. If and when Alliance inspectors identify
safety concerns that constitute a severe and imminent risk to workers, they
immediately notify the factory owner, Alliance Member(s) sourcing from the
factory, and Alliance staff to ensure worker safety and notify the NTC’s Panel of
Experts.
31. ● Is the Alliance legally binding?
Yes. Membership to the Alliance is a five-year commitment – and the agreement
and its terms that are legally binding on all of its Members. The Alliance Board
of Directors – chaired by an Independent Director – has the authority to seek
binding arbitration against any Member who does not satisfy its obligations
under the agreement, and to publicly expel them for failure to abide by other
commitments set forth in the Members Agreement.
● Has the Alliance closed any factories?
As of 13 May, the Alliance has submitted five factories to the National Tripartite
Review Committee (NTC) Review Panel with the recommendation for immediate
suspension of production and closure for remediation. Our inspections have
revealed overloaded conditions and structural faults in both buildings, raising
immediate concern for the safety of workers in these factories.
32. ● To what extent is the Alliance committed to pay workers’ wages?
We recognize that there is a need for investment at every level of the garment
industry in Bangladesh. The Alliance has committed nearly $50 million to a
worker safety fund, comprised of member dues. Ten percent of this fund is
earmarked for a Worker Compensation Fund, which is administered by BRAC and
will be used to support all workers displaced as a result of the closure and
remediation of factories. This will provide for 50% of workers’ wages—with the
other 50% supplied by factory ownership—for up to two full months.
In addition to this, we’ve also made an additional $100 million available in
affordable access to capital to help factories implement safety upgrades.
● Does the Alliance have a protocol for receiving and resolving
ethics complaints?
The Alliance has an Integrity Program to ensure ethical practices and compliance
with applicable laws in the implementation of our work in Bangladesh and
internationally.
33. WORKER EMPOWERMENT
Objective
Workers are critical in driving and sustaining workplace safety—and in order
for them to play an active role, they must be supported by worker
representative structures and communication channels that are trusted,
credible, and effective. The Alliance is committed to providing factory workers
with the opportunity to voice safety concerns, and to ensuring and supporting
the establishment of (democratically-elected) Safety Committees in accordance
with the Bangladesh Labour Rules.
Strategic Initiatives
The Alliance currently has two initiatives focused on empowering workers to
voice safety concerns so that they can be addressed.
34. ALLIANCE WORKER HELPLINE
The Alliance Worker Helpline—Amader Kotha in Bangla—is a 3rd party
reporting channel that allows workers to anonymously report safety concerns
so that they can be addressed in a timely manner. The Helpline offers an
innovative approach to workplace problem solving that enhances
communication between factories and workers in the Bangladesh RMG sector.
Workers use mobile phones to report safety (and other) concerns to Amader
Kotha, and reach trained Helpline staff 24 hours a day, 7 days a week.
SAFETY COMMITTEES
The Alliance Member’s Agreement includes a commitment to support the
establishment of democratically elected worker representative structures where
occupational safety and health issues can be identified, communicated to
management, and effectively addressed in all factories producing for Alliance
members. The new Bangladesh labor law requires factories to establish
occupational safety and health committees, and released the accompanying
labor regulations in September 2015.
35. SUSTAINABILITY/CAPACITY BUILDING
The Alliance for Bangladesh Worker Safety (Alliance) is committed to a strong,
stable, and democratic Bangladesh – a Bangladesh that grows and flourishes
with a safe and secure ready-made garment (RMG) sector. The Alliance and its
partners will continue to work with the government of Bangladesh, donor
governments, and other stakeholders to address the long-term needs of
Bangladesh to meet its governance and capacity challenges.
TRAINING
Every worker has a role to play in improving factory safety conditions and
protecting her- or himself and others in case of an emergency. The Alliance for
Bangladesh Worker Safety is committed to providing training for workers and
management in 100% of Bangladeshi RMG factories producing for Alliance
members by July 10, 2014. In light of recent tragedies and limited knowledge
and awareness of fire safety practices, our first focus is on fire safety.
36. In addition to the current module on basic fire safety, the Alliance is planning
to develop future training modules that will focus on:
ꭙꭙ Technical adherence to the Alliance Standard for Fire Safety and Building
Integrity;
ꭙꭙ Specialized training for key groups (e.g. guards, contractors, worker safety
committee members);
ꭙꭙ Integration of fire and building safety training and practices into factory
management systems;
ꭙꭙ Establishment and empowerment of democratically-elected worker safety
Committees.
37. FOCUS ON FIRE SAFETY
First training module aims to equip workers and management with fundamental
knowledge and awareness about basic fire prevention, fire protection, and
emergency evacuation. (This training does not focus on fire fighting.) In addition
to fire safety content, the training covers roles and responsibilities specific to
workers and management, and suggested communication channels and worker
representation structures for reporting fire hazards and incidents.
FOLLOW THE LINK BELOW FOR THE VIDEO ON FIRE SAFETY.
https://www.youtube.com/watch?v=PvsaZ0hfQPY
TRAINING IMPLEMENTATION
The Alliance Basic Fire Safety Training is implemented through a Train-the-
Trainer approach: 43 trainers from local worker NGOs and 3rd party
organizations have been selected and approved by the Alliance to train factory
representatives (management and workers), who are responsible for creating
training action plans, delivering the training to their entire workforce and
integrating it into their training and orientation programs.
38. TRAINING IMPLEMENTATION
The Alliance Basic Fire Safety Training is implemented through a Train-the-
Trainer approach: 43 trainers from local worker NGOs and 3rd party
organizations have been selected and approved by the Alliance to train factory
representatives (management and workers), who are responsible for creating
training action plans, delivering the training to their entire workforce and
integrating it into their training and orientation programs.
TRACKING AND ENABLING PROGRESS
The Alliance’s training team and 3rd party trainers partners continue to follow
up with factories after they attend the TtT training to ensure that factories have
the resources they need to make progress on their training action plans. They
do this through:
ꭙꭙ Spot-checks
ꭙꭙ Support Program
39. IMPACT EVALUATION
With its Worker Baseline Survey Alliance has created a baseline against which
regular follow-up surveys will be compared to assess the impact of training
and other programmatic activities. These impact surveys will be conducted
using the same methodology that was used to conduct the baseline
assessment: workers are chosen randomly, and answer a set of illustrated
questions on tablets as a 3rd party facilitator guides them through the survey
question and answer options.