Moreover it would establish a shared financing mechanism for safety problems, designed to lower the pressure on factory owners to hide problems fearing that their partners might walk away if they knew."establish an independent inspectorate to oversee all factories in Bangladesh, with powers to shut down unsafe facilities as part of a legally binding contract signed by suppliers, customers and unions."
The agreement was first drafted in the aftermath of the 2012 fire in the Tazreen Fashions factory. At the time, Wal-Mart, The Gap and H&M (three of the largest garment retailers in the world) refused to sign. Then the pressure reached a breaking point after the deadliest garment-accident in history at Rana Plaza. After petitions and other consumer pressure, European holdouts like H&M and Primark signed on. The Gap, which says it has ties with 78 factories, abandoned negotiations after failing to water down the legally binding nature of the agreement.
Many believe The Gap is the linchpin to the American retail industry, given its sheer size and greater sensitivity than companies like Wal-Mart to negative branding. Currently only two American and one Canadian company have signed the agreement as it is dominated by European companies. The Gap and Wal-Mart are now working on their own agreement, The Safer Factories Initiative, which they are touting as more appropriate for North American retailers. But it is likely to be non-binding and reversible.
The stalling and dissembling will not do. American consumers should put the heat on The Gap and its brands, which include Banana Republic and Old Navy, to do more than just talk about social responsibility. Worker safety should be pre-competitive and the industry is in need of greater transparency and accountability. Women like Reshma, who was pulled from the wreckage after 17 days, should not have to accept mortal risk in exchange for opportunity.