Wal-Mart & Gap Team Up for Bangladesh Accord

A group of North American retailers, including Wal-Mart Stores, Inc. and Gap Inc., announced they are creating their own fire and safety action plan in response to the tragedies in Bangladesh.

Divisions have grown in the international apparel manufacturing sector over how to improve fire and safety regulations in Bangladesh when the Rana Plaza building collapsed in April, killing 1,127 workers.

The new initiative is being led by Wal-Mart and Gap, reported WWD. There has been mounting pressing on these major retailers when they chose to not sign a binding, international Bangladesh fire and safety accord that 41 other retailers and brands have signed.

The new alliance includes retailers and brands that are members of the American Apparel & Footwear Association, National Retail Federation, Retail Industry Leaders Association and Retail Council of Canada. The alliance is working with the Bipartisan Policy Center to begin discussions that will lead to a new program. Wal-Mart and Gap are both members of RILA and the NRF.

"At Wal-Mart, we've taken a number of actions that meet or exceed other factory safety proposals," a company spokesman said, referring to the plan the retailer revealed earlier this month. "These include strengthening safety standards for factories, a zero-tolerance policy for unauthorized subcontracting, increased transparency, and requiring that in-depth safety audits and remediations be made to every factory directly producing product for us in Bangladesh, reflected in the cost of the goods that we buy. We also believe there is a need to partner with other stakeholders to improve the standards for workers across the industry. Taking part in the development of this broader safety plan with other brands, retailers and the Bipartisan Policy Center, building upon our previously announced commitments, is part of that work."

Bill Chandler, vice president of corporate affairs for Gap, said, "We see the American alliance as a powerful path forward, and we have considerable trust in Sens. Mitchell and Snowe in the way they will facilitate the discussion. We are hopeful under their leadership and coordination by the BPC that these discussions will result in a plan for long-lasting change for the garment industry in Bangladesh."