$5 million for employees if Bangladesh sites close for safety work

14/03/2014
The Alliance for Bangladesh Worker Safety has said fire-safety testing at all factories in Bangladesh from which its members source product will be complete by the end of July. The group, comprising North American apparel brands and retailers, is one of two that formed following the Rana Plaza disaster in April 2013.

One of the directors of the Alliance, VF Corporation vice-president for global procurement, Tom Nelson, has said member companies currently source goods from around 700 factories in Bangladesh, and that these manufacturing facilities have a combined workforce of around 1.3 million people.

In comments to local media in North Carolina, where VF Corporation is based, Mr Nelson confirmed that the Alliance for Bangladesh Worker Safety will demand that any factories found wanting in terms of worker safety will be asked to cease production until improvements are in place.

But he said the alliance, which aims to raise a total of $50 million to fund its work in Bangladesh over five years, will set aside $5 million to make sure workers affected by any temporary closures can continue to provide for their families until production starts up again.