Revolutionizing Bangladesh’s RMG Sector: The Transformative Impact of Accord and Alliance on Workplace Safety

The Impact of Accord and Alliance on Workplace Safety in Bangladesh’s RMG Sector

The formation of Accord and Alliance in 2013 marked a significant turning point for workplace safety in Bangladesh’s Ready-Made Garment (RMG) sector. These initiatives brought about important organizational learning for stakeholders, introducing new compliance assurance models.

New Compliance Assurance Models in the RMG Sector

For the first time, the RMG value chain saw international involvement in ensuring workplace safety. This had several key impacts:

1. Brands and International Trade Unions' Involvement: Global brands, retailers, and trade unions became directly involved in overseeing safety at manufacturing sites.
2. Entrepreneurs' Responsibility for High Safety Standards: Local entrepreneurs had to meet higher safety standards and ensure factory maintenance.
3. Public Agency Monitoring Improvements: Public agencies recognized gaps in their monitoring mechanisms, pushing them toward necessary improvements.
4. Worker Awareness: Workers became more aware of safety-related issues and learned how to respond during emergencies.

Institutionalizing Organizational Learning

The learning experiences in Bangladesh’s RMG industry encouraged global brands and buyers to replicate similar initiatives in other manufacturing countries. The key question remains: how can this organizational learning be institutionalized to develop an effective monitoring and inspection system for the future?

Transition Phase and Remediation Challenges

After five years of operation, the Accord and Alliance entered a transitional phase as their agreements were set to end in 2018. However, both organizations extended their timelines to complete remaining remediation work. While the Accord considered extending beyond this period, the Alliance was not in favor of renewing its contract.

In 2017, the Directorate of Inspection of Factory Establishments (DIFE) under the Ministry of Labour and Employment (MoLE) created the Remediation Coordination Cell (RCC) to oversee the remediation progress. Initially focused on factories under the National Initiatives, RCC is expected to take over responsibilities from Accord and Alliance while maintaining high standards.

Adapting to Organizational Learning: Challenges for the RCC

The question now is how quickly the RCC can adapt to the organizational learning gained from the Accord and Alliance initiatives. Will it be able to deliver the expected services and emerge as an effective monitoring agency in Bangladesh?

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Lessons Learned from the Accord and Alliance Initiatives

Key Features of Private Sector-Led Initiatives

Over the last five years, several important features emerged from the private sector-led initiatives of Accord and Alliance:

• Formation of private entities involving brands, retailers, buyers, and international trade unions to monitor safety standards.
• Harmonization of Bangladesh’s national rules and regulations on workplace safety.
• Establishment of Standard Operating Procedures (SOPs) for monitoring and inspection, including reviewing remediation efforts on a timely basis.

Focus on Fire, Electrical, and Structural Safety

Both Accord and Alliance concentrated on fire, electrical, and structural safety in RMG factories. However, the monitoring of backward linkage activities, such as textiles and accessories, was not included and should be addressed in future initiatives.

Public Disclosure and Accountability

The initiatives also developed Corrective Action Plans (CAPs) for each factory, publicly sharing progress on remediation through their websites. Factories were pressured to complete work in a timely manner, with business ties cut if they failed to comply. Those that successfully completed remediation were given a "letter of recognition."

Resistance and Acceptance from Entrepreneurs

Initially, entrepreneurs resisted the high cost of complying with these international standards. Nevertheless, they eventually accepted the new requirements, recognizing the need for safety improvements in their factories.

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Operational Procedures of Accord and Alliance

Standardized Inspection and Compliance Procedures

Accord and Alliance followed similar procedures for factory inspections, including:

• Inspection checklists and safety compliance measures.
• Setting timelines for remediation and public reporting of non-compliance.
• Establishing a review mechanism, warning levels, and contract cancellations for non-compliance.

Impact of Public Reporting on Factories

Initially, entrepreneurs were apprehensive about the public reporting of non-compliance due to fears of reputational damage. However, public reporting did not negatively affect them. Instead, it brought benefits as employers were held accountable, and transparency increased among stakeholders.

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Progress and Remaining Challenges

Successes in Addressing Safety Issues

According to reports from Accord and Alliance, a substantial number of safety issues were addressed by factories. In Accord-inspected factories, 85.4% of electrical problems, 76.4% of fire-related issues, and 65.4% of structural concerns were resolved. In Alliance-inspected factories, 89% of electrical, 85% of fire, and 78% of structural issues were remediated.

Slower Progress in Structural Safety

Factories were slower in resolving structural issues, as these were more challenging to address. Nevertheless, both initiatives played a crucial role in increasing awareness of safety standards through the establishment of safety committees and worker hotlines.