Peter McAllister, director of the Ethical Trading Initiative, says brands need to help build Bangladesh’s compliance culture, which has been left behind by the garment industry’s rapid expansion

The Rana Plaza factory collapse has been a real wake-up call for western brands. Peter McAllister, director of the Ethical Trading Initiative, says that to properly plot the best way forward, companies, along with NGOs, trade union organisations and the Bangladeshi authorities need to examine root causes of the tragedy. This is no simple matter. As he points out, there are “lots of different layers” to consider.

McAllister says major failings in Bangladesh’s garment industry was highlighted by the fact that even after the Rana Plaza factory was identified as dangerous, its management was prepared to send workers into the building.

“This tells us a couple of key things. First, there is no culture of health and safety, with a corresponding disregard for worker welfare. Second, workers are not confident enough to say to factory bosses that they aren’t comfortable. These are largely unempowered workforces that are scared for their jobs if they speak up.”

The Bangladeshi garment industry “has been built on a reputation of being able to deliver quickly” and this has led to “a disregard for basic safety measures”.

“Don’t forget: this factory was built on unsound ground, had more floors than had been permitted, and appears to have been constructed from sub-standard materials,” McAllister points out.

Planning lapses

And these issues point to a number of wider questions around how civic planning permission is granted and who ensures that construction is carried out properly. As McAllister says: “Who checks the concrete?”

So there is a clear lack of control from the Bangladeshi authorities. But it’s not a case of simply blaming incompetence or a culture of backhanders and corruption (though this is of course a problem). McAllister is clear that while there has been a rapid expansion of the garment industry in Bangladesh, with an accompanying wide disregard for laws, the factory inspectorate authorities have been over-stretched – with a lack of resources meaning they have simply been unable to cope.

“We need to accept that Bangladesh is a very young country. Its textile and garment industry has grown dramatically. In many respects, the rate of expansion of the industry has been faster than the checks and balances you might expect in a more mature economy,” McAllister says.  

Among the beneficiaries of this situation have been the brands. “They have certainly done well from the cheap pricing. But that means now they can’t cut and run from Bangladesh. The brands have a clear responsibility not only to ensure that the factories are safe to work in, but also to work with the authorities so that the country as a whole moves away from the cheap factory model that has allowed the problem to develop at all.”  

This approach would be, McAllister argues, in everyone’s interests. “Bangladesh should continue to have a thriving garment industry, supplying the international brands, but it must be underpinned by basic worker rights, and safe factories.”

Safety: pre-competitive

Of course, once all factories are brought up to standard, health and safety issues are essentially rendered pre-competitive. “In the perfect world, we should be able to get the health and safety basics right and priced into all supply chains. That would be the starting point from which the brands would compete.”

While there will be some pressure from consumers on brands to make these changes, McAllister believes that generally what people really want is not to have to worry about the ethical supply chain of a particular product. “As a consumer, I want to be able to trust the brand to have sorted these things out so I don’t have to think about it.”

Major supply chain disasters that hit the headlines, as at Rana Plaza, are when brands get caught out. Given the size of this tragedy, maybe a corner will be turned. McAllister says: “No brand now will want to be the next one dragged through the media because its factory has collapsed.”

So, now they need to do something about it. “Signing the new Accord on Fire and Building Safety in Bangladesh is a good way to join a group of companies committed to coordinated action for improvement” McAllister says.