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PROSPECTS FOR DEMOCRATIC RECONCILIATION 

AND WORKERS RIGHTS IN BANGLADESH 

HEARING 

BEFORE THE

COMMITTEE ON FOREIGN RELATIONS 

UNITED STATES SENATE 

ONE HUNDRED THIRTEENTH CONGRESS 

SECOND SESSION 

FEBURARY 11, 2014 

Printed for the use of the Committee on Foreign Relations 

( 

Available via the World Wide Web: http://www.gpo.gov/fdsys/ 

COMMITTEE ON FOREIGN RELATIONS

ROBERT MENENDEZ, New Jersey, Chairman

BARBARA BOXER, California 

BENJAMIN L. CARDIN, Maryland 

JEANNE SHAHEEN, New Hampshire 

CHRISTOPHER A. COONS, Delaware 

RICHARD J. DURBIN, Illinois 

TOM UDALL, New Mexico 

CHRISTOPHER MURPHY, Connecticut 

TIM KAINE, Virginia 

EDWARD J. MARKEY, Massachusetts 

BOB CORKER, Tennessee 

JAMES E. RISCH, Idaho 

MARCO RUBIO, Florida 

RON JOHNSON, Wisconsin 

JEFF FLAKE, Arizona 

JOHN McCAIN, Arizona 

JOHN BARRASSO, Wyoming 

RAND PAUL, Kentucky 

DANIEL E. O’BRIEN, Staff Director

LESTER E. MUNSON III, Republican Staff Director

(II)

C O N T E N T S 

Page 

Akter, Kalpona, executive director, Bangladesh Center for Worker Solidarity, 

Dhaka, Bangladesh .............................................................................................. 46 

Prepared statement .......................................................................................... 48 

Biel, Eric, Acting Associate Deputy Under Secretary for International Affairs, 

U.S. Department of Labor, Washington, DC ..................................................... 7 

Prepared statement .......................................................................................... 9 

Biswal, Hon. Nisha Desai, Assistant Secretary of State for South and Central 

Asian Affairs, U.S. Department of State, Washington, DC .............................. 3 

Prepared statement .......................................................................................... 4 

Response of Assistant Secretary Nisha Biswal to Question Submitted 

by Senator Robert Menendez ....................................................................... 60 

Responses of Assistant Secretary Nisha Biswal to Questions Submitted 

by Senator Edward J. Markey ..................................................................... 61 

Karesh, Lewis, Assistant U.S. Trade Representative for Labor, Office of the 

U.S. Trade Representative, Washington, DC .................................................... 11 

Prepared statement .......................................................................................... 13 

Menendez, Hon. Robert, U.S. Senator from New Jersey ...................................... 1 

Nova, Scott, executive director, Worker Rights Consortium, witness signatory 

to the Accord on Fire and Building Safety in Bangladesh, Washington, 

DC .......................................................................................................................... 37

Prepared statement .......................................................................................... 39 

Tauscher, Hon. Ellen, chairman of the board of directors, Alliance for Bangladesh Worker Safety, Washington, DC ........................................................... 31 

Prepared statement .......................................................................................... 33 

Response of Hon. Ellen Tauscher to Question Submitted by Senator Edward J. Markey ............................................................................................. 62 

Responses of Hon. Ellen Tauscher to Questions Submitted by Senator 

James E. Risch .............................................................................................. 62 

ADDITIONAL MATERIAL FOR THE RECORD

The following individuals and organizations submitted material for this hearing: 

Reba Sikder, former garment worker at Ether Tex factory at Rana Plaza, 

Dhaka, Bangladesh .............................................................................................. 63 

The Bangladesh Garment Manufacturers & Exporters Association (BGMEA) .. 64 

The AFL–CIO ........................................................................................................... 66 

The International Labor Rights Forum ................................................................. 68 

The Center for Business and Human Rights, New York University Stern 

School of Business ................................................................................................ 73 

The Government of Bangladesh ............................................................................. 81 

(III)

(1) 

PROSPECTS FOR DEMOCRATIC 

RECONCILIATION AND WORKERS’ 

RIGHTS IN BANGLADESH 

TUESDAY, FEBRUARY 11, 2014 

U.S. SENATE, 

COMMITTEE ON FOREIGN RELATIONS, 

Washington, DC. 

The committee met, pursuant to notice, at 10:02 a.m., in room 

SD–419, Dirksen Senate Office Building, Hon. Robert Menendez 

(chairman of the committee) presiding. 

Present: Senators Menendez, Cardin, Durbin, and Risch. 

OPENING STATEMENT OF HON. ROBERT MENENDEZ, 

U.S. SENATOR FROM NEW JERSEY 

The CHAIRMAN. Good morning. This hearing of the Senate Foreign Relations Committee will come to order. I would like to welcome our panelists and guests. 

We meet, this morning, to discuss United States policy in Bangladesh, following the controversial January election that ensured 

a political stalemate. We also meet for a status update on the 

rights of Bangladesh’s garment workers, following the fire at 

Tazreen Fashions in November 2012 and the collapse of Rana 

Plaza in April 2013, which, together, killed more than 1,200 workers. 

This committee met last June to highlight the challenges faced 

by workers in Bangladesh, and by meeting here again today, I hope 

that all those involved—the retailers, the factory owners, the 

Bangladeshi Government and workers—understand that this committee remains sharply focused on this issue and will continue to 

do so until we see real and measurable progress. 

We have joining us today the first survivor of the Rana Plaza 

tragedy to visit the United States. She is 19-year-old Reba Sikdar, 

who was trapped for 2 days in a tiny space with 30 others. Only 

6 of the 30 survived, and we are pleased that she is here today for 

this hearing. The tragic details of her story, which, without objection, I would like to enter into the record, are exactly why we will 

continue to pursue workers’ rights with the Bangladeshi Government. 

In my view, if the workers of Tazreen Fashions and Rana Plaza 

had been able to organize and represent their interests, they would 

still be alive today. Simply put, workers are the best guarantors of 

their own safety, when given the right and the ability to organize. 

2 

In June of last year, this committee met to discuss efforts to improve labor conditions in Bangladesh. In November, to mark the 1- 

year anniversary of the Tazreen Fashions fire, the committee produced a report recommending that the U.S. Government expand 

programs in Bangladesh that improve workers’ ability to organize 

and engage in collective bargaining; that United States brands and 

retailers would ensure their suppliers in Bangladesh comply with 

laws allowing workers to organize unions and educate workers in 

their factories in Bangladesh on their rights of association, organization, and collective bargaining; and that the Government of Bangladesh should crack down on factory owners who engage in antiunion activity, and reform all labor laws to meet international 

standards. 

And parenthetically, I would add that, while we are focused on 

Bangladesh, particularly because of the history and the challenges, 

I do not want those who think that going to another country is 

going to solve their problems—the thinking that going, for example, 

to Vietnam is going to allow them to avoid the standards that we 

are trying to raise in Bangladesh. Our goal is to create a universal 

set of standards for workers’ rights and safety and health beyond 

Bangladesh. And so, those who think that leaving Bangladesh and 

going to someplace else is going to have them avoid all of that are 

sadly mistaken. We are going to follow this issue wherever it takes 

us. 

So, I look forward to hearing from our witnesses on whether 

there has been progress on any of these recommendations. 

We are also well aware that any progress we make on labor 

issues is taking place in a very tenuous political environment. Bangladesh’s main opposition group, led by the Bangladesh Nationalist 

Party, boycotted January’s election, and, as a result, the Parliament does not include one of Bangladesh’s largest political parties. 

In December, this committee passed a resolution that emphasized the critical need for political dialogue in Bangladesh. Led by 

Senator Durbin, the resolution sent the right message at the right 

time. Unfortunately, the leaders of the two main parties have still 

not agreed on a path forward towards democratic reconciliation. 

Last month, I sent letters to Bangladesh’s political leaders, telling them that the political deadlock will further weaken the confidence of international investors, and strongly urged that they 

begin negotiations on new elections that are free, fair, peaceful, 

and inclusive. The people of Bangladesh deserve no less. 

I look forward to hearing what political progress, if any, is being 

made. 

I know that Senator Corker was called back to Tennessee, and 

Senator Risch will be sitting in as the ranking member for today’s 

hearing when he gets here. I know he is delayed in business, but 

when he gets here, we will certainly recognize him for any comments he may have. 

With that, let me begin to introduce our first panel. Our first 

panel is Nisha Desai Biswal, the Assistant Secretary of State for 

South and Central Asian Affairs; Eric Biel, the Acting Associate 

Deputy Under Secretary for International Affairs for the Bureau of 

International Affairs at the Department of Labor; and Mr. Lewis 

3 

Karesh, the Assistant U.S. Trade Representative for the Labor Office of the U.S. Trade Representative. 

Thank you all for being here. Your full statements will be included in the record, without objection. I would ask you to try to 

synthesize or summarize those statements at about 5 minutes so 

we can get into Q&A. 

And, with that, Madam Secretary, you are recognized. 

STATEMENT OF HON. NISHA DESAI BISWAL, ASSISTANT SECRETARY OF STATE FOR SOUTH AND CENTRAL ASIAN AFFAIRS, U.S. DEPARTMENT OF STATE, WASHINGTON, DC 

Ms. BISWAL. Mr. Chairman, thank you very much for convening 

this important hearing today. And I will make just brief comments 

in the opening so that we can save more time for the questions. 

I want to again reiterate the importance of this hearing and the 

important role that this committee has played in continuing to 

shine the light on the political, economic, and labor situation in 

Bangladesh, and particularly your leadership and Ranking Member 

Corker’s leadership with the committee’s November 2013 report. 

And the hearing that you chaired last summer has helped to focus 

national and global attention on the importance of worker safety 

worldwide, and particularly on Bangladesh. 

Mr. Chairman, Bangladesh is clearly a country of strategic importance to the United States. It is the seventh-largest country by 

population and the third-largest Muslim majority nation. It is a 

moderate, secular democracy, one that we value and that we support. 

With an annual growth rate of about 6 percent per year, Bangladesh is an economic and development success story. And important help from USAID and other development partners has helped 

Bangladesh to be on target to reach many of its millennium development goals. The United States and Bangladesh cooperate closely 

on security issues, including counterterrorism, combating trafficking in persons, narcotics, arms, as well as ensuring maritime 

security and mitigating natural disasters. 

Yet, in spite of these gains, Bangladesh faces a worrisome political situation, as you noted. On January 5, the government held a 

deeply flawed election in which one of two major political parties 

did not participate and the election did not credibly express the 

will of the Bangladeshi people. 

For months leading up to and following the elections, the United 

States and many others have voiced our strong concerns. During 

my first trip to the region as Assistant Secretary, I urged Prime 

Minister Sheikh Hasina and the opposition leader, Begam Khaleda 

Zia, to find a way forward to hold inclusive elections. We also supported the efforts of the United Nations to facilitate dialogue between the political parties. Immediately after the election, we 

called for a resumption of dialogue to agree upon new elections as 

soon as possible. 

Mr. Chairman, I want to state very clearly that our interest in 

holding new elections is to ensure a free and fair and inclusive 

process. The United States has not taken sides or played favorites 

in who should lead the country. That decision should be left to the 

4 

Bangladeshi people, whose voices were not fairly heard on January 

5. 

We have consistently delivered one other message, as well, and 

that is that violence is unacceptable and has no part in a democratic process. We are disturbed by opposition parties’ use of violence and violence against minority communities. But, the stifling 

of dissent also undermines Bangladesh’s vibrant civil society and 

long-term stability. We have, thus, called upon the country’s leadership to provide space that enables peaceful expression of political 

views. And we are concerned by recent reports of extrajudicial 

killings and disappearances allegedly committed by security forces. 

But, we remain steadfast in working with the Bangladeshi people and the Bangladesh Government in strengthening their respect 

for labor rights, for improving workplace safety in Bangladesh. Indeed, that is one of my top priorities with respect to engaging in 

Bangladesh, and my November trip included extensive conversations and meetings with labor unions, with industry representatives, and with the government, and with our international partners. 

We have been working closely with USAID, the Department of 

Labor, and USTR to ensure that we have the right strategy and 

adequate resources to improve worker rights and safety in Bangladesh. Our assistance promotes internationally recognized worker 

rights and strengthens the capacity of independent worker organizations to recruit members and form legally registered unions, engage in collective bargaining and advocacy for members. And there 

has been some incremental progress. Nearly 100 unions, 95 of 

which we see as credible, legitimate unions, have been registered 

in 2013. And the number of inspections has increased of factories 

in Bangladesh. 

But, clearly there is a long way to go, Mr. Chairman. Of the 3 

million workers in Bangladesh, we estimate that less than 40,000 

currently are represented by unions. And of the—sorry—of the 3 

million workers—and of the 3,000 export-oriented factories, just a 

fraction, right now, have been inspected. So, there is a long ways 

to go, Mr. Chairman, and lots of work to be done ahead. 

Thank you. 

[The prepared statement of Ms. Biswal follows:] 

PREPARED STATEMENT OF HON. NISHA D. BISWAL

Chairman Menendez, Ranking Member Corker, and members of the committee, 

thank you for holding this important hearing today to discuss the current political 

and economic situation in Bangladesh. The country is at a critical juncture, so today’s hearing is particularly timely and sends a powerful message that the U.S. 

Congress is concerned about where Bangladesh is headed. Before I begin, Mr. Chairman, let me particularly thank you and Ranking Member Corker for this committee’s ongoing leadership on Bangladesh. The Senate Foreign Relations Committee’s 

November 2013 report, which was released on the 1-year anniversary of the tragic 

Tazreen Fashions fire, and the hearing you chaired last summer, helped focus 

national and global attention on the importance of worker safety worldwide. So your 

leadership has had a tremendous positive impact. 

Mr. Chairman, Bangladesh is a country of strategic importance to the United 

States. As the seventh-largest country by population and third-largest Muslimmajority nation, its moderate, secular, democracy is one that we value and support. 

With nearly 8,000 forces in U.N. peacekeeping operations, Bangladesh is one of the 

largest contributors to such missions, including the one in South Sudan, where Bangladesh is contributing aircraft and police units. 

5 

With an annual growth rate of about 6 percent each year, Bangladesh is an economic success story and an increasingly important trading partner and destination 

for U.S. investment. The United States is the biggest investor in Bangladesh and 

the largest single country destination for Bangladeshi apparel, the country’s largest 

export. Through November 2013, U.S. exports to Bangladesh were up over 44 percent from the same period last year, to $665 million, while our total bilateral trade 

increased by 12 percent to $5.7 billion. 

Bangladesh is also a development success story. It is a focus country for all three 

of the President’s key development efforts: Global Health, Global Climate Change, 

and Feed the Future. With important help from USAID and other development 

partners, Bangladesh is on target to reach many of its Millennium Development 

Goals. Since 1990, USAID has helped Bangladesh reduce maternal and child mortality by more than 60 percent; in that same time, female literacy has doubled. In 

addition, for the first time in decades, Bangladesh now produces enough of its daily 

staple, rice, to feed the entire population, an impressive achievement in one of the 

world’s most densely populated countries. 

The United States and Bangladesh also cooperate closely on security issues, 

including counterterrorism; combating trafficking in persons, drugs, and arms; maritime security; and the mitigation of natural disasters. We discuss these issues in 

our annual Security Dialogue as well as our annual military-to-military dialogue. 

In addition, last year we held our second annual Partnership Dialogue, which provides an excellent platform to deepen our bilateral ties. 

In spite of these gains in economic growth, development, and regional stability, 

Bangladesh faces a worrisome political situation. On January 5, the government 

held a deeply flawed election in which one of the two major political parties did not 

participate. As a result, over half of the 300 members of parliament were elected 

unopposed, and most of the rest faced only token opposition. The election did not 

credibly express the will of the Bangladeshi people. This could have serious ramifications for stability in Bangladesh and the region. 

For months leading up to and following the elections, the United States and many 

others have voiced our strong concerns, through public statements and private conversations with government officials and opposition leaders. In November, during 

my first trip to the region as Assistant Secretary, I urged Prime Minister Sheikh 

Hasina and opposition leader Khaleda Zia to find a credible way forward toward 

participatory elections. We also supported the efforts of the United Nations to facilitate dialogue between the parties, which regrettably did not succeed. Immediately 

after the election, we issued a strong statement noting that the election was not a 

credible reflection of the will of the people and called for immediate dialogue to 

agree on new elections as soon as possible. 

Mr. Chairman, I want to state very clearly that our interest in holding new elections is to ensure a free and fair process. The United States has not taken sides 

or played favorites in who should lead the country. That decision should be left to 

the Bangladeshi people, whose voices were not fairly heard on January 5. 

Bangladesh still has an opportunity to demonstrate its commitment to democracy. 

We welcome the efforts by many in the international community, including the 

United Nations, who have sent the same message, and who are prepared to help 

the parties engage in constructive dialogue so they can find a way forward. 

We have consistently delivered one other message as well: violence is unacceptable and not part of the democratic process. We are disturbed by political parties’ 

use of violence, inflammatory rhetoric, and intimidation, and by violence against 

minority communities. In the days leading up to the election and on election day 

itself, over 100 people were killed in election-related violence and scores more injured. We are also concerned by recent reports of continuing extrajudicial killings 

and disappearances allegedly committed by security forces. These abuses must stop 

immediately. We condemn violence from all quarters in the strongest terms. These 

tactics have no place in a democracy. 

We have also worked to ensure the safety of our staff. Our Embassy in Dhaka 

has worked closely with law-enforcement and security counterparts to ensure protection of personnel and facilities. Embassy security staff closely monitor events as 

they unfold and limit staff movements when necessary. They maintain active and 

frequent contact with American citizens throughout the country, warning of potential threats as they occur. We have repeatedly and forcefully conveyed to all political 

leaders the importance of the safety of our citizens and staff. I am glad to say that 

the government and other leaders have been responsive to our security needs and 

have taken action when warranted. I want to emphasize as well that the violence 

to date has not targeted Americans or American interests. We are nevertheless continuing to monitor the situation very closely. 

6 

The political violence poses the greatest threat to the Bangladeshi people themselves. It not only puts ordinary people at daily risk of harm, but it also paralyzes 

the economy, threatening to undo the country’s achievements in development. Bangladesh’s turmoil has created uncertainty with foreign investors and impacted economic growth. While estimates vary, one source estimates the economic cost of the 

general strikes called by the opposition at approximately $200 million per day. Stifling of dissent also undermines Bangladesh’s vibrant civil society and long-term 

stability. We thus call upon the country’s leadership to provide space that enables 

peaceful expression of political views. At the same time, we call upon the opposition 

to use such space responsibly. 

We will continue to engage with the Bangladeshi Government and opposition to 

encourage policies and actions that protect and advance democratic values, including respect for human rights, space for civil society to flourish, rule of law and an 

independent judiciary, mutual respect for Bangladeshis of all religions and of all 

ethnicities, and space for the free and peaceful discussion of political differences 

unmarred by violence. 

Mr. Chairman, I also want to assure members of the committee we remain steadfast in our commitment to strengthening respect for labor rights and improving 

workplace safety in Bangladesh. Indeed, this is one of my top priorities. Tragedies 

like the Tazreen fire or Rana Plaza building collapse should never happen again. 

After these tragedies, President Obama made the decision in June 2013 to suspend Generalized System of Preferences (GSP) benefits to Bangladesh. Following 

this suspension, we presented an action plan to improve labor, fire, and building 

structural soundness standards; remove obstacles to workers’ freedom of association 

and collective bargaining; and reform labor laws, including in the Export Processing 

Zones, to address the underlying concerns that led to suspension of GSP. In addition, we worked with Bangladesh, the European Union, and the International Labor 

Organization (ILO) to develop a ‘‘Sustainability Compact,’’ which commits Bangladesh to improving worker rights and safety along the lines laid out in the GSP 

Action Plan. 

We are also working with American, European, and other apparel brands and 

retailers, especially those with significant operations in Bangladesh, to make sure 

they are aware of our significant labor concerns and the strict conditions in the 

action plan. Our teams in Dhaka and Washington meet regularly with American 

companies to coordinate efforts to advance workplace safety standards and worker 

rights. 

Across the U.S. Government, we are working closely with USAID, the Department 

of Labor, and USTR to make sure we have the right strategy and resources to 

improve workers’ rights and safety in Bangladesh. Our assistance promotes internationally recognized workers’ rights; strengthens the capacity of independent 

worker organizations to recruit members, form legally registered unions, and engage 

in collective bargaining; assists women to be active organizers and leaders of the 

workers’ organizations; and teaches worker representatives and leaders how to advocate for their members. In particular, we have expanded our support (over $4 million since 2011) for the Solidarity Center to work with Bangladeshi labor to 

strengthen workers’ ability to organize and address workplace safety issues. 

There has been some incremental progress in the ready-made garment sector in 

the past year. Nearly 100 unions were registered in 2013, compared to one in each 

of the 2 years preceding. The courts have dropped all but one criminal case against 

labor activists, permitted the registration of labor rights NGOs, and started the trial 

for a suspect in the 2012 murder of labor activist Aminul Islam in abstentia. The 

government has completed over 200 structural soundness and 120 fire safety inspections, filled 42 vacant inspector positions, and is recruiting new inspectors. 

However, there is still much to be done and Bangladesh still has not fulfilled the 

many commitments it made to improve working conditions. Plans to hire more 

inspectors and carry out more labor, fire, and building inspections are lagging. The 

majority of inspections and remediation efforts are occurring under the direction of 

private sector initiatives. Gaps remain between national law and international 

standards, no action has been taken to bring Export Processing Zones into conformity with international standards, and concerns remain over harassment of labor 

activists and the investigation of the murder of Aminul Islam. 

Mr. Chairman, we will continue to push for urgent reforms to improve worker 

rights and worker safety in Bangladesh. We very much appreciated the committee’s 

excellent report and are closely following many of its recommendations. Thank you 

for your leadership on these important issues. 

In closing, I want to publicly thank Ambassador Mozena and his team for their 

relentless efforts to promote democracy and improve labor conditions in Bangladesh. 

We hope that Bangladesh’s political and economic leaders will take the right steps 

7 

to support democratic values, foreign direct investment, and a growing economy. 

Bangladesh has come too far and has too much to lose. 

The CHAIRMAN. Thank you. 

Mr. Biel. 

STATEMENT OF ERIC BIEL, ACTING ASSOCIATE DEPUTY 

UNDER SECRETARY FOR INTERNATIONAL AFFAIRS, U.S. DEPARTMENT OF LABOR, WASHINGTON, DC 

Mr. BIEL. Good morning, Mr. Chairman. Thanks very much for 

the invitation to the Department of Labor to participate in this important hearing concerning workers’ rights in Bangladesh. We appreciate the interest of this committee and the staff, and your continued oversight concerning the issues we are discussing this morning. 

I am pleased to join Assistant Secretary of State Biswal and Assistant U.S. Trade Representative Karesh, and, again, look forward 

to discussing just a few of the elements of worker rights in my remarks and then having an opportunity to answer any questions 

you may have. 

As Assistant USTR Karesh will also discuss, on June 27, 2013, 

just 3 weeks after this committee’s earlier hearing on Bangladesh, 

President Obama suspended Bangladesh’s trade benefits under the 

Generalized System of Preferences, or GSP, based on Bangladesh’s 

failure to meet the GSP statute’s labor-related eligibility criteria. 

That decision was accompanied by transmittal of an action plan 

that laid out both the shortcomings on worker rights that had led 

to that suspension and on worker safety—workplace safety, but, in 

addition, the steps needed to provide a basis for, hopefully, at some 

point reinstating benefits. 

Last month, the U.S. Government, through an interagency process led by the Office of the U.S. Trade Representative, informed the 

Government of Bangladesh that it had not yet made sufficient 

progress under the action plan to warrant reinstatement of those 

trade benefits. 

Now, to be sure, there has been some progress in some areas of 

the action plan, including, as Assistant Secretary Biswal noted, the 

registration of new trade unions, most of which, based on an assessment of the Solidarity Center and others, do appear to be credible and independent; the dropping of charges against leaders of 

the Bangladesh Center for Worker Solidarity, Kalpona Akter, one 

of those leaders who will be testifying on the second panel; support 

for programs in the shrimp sector, including on involving the Solidarity Center, the other involving the International Labor Organization; and a commitment to increase resources on fire and building safety. But, clearly, as Assistant Secretary Biswal noted, much 

more is needed on some of the most important elements of the action plan. 

The progress, to date, in hiring and training inspectors has been 

slow. Labor law amendments enacted last July, roughly a month 

after this committee’s previous hearing, do not address some of the 

most fundamental concerns, including severe restrictions on the 

right to strike. Action on the 2012 murder of labor organizer 

Aminul Islam remains inadequate, to date. And export processing 

zones, or EPZs, are still governed by an entirely separate labor law 

8 

and labor law regime. Unions are still prohibited in the EPZs, and 

the EPZ governing authority retains nearly complete discretion 

with respect to critical labor management relations. 

In addition, updated reports that we have received just in the 

last few days, and I believe the committee staff has also seen, of 

union organizers being harassed and factories registering some employer-organized unions, do remind us that higher union registration numbers alone are not sufficient to show progress on freedom 

of association and ultimately to address the core issue, that you 

noted in your opening statement, Mr. Chairman, of whether or not 

workers are being adequately empowered in Bangladesh. 

Let me quickly, in the remaining time, just highlight a few other 

areas of our engagement over the last few months. Department of Labor has awarded $1.5 million to the Inter- national Labor Organization and $1 million to the Solidarity Center. We did so at the end of September, and the program is moving 

forward—the programs are moving forward. 

The ILO Project is focused in improving government enforcement 

of fire and building safety standards, while the Solidarity Center 

Project is designed to increase worker organizations’ ability to monitor for violations and to seek abatement of hazards. 

We are in regular contact with the ILO, the International Labor 

Organization, as it works with the Government of Bangladesh and 

with international donors and coordinates global support on fire 

and building safety in the ready-made garment sector and as it and 

its partner, the International Finance Corporation, move forward 

with the new Better Work Program that is tied to continued 

progress on labor administration and industrial relations issues. 

And we can talk more about that if you or other members are interested, in the question-and-answer period. 

And, while our focus has been, and must be, on the Government 

of Bangladesh, we also do see a critical role for the private sector. 

We welcome the approach and the historic significance of the Accord on Fire and Building Safety in Bangladesh, which has brought 

businesses and global unions together. And we also welcome the recent 6-month report of the Alliance for Bangladesh Worker Safety. 

We know you will be hearing more on both of those initiatives from 

representatives on the second panel, as well as from Kalpona 

Akter. 

Finally, we, at the Department of Labor, want to thank you, Mr. 

Chairman, for your leadership in advocating for a full-time labor 

attache ́ in our Embassy in Dhaka, including through your communications with the Secretary of State. We are working actively with 

Ambassador Dan Mozena and his excellent staff in Dhaka to make 

good on that as quickly as possible. 

Thank you again for convening this hearing. We look forward to 

working closely with the committee to strengthen worker rights 

and workplace safety in Bangladesh as the best path forward, not 

just for the workers of Bangladesh, but also for the businesses who 

are dependent on the United States export market. 

And, after Mr. Karesh’s testimony, I look forward to being part 

of the questions you may have. 

Thank you very much. 

[The prepared statement of Mr. Biel follows:] 

9 

PREPARED STATEMENT OF ERIC R. BIEL

Good morning. Chairman Menendez, Ranking Member Corker, and members of 

the committee, thank you for inviting the Department of Labor to participate in this 

important hearing concerning labor issues in Bangladesh. 

I am honored to join my colleagues from the Department of State, Assistant Secretary Nisha Biswal, and from the Office of the U.S. Trade Representative (USTR), 

Assistant USTR for Labor Lewis Karesh, in appearing before you this morning. I 

know that Assistant Secretary Biswal will also be prepared to address broader 

issues in the U.S.-Bangladesh bilateral relationship, including in the wake of last 

month’s elections. The focus of both this written testimony and my remarks at the 

hearing will be on the critical workers’ rights and workplace safety issues in 

Bangladesh. 

My colleagues and I look forward to this opportunity to update you on our work 

on Bangladesh, building on the regular meetings we have had with your staffs over 

the past several months. Since I last appeared before this committee 8 months ago, 

the Department of Labor, through our Bureau of International Labor Affairs (ILAB), 

along with the Department of State and USTR, has been actively engaged with the 

Government of Bangladesh, workers’ and other civil society organizations in Bangladesh, U.S. buyers and retailers, and other stakeholders in the United States and 

Bangladesh in efforts to address legal and policy issues concerning workers’ rights 

and workplace safety. Our efforts have focused on the ready-made garment sector, 

as well as the shrimp processing sector, and broader concerns relating to Bangladesh’s labor law regime, including the separate laws and governance structure 

for Bangladesh’s Export Processing Zones (EPZs). 

Much of this work has come under the framework of the ‘‘action plan’’ developed 

in the context of the Generalized System of Preferences (GSP) trade preference program. As you are aware, on June 27, 2013, 3 weeks after this committee’s previous 

hearing, President Obama suspended Bangladesh’s trade benefits under GSP based 

on Bangladesh’s failure to meet the GSP statute’s labor-related eligibility criteria. 

That decision, which followed a multiyear review that received increased attention 

in the wake of the Tazreen fire in November 2012 and Rana Plaza building collapse 

in April 2013, was accompanied by the transmittal to the Government of Bangladesh of an laying out both the shortcomings on workers’ rights and workplace 

safety that formed the foundation for withdrawal of GSP benefits and the specific 

steps needed to provide a basis for reinstatement of those benefits. 

Shortly after that, the U.S. Government associated itself with a just-concluded 

‘‘Sustainability Compact’’ negotiated among the European Union, Government of 

Bangladesh, and International Labor Organization (ILO) that closely tracks the key 

elements of the action plan and establishes a broader consultative framework for 

addressing the fundamental labor problems highlighted in that Plan. In recent 

months, there has been a regular process for consultations between senior diplomats 

based in Dhaka and officials from the Government of Bangladesh in which our 

Ambassador, Dan Mozena, has played a leading part. 

The action plan includes elements centered on improving labor, fire, and building 

safety inspections; increasing fines for noncompliance with labor, fire, and building 

safety standards; expeditiously registering unions and protecting unions from discrimination and reprisal; resolving longstanding concerns about harassment and 

legal actions against labor activists and nongovernmental labor organizations; 

reforming labor laws to address key concerns articulated for many years by ILO 

expert bodies, including reforming the EPZ law to effectively protect EPZ workers’ 

right to organize and bargain collectively; and strengthening freedom of association 

in the shrimp processing sector. 

Since the action plan was issued, ILAB has been a key participant in a regular 

interagency process, headed by USTR, for monitoring and evaluating the status of 

Bangladesh’s efforts to address the specific elements of the action plan. That process 

has included extensive engagement with the Government of Bangladesh both here 

and in Dhaka, including a lengthy meeting with senior Bangladeshi officials in November in Washington following the signing of the Trade and Investment 

Cooperation Forum Agreement (TICFA). 

The process has also included careful review of written submissions from the Government of Bangladesh as well as the AFL–CIO, which submitted the petition that 

initiated the GSP review. ILAB and others involved in this review have also benefited from the report issued by the majority staff of this committee on November 

22 concerning workers’ rights and workplace safety in Bangladesh’s ready-made 

garment sector, including the recommendations with respect to implementation of 

the GSP Action Plan. 

10 

Late last month, the U.S. Government conveyed to the Government of Bangladesh 

its conclusion that Bangladesh had not made sufficient progress to date under the 

action plan to warrant reinstatement of GSP benefits. There have been indications 

of progress in some areas of the action plan, including the registration of new trade 

unions, the dropping of dubious criminal charges against leaders of the Bangladesh 

Center for Workers Solidarity (BCWS), the registration of the BCWS, and the Government of Bangladesh’s commitment to fund programs through the ILO and the 

American Center for International Labor Solidarity (Solidarity Center) in the 

shrimp processing sector. There have also been steps taken with the ILO and other 

stakeholders to develop a plan for many more, and better trained, labor and fire and 

building safety inspectors. 

However, as has been conveyed with specificity to the Government of Bangladesh, 

a great deal remains to be done to implement some of the most important elements 

of the action plan. The plans for a larger, well-trained force of labor and fire and 

building safety inspectors are still in their initial stages, and the number of inspectors hired to date is relatively small. Labor law amendments enacted in July 2013 

do not address the concerns raised in the action plan, including severe restrictions 

on collective bargaining, in particular at the industry and sector levels, nor inadequate protections against employer interference in union activity. There also has 

not been enough progress in achieving justice for the 2012 murder of labor organizer, Aminul Islam. 

In addition, EPZs remain governed by a separate labor law providing inferior protections for workers in those zones about which both we and the ILO have long 

expressed deep concerns. Today, factories in EPZs remain outside the reach of labor 

and safety inspectors who cover the rest of the country; unions are still barred; and 

the EPZ governing authority retains nearly complete discretion with respect to 

labor-management relations. 

Concerns also persist with respect to other elements of the action plan focused on 

improving procedures for responding to complaints alleging violations of fire and 

building safety standards and unfair labor practices. Recent reports of union organizers being harassed and factories registering employer-organized unions are 

reminders that increased union registration numbers alone are not an adequate 

measurement of progress on freedom of association. 

While fulfilling the GSP Action Plan conditions will require political will and a 

seriousness of purpose by the Government of Bangladesh, the action plan lays out 

a clear path for the Government of Bangladesh to follow that is practical and relevant to address the most serious and longstanding labor concerns. 

Furthermore, we see this as every bit as much an opportunity as a challenge for 

Bangladesh. Our goal, and that of the European Union under the framework of the 

Sustainability Compact, is not to undermine Bangladesh’s growth and development, 

including in the ready-made garment sector. It is, instead, to work with the Government, industry, workers’ and other civil society groups, and other stakeholders to 

ensure that economic growth and the gains from trade go hand in hand with greater 

respect for workers’ rights and improved workplace safety. 

Put another way, the action plan reflects our Government’s view that greater 

adherence to internationally recognized labor standards is an essential part of the 

trade and investment relationship between Bangladesh and the United States. That 

is the best path not only for the workers of Bangladesh but also for the businesses 

that are dependent on the U.S. export market. 

Beyond the parameters of the action plan and the Sustainability Compact, we also 

continue to work closely with the ILO independently on a number of fronts in Bangladesh. The ILO has assumed the leading role in implementation of Bangladesh’s 

March 2013 National Tripartite Plan of Action on fire and building safety in the 

RMG sector, as well as in coordinating the activities of different international donors. 

In addition, last September the ILO and the International Finance Corporation 

(IFC) launched a Better Work Program in Bangladesh after concluding that the 

Government had addressed certain labor-related preconditions transmitted in fall 

2012—including a condition to more expeditiously register unions. The Better Work 

management team has provided the Government with a ‘‘roadmap’’ laying out a 

strategy ‘‘to secure structural, sustainable change in labor administration, industrial 

relations and social dialogue systems.’’ Better Work has explicitly conditioned the 

continuation of its program in Bangladesh on the Government making progress in 

implementing specific activities in each of these areas, and has set out a detailed 

process for monitoring that implementation. 

We at the Department of Labor remain committed to playing a meaningful role 

in helping build greater capacity for both the Government of Bangladesh and workers’ organizations to address the shortcomings that culminated in the Tazreen fire 

11 

and Rana Plaza collapse. In late September, we completed a process of soliciting and 

evaluating technical assistance proposals and awarded $2.5 million in project assistance—$1.5 million to the ILO and $1 million to the Solidarity Center—to work with 

partners on the ground in Bangladesh. The project being implemented by the ILO 

will focus on improving government enforcement of fire and general building safety 

standards, while the Solidarity Center project is designed to increase worker organizations’ ability to effectively monitor for violations of fire and general building safety 

standards and seek abatement of such hazards. ILAB staff traveled to Dhaka in 

December to work with the grantees in moving forward with project implementation. 

While the bulk of our focus has been, and must be, on the roles and responsibilities of the Government of Bangladesh to address the labor-related shortcomings 

that triggered the suspension of GSP benefits, there is also a critical role for the 

private sector to play in improving workers’ rights and workplace safety on the 

ground in Bangladesh. 

As you are aware, leading brands and retailers from the United States and 

Europe are actively engaged in initiatives toward this end in the ready-made garment sector. While the challenges are substantial, we are encouraged by reports of 

progress in recent months. 

What is particularly notable in this regard is the fact that one of these initiatives, 

the Accord on Fire and Building Safety in Bangladesh, represents a historic break 

from past approaches because it brings together major buyers and global labor 

unions in an agreement that includes clear financial obligations and a sustained 

commitment to continued apparel sourcing from Bangladesh. This is an exciting 

step forward for responsible sourcing and supply chain management that we see as 

holding great promise. 

The second private sector initiative, the Alliance for Bangladesh Worker Safety, 

has also made progress, as detailed in its recently issued first semiannual report. 

I understand that the committee will be receiving more detailed updates on these 

efforts from the second panel at this hearing. 

Finally, the Department of Labor is committed to even greater engagement on 

workers’ rights and workplace safety in Bangladesh in the coming months and 

years. As a part of that effort, we are working actively to establish a full-time labor 

attache in our Embassy in Dhaka. Mr. Chairman, your letter of November 7 to Secretary of State Kerry provided the critical impetus for this effort. We at the Department of Labor have been in regular contact in the past 3 months with Ambassador 

Mozena and his team, and others at the State Department, on the steps needed to 

establish this permanent labor attache position. Later this month, ILAB staff will 

be in Dhaka for detailed discussions on the process and logisticsinvolved. 

We are committed to making this happen as quickly as possible and of course will 

keep you and your staff fully apprised as we move forward with this important 

effort. We see this as an essential element in any long-term strategy to improve 

respect for workers’ rights and workplace safety in Bangladesh; indeed, it is part 

of a broader ILAB effort to put ‘‘boots on the ground’’ in a few priority countries 

where being based in country will help us develop the close relationships with critical stakeholders and the in-depth knowledge and understanding of labor-related 

laws, regulations, policies, programs, and practices that are needed to most effectively advance workers’ rights and workplace safety. 

Thank you again for convening this hearing and for the ongoing interest and focus 

of the committee on workers’ rights and workplace safety issues in Bangladesh. We 

intend to continue to make this a priority of the Department of Labor and look forward to a continued close working relationship with our colleagues at the State 

Department and USTR as well as members and staff of this committee. 

I appreciate having this opportunity to testify and would be pleased to take your 

questions. 

The CHAIRMAN. Mr. Karesh. 

STATEMENT OF LEWIS KARESH, ASSISTANT U.S. TRADE REPRESENTATIVE FOR LABOR, OFFICE OF THE U.S. TRADE REPRESENTATIVE, WASHINGTON, DC 

Mr. KARESH. Good morning, Chairman Menendez. Thank you 

very much for the opportunity to testify, before this committee, on 

labor issues in Bangladesh. 

This committee’s interest in holding another hearing on Bangladesh sends a strong signal to the Government of Bangladesh 

12 

and the international community about the importance of continuing to focus on worker rights and safe workplaces in Bangladesh. 

On June 27, 2013, President Obama took the extraordinary step 

of suspending Bangladesh’s GSP trade benefits. The decision was 

based on Bangladesh’s failure to meet the GSP criterion of taking 

steps to afford internationally recognized worker rights. 

Just a few weeks prior to that decision, we discussed before this 

committee the administration’s ongoing GSP review and our growing concern that Bangladesh was moving backward in respect for 

worker rights. The unfortunate tragedies that you mentioned in 

your remarks with regard to the Tazreen fire and the Rana Plaza 

building collapse emphasize the extent of the problem in Bangladesh and further focused international attention on worker 

rights and workplace safety issues, particularly in the ready-made 

garment sector. 

The purpose in suspending trade benefits was not to penalize 

Bangladesh, but rather to ensure that beneficiary countries are 

meeting the worker-rights standard of GSP, and improving respect 

for worker rights and improving workplace conditions. Thus, at the 

time of the President’s decision, we also provided the Government 

of Bangladesh with an action plan containing specific actions that 

the government should take to provide a basis for reinstatement of 

GSP benefits. These included improving labor, fire, and building 

standards, removing obstacles to freedom of association and collective bargaining, and undertaking additional labor reform. This action plan has proved to be an extremely useful tool around which 

to focus engagement with Bangladesh. And in order to encourage 

Bangladesh to take quick and immediate action, we told the 

Bangladeshi officials, at the time we delivered the action plan, that 

we would review progress again late in 2013. 

This past December, after reviewing information from the Government of Bangladesh, from the AFL, which had been the original 

filer of the GSP petition, as well as other information that we gathered, we informed the Government of Bangladesh that, although it 

had made some progress on implementing the action plan, further 

action was needed to justify reinstatement. 

The Government of Bangladesh has taken some action. It has facilitated registration of new trade unions—that was already mentioned—and has dropped questionable criminal charges against two 

labor activists, and it has removed obstacles to two labor-focused 

NGOs reinstating their registrations. In addition, the Government 

has been working with the ILO to develop a plan for increasing 

labor, fire, and building inspections. This is important progress. 

However, significant work remains, as you heard from my colleagues. For example, the safety inspection plans need to be implemented, and we need to see that they are actually effective. Additional labor reform is needed to address shortcomings related to the 

right to strike and requirements regarding union formation. And 

action must be taken to bring the export processing-zone law into 

conformity with international standards. 

We recognize that these are significant undertakings, but ones 

which are essential to addressing the serious and, in some cases, 

life-threatening challenges that remain in Bangladesh. We have 

13 

communicated our conclusions to the Government of Bangladesh, 

and we will further review GSP in May 2014. 

In addition to the GSP Action Plan, I would like to highlight another important mechanism that we recently put in place with 

Bangladesh that will help provide an ongoing forum to address 

labor concerns. The United States-Bangladesh Trade and Investment Cooperation Forum Agreement, or as we refer to as TICFA, 

was signed in November 2013 and entered into force on January 

30, 2014. Under the TICFA, one of the things we have agreed to 

do is to form a permanent committee on labor issues. We expect 

this committee to begin meeting at the first TICFA meeting, in 

April of this year. The administration is focused on ensuring that 

our trade partners meet their obligations, including their labor obligations, under our trade agreements and our preference programs. We believe this TICFA labor committee is one additional 

tool that we can use to ensure that. 

So, allow me to conclude with a few points. 

There has been tremendous effort, among all stakeholders, to develop concrete and sustainable solutions. Particularly on the 

ground in Dhaka, there has been immense coordination among the 

various entities and initiatives that are underway. I would like to 

recognize, in particular, the exceptional work of Ambassador Dan 

Mozena and his team, at our Embassy in Dhaka, who have worked 

very hard on these issues. 

The United States, along with the EU, the ILO, private brands 

and retailers, local and international unions, NGOs, and, of course, 

the Government of Bangladesh, have worked together in unprecedented ways to tackle the many challenges. But, ultimately, it will 

be up to the Government of Bangladesh to directly address and 

solve the remaining challenges. We are committed to work with 

Bangladesh to see that it undertakes the worker rights and safety 

reforms that are set out in the action plan. And we will work with 

all stakeholders to help ensure that the benefits of trade and development can be widely shared in Bangladesh. 

Lastly, Mr. Chairman, I should also note that legal authorization 

for the GSP program expired in July 2013. As long as the program 

is without authorization, we will not be in a position to recommend 

to the President any changes to country eligibility, including for 

Bangladesh. The administration, of course, supports renewal of the 

program and wants to work with Congress to accomplish this. 

Thank you again for the opportunity to testify, and I look forward to your questions. 

[The prepared statement of Mr. Karesh follows:] 

PREPARED STATEMENT OF LEWIS KARESH

Good morning. Chairman Menendez, Ranking Member Corker, and members of 

the committee, thank you for another opportunity to testify before this committee 

concerning labor issues in Bangladesh. Since your last hearing on Bangladesh in 

June 2013, President Obama, the Government of Bangladesh, and various stakeholders have taken several important actions related to worker rights and safety in 

Bangladesh. I would like to discuss these developments with you this morning. 

As we discussed last June, the November 2012 Tazreen Fashions garment factory 

fire and the April 2013 Rana Plaza building collapse resulted in nearly 1,300 

deaths. These tragedies focused international attention on worker rights and safety 

in Bangladesh’s ready-made garment sector—concerns that the United States Government had already been raising with Bangladesh in the context of a country pracVerDate Nov 24 2008 10:29 Mar 17, 2015 Jkt 000000 PO 00000 Frm 00017 Fmt 6633 Sfmt 6621 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 2ND SESSION\2014 ISSUE TE
14 

1Section 502(b)(2)(G) of the Trade Act of 1974, as amended, (‘‘the Trade Act’’) provides that 

the President ‘‘shall not designate any country a beneficiary developing country’’ under GSP if 

‘‘such country has not taken or is not taking steps to afford internationally recognized worker 

rights in the country (including any designated zone in that country).’’ Section 507(4) of the 

Trade Act provides a definition of ‘‘internationally recognized worker rights,’’ which includes 

‘‘the right of association,’’ ‘‘the right to organize and bargain collectively,’’ and ‘‘acceptable conditions of work with respect to minimum wages, hours of work, and occupational safety and 

health.’’ 

tice review of worker rights in Bangladesh under the Generalized System of Preferences (GSP) program. 

GSP is a U.S. trade preference program under which beneficiary developing countries are afforded duty-free access to the U.S. market for thousands of products. The 

statute governing the GSP program lists several criteria, including some related to 

worker rights,1 which beneficiary countries must meet in order to maintain eligibility for benefits. 

The GSP review of Bangladesh was initiated based on a petition that the AFL– 

CIO submitted alleging serious shortcomings in the Government of Bangladesh’s 

recognition of worker rights. The AFL–CIO petition described a wide array of worker rights issues in Bangladesh, including serious obstacles to freedom of association 

and collective bargaining, especially in Export Processing Zones (EPZs), the readymade garment and the shrimp processing sectors. The petition and subsequent 

updates also alleged a pattern of harassment and violence against trade unionists 

and nongovernmental organizations (NGOs) working on labor rights issues, and a 

neglect of worker protections in the areas of fire safety and health. 

The administration engaged intensively with the Government of Bangladesh, the 

AFL–CIO as the petitioner, and other stakeholders to examine the range of worker 

rights issues addressed in the petition. Beginning in late 2012, USTR, in consultation with the other agencies in the GSP Subcommittee, including the Departments 

of State and Labor, grew increasingly concerned that the overall worker rights situation in Bangladesh was deteriorating. The GSP Subcommittee concluded that the 

situation warranted consideration of possible withdrawal, suspension, or limitation 

of Bangladesh’s trade benefits under GSP. To inform the public and stakeholders 

of the GSP Subcommittee’s assessment, USTR issued a Federal Register notice 

requesting comments from the public and held a public hearing in March 2013 in 

which both the Government of Bangladesh and the AFL–CIO participated. The 

Rana Plaza building collapse just 1 month later, in April 2013, demonstrated the 

deadly implications of the failure to address the underlying issues of worker safety 

and worker rights, especially in the garment sector. 

On June 27, 2013, President Obama issued a proclamation suspending Bangladesh’s GSP trade benefits based on the Bangladesh Government’s failure to meet 

the GSP statutory eligibility criterion of ‘‘taking steps to afford internationally recognized worker rights to workers in the country.’’ At the time of the President’s decision, the United States provided the Government of Bangladesh with a GSP ‘‘action 

plan ’’ listing specific actions that Bangladesh should take to provide a basis for 

reinstatement of GSP benefits. The action plan specifically calls for improving labor, 

fire, and building standards, removing obstacles to freedom of association and collective bargaining, and reforming labor laws. 

As my colleagues on the panel note in their testimony, following the President’s 

decision on GSP and the release of the action plan, the administration worked closely with the European Union (EU), other key stakeholders, including the International Labor Organization (ILO), major international garment brands and retailers, unions, NGOs and the international donor community to ensure a coordinated 

and comprehensive effort to press for and support reforms by the Government of 

Bangladesh. For example, we worked closely with the EU, the ILO, and the Government of Bangladesh on a ‘‘Sustainability Compact,’’ that complements the GSP 

action plan in many key areas. The Sustainability Compact is an important public 

commitment by the Government of Bangladesh to undertake specific reforms and 

actions—with support from the U.S., EU, and ILO—to improve worker rights and 

safety. 

We told Bangladeshi officials that we would review their progress in addressing 

the action plan in late 2013. Since then, USTR, the Department of State, including 

the U.S. Embassy in Dhaka, and the Department of Labor, and have engaged intensively with the Government of Bangladesh and other stakeholders to press for 

progress on the action plan. In November 2013, the Government of Bangladesh submitted a paper summarizing its actions to date. The AFL–CIO also submitted a 

paper with its assessment of progress on the action plan. Both documents are available for public viewing via the ww.regulations.gov Web site. 

15 

The administration concluded its review of these submissions in late 2013 and 

recently conveyed its conclusions to the Government of Bangladesh. In sum, we 

found that while Bangladesh has made some progress on implementing the action 

plan, further action is needed. 

On the positive side, we noted the following progress: 

• The Government of Bangladesh has worked closely with the ILO and others to 

develop a plan for substantially increasing the number and quality of labor, fire, 

and building inspections, especially in the ready-made garment sector; • The Government of Bangladesh has facilitated registration of new trade unions, 

dropped questionable criminal charges against two labor activists, removed 

obstacles to the operation of two prominent labor-focused nongovernmental 

organizations, and is working with the ILO to improve transparency regarding 

inspections, union registrations, and the handling of unfair labor practice cases; • The Government of Bangladesh also has committed to fund two programs to 

improve industrial relations and raise awareness of workers’ rights in the 

shrimp processing sector. 

Areas where additional work is needed: 

• Implementation of the plans to improve labor, fire, and building inspections 

which have only just begun. It remains to be seen how effective those inspections will be in identifying and addressing problems such as those that caused 

the April 2013 Rana Plaza factory collapse and the November 2012 Tazreen factory fire. 

• Making significant changes to the labor law to address shortcomings related to 

the right to strike and requirements for union formation. In addition, no action 

has been taken to date to bring the EPZ law into conformity with international 

standards, which has been an issue of concern in GSP reviews dating back to 

the early 1990s. 

• Additional actions to establish that harassment and intimidation of labor activists has ended, to implement a system to respond effectively to complaints of 

unfair labor practices, to implement fines and penalties, and to establish and 

maintain a public database and hotline. 

My colleague, Eric Biel, from the Department of Labor will address some of the 

substance of the GSP Subcommittee’s assessment in more detail in his testimony. 

In late January, we communicated to the Government of Bangladesh our conclusion that Bangladesh has not made sufficient progress on the GSP Action Plan to 

warrant reinstatement of GSP benefits at that time and that we intend to conduct 

the next such review in May 2014. 

Mr. Chairman, I should also note at this point that legal authorization for the 

GSP program expired on July 31, 2013. As long as the program is without authorization we will not be in a position to recommend to the President any changes to 

country eligibility for the program. The GSP program is an important tool in the 

U.S. Government’s efforts to help developing countries to use trade to overcome poverty and advance economic development. GSP also supports U.S. jobs by lowering 

costs for U.S. businesses that use GSP imports as inputs in manufacturing. The 

administration supports renewal of the program and wants to work with Congress 

to accomplish this. 

In terms of our broader economic engagement with Bangladesh, in late January, 

the United States-Bangladesh Trade and Investment Cooperation Forum Agreement 

(TICFA) entered into force. We envision the TICFA as the key coordinating mechanism for bilateral, government-to-government efforts on the GSP Action Plan. As 

agreed by the Government of Bangladesh in the meeting following the TICFA signing in late November 2013, we plan to create a TICFA Working Group on GSP/ 

Labor Affairs to provide an ongoing, formal mechanism for our two countries to address labor concerns. We plan to hold the first TICFA Council meeting in Dhaka 

later this spring. 

In conclusion, we are committed to encouraging Bangladesh to make the reforms 

on worker rights and safety that are set out in the GSP Action Plan to provide a 

basis for reinstatement of GSP benefits. We will continue to work closely with the 

Government of Bangladesh, the EU, the ILO, the private sector, workers, NGOs, 

and others to ensure that the benefits of trade and development are widely shared 

in Bangladesh. Many of the issues Bangladesh faces will require sustained and 

focused support from a variety of actors. However, if Bangladesh succeeds in 

addressing these issues and creates a more sustainable industry that affords basic 

worker rights and protects workers’ safety, it will greatly enhance its economic 

development and can stand as a model for other countries facing similar challenges. 

The CHAIRMAN. Thank you all for your testimony. 

16 

Madam Secretary, let me just start off with the political environment in Bangladesh. I listened to your statement. I know what we 

are saying to the Bangladeshi Government, but what is their response? Where are we headed, here, from your perspective? 

Ms. BISWAL. Well, it is unclear, Mr. Chairman, where we are 

headed. We continue to work very closely with our colleagues in the 

international community and with the U.N. to continue to press 

upon the government that there needs to be dialogue and a new 

process that is credible. Thus far, I would not say that we have had 

tremendous positive traction on those statements. We are continuing to press them, not only on the democratic governance 

issues, but also continuing to press on human rights and space for 

civil society. At the same time, we are continuing to work aggressively with the people of Bangladesh across the front of issues on 

the economic/development arena, where we have seen some tremendous progress with working with civil society in Bangladesh. 

The CHAIRMAN. Well, is it time to intensify international efforts 

toward a resolution? I understand that the Secretary General’s Office of the United Nations has already sent a Deputy Secretary 

General. Is it time for the U.N. to appoint a special set of envoys? 

Is it time for concerned countries to send their own high-level envoys to press upon the Bangladeshi Government the need to find 

a political solution to the conflict that exists? 

Ms. BISWAL. I think, certainly international pressure is warranted. Ultimately, this is going to be an issue that gets resolved 

from within, and the political will of the Bangladeshi people is 

going to be the largest and most forceful determinant of the course 

forward for that country. And so, we are trying to ensure that the 

focus here does not go outside of Bangladesh, and stays within 

Bangladesh, and calibrating our pressure to maintain that. 

The CHAIRMAN. Well, it is very difficult to be able—with all the 

shortcomings that still exist in the whole labor standards—to get 

a government who is in the midst of its own crisis and to focus on 

what they need to do. And so, this has multiple consequences to it. 

Let me just say that 40,000 individuals unionized, out of 3 million, is less than 2 percent. So, I keep hearing about progress, but 

I guess progress is relative. To listen to ‘‘3,000 factories,’’ but knowing that only a small fraction of them inspected. 

So, Mr. Biel, I strongly believe that workers are best placed to 

ensure their own safety. How would you assess the worker empowerment mechanisms of the two different private-sector safety 

initiatives—the Alliance and the Accord—in their ability to help 

workers ensure their own safety? 

Mr. BIEL. Thank you, Mr. Chairman. 

On the issue of the numbers, by the way, I think, from all we 

have heard, including in conversations with the International 

Labor Organization, the Solidarity Center representatives, both 

there and here, we are at a very early stage on that front. The 

numbers, as we have noted, of new unions registered is a positive 

development. But, in terms of what is actually happening on the 

ground, and their ability to get traction, it is still at a very early 

stage. The next months and the next year will be critical. 

On the issue of the two initiatives, you will hear more details on 

what the two initiatives have done, thus far, on the second panel. 

17 

I would say that we are always encouraged when there is the ability of different stakeholders, including business and unions, to 

work together. We have seen progress in that front in other places. 

You noted, in your opening statement, that we have to look beyond 

just Bangladesh, in terms of many of these international workerrights issues. And, for instance, when business and labor have spoken with a unified voice, for example, on the issue of forced—on 

child labor in the cotton sector in Uzbekistan, it has made a real 

difference. When business and unions have jointly written concerning the current troublesome situation in Cambodia, working 

from a common set of understandings, it makes a difference. So, 

certainly, in terms of structure, we see a lot of promise in the Accord. You will be hearing more on that from Mr. Nova. 

We do want to recognize, at the same time, the Alliance has 

issued a 6-month report laying out accomplishments to date, and 

there is certainly hope on the ground that the two initiatives can 

coordinate with respect to common safety standards, with respect 

to not having duplicative and overlapping inspections in factories 

that—from which both Alliance and Accord members source—— 

The CHAIRMAN. Let me interrupt you for a moment, because 

you—— 

Mr. BIEL. Sure. 

The CHAIRMAN [continuing]. You have perfected the ability of 

members of the Senate to filibuster. So, let me—— 

Mr. BIEL. Sure. 

The CHAIRMAN. I know that is not your intention, but—— 

Mr. BIEL. Oh, no, no. No, I was—— 

The CHAIRMAN. The—— 

Mr. BIE [continuing]. I am happy to stop with that. 

The CHAIRMAN. The core question is—it seems to me that the Accord’s agreements are more forward-leaning, in terms of worker 

empowerment, than the Alliance is. Is that a fair statement? 

Mr. BIEL. The Accord structure does create some clearer financial 

obligations of the participating brands. It does create a greater degree of certainty, in terms of sustainable sourcing from that country. There also are a lot of common elements between the two, in 

terms of the commitments to develop better inspection procedures 

and, indeed, go beyond some of the requirements of the government. So, I think it is a case of—there are some stronger points of 

the Accord, there are some areas of common area. 

The CHAIRMAN. Here is the problem. So—in your own testimony, 

you have a very slow, low rate of inspectors being trained. So, right 

now, if I am in Bangladesh, if I am a factory garment worker, I 

look at a series of circumstances as I enter that building and say, 

‘‘Wow, my life is really at risk here.’’ And, unless I have the ability 

to be able to say, ‘‘There is a problem here,’’ and go to the owners 

and say, ‘‘There is a problem’’ and not feel that there is going to 

be consequences to my job or my safety—personal safety, we have 

trouble. 

And it seems to me that some of the private sector—which I applaud for moving forward—wants to deal only with the safety elements, in the hope that inspectors would deal with that, but they 

do not understand that a critical element, even with inspectors, is 

18 

to be able to have an individual say, ‘‘This is a challenge to me.’’ 

So, I am concerned about that. 

Mr. Karesh, let me ask you. It appears as though the Government of Bangladesh has only addressed what I would consider the 

low-hanging fruit in GSP’s action plan, and it still has a very long 

way to go in reforming their labor law and ending the harassment 

of labor activists. Do you think that the government has the political will and the capacity to credibly address these remaining and 

significant gaps? 

And I am concerned that we not look at reinstating GSP unless, 

in fact, we have the type of significant action, because it is not, as 

I said, only about Bangladesh. If we do not send a message that, 

in fact, you cannot get trade preferences when you have the conditions such as exist in Bangladesh, then it will just migrate to other 

places. So, sending the right message, here, is not only sending the 

right message to Bangladesh, but to a more global industry. 

Mr. KARESH. Thank you, Mr. Chairman. 

We recognize, as the Assistant Secretary talked about, that the 

current political situation in the elections obviously complicate the 

situation and engagement with the government. But, at this time, 

on these issues, we believe the government remains committed to 

working with us and private business and the stakeholders and the 

ILO, and others, to continue to advance the effort on worker rights. 

I think you are accurate in saying that progress has not been as 

fast as we would have liked. We believe there has been some 

progress. We believe there are very significant actions that continue to be needed in order for the administration to consider a 

possibility of GSP reinstatement. 

But, at this time, we do remain engaged. We continue to work 

with them, we continue to work with the ILO and others to move 

the issues forward. And so, we still remain optimistic that we will 

continue to make progress in Bangladesh. 

The CHAIRMAN. Well, I have other questions for you, but let me 

turn to Senator Risch. 

Senator RISCH. Thank you, Mr. Chairman. 

You know, as we go forward here, I think—after the tragedy happened and Americans became aware of what was happening in 

Bangladesh, I think everyone was aghast. And the difficulty, here 

in America, is, is we do not really have a comprehension on what 

the rest of the world is like. Bangladesh is not America. It is not 

going to be America. It is never going to have the conditions that 

we have here. And, as a result of that, I think it is—everyone is 

of the frame of mind that any way that we can bring pressure to 

attempt to change conduct is a good thing. 

One of the difficulties is, How do you do that? And I think the 

chairman has made remarks about the difficulty in the democratic 

process in Bangladesh. Certainly, they have made real progress, in 

recent years, in the democratic process. But, I think the January 

5th elections probably were a step backward. And again, comparing 

it to the American system is not a good thing, because they are not 

anywhere even near the same ball park. 

Having said that, Mr. Karesh, the question I would have for you 

is—the President’s decision to change the Generalized System of 

Preferences—that was obviously put in place to attempt to convince 

19 

people to change conduct. I have trouble tying that to bringing public officials in Bangladesh to change their minds about conduct. It 

seems to me—and, as I understand it, the schedule—when that 

was removed, that there would be a tariff of about 16 percent on 

the goods that were brought into the United States. Am I right on 

that? Approximately? 

Mr. KARESH. I am sorry, Senator, I do not know the actual tariff 

number. I can get that for you, but I do not know. 

Senator RISCH. When the tariff went up, tell me—being in the 

position you are in, the Trade Representative Officer, what effect 

has that had on Bangladesh workers, American businesses, American consumers, and, finally, on elected officials in Bangladesh that 

we are trying to convince they should change their conduct? Tell 

me how this worked. 

Mr. KARESH. Well, I think it is quite clear that the GSP, along 

with, you know, other factors that have been mentioned that 

brought attention on the working conditions in Bangladesh, 

crystalized a number of things. It crystalized, within the Government of Bangladesh, the need to address the issue. It also 

crystalized, among the international community, including the 

brands and the retailers and others who do business there, that 

there were serious problems in Bangladesh with regard to worker 

rights and workplace safety. And it brought, not only the governments together, but international organizations, brands, retailers, 

NGOs, labor unions, to focus on the issues. 

Admittedly, suspending GSP—apparel and textile, of course, do 

not come in under GSP, so there is no direct effect on apparel products, in particular. But, the notion of losing GSP and what comes 

with it, because the failure to protect worker rights matters to governments, matters to the Government of Bangladesh, and gets attention within the government, and a recognition of a need to address the issues. And that is why we say we believe there have 

been some efforts underway to address the concerns, but there is 

still a great deal more that would need to be done. 

The standard under GSP is taking steps to afford internationally 

recognized worker rights. And that is what we are working to ensure occurs within Bangladesh to a sufficient degree. 

Senator RISCH. Has the President’s action, in that suspension, in 

any way changed the amount of product that has been shipped to 

the United States? 

Mr. KARESH. There have been some changes in the imports from 

Bangladesh. And I do not believe those are necessarily attributed 

to the decision on GSP. There are other economic factors that 

might affect that. The largest amount of imports from Bangladesh 

to the United States is comprised of apparel. And, as I expressed, 

there is not actually a direct effect with regard to GSP on that. 

I think the latest numbers we have, from 2013, are about $5.3 

billion worth of goods imports from Bangladesh to the United 

States; about $4.9 billion of that is apparel. 

Senator RISCH. How about on employment in Bangladesh, on the 

people who work in these factories? Has it had an effect on them? 

Mr. KARESH. I do not have any numbers particularly on employment levels within Bangladesh. Obviously, that is affected by the 

amount of orders and products that are being produced. And the 

20 

orders go up and they go down. But, I do know that our interest, 

obviously, is ensuring that there are good working conditions that, 

over the long-term—a strongly held belief that, if you improve 

working conditions, you improve respect for worker rights, which 

goes along with rule of law and good governance, that that creates 

the atmosphere that, in the long run, will increase economic development and will increase employment. 

Senator RISCH. My time is pretty limited. Thank you for those 

answers. 

Let me ask each of the panel briefly to address, hopefully, a brief 

question, and that is, How do you see this playing out, as far as 

the Accord and the Alliance? How will this—how will those two interests eventually come together and finish out, in a brief sort of 

way? Could you answer that for me? 

Mr. KARESH. I do not know if I can give a definitive answer. 

What I would say with regard to that is that our interest is in seeing that there be a variety of stakeholders working on these issues, 

and that it is important that the Accord and the Alliance, and the 

companies that are involved in those, coordinate their efforts, harmonize the standards that they are utilizing, in order to make the 

most progress. I think, at this time, it is very difficult to determine 

what the ultimate outcome would be. 

Senator RISCH. And would you agree with me that, ultimately, 

the biggest stick in this whole thing is held by those companies 

that are the purchasers of those products? Am I right or am I 

wrong on that? 

Mr. KARESH. I believe all the stakeholders have a role to play 

here and—— 

Senator RISCH. I understand that. 

Mr. KARESH [continuing]. Can help assist it, but I do not know 

who has the largest stick. I would say that, ultimately, the most 

important actor is the Government of Bangladesh. 

Mr. BIEL. I would echo that. I think, you know, the private initiatives, the Accord and the Alliance, have critical roles to play. You 

will hear more, on the second panel, about the number of factories 

combined that they can reach. And it is a pretty sizable number. 

But, it is important this is all coordinated. There is already a structure in place: the Better Work Bangladesh Programme, over the 

next 3 years, can reach about 300 factories. That is another piece 

of the puzzle. The ILO is committed, in terms of implementing the 

National Tripartite Plan of Action, to ensure that all the factories 

in the sector ultimately are addressed. There are also challenges 

with the informal sector, and some that kind of are under the 

radar screen. 

But, I would say this will only work if all the parties, including 

the brands and retailers that are part of the Accord and the Alliance, step up, continue to push upward with regard to common 

standards, and that we continue to hold the Government of Bangladesh’s feet to the fire, not just through the leverage we have 

with GSP, but also through our work with EU and the ILO and the 

Government of Bangladesh under the Sustainability Compact that 

was entered into just a few weeks after this committee’s last hearing, last July, that we are now part of, as well. Initially, it was the 

21 

EU and ILO and Bangladesh, and then we joined that, subsequently. 

All those different tools and all of the donor programs—$26.5 

million in funding, including from other governments around the 

world—together, needs to be as harmonized as possible, in terms 

of pushing forward on the common goal of helping empower the 

workers of Bangladesh in a way they have not been, to date. 

Senator RISCH. Ms. Biswal, your thoughts on the issue? 

Ms. BISWAL. Yes. Thank you, Senator. 

I would say that there is a natural sequencing here, in that, initially, because of lack of capacity, it is going to require a very concerted effort by industry to help Bangladesh. But, ultimately, it 

will not be industry and international pressure as much as it will 

be political will within Bangladesh to conform to international 

standards on worker safety. And that is going to require a very robust and engaged labor and civil society. And therefore, it is important that we continue to press on all sides and on all stakeholders, 

even though, in the immediate term, you may see much greater action coming out of industry, in terms of addressing the immediate 

problems. The longer term requires labor and civil society to have 

a robust capacity to continue this. 

Senator RISCH. Thank you. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Senator Cardin. 

Senator CARDIN. Well, thank you all very much. And I certainly 

agree that Bangladesh is an important strategic partner of the 

United States. We have a longstanding friendship. 

But, let me just follow up on Senator Risch’s point. Yes, political 

will is needed to make these changes. But, political will can be 

helped by the international community. And I think harmonizing 

all the tools that are available is critically important. But, we start 

with the realities. And the realities—Mr. Karesh, according to your 

testimony, is that there is still substantial progress that needs to 

be made in order to comply with our action plan. The implementation of plans to improve labor, fire, and building inspections have 

only just begun. Significant changes to the labor law to address 

shortcomings relating to right of strike and requirements for union 

formation still needs to be done. There is still harassment and intimidation of labor activists. So, there is still a significant progress 

that we expect to be made if, in fact, Bangladesh is going to meet 

certain basic standards for human rights, labor rights, and worker 

safety. 

So, how do we harmonize, in a way, all these tools that we have 

available? We do provide a great deal of assistance. We are—they 

are major players and major U.S. initiatives. There is the international community. Why have we not been more successful, particularly with highly visible episodes occurring in Bangladesh—why 

have we not been able to coordinate better—what do we need to do 

to coordinate better all the tools that are available? 

Mr. KARESH. Thank you, Senator. 

Well, there are a variety of things, and I think many of them are 

underway. We have been working under GSP, obviously very closely with the government and a lot of other actors. We have—— 

22 

Senator CARDIN. Does the government take us seriously on GSP? 

As we said, it does not apply to a lot of their imports. So, is this 

an effective tool? 

Mr. KARESH. Our view is that this has been extremely helpful, 

extremely useful in—— 

Senator CARDIN. But, from Bangladesh’s—— 

Mr. KARESH [continuing]. Focusing the government—— 

Senator CARDIN [continuing]. Point of view, Do we have their attention on this? 

Mr. KARESH. Yes, I believe that we do, sir. Yes, sir. And that is 

based on the action and the engagement we have had with the government, both here, working through the agencies here, as well as 

our Embassy in Bangladesh, as well as working, as mentioned by 

my colleagues, with the EU, with the Netherlands, with the U.K., 

with Canada, and with the ILO and others. We have worked with 

the ILO, who is starting a Better Work Program in Bangladesh 

which required certain reforms to be undertaken by the 

Bangladeshi Government before the ILO would come in and run 

that program. They met those standards. There is more that needs 

to be done, but at least they met some minimal actions taken for 

the ILO to feel as though it was beneficial to go in. And you have 

heard my colleagues talk about other programs and actions that 

are underway, working between the governments, working with the 

international community, international organizations, NGOs, and 

others. 

Senator CARDIN. But, is there—Madam Secretary, is there a 

clear message, when we still participate in so many of our programs and yet the pace of progress has not been acceptable to us? 

Should we be tougher? 

Ms. BISWAL. Well, we are being very tough, Mr. Senator. 

To kind of look at the pace, you have to look at where they are 

coming from and where they are going. In the two prior years prior 

to this engagement, there were approximately 1 or 2 unions formed 

per year, to this year we have seen 100 unions formed, 95 of which 

we think are strong and credible, 5 of which we think are industrysponsored. 

It is clearly not enough, but there is positive momentum, and 

transformation is not going to happen immediately and overnight. 

It is going to be a long haul to get Bangladesh to where it needs 

to be to meet international standards. And we have got to be with 

them for that long haul, continuing the pressure, but also providing 

the tools and the assistance. And with the leadership of this committee, I would say that we are providing tools and assistance. 

Nine million dollars of U.S. Government funding has been committed over the past year, specifically on issues of labor and worker 

safety, between the Department of Labor, the Department of State, 

and USAID, working with—— 

Senator CARDIN. How much of your time is also spent on goodgovernance issues, on dealing with free and fair elections, dealing 

with the basic problems of corruption within Bangladesh? Is that 

part of the equation that is—— 

Ms. BISWAL. Absolutely. 

23 

Senator CARDIN. Yes, we want to make sure workers are safe; 

yes, we want them to have the right to organize. But, without good 

governance, a lot of that is going to be somewhat meaningless. 

Ms. BISWAL. It is all part and parcel of the same thing. It is all 

interrelated and interconnected. And we want to see a strong and 

vibrant Bangladesh that continues to prosper and that requires addressing issues of strengthening democratic processes, addressing 

issues of corruption. And we are working with the Anti-Corruption 

Commission in Bangladesh, working on issues of transparency, as 

well as issues of capacity. 

Senator CARDIN. Could you provide for us the expectations on 

progress on those fronts, give us some timeframe as to how we 

think—no, I understand you—it is hard to predict, it does depend 

upon, as you put it, the political will of the government and the 

people, but it—there are so many areas of concern that we pointed 

out. And yes, the international community was shocked with the 

visible signs of failure within Bangladesh, but the elections are 

critically important, democratic institutions are critically important, following through on the—on their plans to deal with corruption are vitally important. And it is not just—not just the trade 

issues that have been mentioned. These other issues must be done 

also if we are going to have a reliable country that we can—— 

Ms. BISWAL. Right. 

Senator CARDIN [continuing]. Have confidence that our partnerships will result in a better way of life for the people. But, without 

the foundations, there is a question as to whether we should be 

continuing some of these partnerships. 

Ms. BISWAL. Well, I would draw upon my prior experience at 

USAID as we look at Bangladesh and we see it is a very mixed picture and a complicated picture. Because, on the one hand, we have 

seen tremendous gains on lifting people out of poverty, on improving the health conditions, on working with and strengthening civil 

society organizations to be able to provide services as a supplement 

to the government, where government fails to meet those needs. 

And so, you have seen improvements in food security, you have 

seen reductions in poverty level, you have seen reductions in maternal deaths and child deaths, and Bangladesh is well on its way 

to meeting many of the Millennium Development Goals. 

At the same time, that progress can easily be reversed if the 

democratic processes and institutions are not strengthened. And 

therefore, there is a great deal of focus right now on ensuring that 

the democratic institutions in Bangladesh do not slide back. And 

there is concern. There is real concern. Not enough to warrant pulling back or disengaging, but it does require us to redouble our efforts and continue to maintain pressure on that country and that 

government so that the Bangladeshi people have the best shot at 

a more stable and prosperous future. 

Senator CARDIN. Thank you. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you. 

Senator Durbin. 

Senator DURBIN. Mr. Chairman, thank you. And thanks for the 

kind remarks in your opening. 

24 

It was over 20 years ago that I made my first trip to Bangladesh. 

And I have been back several times. I was amazed by what I found. 

And one of the most amazing things that happened was, I met a 

man who became a close friend of mine and one of the most inspiring people I have ever met. And I am speaking of Muhammad 

Yunus, the founder of Grameen Bank. Microcredit was not his 

original idea, but he took this notion of loaning money to the poorest of the poor to a level that no one in the world had ever seen. 

He has received the Nobel Peace Prize for his efforts, and I was 

happy to lead a bipartisan effort in the House and Senate to give 

him the Congressional Medal of Freedom. I believe he may have 

been the first Muslim to receive that award. There was a huge hall 

packed with his supporters from all different backgrounds and religious faith. He is and was so extraordinary so as to deserve these 

singular awards. 

And so, it troubles me greatly when I see what has happened to 

Grameen Bank. When I consider the impact of the government’s 

decision in removing him from the leadership of that bank and 

then basically subsuming this bank into the Central Bank of Bangladesh, it strikes me that it is a crass political move to punish him 

in some way, but, sadly, to punish millions of innocent people who 

depend on that bank to survive. 

I will just tell you that my trips to Bangladesh, meeting with 

those who count on the Grameen Bank, are some of the life experiences I will never forget. In the poorest villages of one of the poorest nations on Earth, the Grameen Bank has given these—primarily women, but not exclusively—given these women hope. 

And so, I guess I would like to ask, if I could, first of the Assistant Secretary of State, here. We know what this government has 

done to Muhammad Yunus, and what it has done to Grameen 

Bank. What is it we can do to convince the Prime Minister that 

this is wrong—wrong for her nation, unfair to this man, and inconsistent with a good relationship between the United States and 

Bangladesh? 

Ms. BISWAL. Well, thank you, Senator. And let me just echo the 

sentiments that you so eloquently put forward. 

Professor Yunus, every time that I have had the occasion and the 

opportunity to meet with him, is a deeply inspiring figure. His humility is buttressed by his creativity, his intellect, and his insight, 

and his commitment to humanity, which extends far beyond the 

borders of Bangladesh. 

The United States has engaged aggressively on the issue of the 

Grameen Bank, and the viability and the sustainability of the 

Grameen Bank. It is one of Bangladesh’s proudest and most crowning achievements. And yet, it is under threat within Bangladesh. 

The United States and USAID have partnered with Professor 

Yunus to ensure that Grameen’s global reach continues to be 

strengthened. And when I was at AID, prior to this position, I had 

the pleasure of being able to work with Dr. Yunus in supporting 

and strengthening Grameen’s social businesses and their ability to 

reach millions of women around the world. So, I think that the 

Grameen institution, globally, is one that is strong and that we are 

continuing to work with and partner with and support. 

25 

What I think is under threat is Grameen’s ability to operate and 

support millions of Bangladeshi women and Bangladeshi families. 

And that is a deep shame and travesty. And we continue to press 

the government—in my recent visit, in November, I raised this directly with the Prime Minister. I had an opportunity to meet with 

Professor Yunus while I was in Dhaka. And we continue to press, 

at every opportunity, that this is not in the interest of Bangladesh 

and that this undermines the Prime Minister’s own economic development objectives for her country and for her people. 

Senator DURBIN. I want to salute my colleague Senator Boxer, 

who circulated a letter signed by a number of the women Senators, 

because this is—Microcredit and Grameen are important issues for 

women around the world. I hope that we will continue to press on 

this. It is just such a cruel irony that the country, the nation that 

gave birth to this notion of expanding Microcredit beyond what was 

a pretty limited application, is now seeing that effort thwarted, 

subjugated by its current government. 

Let me address a second issue which has come up here, and that 

is the issue about the disastrous fire that killed so many 

Bangladeshi garment workers in 2012. Since then, more than 100 

apparel corporations from 19 countries have signed on the Accord 

for Fire and Building Safety. I would like to ask if anyone on the 

panel—Mr. Biel, Mr. Karesh, or the Secretary—would like to comment on this Accord. And I would like to add one postscript to it. 

In what was left of these buildings after the fire, it was discovered that there were some products that were being made for the 

United States Marine Corps. And the Marine Corps made it clear, 

from that point forward, that they were not going to do business 

with companies out of Bangladesh that did not sign on to the Accords. I want to expand that beyond the Marine Corps. And I think 

it should be expanded across the board to all government agencies, 

that we will continue to work with those companies that are providing a safe work environment for those workers, but we will not, 

by our government funds, subsidize those that exploit workers or 

expose them to this sort of danger. 

And I would like to ask Mr. Karesh, Mr. Biel, if they could comment. 

Mr. BIEL. Sure. Thank you for that important comment, both 

with regard to the general situation, in terms of factory conditions, 

and what you mentioned concerning the Marine Corps. 

We had an opportunity, at Department of Labor, International 

Labor Affairs Bureau, to meet, just last week, with a group from 

the U.S. Marine Corps to talk a little bit about what they are doing 

with regard to broader government procurement issues, in light of 

some of the concerns that have been raised when some T-shirts 

with their logos were found in the aftermath of the Tazreen fire. 

They are taking some very proactive steps. 

There was a conference convened, about a month ago, by the Democracy, Human Rights, and Labor Bureau at the Department of 

State, in which we participated and others participated, to talk 

about, more broadly, the ability to use government procurement as 

a lever for improved working conditions. And I am sure my colleagues at State, as well as we at the Labor Department, and othVerDate Nov 24 2008 10:29 Mar 17, 2015 Jkt 000000 PO 00000 Frm 00029 Fmt 6633 Sfmt 6602 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 2ND SESSION\2014 ISSUE TE
26 

ers, would be pleased to talk further about ways we can work together on that, not just in the context of Bangladesh, but globally. 

With regard to the specific things you mentioned concerning the 

Accord, you will be hearing more on the second panel, in terms of 

the details of what the Accord is doing. I think one thing I neglected to say earlier—when the chairman was asking about the 

Accord and the Alliance—is one thing we should all dispel is the 

notion that one is somehow a European initiative and one is a U.S. 

initiative. In fact, as you will hear more on the second panel, the 

Accord—the cornerstone member of the Accord was PVH, which includes well-known brands like Calvin Klein and Tommy Hilfiger, 

and so forth. And there are a number of other U.S. retailers that 

have joined the Accord; most recently, Fruit of the Loom, which is 

also actually a member of the Alliance. 

And so, there really is an opportunity to move forward with these 

initiatives as a key part of the overall set of solutions for improving 

workplace safety and worker rights in Bangladesh. And we are 

happy to talk further with you and your staffs about how those fit 

into the work we do on a government-to-government basis. But, I 

know you will be hearing a lot more from the second panel on the 

specifics of the Accord and the Alliance. 

Senator DURBIN. Thank you. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Thank you, Senator Durbin. 

I just have a few other questions before we excuse you. And I 

think Senator Risch may have some, as well. 

Madam Secretary, I see, in the Bangladeshi press this morning, 

reports that USAID will refocus its democracy and governance programs away from the capacity development of members of the 

Bangladeshi Parliament. What are our future plans of democracy 

and governance programming in the country as we move through 

this uncertain period? And where are we moving to, in terms of our 

USAID program? 

Ms. BISWAL. Thank you, Mr. Chairman. 

We are taking a more comprehensive review of our democracy 

and governance programming. I will note that it is a fairly limited 

amount of resources; and therefore, we want to make sure that we 

are making very effective and impactful use of those resources, including supporting and strengthening labor and worker safety 

issues, including addressing issues of judicial strengthening and judicial capacity. We are taking a very hard look at the parliamentary strengthening programs, and particularly are curtailing any 

programs that are providing any direct benefit to members of Parliament, are looking at broader programs of institutional strengthening to see whether they are the best use of resources. 

As we manage in a constrained budget environment, the fact 

that, across the board, more needs to be done to strengthen democratic institutions and processes and political parties, et cetera, it 

is going to be a little bit of a struggle to determine exactly how to 

make that scarce dollar stretch as much as possible, and have as 

great an impact as possible. But, we are committed to doing that, 

because, really, none of the economic gains or development gains 

in Bangladesh can be sustained if there is not the transparent, accountable institutions to form the bedrock to continue forward. 

27 

The CHAIRMAN. What I am trying to determine, then—first of all, 

is—are those press reports correct? 

Ms. BISWAL. We are curtailing some aspects of the parliamentary 

programs—— 

The CHAIRMAN. Okay. 

Ms. BISWAL [continuing]. Particularly those that are focused on 

individual members of Parliament. 

The CHAIRMAN. I see. And we have yet to determine where we 

are moving those resources to? 

Ms. BISWAL. That is right. 

The CHAIRMAN. All right. Well, the committee would be interested in what is USAID’s, State Department’s, focus on where you 

are going to be using those moneys. 

Mr. Biel, let me ask you, What role can the very powerful garment industry association in Bangladesh, the Bangledesh Garment 

Manufacturers and Exporters Association (BGMEA), play in promoting the rights of workers, ending anti-union activity in member 

factories, and facilitating the successful negotiation of collective 

bargaining agreements in member factories? 

Mr. BIEL. There are a number of roles BGMEA and other industry associations can and must play. BGMEA is actually—their 

chairman is part of the board of the Alliance. And so, there is an 

opportunity, through the Alliance, for them to be directly working 

with their members to deal with the fact that there are some factory owners still in Bangladesh who do not appear to be receptive 

to the initiatives that these brands and retailers are undertaking 

to try to move forward with inspections and to deal with worker 

rights and workplace safety. 

The other thing is, BGMEA, working closely with the government, with the Ministry of Labor and other parts of Bangladesh 

Government, need to be a voice for continued progress on the implementation of labor law reforms, not just on the ones that were 

included in the July 2013 package, but concerning other areas 

where our hope is—and this will take some time—that brand Bangladesh can be a model, not for what we have seen in the past 2 

or 3 years and even further back, in terms of well-publicized disasters like Tazreen and Rana Plaza, but can be a model for improvements. And that will only happen if powerful industry associations 

convince their members to move forward, to be more transparent, 

to have state-of-the-art compliance programs. Again, it is a continuum of work from the private sector and the government, and 

BGMEA does have a tremendous political presence in Bangladesh, 

including in terms of representation in the Parliament. And so, 

they are clearly a critical actor—— 

The CHAIRMAN. What is their incentive? Since apparel is obviously not part of the GSP, it has no direct effect. What is their incentive? 

Mr. BIEL. I think the—well, one of their incentives is, we certainly, as all of us have said, do not want any of this to result in 

a loss of jobs in Bangladesh, but, ultimately, buyers around the 

world will make a determination, based on their own concerns, 

their own reputation, on where they are going to continue to source 

from. It is a very competitive global market. And I think one of 

their incentives is, Bangladesh has grown by leaps and bounds, in 

28 

terms of—the ready-made garment sector is now second in the 

world, maybe first, based on current trends—and their incentive is, 

they do not want to lose the business to other markets, based on 

a sense that this is not a stable environment, and it is one in which 

the buyers cannot count on the kind of practices that will enhance 

their own reputation. 

So, I think, even though GSP is a lever, it has limited commercial impact, tied to the sustainability compact and tied to what the 

private sector initiatives can do, factory owners and the trade associations, Bangladesh, do have a strong incentive to step up their 

game. 

The CHAIRMAN. Well, I hope the factory owners understand that 

it would be very difficult for international brands to sell clothing 

made in Bangladesh if it is on the blood of workers. And if they 

do not understand that, they will come to that understanding when 

it is way too late. 

Mr. Karesh, last question. What is it that we are going to need— 

I see the EU is in the midst of conducting a review of Bangladesh’s 

status with their GSP program, which, unlike ours, includes apparel products. Do you have any sense of what factors the EU is 

going to be looking for? And what are we going to ultimately look 

for in restoring GSP? Because, while, you know, these do not have 

a direct effect on apparel, obviously a country wants GSP, because 

there is—the very name implies there is a preference. And so, if 

you want that preference, you have to live up to a certain standard. 

So, do you have any insight into the EU? And lastly, what do we 

expect—what will we need to see before we consider restoring GSP? 

Mr. KARESH. Thank you, Mr. Chairman. 

I am not fully versed in the GSP program in the EU, but, as I 

understand it, they have requirements for their GSP-Plus program 

which are similar to ours with regard to—making sure there is respect for ILO fundamental labor rights. And I presume that they 

will be looking at those issues. But, as I understand it, it is a much 

longer, more involved process that could take quite a bit of time if 

they are actually going to move forward and consider Bangladesh’s 

eligibility under that program. I think it is one of the reasons why 

they have engaged, along with us and others, to try to focus the 

Bangladesh Government on addressing the concerns and improving 

the conditions there. 

As far as our GSP review, we have discussed some of the factors 

that we have looked at. We have laid out a very specific action 

plan. And our view is, those are the minimum actions that we need 

to see in order to come out with a positive view on reinstatement 

of GSP benefits. We believe there has been some progress on those 

issues, we believe these are very reasonable, doable things that 

would show a change in political will, would show that there is 

ability for workers to assert their rights and to empower them to 

a degree to ensure that there can be safer workplaces and that 

they can protect those rights and that they have a voice. 

As we have said, there are a lot of factors involved here. Our 

view is, ultimately, it comes down to determination of the Government of Bangladesh. But the other stakeholders obviously can play 

a role in improving conditions, but what we will need to see is— 

and we have a—— 

29 

The CHAIRMAN. So, at a minimum, you are talking about the fulfillment of the action plan. 

Mr. KARESH. That is correct, sir. Yes. 

The CHAIRMAN. Senator Risch. 

Senator RISCH. Thank you, Mr. Chairman. 

First of all, let me say, Ms. Biswal, I really appreciated your response to Senator Cardin and Senator Durbin’s really focused questions about the institutions. Without institutions that are stable 

and that represent the will of the Bangladesh people, we are all 

beating our head against the wall, here. You need that before you 

have anything else. So, I appreciate your clear vision in that regard, and also your initiatives in that regard. 

Let me close with just this focus for a minute. All three of you, 

I think, have said that what is going on right now is, all the stakeholders, the people who own the tools in the toolbox, are trying to 

work together to reach the same objective. Now, they may have different strategies of how to get there and what have you. But, 

that—and I tried, and others tried, to ask, How long is this going 

to take? And, appreciate that the answers there are not as clear 

as we would like, nor does anyone know. 

Having said that, it appears to me that we have got quite a ways 

to go yet, as far as this negotiation process is concerned, as far as 

the give-and-take is concerned. We have had some attempts in 

Congress to put in some legislation, the—either it favors the Accord 

or it favors the Alliance. And it is also my impression that, at this 

point in time, for the Congress to get involved in this, as far as taking one side or the other, probably is counterproductive. And Congress is not very good at many things, and on something with as 

many moving parts as this, and is—as not being very far along the 

road to maturity that the agreement needs, it would seem to me 

to be greatly premature for Congress to wade in, here. 

I would like to get your thoughts, briefly, all three of you, in that 

regard. 

Mr. Karesh, start with you, please. 

Mr. KARESH. Thank you, Senator. 

Well, our view is that we need attention from a variety of the 

stakeholders here. And, ultimately, the Government of Bangladesh 

has to do what it needs to do to ensure there is full respect for 

rights. But, when you talk about, very specifically, on the shop 

floor, in the factories, improving safety, the buyers, whether they 

are in the Accord, in the Alliance—I think as long as those efforts 

are coordinated and they are focused, they can do a lot of good in 

the near future to improve working conditions where they are 

doing business. 

Senator RISCH. You think they are making progress in that regard? 

Mr. KARESH. I think there is a lot of effort underway by a lot of 

people. And it is hard, sometimes, to measure that progress, but 

there clearly is attention to the issues. 

Senator RISCH. Ms. Biswal, I am going to go to you next, in case 

I run out of time. 

Ms. BISWAL. Well, thank you, Senator. 

We believe that there is room and space for all actors to work 

together, and it is going to require all actors to work together. And 

30 

so, while we have not preferenced Alliance versus Accord, there is 

an important role for industry, for labor, for government, for civil 

society, and for the international community to play. And we are 

focused on trying to harmonize those efforts so that we can have 

as strong an outcome as possible. 

Senator RISCH. Perfect. Thank you very much. I appreciate that. 

Mr. Biel. 

Mr. BIEL. Just to echo what my colleagues have said, and specifically on the issue of the role Congress can play, I think this hearing, alone, in terms of demonstrating the continued focus of this 

committee and your continued oversight of these issues, sends a 

very strong and powerful message, the statements you have made. 

In terms of specific things dealing with preferences and so forth, 

you know, far be it for us to suggest a particular approach, but 

there are certainly some broad guidelines that you can lay down. 

Again, the core takeaway from this, perhaps, will be, What are 

the different tools, and how are they best situated, to ensure that 

workers in Bangladesh are empowered so that we do not have, as 

Assistant Secretary Biswal’s predecessor, Assistant Secretary 

Blake, said very powerful at this—before this committee last June, 

a situation where, again, workers die because of the fact that they 

do not have the power to stand up for themselves? And you should 

certainly be assessing whether different actions—whether the ones 

that we are taking, government to government, whether—whatever 

the Alliance is doing, whatever the Accord is doing—are focused 

adequately on ensuring that the end game is a stronger role and 

voice for workers. 

The critical thing we will be doing in the coming months—and 

it is a slow process—is seeing how the registration of these unions 

leads to actual changes on the ground. We are at the very early 

stages of that. As I mentioned, the Solidarity Center has documented some situations where newly formed unions are not being 

allowed to function adequately, but they also recognize that it is 

still early and that situation, hopefully, can change. 

So, that is how we are going to measure progress. And again, we 

have the mechanism of being able to look very specifically at what 

we have laid out in the GSP Action Plan, to do so in the areas that 

action plan covers. But, there are other things, certainly, that are 

the prerogative of Congress, including in terms of issues like government procurement policies. And we can certainly have a further 

conversation about those in the coming weeks and months. 

Senator RISCH. Thank you much. 

Thank you, Mr. Chairman. 

The CHAIRMAN. Well, my thanks to all of you for your testimony. 

I can assure you that it is the Chair’s intention to continue to follow this issue into what I hope will be a successful conclusion. We 

thank you for your testimony and your service. 

We will excuse this panel. 

Earlier, I had mentioned that we have visiting with us Reba 

Sikdar, and she is now here with us. 

So, Reba, thank you very much for joining us today, and we are 

so glad that you can be with us and that you are here to, I hope, 

embody the very essence of what we are fighting for. So, we are 

glad to have you with us. 

31 

Let me call up our next panel. 

This panel is excused. Thank you very much. 

They are: Ellen Tauscher, chairman of the board of directors of 

the Alliance for Bangladesh Worker Safety— 

We are going to ask those who want to engage our panelists, that 

they can do so outside of the hearing room so that we can continue 

to move to the next panel. All right, if we can have our guests 

please leave quietly if you are going to vacate the hearing room. 

Our second panel today: Ellen Tauscher, chairwoman of the 

board of directors of the Alliance for Bangladesh’s Worker Safety. 

I am thrilled to—as she works her way through the crowd—I had 

the privilege of serving with Ms. Tauscher in the House of Representatives, and we welcome her here today. Scott Nova is the executive director of the Worker Rights Consortium. Mr. Nova is here 

to represent the Accord on Fire and Building Safety in Bangladesh. 

And Ms. Kalpona Akter has come from Dhaka, where she is the executive director of the Bangladesh Center for Worker Solidarity. 

And we are honored to have you join us here today. 

Thank you all for being here. I will remind you that your statements will be fully included in the record, without objection, in 

their entirety. I would ask you to summarize your statements in 

about 5 minutes or so, so that we can go ahead and engage you 

in some questions. 

And, with that, Ms. Tauscher, you are recognized. 

STATEMENT OF HON. ELLEN TAUSCHER, CHAIRMAN OF THE 

BOARD OF DIRECTORS, ALLIANCE FOR BANGLADESH WORKER SAFETY, WASHINGTON, DC 

Ms. TAUSCHER. Thank you very much, Chairman Menendez and 

members of the committee. 

It is a great honor to be back at this table again. This is the committee I got to know well during my time as Under Secretary of 

State as we collectively worked together on arms control and nonproliferation issues. 

And, Mr. Chairman, I very much appreciate your work and leadership on Bangladesh, and specifically on worker safety. I know 

how much you care about these issues, as you did when we served 

together for so long in the House of Representatives. 

Mr. Chairman, last summer, the leading North American apparel 

companies, retailers, and brands launched the Alliance for Bangladesh Worker Safety. The Alliance was developed under the guidance of former Senators George Mitchell and Olympia Snowe, with 

the help of the Bipartisan Policy Center. It represents a legally 

binding, 5-year, $50-million effort to improve the fire safety and 

structural integrity of factory buildings in the Bangladesh garment 

industry through a rigorous inspection and training regime, which 

is already well underway. The core mission of the Alliance is to improve the safety of the women and men who make their living in 

Bangladesh’s ready-made garment sector. Our goal is to prevent 

another factory tragedy and to build a long-term culture of safety. 

Mr. Chairman, as you have said, the situation on the ground in 

Bangladesh is complex and challenging. There are roughly 5,000 

factories in Bangladesh’s ready-made garment industry. As the 

committee’s own report from last fall notes, rapid industry growth 

32 

and urbanization have led to a factories sprouting up in apartments and other places that are ill-suited to large-scale garment 

production and make unauthorized subcontracting even more dangerous than usual. There are too few government inspectors, and 

labor laws have been too weak for too long. 

But, despite the challenges and failures, the garment industry 

has played a key role in improving workers’ lives in Bangladesh 

and advancing the country’s economic development. More than 4 

million people in Bangladesh, most of them women, depend on 

their jobs making clothes to support themselves and their families. 

The Alliance member companies acquire garments from close to 

700 factories in Bangladesh which employ approximately 1.28 million workers. Far too many people depend on these jobs for us to 

turn away. We recognize our shared responsibility to address the 

threats to worker safety head-on, and agree workers should never 

need to risk their lives to make a T-shirt or to sew a pair of jeans 

together. 

As we move forward carrying out our mission, the Alliance will 

continue to work closely with the Government of Bangladesh, civil 

society, workers groups, and with our colleagues in the Accord. Despite press reports to the contrary, I am pleased to report that we 

have had excellent discussions with the Accord leadership in Europe, as well as in Dhaka. It is our commitment to work together 

with the Accord, and we are doing just that today on a number of 

important areas, such as standards, sharing on inspection results, 

and even organizing training events together. 

Let me turn to our progress. We have moved quickly, in just a 

few months, on several fronts. We have helped establish a new fire 

safety and structural safety standard. We opened an office in 

Dhaka with 15 staff. We conducted a baseline survey and offsite 

interviews with more than 3,200 Bangladeshi workers and 28 representative factories to obtain their input and perspective on factory safety issues. We have provided fire safety training to workers 

and managers at 218 Alliance factories. And we have completed 

fire safety, structural, and electrical inspections in 222 factories. 

We are committed to inspecting 100 percent of all member-approved factories, and provide training in all of these factories, by 

July 2014. 

The work we are all undertaking requires money as well as time 

and effort. The Alliance’s approach emphasizes the importance of 

shared responsibility through mechanisms such as access to $100 

million in low-cost capital. Alliance members have also committed 

$5 million to assist workers by replacing the lost wages of factories 

needed to temporarily close for repairs. 

With regard to the workers, we know that workers must have a 

voice in ensuring their environment is safe. They must not only be 

able to recognize safety concerns, but they must also have the 

means to effectively make those concerns known to factory management without the fear of being disciplined or fired. We believe 

democratically elected groups operating within the factories, 

whether they be worker participation committees, health and safety committees, or unions, will be an effective way to communicate 

safety concerns to management. We intend to work closely with 

33 

these groups, sharing remediation plans, and ensuring that they 

are immediately alerted to urgent safety issues. 

In conclusion, Mr. Chairman, while this situation is complex, one 

thing is clear: Improving the safety of Bangladesh’s garment industry must be our No. 1 priority. Our moral compass and business 

interests must remain aligned. We know that work will not be easy 

or quick, and solutions will take time to adopt and sustain. We 

must all stay committed to the common goal of making a safer 

workplace in Bangladesh not the exception, but the rule. 

Thank you, Mr. Chairman. You can be sure we look forward to 

working with you and this committee in the months ahead. 

[The prepared statement of Ms. Tauscher follows:] 

PREPARED STATEMENT OF HON. ELLEN TAUSCHER

INTRODUCTION

Chairman Menendez, Ranking Member Corker, and members of the committee, 

it is a real honor to be back at this table again today. This is a committee I came 

to know well during my time as Under Secretary of State, as we collectively worked 

together on arms control and nonproliferation. And, Mr. Chairman, I appreciate 

your leadership on Bangladesh, and specifically on worker safety. I know how much 

you care about these issues, as you did during our time together in the House of 

Representatives. 

Last summer, the leading North American apparel companies, retailers, and 

brands launched the Alliance for Bangladesh Worker Safety. The core mission of the 

Alliance is to improve the safety of the women and men who make their living in 

Bangladesh’s ready-made garment sector. The Alliance was developed under the 

guidance of former U.S. Senators, George J. Mitchell and Olympia Snowe, with the 

help of the Bipartisan Policy Center. It represents a 5-year, $50 million effort to 

improve the fire safety and structural integrity of factory buildings through a rigorous inspection and training regime, which is already well underway. 

Currently, the Alliance is comprised of 26 companies, and I have the honor of 

chairing its board of directors. Our members have visited Bangladesh, toured local 

factories and met with government officials and labor leaders to learn about the 

magnitude of the country’s safety challenges. 

As we gain a deeper and more nuanced understanding of these challenges, we also 

see the great potential and promise for the workers of Bangladesh as we come 

together to find sustainable solutions. We are actively working with the Accord, the 

Government of Bangladesh, the Bangladesh University of Engineering and Technology, workers’ groups, factory owners and other key stakeholders to prevent 

another factory tragedy and to build a long-term culture of safety. Too many 

Bangladeshis have died—we all have to do better. 

CONTEXT

Despite its failures, the garment industry has played a key role in improving 

workers’ lives in Bangladesh and advancing the country’s economic development. 

More than 4 million people in Bangladesh, most of them women, depend on their 

jobs making clothes to support themselves and their families. The Alliance member 

companies source garments from close to 700 factories in Bangladesh, which employ 

approximately 1.28 million workers. Far too many people depend on these jobs for 

us to turn away. 

The situation on the ground in Bangladesh is complex and challenging. The 700 

factories that make products for the Alliance member companies are only a small 

fraction of the roughly 5,000 factories in Bangladesh’s ready-made garment industry. As the committee’s own report from last fall notes, rapid industry growth and 

urbanization have led to factories sprouting up in apartments and other places that 

are ill-suited to large-scale garment production and make unauthorized subcontracting even more dangerous than usual. There are too few government inspectors, 

labor laws have been too weak for too long, and recent political instability has taken 

attention away from focusing on worker and factory safety. 

These circumstances only reinforce the need for a collaborative approach to creating a safe and inclusive environment for factory workers that contributes to economic growth and stability in Bangladesh. We recognize our shared responsibility 

34 

to address the threats to workers’ safety head-on and agree workers should never 

need to risk their lives to make a T-shirt or pair of jeans. 

Our business interests are aligned with our moral compass. A strong garment 

industry that protects workers’ rights and safety is not only good for the people who 

work in these factories, but makes for better business continuity and builds a sound 

foundation for long-term business partnerships. 

Lastly, let me note that there has been considerable misinformation about the 

perceived differences between the Alliance and the Accord and too little said about 

what we have in common and where we can collaborate. The member companies 

and other stakeholders of both initiatives share a common purpose: to protect the 

safety and livelihoods of garment workers in Bangladesh. We have had excellent 

discussions with the Accord leadership in Europe, as well as in Dhaka. We need to 

work together, and we are, today, on a number of important areas such as standards, sharing of inspection results, and even organizing collaborative events to educate the factory community on the standards and ways to improve workplace safety. 

Now, I’d like to briefly address some of the progress we’ve made in our first few 

months. 

COLLABORATION AND COMMON STANDARDS

Last October, technical experts from the International Labor Organization, the 

Alliance, Accord and Bangladesh University of Engineering and Technology worked 

together to develop a common Fire Safety and Structural Integrity Standard that 

is being used for factory inspections. I was very proud of the work that many technical experts from Alliance member companies put in, sharing their expertise to 

achieve the goal of having one fire and structural safety standard. The Standard 

aligns with the Bangladesh National Building Code and National Tripartite Plan of 

Action. 

We hope we can continue to work in the spirit of collaboration with the Accord 

and other stakeholders focused on worker safety in Bangladesh. 

LOCAL PARTICIPATION

The Alliance recognizes the importance of building local capacity and empowering 

workers to develop an effective, lasting system for ensuring the safety and future 

growth of Bangladesh’s garment industry. In just over 6 months since its formation, 

the Alliance has: 

• Conducted a baseline survey and offsite interviews with more than 3,200 

Bangladeshi workers in 28 representative factories to obtain their input and 

perspective on factory safety issues. The insights from this research will help 

us build better and more relevant solutions, and we will share these insights 

with the public. 

• Provided fire safety training to workers and managers at 218 Alliance factories. 

• Opened an office in Dhaka with 15 local staff, including technical experts. 

• Engaged the Bangladeshi Government, factory owners and industry associations, labor groups, NGOs including BRAC and the International Finance Corporation. 

• Been in dialogue with the United States Embassy in Bangladesh to clarify our 

intentions and our progress. 

EMPOWERING WORKERS

Garment workers play a key role in the Alliance’s efforts to improve factory 

safety. They have unique insights from the factory floor into potential safety issues 

and their active participation facilitates remediation efforts and effective responses 

to threatening conditions. 

We know that workers must have a voice in ensuring their working environment 

is safe. They must not only be able to recognize safety concerns, but must also have 

the means to effectively take those concerns to factory management without fear of 

being disciplined or fired. 

We believe democratically elected groups operating within the factories—whether 

they be Trade Unions, Worker Participation Committees, Health and Safety Committees—will be an effective way to communicate safety concerns to management. 

We intend to work closely with these groups, sharing remediation plans and ensuring that they are immediately alerted to urgent safety issues. 

The Alliance is also working to develop tools to protect workers’ rights and give 

voice to their concerns. For example, an anonymous worker helpline that uses 

mobile technology will empower workers to call attention to safety issues before they 

become emergencies. This helpline will not only field calls with a live operator 24 

35 

hours a day, 7 days a week, it will also allow for two-way communication with workers and a platform for education. 

For all of us, a critical element of worker empowerment calls for better understanding what workers need and how our collective efforts can drive sustainable 

impact. To gain better insight into their perspectives, we have talked to workers 

directly and conducted one of the largest worker surveys on safety and health in 

Bangladesh. The survey and offsite interviews point to the need for a comprehensive 

and consistent health and safety-training curriculum that can be implemented systematically across factories and correct for some of the issues that have come to life. 

For instance: 

• Workers are legitimately concerned for their safety. 

• 65 percent of workers in focus groups indicated they would prefer to work on 

a low floor for safety reasons. 

• In 34 percent of surveyed factories, workers say they had witnessed fire incidents. This is in line with the focus group results, where participants in all but 

one of the 10 discussions reported experiencing fires. 

• 47 percent of respondents feel they cannot leave their building quickly in case 

of emergency, and 30 percent think there is a high risk of fire in their building. 

• 27 percent feel they are not given sufficient training on how to protect themselves. 

• When asked offsite during focus groups, however, workers voice more concern 

about how training is executed. 

• Female participants pointed out that their male counterparts are more readily 

offered training. 

• While most participants have taken part in evacuation drills, most were conducted during daytime hours, leaving night shift workers neglected. 

• Drills were often conducted inappropriately, such as with a failure to count participants; others were only partly conducted, for example, evacuating workers 

to lower levels rather than fully outside their buildings. 

• Despite comprising 80 percent of the garment factory workforce, female workers 

tend to have a lower level of knowledge than their male counterparts. They are 

also less active in health and safety committee activities, contacting worker representatives and voicing their concerns. 

Our training programs will endeavor to directly address these findings, and we 

will continue to identify areas for special consideration as the Alliance’s programs 

are rolled out. 

TRAINING

Worker training is an essential part of the Alliance’s commitment to local capacity-building. Ongoing training courses are designed to result in measurable improvements in the knowledge, skills, and awareness that are critical for ensuring worker 

safety and well-being. By July 2014, the Alliance intends to fulfill its commitment 

to train workers, supervisors, managers, and security guards in 100 percent of our 

current factories on safety fundamentals. We will also develop additional training 

modules related to safety in year 2. 

As part of training for management, we believe it is critical to help them understand the importance of engaging workers, both individually and through any democratically elected workers’ groups operating within the factory. We also believe it is 

important that management respect workers’ right to collectively voice concerns 

without fear of retaliation and to allow for regular and open dialogue about safety. 

We intend to incorporate these messages into management safety training, and we 

will share this training curriculum publicly for use by other safety initiatives. 

FACTORY INSPECTIONS

Factory inspections are an essential component of evaluating and improving the 

existing building and electrical infrastructure in Bangladesh’s garment industry. To 

date, fire safety, structural and electrical inspections have been completed in 222 

factories (31 percent) that make products for Alliance member companies. A number 

of brands have already completed initial assessments of all their approved factories 

in Bangladesh, and many factories have already begun to implement substantial 

remediation. Alliance member companies have committed to inspecting 100 percent 

of all member-approved factories by July 2014. 

TECHNICAL EXPERTISE

Considering the rapid, often haphazard growth and unique structural characteristics of Bangladesh’s garment factories, it is especially important that inspectors 

36 

have the right technical training and expertise. The Alliance established an independent Committee of Experts to help develop and implement consistent factory 

safety standards across all approved Alliance factories and to certify inspectors. The 

committee is made up of independent fire, structural, and facility safety experts 

from Bangladesh and North America who are certified, credentialed, and recognized 

authorities in safety. Training on implementation of the safety standards will be 

mandatory for all approved inspectors. 

RESOURCES FOR REMEDIATION

The work we are all undertaking requires money as well as time and effort. The 

Alliance’s approach emphasizes the importance of shared responsibility through 

mechanisms such as access to low-cost capital. 

By recognizing the difficulty to gain access to affordable financing in Bangladesh, 

some Alliance members have pledged a combined total of $100 million in low-cost 

capital to assist vendors in financing safety remediation efforts. These resources can 

be used to implement critical safety measures, such as installing fire doors, sprinkler systems, handrails in stairways and other structural integrity improvements. 

We anticipate that pricing adjustments will likely be made over time by factory 

owners to cover these important investments in safety. We are currently working 

with partners such as the IFC and banks to explore innovative financing solutions, 

and expect the Government of Bangladesh and other stakeholders to play an important role in supporting these efforts. 

In addition, we are collaborating with other groups, including the IFC, Accord, 

and BGMEA, on the International Trade Expo on Building and Fire Safety in Bangladesh that will be held later this month. The Expo is focused on providing Bangladesh factory workers with access to quality safety equipment. In addition to offering exposure to credible resources, this Expo will also provide education by experts 

as well as an announcement about low-cost capital available for factory remediation 

made available by three external funding sources. 

Alliance members have also committed $5 million to assist workers by replacing 

any lost wages if factories need to be temporarily idled for repairs. 

TRANSPARENCY

Let me now shift to another important priority for the Alliance—transparency. 

The Alliance releases a monthly report that publicly discloses the names of all 

approved suppliers in Bangladesh. The list also identifies factories that are currently manufacturing goods for members of the Accord. These shared suppliers 

make up approximately 50 percent of the Alliance factory list, underscoring the 

importance for collaboration between the two initiatives. Supplier information for 

the approved Alliance factories is listed on the Alliance Web site. The Alliance also 

recently released a 6-month progress report detailing the strong foundation that has 

already been laid for our work. Copies of the report have been provided to the 

committee. 

MOVING FORWARD

While the situation is complex, one thing is clear—improving the safety of Bangladesh’s garment industry cannot be done unilaterally. Collaboration among all 

who share in the responsibility for garment factory safety is the only effective way 

forward. We know the work will not be quick or easy, and solutions will take time 

to adopt and sustain. We must all stay committed to the common goal of making 

a safer workplace in Bangladesh not the exception, but the rule. 

CONCLUSION

We appreciate the initiative that the committee and U.S. Government have taken 

to address the important safety issues in Bangladesh’s ready-made garment industry, and we are grateful for the opportunity to share our perspective on the Alliance’s approach and progress. We look forward to working together to improve the 

safety and well-being of Bangladesh’s garment workers and advance the sustainable, inclusive growth of the country’s garment industry. 

Thank you for allowing us to testify today. 

The CHAIRMAN. Thank you. 

Mr. Nova. 

37 

STATEMENT OF SCOTT NOVA, EXECUTIVE DIRECTOR, WORKER RIGHTS CONSORTIUM, WITNESS SIGNATORY TO THE ACCORD ON FIRE AND BUILDING SAFETY IN BANGLADESH, 

WASHINGTON, DC 

Mr. NOVA. The Accord on Fire and Building Safety in Bangladesh appreciates the opportunity to testify today, and we also 

appreciate the committee’s continued attention to this vital issue. 

The danger in Bangladesh has long been apparent. The first documented mass fatality incident in a garment factory was in 1990. 

Between 2004 and 2006 alone, there were nine fatal fires and 

building collapses, killing 200 workers. From 2006 to 2011, more 

than 500 workers died in further disasters. The Tazreen Fashions 

and Rana Plaza catastrophes were shocking because of the staggering numbers of dead, but no one could say that worker deaths 

in an apparel plant were, by that point, a surprise. 

Major retailers, recognizing the challenges in the country and 

concerned about the weakness of local regulatory efforts, have long 

operated their own inspection programs in Bangladesh. Despite the 

companies’ efforts, these programs did not solve the problem. In 

fact, every building where workers died en masse in recent years 

had been inspected by industry auditors. For example, Walmart repeatedly inspected Tazreen Fashions, and yet the inspectors failed 

to detect or address the grave hazards, including lack of fire exits, 

that ultimately took the lives of more than 100 workers. 

This history provides us with a crucial lesson. It is not enough 

to say you have an inspection program. The question is, What kind 

of inspection program? To their great credit, the Accord signatory 

companies have recognized that stronger measures are essential, 

and they have committed to work with labor unions to put these 

measures in place. 

It is the Accord’s unique features that will enable it to transcend 

the shortcomings of prior inspection systems. I want to note four 

elements, in particular, three related to worker empowerment. 

One of the most important worker empowerment provisions of 

the Accord is the power of workers, themselves, to enforce the 

agreement. Garment unions are signatories; they share equal 

power with the brands and retailers on the steering committee, and 

they can bring enforcement action if any signatory fails to fulfill its 

obligations. As is true in any context, the people who have the 

power are the ones who are sitting at the table when the real decisions get made. 

Another key provision is the leading role for worker representatives in the Accord’s inspection, remediation, and training programs. When safety engineers inspect factories under the Accord, 

worker representatives, as well as managers, guide them through 

the factory. When the inspection reports are ready, worker representatives get the reports the same day as the factory managers. 

When Accord training teams go to factories to talk to workers, 

union representatives are on the teams. At most Accord factories, 

this will be the first time any labor union has ever set foot on the 

premises. 

One effect of these provisions will be to strengthen the ability of 

workers in Bangladesh to form unions. Asked last May, ‘‘What 

could be done to improve labor standards in Bangladesh?’’ AmbasVerDate Nov 24 2008 10:29 Mar 17, 2015 Jkt 000000 PO 00000 Frm 00041 Fmt 6633 Sfmt 6602 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 2ND SESSION\2014 ISSUE TE
38 

sador Mozena answered, ‘‘That is a very easy question. That will 

happen when workers can organize.’’ 

An issue was raised earlier about the situation at Rana Plaza 

and what might have saved the lives of the workers at that location. The morning of the disaster, as I think people are aware, 

many workers were afraid to go into the factory because of the evidence that had arisen the prior day that the building was in danger of collapse. Yet, managers bullied and intimidated workers to 

go into the factory, successfully, in part, by threatening their wages 

and their jobs. The general manager of Tazreen Fashions finally 

went to jail, this past Sunday. One of the charges against him is 

that he and other managers, after the fire alarm went off, told 

workers to remain at their machines, apparently hoping it was a 

false alarm, and not wanting to lose any production time. If workers at Rana Plaza, if workers at Tazreen Fashions, had enjoyed the 

right to refuse to enter or stay in a dangerous building without 

fearing the loss of their livelihood or their jobs, many of those 

workers would be alive today. This is why the Accord protects the 

right of every worker in an Accord factory to refuse dangerous 

work without fear of losing jobs or wages. 

Inspections under the Accord are a means to an end: the renovation of factory buildings to address the grave safety hazards that 

exist in many of them. Inspections are of no value if, for lack of 

financial capacity, remedies are never implemented. This is why 

the Accord brands and retailers have committed to ensure that 

every factory will have the capacity to undertake all needed renovations. The financial capacity. This is not a voluntary loan program, it is a fundamental requirement of every Accord signatory. 

We are implementing the Accord as swiftly as possible, given the 

massive scope of the enterprise, which covers 1,800 factories and 

more than 2 million workers. Senior staff is in place in Dhaka and 

is hiring a local team of up to 100 individuals. Standards are finalized, and inspections begin in large volume this month. Public inspection reports will soon be released, and, consistent with the Accord’s commitment to genuine transparency, these reports will include the specific hazards found in each factory, the remedies needed to address them, and the deadlines by which they must be addressed. A major announcement later this month will provide much 

more detailed information, and we will, of course, share that with 

the committee. 

I want to conclude by noting, as a previous panelist and member 

of the committee did earlier, the breadth of support for the Accord, 

including in the United States, where there are corporate signatories like the Berkshire Hathaway subsidiary, Fruit of the Loom; 

like PVH, which was the first company to sign an earlier version 

of the Accord; and a number of others. Mr. Durbin, whose leadership on this issue we appreciate, mentioned the fact that the Marine Corps now requires its licensees to be signatories to the Accord. This year’s Defense Appropriations Act includes report language that encourages the rest of the Armed Forces to make that 

same decision. And so, we see support for the Accord in the United 

States, not just from corporations, but from the Government, also 

from the public sector, where many universities now require their 

licensees to sign. 

39 

So, I will conclude by noting that I would be happy to address 

relations between the Accord and the Alliance, in answer to questions, which I did not have an opportunity to do here, and welcome 

questions from the committee. 

Thank you. 

[The prepared statement of Mr. Nova follows:] 

PREPARED STATEMENT OF SCOTT NOVA

The Accord on Fire and Building Safety in Bangladesh appreciates the opportunity to offer testimony today on the vital issue of worker rights in Bangladesh’s 

garment industry. The Accord is a groundbreaking worker safety initiative of which 

151 apparel brands and retailers, from 21 countries, are now signatories, along with 

two global union federations, eight Bangladeshi garment workers’ unions and union 

bodies, and four international labor rights organizations, participating as witness 

signatories. The Accord, whose governing body is chaired by the International Labor 

Organization (ILO), covers an estimated 1,800 factories and in excess 2 million 

workers, which means that more than half of the entire Bangladeshi garment workforce will come under the protections provided by the agreement. 

SUPPORT FOR THE ACCORD IN THE UNITED STATES

It is important to note, some misimpressions to the contrary, that the Accord 

enjoys active support and participation from leading American brands and retailers. 

Indeed, the first company to sign an earlier version of the Accord was PVH Corp., 

the U.S. firm, formally known as Philips-Van Heusen, which owns Calvin Klein, 

Tommy Hilfiger, and other major brands. Other U.S. corporate signatories include 

Abercrombie & Fitch, American Eagle Outfitters, Knights Apparel (the largest producer of university logo clothing and Nike’s main competitor in that sector), Fruit 

of the Loom, one of the oldest apparel brands in North America, and others. It is 

also important to note that the Accord’s signatories include a number of foreignbased corporations that have a large presence in the U.S. consumer market, including companies like H&M and adidas that are household names in the U.S. and that 

sell more goods here than they do in their home countries. 

There is also strong support for the Accord in the nonprofit and public sectors in 

the U.S. A number of our Nation’s leading universities, including Duke, Penn State, 

and Georgetown, now require that the apparel brands that make clothing bearing 

their names in Bangladesh sign the Accord, as does the United States Marine 

Corps.1 The Defense Appropriations Act for the current fiscal year included report 

language commending the Marine Corps for adopting this requirement, urging the 

rest of the Armed Forces to do the same. We appreciate Mr. Durbin’s leadership in 

encouraging the largest agency of the U.S. Government to align its procurement 

practices with the Obama administration’s policies urging brands to strengthen 

oversight of their supply chain in Bangladesh. Support for the Accord is also 

extremely strong throughout the U.S. labor movement and across the community of 

labor rights advocates. 

WHY A NEW APPROACH TO WORKER SAFETY IS ESSENTIAL

The Accord on Fire and Building Safety in Bangladesh exists because its signatories recognize that past efforts to address the worker safety crisis in Bangladesh 

were insufficient and that new approaches are required to safeguard the lives of the 

millions who work in that nation’s garment factories. 

It is important to recognize that the danger to workers in Bangladesh has been 

apparent for many years. The first documented mass-fatality incident in the country’s export garment sector occurred in December 1990 and there were at least 12 

additional mass-fatality disasters during the remainder of the 1990s. Between April 

2004 and April 2006 there were nine separate fatal fires and building collapses, killing a total of at least 200 workers.2 In an editorial in March 2006, in the Englishlanguage Daily Star newspaper, a local banker warned that the ‘‘deep concern’’ of 

global buyers over these disasters would lead to a loss of exports if such incidents 

continued to occur. From 2006 to 2009, more than four hundred workers died in a 

series of further disasters, according to statistics from Bangladesh’s Fire Service and 

Civil Defense department. In 2010, there were two more fatal factory fires, including 

one, in December, that killed 29 workers at a facility producing for a large number 

of prominent U.S. brands. 

The Tazreen Fashions fire in 2012 and the Rana Plaza disaster last year were 

shocking because of the staggering loss of life; however, by the time of those disasVerDate Nov 24 2008 10:29 Mar 17, 2015 Jkt 000000 PO 00000 Frm 00043 Fmt 6633 Sfmt 6621 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 2ND SESSION\2014 ISSUE TE
40 

ters, it was no longer possible to say that worker fatalities in a garment factory 

were surprising. Indeed, given the explosive growth of the industry in Bangladesh 

in recent years, with millions of workers employed in ever-larger factories, it was 

arguably inevitable that larger disasters would occur. 

Major brands and retailers sourcing from Bangladesh, recognizing the strong challenges to worker rights and worker safety and concerned about the weak regulatory 

efforts of local authorities, have long been operating their own private factory 

inspections programs—as they do throughout their global supply chains. These programs, which encompass worker safety issues among various other categories of 

compliance, ensure that most or all factories producing goods for a given brand or 

retailer are subject to regular inspections by factory auditors, who measure each factory’s practices against the corporation’s labor standards, report any violations 

detected and recommend remedial measures. 

Despite a great deal of effort by the brands—and by their employees, many based 

locally, whose job it is to coordinate the factory inspections—these programs did not 

succeed in addressing the problem. It is important to note that every factory where 

workers have died en masse in recent years, with only one possible exception, was 

inspected multiple times by private auditors representing the factory’s customers. 

To cite one important example, Tazreen Fashions was visited repeatedly by inspectors representing Walmart, but these inspectors never identified nor corrected the 

grave safety flaws, including the lack of viable emergency exits, that ultimately took 

the lives of 112 workers.3 There is a profoundly important lesson here for all of us— 

corporations, labor rights advocates, and public officials alike: it is not enough that 

a garment factory is subject to an inspection program; the crucial questions concern 

the composition of that program. 

To their great credit, the brands and retailers that have signed the Accord on Fire 

and Building Safety in Bangladesh have recognized that stronger and more effective 

worker safety measures are essential to bring an end to the disasters in Bangladesh 

and have committed to work with global and Bangladeshi labor unions to put those 

measures into place. 

THE ACCORD: MAJOR PROVISIONS

The Accord is designed to address the shortcomings of prior efforts and thereby 

to ensure, once the program is fully implemented, that the safety of workers in all 

factories covered by the agreement is strongly and sustainably protected and that 

mass fatality disasters become a thing of the past. The central features of the 

Accord are the following: 

• First, the Accord is a binding, enforceable contract between 151 apparel brands 

and retailers and international and Bangladeshi labor unions. This, in itself, is 

groundbreaking. There is no contemporary precedent for a binding agreement 

of this scope and detail, covering workers’ rights in the global supply chains of 

major corporations, in which worker representatives themselves have genuine 

enforcement powers. By signing a binding agreement with labor unions, the 

Accord’s signatory corporations have guaranteed that worker representatives 

will be at the table when key decisions about worker safety at their contracted 

factories are made. This does not always make for easy or quick decisions, but 

it guarantees that the voice of workers is always heard and that the safety of 

workers remains at the heart of Accord decisionmaking. Given the stakes 

involved, the importance of this cannot be overstated. 

• The Accord provides for inspections of all factories producing for signatory companies, carried out under the direction of an independent Chief Safety Inspector, so that the engineers doing the inspections are accountable to the Accord 

as a whole, not to any individual brand or factory. This means that when 

Accord inspectors assess a factory, they do so with the understanding that they 

have as much accountability to worker representatives as they do to any other 

party. 

• Accord inspections assesses each factory against a robust safety standard, incorporating the essential elements of the Bangladesh National Building Code 

(BNBC), and improving on that code by clarifying the application of the standards to existing buildings and adding stricter standards in certain areas. The 

BNBC, which is a reasonably strong code, has been in place in Bangladesh since 

1993 and has carried the force of law since 2006; however, prior to the Tazreen 

and Rana catastrophes, private factory auditors, even though charged with protecting worker safety, did not include the most vital building code issues in 

their inspection protocols. Among the issues excluded were the structural integrity of buildings and the adequacy of emergency exits, including enclosure of 

41 

stairwells. The consequences of failing to inspect for structural integrity at 

Rana Plaza are obvious. • At Tazreen, and in numerous other fatal factory fires, one of the primary causes 

of fatalities was the lack of enclosed stairwells, protected by fire doors. In multistory buildings, proper enclosure of stairwells, the purpose of which is to prevent deadly smoke from spreading rapidly through the building and making 

stairs impassable, is fundamental to fire safety and has long been required by 

all credible building codes (including all North American and European codes 

and including the BNBC). It is nonetheless the case that, at the time of the 

Tazreen fire, enclosed stairwells with protective fire doors were absent from 

almost every one of the more than 3,500 apparel factories operating in the country. At Tazreen Fashions, after the fire broke out in the first-floor storage area, 

the unenclosed stairwells filled rapidly with noxious smoke. All of the exit stairs 

became impassable within minutes, trapping the workers on the upper floors.4

After that point, most workers who made it out alive did so by jumping from 

third and fourth story windows. That was only way out of the building. By 

including structural integrity, adequacy of fire exits and a number of other previously excluded issues, the Accord inspections, on that basis alone, represent 

a massive advance over pre-Tazreen inspection programs. Also, appropriate to 

the technical nature of the applicable safety standards, Accord inspections are 

carried out by highly trained structural, electrical, and fire-safety engineers, not 

generalist social auditors. • The Accord provides a very high degree of transparency, both to the public and 

to workers. Under prior private inspection programs, workers rarely saw the 

results of the inspections of their factories and such reports were usually not 

available to the public. Under the Accord, all factory reports will be public and 

will include, along with the name of the factory, detailed information on each 

specific safety hazard identified; the renovation, repair, or retrofit required to 

eliminate that hazard; and the date by which it must be completed. The Accord 

will also issue detailed public reports on the progress of factory renovations and 

repairs; when a factory fails to implement the improvements deemed necessary 

by the engineers, this failure will be reported publicly. Similarly, factories 

which execute the necessary corrective actions will be recognized through the 

reporting system thus having the opportunity to show their individual-level 

commitment and collectively improving the image of the industry as a whole. 

Even more important than this public transparency, will be the access workers 

and worker representatives will have to the findings of inspectors. Under the 

Accord, worker representatives will always have access to all inspection reports 

within 2 weeks of inspection—at the same time as factory managers. • The Accord’s corporate signatories have agreed to ensure that factories will 

have the financial capacity to address all renovations and repairs that are 

needed. The purpose of this provision of the Accord is not to subsidize wealthy 

factory owners, of which Bangladesh has a fair number; they should, and will, 

pay their own way. However, there are substantial numbers of factory owners 

who will not be able to afford what is needed and in those cases the Accord signatories will provide support—through direct payment for renovations, price 

enhancements, joint investments, loans or other means. This is not a voluntary 

loan program, but an obligation of the signatory brands and retailers to provide 

assistance where it is genuinely necessary. The Accord staff will play an active 

role in discussions between brands and factory owners, to ensure that every factory gets any help it legitimately needs and, at the same time, that no factory 

is asking for more than its financial circumstances justify. 

• The Accord’s corporate signatories have also committed to use their relationships with their contracted factories to provide powerful incentive for factories 

to undertake needed safety improvements. Any factory that the Accord’s Chief 

Inspector determines to be unsafe, and unwilling to become safe, will swiftly 

and permanently lose the business of every customer that is a signatory to the 

Accord (and will be ineligible for orders in the future). As a practical matter, 

such factories will soon be out of business. Conversely, the signatory brands 

have committed to reward safe factories with ongoing business. 

As is clear from the discussion of key Accord provisions above, the Accord is 

far more than an inspection program. The design of the Accord was informed 

by the recognition that the great majority of garment factories in Bangladesh 

need significant safety improvements in one or more areas. Inadequate fire safety systems and substandard electrical wiring (the source of ignition in most 

fires) were widespread in the industry at the time of the Tazreen Fashions fire 

and continue to affect most factories. While the grave structural flaws that 

brought down Rana Plaza are by no means the norm, Bangladesh has more 

42 

than 3,500 export apparel factories, and if even a few percent are in that category, as is likely, this places hundreds of thousands workers at risk. Lesser 

structural flaws affect a much larger number of factories and must also be 

addressed. The Accord is best understood as a sweeping program of factory renovation, based on a clear understanding that inspections, however competently 

executed, are of no value if the remedies they identify cannot—for lack of financial capacity, or of accountability, or of economic incentive—be effectively implemented. 

THE ACCORD: THE CENTRAL ROLE OF WORKER EMPOWERMENT

The design of the Accord also reflects the understanding that protection of worker 

safety is impossible without meaningful worker empowerment. The Accord contains 

a series of provisions that ensure not just that workers can participate in the program, but that workers can influence the program, both in terms of what happens 

on the factory floor and at the highest levels of Accord decisionmaking. 

• Among the most vital provisions of the Accord is protection for the right of 

workers to refuse dangerous work. Two days ago, the managing director of 

Tazreen Fashions, Delwar Hossain, finally went to jail, pending trial, on 

charges issued in December.5 He and other managers are charged, among other 

offenses, with refusing to let workers leave the factory after the fire alarm 

sounded, insisting that the alarm was part of a fire drill. Unquestionably, this 

decision—likely driven by a desire to avoid production delays and informed by 

the false assumption that the fire would be contained—contributed to the high 

death toll. At Rana Plaza, on the morning of the collapse, many workers balked 

at entering the building, terrified by the discovery of large cracks in the structure the prior day. Factory managers, insisting the building was safe, pressured 

and bullied the workers—in some cases threatening to dock them a month’s pay 

if they refused to go to work.6 Most succumbed to these tactics and went to 

their machines; the building collapsed less than an hour after the workday 

began. Had workers at these two factories been able to exercise the right to 

refuse to enter, or stay in, a dangerous building, without having to fear the loss 

of pay or the loss of their jobs, many of them would be alive today. This is a 

right recognized in ILO conventions and it is a right that is essential to the 

safety of Bangladeshi workers. Under the Accord, no worker who refuses work 

based on a reasonably justified fear of danger can be penalized; if workers are 

fired or docked pay for refusing to go into an unsafe building, the workers, or 

their representatives, can contact the Accord and the Accord and its signatory 

brands will ensure that the factory owner reinstates fired workers and/or reimburses workers who have lost wages. Accord staff will carry out a robust training program to inform workers about this policy, since the right cannot be exercised by workers unless they know it exists and believe it will be protected. If 

the Accord did nothing else, empowering workers to protect themselves from the 

recklessness of some irresponsible factory managers would greatly reduce the 

likelihood of another Rana Plaza. 

• The Accord also recognizes the central role of workers in promoting and defending, on a day-to-day basis, safe practices in the workplace. This is why the 

Accord requires that a credible worker-management health and safety committee be established in every factory, with worker-members chosen by their 

unions and fellow workers. Making this a reality is a massive undertaking that 

will require substantial time, but it is essential to sustaining safe workplaces 

over time. These committees will exist not just on paper, but in practice, and 

factory managers will be required to support the process and respect the role 

of the committees. The Accord will train and provide support to both the labor 

and management representatives on these committees to ensure they are functional at the factory level. 

• The Accord also ensures that unions are engaged in all facets of the initiative. 

This includes equal status with brands and retailers over the governance of the 

program (through the Accord’s Steering Committee, as outlined above) and 

involvement in all inspection, remediation and training programs. The Accord 

requires that labor unions be allowed to participate on training teams that will 

provide worker safety and worker rights education in those factories that are 

regular suppliers of the signatory brands and retailers. At most of these factories, this will be the first time any representative of a union federation has 

been able to set foot on factory premises and will allow union leaders to address 

workers in their workplaces on safety issues and their rights as workers. The 

Accord also requires that, in every factory where unions have any membership, 

a union member will participate in the onsite inspections of that factory by the 

43 

safety engineers—walking through the factory with the engineers, asking and 

answering questions, just as the factory managers are able to do. The Accord 

is also establishing a program that will combine the engineers’ onsite work with 

offsite interviews with workers from each inspected factory. This is not an easy 

proposition logistically, but it will be a strong mechanism for ensuring the 

integrity of the inspection process. 

As noted earlier, unions will receive all inspection reports at the same time 

as factory managers and will be able to share the results with workers. At every 

factory where unions have any membership, at least one of the Accord’s signatory unions will be able to participate, on behalf of workers, in the development 

of the remediation plan. The Accord staff will also work closely with unions and 

the brands to ensure that workers in each factory are able to provide information to the Accord on whether factory managers are fulfilling their safety promises. While the Accord’s ongoing followup inspections are designed to enforce a 

factory’s remedial commitments, it is only workers who are in the factory every 

day and they can be an invaluable source of information—provided a serious 

effort is made to enable them to play this role. • The ability to report to the Accord when factories fail to implement required 

safety measures is one aspect of a broader complaint mechanism the Accord is 

creating. This goes well beyond the establishment of complaint ‘‘hotlines,’’ which 

can be useful, if handled properly, but which are one small piece of the much 

broader program that is required. Working closely with the Accord’s 

Bangladeshi labor union signatories, with the community-based worker centers 

the initiative is establishing, with local nongovernment organizations, with 

labor rights organizations in Bangladesh, and with the local offices of the signatory brands, the Accord will generate a robust, two-way flow of information that 

maximizes workers’ impact on the initiative. • In order for workers to participate effectively in the defense of their own health 

and safety, they have to be able to speak out with candor about safety hazards 

in their factories and about cases in which factory managers fail to fulfill their 

obligation to eliminate those hazards. A large impediment to such worker 

expression is workers’ understandable fear that their complaints could lead to 

a temporary loss of wages, if their factory must be closed for repairs, or loss 

of their jobs, if the factory must be shuttered permanently. The Accord addresses this problem by requiring that factories continue to pay workers their normal 

wages during any period when they are idled due to safety repairs and by 

requiring the signatory brands and retailers to seek alternate employment in 

their other supplier factories for any worker who loses his or her job due to permanent closure. Both eventualities will occur with some frequency and the cost 

of replacement wages, in particular, will be substantial. In a factory of a typical 

size (1,500 workers), a 3-month closure will require continuation pay of more 

than $300,000.7 If even 5 percent of the nation’s factories are temporary idled, 

this could generate upward of $50 million in such costs. This is why the Accord 

requires that wages be paid in all cases, rather than establishing an arbitrary 

cap that might be reached well before most factories are repaired. By protecting 

the jobs and livelihoods of workers, the Accord empowers them to speak out 

about safety violations to a degree that would otherwise be impossible. 

• Finally, while the right to organize and bargain collectively is outside the scope 

of the Accord, the agreement will have a substantial positive impact in this vital 

area. 

Although Bangladeshi unions have small numbers of members in many factories, less than 3 percent of garment plants have an actual recognized union 

that can represent workers and bargain on their behalf. While it cannot be 

known how many workers would choose to unionize if they could do so freely, 

it is well understood that this freedom has not existed, in practice, for 

Bangladeshi garment workers. The State Department, among many other observers, has repeatedly noted the absence of respect for associational rights by 

factory owners and by the government in Bangladesh. Despite the likelihood 

that they will be disciplined, fired or worse, workers have tried to organize in 

many factories, often showing great courage, but they have usually failed. Very 

recently, however, we have seen glimmers of hope. Due to the incentives generated by the decision of the Obama administration to suspend benefits for Bangladesh under the Generalized System of Preferences, the possibility of similar 

action by the European Commission, and the urging of buyers, the Government 

of Bangladesh has improved statutory protections for associational rights and 

has begun to recognize some factory-level labor unions, as the law requires. And 

some factory owners are feeling a degree of pressure to refrain from the customary tactics employed to prevent organizing. 

44 

As unions and workers seek to expand this new opening, the Accord’s various 

worker empowerment provisions, like union access to factories and the creation 

of worker centers, will provide valuable tools they can utilize. The Accord also 

creates a forum that the signatory corporations and unions can use to address 

conflicts that arise in the course of union organizing efforts. Many of the 

Accord’s signatory brands and retailers have demonstrated, in their overall supply chain operations, a significant and laudable commitment to promoting respect for associational rights at supplier factories and the Accord will facilitate 

and accelerate those efforts in Bangladesh. Where Bangladeshi workers are able 

to organize, they will gain a powerful mechanism to protect their safety in individual workplaces and will be able to increase their contribution to the broader 

reform of the industry. 

ENGAGEMENT WITH THE GOVERNMENT OF BANGLADESH

The Accord is a private initiative. It is not intended as a substitute for public regulation. The signatories recognize, however, that effective public regulation in Bangladesh is a work in progress and that efforts by the private sector are therefore 

necessary, in the near term, to protect worker safety. 

The Accord will engage extensively with the Government of Bangladesh, at several levels: through the Accord’s cooperation with the Bangladesh’s National Tripartite Plan of Action (NTPA); through the Accord’s Advisory Board, on which the 

government is represented by several senior officials of the Ministry of Labor and 

Employment, including the Director of Labor; through direct engagement between 

the Accord’s senior staff and relevant government officials (for example, when dealing with urgent threats to worker safety at particular factories); and through the 

Accord’s engagement with the Bangladesh University of Engineering and Technology, which is advising and providing services to the government in the context 

of the NTPA and the government’s own factory inspection work. It is the Accord signatories’ hope that constructive and fruitful cooperation with the government will 

be feasible throughout the life of the Accord. 

We also believe that the Accord will play an important role in expanding technical 

capacity in Bangladesh in the area of fire, electrical, and structural safety and in 

providing a model for impartial, skilled, and effective factory inspection—and that 

the government and other local actors will thus be strengthened in their future compliance efforts. 

THE ACCORD: STATUS OF IMPLEMENTATION

The Accord is a massive undertaking: more than 1,800 factories, many needing 

substantial renovations and retrofitting; more than 5,000 (1 inspection each for fire, 

electrical, and structural safety at each of the 1,800 factories) initial factory inspections in this year alone; and the training of tens of thousands of workers to serve 

on occupational health and safety committees; among many other activities—all carried out with an unprecedented level of joint labor-management decisionmaking in 

a local environment where just traveling from factory to factory can be a daunting 

challenge. For these reasons, it is taking substantial time to make the Accord fully 

operational. All involved with the effort are deeply mindful of the urgency of the 

task; we all wish every factory could have been inspected within a few months of 

the initial signing of the agreement. We understand that in every factory that has 

not been inspected and, where needed, renovated and repaired, workers remain in 

danger. As a labor rights advocate, I personally wish the work was moving faster. 

However, I must tell you candidly, and based on a detailed knowledge of the work 

to date, that it is moving as fast as it can. 

Later this month, the Accord will make a number of major announcements that 

will provide a detailed outline of the Accord’s inspection program—including personnel, inspection methods, the number of inspections that will be carried out per 

day, per week, and per month, and other vital information. As that announcement 

is not ready today, I am limited in the specifics I can share. 

I can report the following: 

• The Accord has established the safety standard that will be used for all inspections; it is available on the Accord Web site. 

• Accord inspections, using this standard, will commence in large volume this 

month. 

• The Accords has published, and regularly expands and updates, a list of every 

factory to be inspected under the agreement, with an unprecedented level of 

detail on each building, including the number of stories, whether the structure 

houses one or multiple businesses, and how many workers the factory employs. 

This is also available on the Accord Web site. 

45 

• The Accord will shortly begin to generate public inspection reports, including a 

number of initial reports that will be released in conjunction with the near-term 

announcement noted above, which will include information on the state of each 

building that has never before been available to the public. 

• Comprehensive protocols have been developed to govern implementation of critical worker participation and empowerment elements of the Accord, including 

the formation and training of health and safety committees, the enforcement of 

the right to refuse dangerous work, the Accord’s worker complaint mechanism, 

and the rules governing union member participation in onsite inspections. 

These protocols will be made public. 

• The Accord has put in place a senior staff structure comprised of an extraordinary set of individuals. They include Brad Loewen, Chief Safety Inspector, 

who began his career as a firefighter and has served for decades as a technical 

expert and a highly effective public regulator on commercial building safety; 

Rob Wayss, formerly the Chief Technical Advisor to the ILO Promoting Fundamental Principles and Rights at Work Project in Bangladesh, whose knowledge 

of the intersection of worker empowerment and workplace rights in the Bangladesh context is unparalleled; and Alan Roberts, a pioneer of labor rights initiatives in global supply chains who has led and advised corporate social responsibility programs for more than 30 years and who enjoys respect and trust 

across the management-labor spectrum. 

• This team is in the process of hiring a local staff in Dhaka that will number 

up to 100 people, supplemented by a modest international staff based in 

Amsterdam, and will operate a budget (exclusive of the actual cost for building 

improvements and other elements of remediation) in excess of $10 million per 

year. 

• It is also important to understand that, while they are not independent Accord 

inspections, a number of the larger Accord signatory companies have commissioned substantial numbers of fire, structural and/or electrical inspections of 

supplier factories. Many of these inspections have been done by respected engineering firms and they have covered the same critical building code issues that 

will be the focus of the Accord inspections. The Accord’s Chief Inspector is in 

the process of reviewing the results of this work and he will determine in which 

cases the work is up to Accord standards and to what extent remedies have 

been implemented (though followup inspections by independent Accord inspectors will nonetheless occur in all cases). However, it is clear from the quality 

of the firms used for these inspections, and from the limited results made available earlier to the Accord Steering Committee, that much of this work has been 

significant and has likely already increased the margin of safety for workers in 

a substantial number of factories. 

• The Accord, which last year established an emergency protocol for handling 

cases where there is imminent danger to workers, has already been engaged in 

a number of cases involving urgent corrective action to address structural dangers, including cases involving temporary building closures and the obligation 

of factories to continue payments to workers. Although it is impossible to know 

what would have happened had no action been taken, there is a substantial possibility that these limited actions have already saved workers’ lives. 

With respect to cooperation between the Accord and the Alliance for Bangladesh 

Worker Safety, the following can be noted: 

• The Accord worked with engineers representing the Alliance on the development of the inspection standard, which is now being utilized by both initiatives. 

• The Accord stands ready to cooperate with the Alliance in any way that 

advances the interests of worker safety, including cooperation at the level of 

shared factories. 

• Those Accord factories also used by Alliance brands and retailers represent only 

20 percent of all Accord factories; this fact impacts, for obvious reasons, the percentage of its limited time and resources that the Accord devotes to the question 

of Accord-Alliance cooperation. 

• The Accord recognizes that, as a practical matter, factories cannot carry out two 

separate remediation programs. This is why the Accord supported the creation 

of a common inspection standard and why the Accord will freely share information with the Alliance concerning inspection schedules and remediation plans 

and assumes that the Alliance will provide the same. 

• The level of active cooperation at shared factories, particularly with respect to 

remediation, may be limited by the significant differences in the nature, extent, 

and enforceability of the commitments made by brands and retailers under the 

respective initiatives. Of particular concern, the Accord wants to ensure, where 

46 

financial support for renovations is needed at a given factory, that all of the factory’s buyers contribute, with an equitable division of costs. To the extent that 

Alliance brands are willing to accept, at the level of individual factories or more 

broadly, comparable obligations with respect to independence of inspections, 

support for remediation, public transparency and worker empowerment, the 

Accord is open to a strong level of cooperation. • Everyone involved with the Accord would prefer that there were one initiative. 

It is worth noting, that every brand and retailer that is now a member of the 

Alliance was invited, before the Alliance came into being, to join their counterparts, from the U.S. and elsewhere, in signing the Accord. 

• Indeed, I would today reiterate on behalf of the Accord signatories an invitation 

for the 26 Alliance brands to join their 151 counterparts in the Accord. This 

would allow us to go forward with a single unified agreement and would put 

a swift end to concerns about duplication and misallocation of resources, while 

greatly reducing the possibility that there will be major buyers at a given factory that are unwilling to join other brands and retailers in fully supporting 

crucial remedial measures. 

The Accord leadership will continue to keep the members of this committee, and 

all interested parties, updated on the implementation of the initiative. 

———————— 

End Notes 

1See, ‘‘New Trademark Licensing Policy Aims to Protect Workers in Bangladesh,’’ http:// 

www.georgetown.edu/news/trademark-licensing-policy-bangladesh.html. See also, ‘‘Penn State to 

require retailers to sign Bangladesh Safety Accord,’’ http://www.collegian.psu.edu/news/campus/ 

articleldf872004-8d52-11e3-9928-0017a43b2370.html. See also, ‘‘Marines Toughen Rules for 

Makers of Licensed Clothing,’’ http://www.nytimes.com/2013/11/23/business/marines-toughenrules-for-makers-of-licensed-clothing.html. 2Fair Wear Foundation, ‘‘Background Study Bangladesh,’’ January 2006, available at http:// 

www.fairwear.org/ul/cms/fck-uploaded/archive/2010-01/bangladeshlfwflcountrylstudy.pdf. 3Greenhouse, Steven and Jim Yardley, ‘‘As Walmart Makes Safety Vows, It’s Seen as Obstacle 

to Change,’’ The New York Times, December 28, 2012, available at http://www.nytimes.com/ 

2012/12/29/world/asia/despite-vows-for-safety-walmart-seen-as-obstacle-to-change.html?page 

wanted=all. 4 Eidelson, Josh, ‘‘Photos Show Walmart Apparel at Site of Deadly Factory Fire in Bangladesh,’’ The Nation, November 26, 2012, available at http://www.thenation.com/blog/171451/ 

photos-show-walmart-apparel-site-deadly-factory-fire-bangladesh#. 5See, ‘‘Tazreen owner, wife sent to jail,’’ Dhaka Tribune, February 9, 2014, available at http:// 

www.dhakatribune.com/2014/feb/09/tazreen-owner-wife-sent-jail. 6 Yardley, Jim and Julfikar Ali Manik, ‘‘Building Collapse in Bangladesh Leaves Scores Dead,’’ 

The New York Times, April 24, 2013, available at http://www.nytimes.com/2013/04/25/world/asia/ 

bangladesh-building-collapse.html?pagewanted=all&lr=0.Devnath, Arun, ‘‘Bangladesh Raises 

Minimum Wage for Garment Workers After Unrest,’’ Bloomberg News, November 14, 2013, 

available at http://www.bloomberg.com/news/2013-11-13/bangladesh-garment-factories-to-stayshut-amid-worker-protests.html. 

The CHAIRMAN. Thank you. 

Ms. Akter. 

STATEMENT OF KALPONA AKTER, EXECUTIVE DIRECTOR, 

BANGLADESH CENTER FOR WORKER SOLIDARITY, DHAKA, 

BANGLADESH 

Ms. AKTER. Good morning. Chairman Menendez and members of 

this committee, thank you for this opportunity for me to testify 

for—to improve working conditions and respect for worker rights in 

my home country of Bangladesh. 

I am a former child worker, and I used to sew clothes for several 

well-known American brands and retailers. At age 16, I was fired 

from my job, in retaliation for my effort to organize a union in my 

workplace. I went on to cofound the organization called Bangladesh 

Center for Worker Solidarity, where I currently serve as the executive director. 

Much has happened since I submitted written testimony to the 

committee on June 6, 2013. Soon thereafter, the United States suspended Bangladesh GSP benefits, sending a clear signal to the garment industry that compliance with human rights must be imVerDate Nov 24 2008 10:29 Mar 17, 2015 Jkt 000000 PO 00000 Frm 00050 Fmt 6633 Sfmt 6602 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 2ND SESSION\2014 ISSUE TE
47 

proved in the industry if it is to receive such a benefit in the future. 

I understand that the United States is scheduled to review the 

suspension of GSP in May, and I would note that, although there 

have been a few advances in recent months, there are a number 

of areas in which little-to-no improvement has been made. Several 

union leaders continue to face unsustainable charges. Recently, an 

organizer with the Bangladesh Independent Garment Workers 

Union Federation was detained by police under baseless charges. 

Workers continue to face harsh retaliation for their efforts to secure respect for their rights. Although new unions have been registered, I have seen no substantive improvement in the willingness 

of factory managers to engage in collective bargaining. The new 

minimum wage of 5,300 taka per month, falls far short of a living 

wage and the workers’ demand for 8,000 taka per month. 

Nearly 2 years later, there still has not been an independent, 

transparent investigation into the brutal murder of my colleague, 

Aminul Islam, and not a single person has been prosecuted for this 

crime. The Government of Bangladesh does not have a viable initiative to ensure workplace safety. The government announced a 

National Tripartite Plan of Action, but workers report that they 

have not seen any visible result in terms of inspections or any real 

improvement in the factories. 

Before reinstating GSP, the United States should require that 

these issues are addressed. The U.S. Government also has an essential role in urging American brands and retailers to pay full and 

fair compensation to the victims of disaster in their supply chains. 

The Tazreen Fashions factory, where at least 112 workers were 

killed in the fire on November 24, 2012, made clothes for Walmart, 

Sears, Dickies, and Delta Apparel, which produced local apparel for 

the U.S. Marine Corps. More than a year later, none of these companies have offered any compensation to the injured workers and 

the families of the victims. 

The April 24th collapse of Rana Plaza killed at least 1,135 workers and injured more than 2,500 workers. The American companies 

that sourced from Rana Plaza, including Children Place, Cato 

Fashions, JCPenney, and Walmart, none of which have agreed to 

pay a single dime of compensation to the victims. I urge the U.S. 

Government to do what you can to compel these Americans brands 

and retailers to immediately join the Rana Plaza Agreement on 

Compensation, which is facilitated by the ILO. 

The U.S. Government also has an important role to play in protecting the lives of workers who sew the clothes for U.S. companies 

and U.S. Government itself. The best way to do this is through the 

Accord on Fire and Building Safety in Bangladesh. The U.S. Government should urge apparel brand and retailers to join the Accord, and should ensure that its own retailers operated by U.S. 

military actions join the Accord and comply fully with the requirements of the Accord. Following the new policy of the Marine Corps, 

the changes should also require that—the changes should also require that licensees and vendors that supply apparel made in Bangladesh join the Accord. 

Regarding the Alliance for Bangladesh Worker Safety, I do not 

believe that it will generate any meaningful improvements for 

48 

1 Islam, Rabiul and Mohammed Jamil Khan. ‘‘Lawmen Identify ‘Instigators’.’’ Dhaka Tribune. 

November 20, 2013. http://www.dhakatribune.com/labour/2013/nov/20/lawmen-identify-%E2%80 

%98instigators%E2%80%99) 

workers in my country. The Alliance does not offer any role for 

workers’ representative in either its governance or implementation. 

Recently, the Bangladesh Garment and Industrial Workers Federation, BGIWF, attended in a meeting is with Alliance representative, stated that the program had met with workers participation 

committee during the factory inspections, but later, when BGIWF 

spoke with the committee representative, they stated that there is 

no one from Alliance had met with them. 

In another inspection, the Alliance said they had interviewed 

workers from the particular factory, but the workers from the factory reported that management had hand-picked the workers for 

the interview. 

The Alliance has claimed that it will offer low-interest loan to the 

factories to pay for repairs. Yet, the Toronto study reported that 

several factories producing for Walmart, one of the founding member of the Alliance, were not even aware such financing was available. There is no meaningful difference between the Alliance and 

the industry-controlled corporate social responsibility programs 

that have been left behind thousand of dead worker—dead and injured workers. The Accord is only one way to prevent future tragedies. 

Thank you again for the opportunity in testifying at this hearing, 

and I appreciate your concern and for the welfare on human rights 

of Bangladesh workers in my country. 

Thank you. 

[The prepared statement of Ms. Akter follows:] 

PREPARED STATEMENT OF KALPONA AKTER

Chairman Menendez, Ranking Member Corker, and members of the committee: 

thank you for the opportunity to testify on the struggle of garment workers to 

achieve improved working conditions and respect for their labor rights in my home 

country of Bangladesh. 

I am a former child garment worker. My activism in the garment industry is very 

personal. When I was 12 my father became disabled and could no longer work. My 

mother had to stay home to take care of my baby sister, so my 10-year-old brother 

and I went to work. I sewed clothing for multinational corporations and made less 

than 10 dollars a month for 450 hours of work. We were cheated on our overtime 

wage: it was wage theft. We went on strike and we won. But then some strike organizers were fired. I learned that there are laws that are supposed to protect us and 

I started organizing my coworkers. Management harassed me all the time, and then 

fired me. I was only 16. I went to work for a union and then I cofounded the Bangladesh Center for Worker Solidarity, a worker center that educates workers about 

their rights and conducts research. I became an organizer and never stopped. Not 

when workers were beaten and tear-gassed for demanding higher wages. Not when 

the government made it illegal for our organization to operate. Not even when factory owners brought falsified charges against me and put me in jail. Not even when 

my friend and union organizer, Aminul Islam, was disappeared, tortured, and murdered with all evidence pointing to the government’s security forces. It is these experiences, and the ongoing horrific fires and building collapses, which motivate me to 

seek improvements in the lives of the 4 million garment workers in my country— 

even as I, and at least 15 other labor leaders, continue to face government 

surveillance.1

Much has happened since I submitted written testimony to this committee on 

June 6, 2013. Soon thereafter, the U.S. suspended Bangladesh’s Generalized System 

of Preferences (GSP) trade benefits. While our garment industry had not benefited 

from GSP, the industry had long been seeking GSP benefits. The suspension of GSP 

for other sectors sent a clear signal to the garment industry that compliance with 

49 

human rights, labor rights, and workplace safety must be significantly improved if 

the industry is to ever receive such benefits in the future. Now that the U.S. is 

scheduled to review the suspension of GSP in May, I would like to highlight some 

of the advances in recent months, as well as the ongoing challenges. 

The advances include: 

• Most of the unsubstantiated criminal charges brought against union leaders 

and labor rights advocates in the summer of 2010 have been dismissed by the 

courts. As of January 2014, I am no longer facing any of these charges. But our 

work is not done in this area until the remainder are dismissed. • As of August 2013—after 3 years of government crackdown against us—the 

Bangladesh Center for Worker Solidarity has successfully had our official registration status reinstated. • The Government of Bangladesh has begun to process trade union registrations 

again, with nearly 100 new garment factory unions registered in the past year. 

The ongoing challenges include: 

• Some union leaders from Bangladesh Garments and Industrial Workers Federation (BGIWF) and Bangladesh Independent Garment Workers Union Federation 

(BIGUF) continue to face unsubstantiated criminal charges. Recently a BIGUF 

organizer was detained under unsubstantiated charges. • Workers continue to be fired and beaten in an industry attempt to repress their 

efforts to organize to secure respect for their labor rights. Although new unions 

have been registered recently; it remains to be seen whether factory management will respect union rights in collective bargaining negotiations. 

• The garment sector minimum wage increase to 5300 taka (approximately 

US$68) per month, at the end of 2013, falls far short of a living wage and of 

workers’ demands for 8000 taka (US$103). 

• There has yet to be a transparent investigation into the April 2012 brutal murder of union organizer Aminul Islam. While plenty of evidence points to a member of Bangladesh’s security forces as a culpable party, as of yet no one has 

been brought to justice for this crime. 

• The Government of Bangladesh does not yet have a visible initiative to ensure 

workplace safety. The Government announced a National Tripartite Plan of 

Action on Fire Safety but garment workers report that they have not seen any 

visible results in terms of inspections or real improvements in factories. 

Before reinstating GSP, the U.S. should require and ensure that: 

• The remaining unsubstantiated charges against labor leaders are dismissed; 

• Workers are free to exercise their collective bargaining rights; 

• Bangladesh is upholding its role in workplace safety; 

• There is a transparent investigation into the Aminul Islam murder case and 

that the perpetrators of the crime are brought to justice; 

• Bangladesh reform its labor laws so that they meet the International Labour 

Organization (ILO) standards; and 

• Workers in export-processing zones are afforded full rights to form unions and 

bargain. 

The U.S. Government also has an essential role in communicating with American 

brands and retailers, to urge them to pay full and fair compensation to the victims 

of disasters in their supply chains: 

• Tazreen Fashions, the garment factory where at least 112 workers were killed 

in a fire on November 24, 2012, made clothing destined for Walmart, Sears, 

Delta Apparel, Dickies, and Sean John Apparel. The factory made Marines-logo 

clothing for Delta Apparel and its largest customer was Walmart. But even 

more than a year later, none of the American companies whose clothing was 

made at Tazreen have yet to offer any compensation to the injured workers and 

families who lost loved ones. In fact, Walmart and Sears have refused to pay 

compensation on the basis that production was ‘‘unauthorized.’’ Whether the 

production was authorized or unauthorized should not matter: companies must 

be accountable for safety in their supply chains. These callous companies are 

failing accept their responsibility to pay compensation, even while many of the 

survivors are unable to work and are unable to afford the medical treatment 

they need for the burn injuries and bone fractures that they sustained as a 

result of these companies’ negligence to remediate safety hazards even after 

their audits found major safety violations in the months prior to the fire. 

• The April 24, 2013 collapse of Rana Plaza, which housed five garment factories, 

killed at least 1,135 workers and injured an estimated 2,500. Similarly to 

Tazreen, families who lost loved ones are facing immense financial hardship 

and the survivors are struggling with psychological trauma and physical pain. 

50 

2For information on the ‘‘Understanding for a Practical Arrangement on Payments to the Victims of the Rana Plaza Accident and their Families,’’ please visit http://www.ranaplaza-arrangement.org. 3See the full list of Accord signatories at http://www.bangladeshaccord.org/signatories/. 

Many of the survivors are unable to return to work and cannot provide for 

themselves or their families. Some have had to pull their children out of school 

and send them to work in an attempt to not starve. The American companies 

that did business with factories at Rana Plaza included Children’s Place, Cato 

Fashions, JCPenney, and Walmart. All of these companies owe compensation to 

the victims, but none of them has yet to pay any compensation yet. The testimony of Reba Sikder, who is here with me today, is but one story of thousands 

of people who were affected by the building collapse and who are owed compensation. I have traveled all the way from Bangladesh to be here today to ask 

members of the U.S. Government to do what you can to call on these American 

brands and retailers to immediately join the Rana Plaza Arrangement on Compensation, which is facilitated by the ILO.2

In addition to ensuring compensation for victims, the U.S. Government must have 

an important role in saving the lives of workers in my country in the supply chains 

of U.S. companies and of the U.S. Government itself. One hundred fifty-one companies from 20 countries, including 10 U.S. companies,3 have now joined the Accord 

on Fire and Building Safety in Bangladesh. The Accord is a program of independent 

safety inspections with public reports; mandatory repairs and renovations to address 

all identified hazards; and a central role for workers and unions, including workerled safety committees, in all factories and access to factories for unions to educate 

workers on how they can protect their rights and their safety, including their right 

to refuse dangerous work. The companies in the Accord commit to work with their 

suppliers to secure financing, maintain orders, and ensure renovations are completed to make factory buildings in Bangladesh safe. 

The immediate causes of the incidents in Bangladesh are flammable materials 

piled in hallways or in illegal bottom floor storage rooms, overloaded electrical systems, or poorly constructed buildings. What has resulted in a high number of 

injured and dead workers in case after case has been the absent or completely inadequate fire suppression equipment, locked doors and barred windows, and overall 

poor emergency training and planning. But the problem isn’t just with the poorly 

constructed buildings with weak foundations or the additional stories added illegally 

after original construction. It’s not just with open stairwells which act as chimneys 

rather than as escape routes, or the missing fire extinguishers or the lack of emergency lighting. All of those structural issues are of course critical and must be 

urgently addressed in hundreds if not in over a thousand factories in Bangladesh. 

There’s another core part of the problem that must be solved. It’s this: time and 

again when workers speak up with concern about safety risks, they aren’t listened 

to. And in the moment of crisis, when the fire alarm goes off or a building starts 

to crack, workers’ voices not only fall on deaf ears, but they are actively disregarded. 

Their right to refuse dangerous work is denied. When I say this, I’m thinking of 

the workers at Tazreen who were ordered to go back to their sewing machines when 

the fire alarm went off and then when it became really clear that it was a real fire, 

the exit doors were locked and the floor managers with the keys were nowhere to 

be found. When I talk about the right to refuse dangerous work, I’m thinking about 

how the Rana Plaza workers’ rights were denied when they said they didn’t want 

to go to work in a building with cracks in the walls but they were told that they 

must or they would lose their precious pay, and then they were even lied to and 

told the building had been repaired. This is why I fear that until the largest U.S. 

companies the buy from Bangladesh—companies such as Walmart, Gap and VF Corporation—join the Accord, garment workers will continue to die on the job in my 

country. 

From media reports I am aware of the Alliance for Bangladesh Worker Safety, 

founded by a group of North American companies. However, my awareness on-theground in Bangladesh of this initiative is minimal. The Alliance has never invited 

the Bangladesh Center for Worker Solidarity to meet with them. It has no involvement from or representation of unions or other meaningful worker-representative 

bodies in its governance or implementation. The Bangladesh Garments and Industrial Workers Federation (BGIWF) did attend one meeting with the Alliance convened by the Solidarity Center. In that meeting, the Alliance said that it had met 

with a workers’ participatory committee during a factory inspection. But later, when 

BGIWF spoke with the committee, the committee said no one from the Alliance had 

met with them. In another instance, the Alliance said they had interviewed factory 

workers, but workers from the factory reported that management had selected the 

51 

workers for the interviews. These examples indicate that at least as of yet there is 

no meaningful difference between the Alliance and the corporate- controlled ‘‘corporate social responsibility’’ programs that have failed Bangladeshi garment workers in the past, and have left behind thousands of dead and injured workers. 

In contrast, the Accord is cosigned with 10 unions and 4 nongovernmental organizations as witness signatories. The Accord involves workers and their unions in 

inspections, in trainings, and unions receive copies of inspection results from the 

Accord. As one example, in the inspection of Fashion Island Ltd, the Accord involved 

leaders from the factory-level union, which is affiliated with BGIWF. Following the 

completion of the inspection, the Accord staff held a meeting with leaders of factory 

union to present the findings from the investigation. 

Apart from the sheer difference in the scale and reach of the two programs (the 

Accord has more than five times more members than the Alliance does), and the 

fact that the Alliance is accountable to no one other than the companies themselves, 

there are other significant differences. The Alliance has been highlighting its financing in media interviews, but that’s a program of loans rather than direct financing 

of factory repairs. Factory managers themselves don’t even know how to access this 

funding. Even after my country has experienced the deadliest garment industry disaster the world has ever seen, the Alliance companies have shown no indication that 

they will increase the prices they pay to factories to include the cost of safety or 

that they will guarantee that factories have the funds necessary for repairs after 

hazards are uncovered. There is no contractual commitment to worker safety under 

the Alliance. The only tool workers have access to is a hotline, and it is unclear 

what is done with the information that is submitted. 

Thank you again for the opportunity to testify in this hearing. I appreciate your 

concern for the welfare and human rights of garment workers in my country. 

SUMMARY OF RECOMMENDATIONS TO THE U.S. GOVERNMENT

With this testimony I urge the U.S. Government to: 

(1) Urge all U.S. brands and retailers whose clothing was made at Tazreen and 

Rana Plaza to pay the full and fair compensation they owe to the survivors and to 

the families of the workers who were killed. 

(2) Call on all U.S. brands and retailers that source clothing from Bangladesh to 

sign onto the Accord on Fire and Building Safety in Bangladesh, and require all 

apparel companies that do business with the U.S. Government and source from 

Bangladesh to join the Accord. 

(3) Before reinstating GSP, the U.S. should require and ensure that the remaining 

unsubstantiated charges against labor leaders are dismissed; that workers are free 

to exercise their collective bargaining rights; that Bangladesh is upholding its role 

in workplace safety; that there is a transparent investigation into the Aminul Islam 

murder case and that the perpetrators of the crime are brought to justice; that Bangladesh reform its labor laws so that they meet the International Labour Organization (ILO) standards; and that workers in export-processing zones are afforded full 

rights to form unions and bargain. 

(4) Help provide support for mental health services for garment workers dealing 

with long-term trauma as a result of factory fires and building collapses. 

The CHAIRMAN. Well, thank you. And thank you all. 

Ms. Tauscher, our committee report from last November recommended that the Alliance include Bangladeshi union representatives on safety training teams to educate workers about their 

rights, helping empower them to ensure their own safety. Last 

year, I wrote you a letter with a similar suggestion, and you replied 

that the Alliance would take it under consideration when designing 

their training curriculum. 

The Alliance’s recent progress report stated that it will take a, 

‘‘complete worker representative approach that includes worker 

and management education and freedom of association.’’ 

Can you tell the committee what that approach will consist of? 

And will the Alliance include union representatives on its safety 

training teams? 

Ms. TAUSCHER. Mr. Chairman, thank you very much. And thank 

you very much for your letter. 

52 

And, as you saw in my response, and as you saw in our 6-month 

report, the Alliance has made tremendous efforts and tremendous 

moves forward. With the Accord, both of our technical teams have 

put together harmonized standards. It is very, very important 

that—as you know, in Bangladesh, with such a complex and chaotic circumstance, the only thing worse, perhaps, than having no 

standard is to have two. And so, that is why we have worked very 

closely with the Accord technical teams to create one standard for 

fire and building integrity. 

So, technically, there is nothing different between the Alliance 

and the Accord, when it comes to standards. We have—as we have 

said, we believe democratically elected groups, especially workers 

participation teams, occupational worker safety teams, and unions, 

are very important parts of making sure that workers are empowered to speak for themselves, that they know that they should not 

enter buildings that are unsafe. We are creating a 24-hour hotline 

that is going to be accessible to all workers in our factories—— 

The CHAIRMAN. Does the Alliance include union representatives 

on its safety training teams? 

Ms. TAUSCHER. Well, we have not put the safety training teams 

together. We are just getting into the training business. I was in 

Geneva, just 2 weeks ago, meeting with the Accord leadership, 

where we have offered to work with the Accord to have one training program. 

We believe it is important to have worker representation on the 

training teams. We fundamentally agree that it is important that 

workers are able to speak, and that there is no reprisals to them 

for the issues that they have about safety. 

So, the answer is, we are developing our training. Neither the 

Accord nor the Alliance have their training systems set up yet. We 

think we are a little bit ahead, because we are about to launch our 

24-hour hotline next month. But, as I said, we are going to have 

worker participation as part of it. 

The CHAIRMAN. Worker participation. 

Ms. TAUSCHER. Well, Mr. Chairman, there are only three—there 

are only five unions in the 220 places that we have done. So, it is 

not as if there are unions in every place. And I think, as you saw 

from Assistant Secretary Biswal’s testimony, we are moving as fast 

as we can to build capacity across the platform. 

The CHAIRMAN. But, you heard Ms. Akter, who is on the ground, 

living it every day. And clearly, she has a different view—— 

Ms. TAUSCHER. She does. 

The CHAIRMAN [continuing]. Between the Alliance’s approach and 

the Accord’s approach, I certainly applaud that you both have come 

together, particularly as it relates to a common set of inspection 

standards. As I understand it, there is an agreement—— 

Ms. TAUSCHER. That is right. 

The CHAIRMAN [continuing]. On initiatives, and there is—however, there is still no agreement on how financial obligations will 

be shared among the Alliance and the Accord brands for shared 

factories that require significant remediation. So—— 

Ms. TAUSCHER. But, we do have $100 million fund of low-cost 

loans, and we actually have two different factories that we are negotiating with right now. As far as I know, no factory has been 

53 

given any money for remediation, either from the Alliance or the 

Accord. 

And, you know, I am happy to meet with Ms. Akter. I think that 

she has some mis-impressions about the Alliance. She has clearly 

stated her preference for the Accord. But, the truth of the matter 

is, it takes everyone, together, working together. We could decide 

that we are going to have a rivalry between the Alliance and the 

Accord. I am sure some people have decided that. But, frankly, that 

takes our eye off the people in—— 

The CHAIRMAN. Whoa, whoa. No, I am not—— 

Ms. TAUSCHER [continuing]. Bangladesh that desperately need 

our help. 

The CHAIRMAN. I am not an advocate of rivalries. I am an advocate of achieving the goal. 

Mr. Nova—— 

Ms. TAUSCHER. We agree. 

The CHAIRMAN. Mr. Nova, what is the Accord’s position about 

having union representatives on safety training teams? 

Mr. NOVA. All safety training teams will have representatives 

from the signatory union federations. 

The CHAIRMAN. Whether or not that particular factory—— 

Mr. NOVA. Indeed. And one note. It is true that a very small 

number of factories actually have recognized unions. But, many 

factories have some union members. Which is to say, the unions in 

the country, including the unions that are signatories to the Accord, have a modest number of members in many factories. And 

where the commitment is there, with the help of the signatory 

unions, in communication with their members in those factories, it 

is possible to have meaningful worker participation, not just in the 

training process, but in other phases and aspects of the program. 

The CHAIRMAN. So, what are the challenges of just having a 

worker—outside of a union context, as, of course, that is an enormous pressure on that individual worker who has no representation at—— 

Mr. NOVA. Indeed. 

The CHAIRMAN [continuing]. That factory, and I can see it very 

easily being someone who will just say everything is hunky-dory, 

because their risk is greater than they can sustain. 

Ms. Tauscher, on the morning of the Rana Plaza collapse, many 

workers were reportedly afraid to enter the building, but were 

pressured, as we have heard here, to do so by factory managers 

who threatened to withhold their pay. And at Tazreen Fashion, 

when they attempted to leave the building when the fire alarms 

went off, they were also pressured by management to return to 

work. Does the Alliance think that workers should have the right 

to refuse to enter, choose to leave a dangerous building without the 

fear of losing their pay? 

Ms. TAUSCHER. Of course the Alliance believes that the workers 

have the ultimate right of safety and security in their workplace, 

not only the knowledge of it, but the assurance of it. And that is 

why the Alliance member companies have agreed, in a legally binding agreement, that we will not source through factories that are 

not inspected with the Alliance and the Accord standards, that if 

there is any kind of reprisals or any kind of management issues, 

54 

if worker participation committees are given any kind of threats, 

that Alliance companies cannot work in those places. So, it is—— 

The CHAIRMAN. Would the Alliance—— 

Ms. TAUSCHER [continuing]. Very important—— 

The CHAIRMAN [continuing]. Then consider amending its members’ agreement to include that important protection? 

Ms. TAUSCHER. We have that as part of our member agreement, 

Mr. Chairman. 

The CHAIRMAN. Okay. Well, we will have to rereview that, because we must have missed it. So, I would urge you to point it out 

to us, where it is. 

Let me ask you this. Let me ask you both, actually, both Mr. 

Nova and Ms. Tauscher. Does the industry and the retailers understand—fully understand—that the consequences of selling garments made in a country like Bangladesh, where, as you so aptly 

said, we have two high-profile tragedies, which, of course, riveted 

our attention. There are a lot of people who have lost their lives, 

maybe not in the maximum of the Rana Plaza or the other tragedy—but, do the companies really get it, here, that trying to sell 

clothing made in Bangladesh with the blood of workers, if that does 

not improve, that there is a consequence to the retailer, at the end 

of the day? 

Ms. TAUSCHER. Mr. Chairman, I think that we are all shocked 

and dismayed at the tragedies that you see in Bangladesh and, 

frankly, in any kind of workplace tragedy where people lose their 

lives. Keep in mind that the millions of people that work at these 

companies of the Alliance, which are basically Canadian and American—the millions of people that work there, the hundreds of millions of Americans and people around the world that shop in these 

stores and wear these brands, want to know that the places where 

the clothing is being made are safe. 

It is important that we understand the very chaotic situation in 

Bangladesh, that there is tremendous responsibility by the Government of Bangladesh, who has failed to step up and provide not only 

the kinds of laws and protections, but the inspections and the kind 

of credibility in the anticorruption moves that they should have to 

create the kind of place that would provide better opportunities for 

their own people. 

But, having said that, these companies could have walked out of 

Bangladesh. That would not have improved the lives of the people 

of Bangladesh, especially the 80 percent of these workers who are 

women. And that is why the Alliance and the Accord came together 

to create the opportunity for industry—you know, as Assistant Secretary Biswal said, this is—these are many different pieces that 

have to move, and the faster movement will be on the industry 

side, but eventually it has to be about civil society, people of Bangladesh, and democratically elected opportunities for them to move 

forward. 

So, industry is moving. Fifty-million dollars in a legally binding 

agreement by these 26 member companies of the Alliance is a significant effort. There are reputational issues, there are risks, of 

course, but they could have been mitigated by just leaving Bangladesh. The decision was to stay and to do everything we can—— 

The CHAIRMAN. Well, of course—— 

55 

Ms. TAUSCHER [continuing]. To help build capacity. 

The CHAIRMAN [continuing]. I agree. Our goal is not to have 

them leave Bangladesh. I get that. That is why I said, at the beginning of this hearing, that this was not just about Bangladesh—that 

those who think that just leaving Bangladesh and going to another 

place where the same set of circumstances exist will have avoided 

the challenges of having to produce product in Bangladesh—no, we 

are going to follow this. 

So this is the underpinnings of my question. Of course the government has a great deal of responsibility. A continuing, developing 

civil society in Bangladesh will have its share of responsibility. 

But, there are clearly—sometimes, in an equation of a negotiation 

and/or of a goal to generate an effort or achieve a public policy, 

that I think in this case is also about the bottom line, the enormous leverage that the retailers have over the practices of a country like Bangladesh are probably disproportionate to what even a 

government might do, vis-a-vis Bangladesh, because the economic 

bottom line is there. So, the garment factory association, if it gets 

a really clear message from the retailers, at the end of the day, is 

going to be very clear for them the consequences of not cleaning up 

their act. 

Mr. Nova, I have not heard from you on this. 

Mr. NOVA. I think the Accord signatory brands and retailers get 

it. And I think this is reflected in the extraordinary nature of the 

commitments that they have made in signing the Accord and in the 

enforceability of those commitments by worker representatives. 

These companies are making financial commitments that will involve real costs. They are making commitments to act, in terms of 

their relationships with individual factories, on the decisions of the 

Accord’s independent chief inspector, which means some brands 

will end up having to leave factories that they would otherwise 

stay in solely because the independent chief inspector has said, 

‘‘This factory is unsafe and it is not committed to becoming safe.’’ 

These are commitments that will involve financial costs, logistical 

costs. These brands and retailers have agreed to share power with 

worker representatives at every level of decisionmaking within the 

Accord. 

I think the extraordinary nature of the agreement is entirely necessary and appropriate, given the extraordinary nature of the challenges in Bangladesh. And I think the signatory companies do get 

that. 

The CHAIRMAN. Now, I had mentioned earlier, in my conversation with Ms. Tauscher, that your two initiatives have agreed on 

a common set of inspection standards, which is very desirable, and 

I applaud that. But, again, there is no agreement on financial obligations, how they will be shared between the Alliance and Accord 

brands for shared factories that require significant remediation. 

How confident are you that such an agreement can be reached? 

Mr. NOVA. I do not know. And there is a strong commitment, on 

the part of everyone involved with the Accord, to cooperate to the 

greatest extent possible in every instance in which it advances the 

goal of protecting worker safety. And you have seen that commitment reflected in the development of the joint inspection standard. 

56 

At the same time, we must be mindful of the significant differences between the agreements, in terms of the nature and enforceability of the commitments that the signatory companies have 

made. And those differences may create significant obstacles to cooperation. 

From the perspective of the Accord, the bottom line is that the 

Accord’s commitments to independent inspections, to ensuring that 

there is full financial capacity by factories to undertake repairs and 

renovations, to full public transparency in the reporting process, to 

a very high level of worker—not just participation, but influence 

over the operations of the Accord—that must remain in place. And 

so, cooperation can only happen to the extent that those principles 

are not compromised. And I am hopeful that more cooperation will 

be possible, but, again, also mindful of those distinctions. 

It would have been better, in my view, had there been a single 

agreement. And, as you may know, every signatory of the Alliance, 

prior to the Alliance coming into being, was invited to sign the Accord. 

And it is worth noting that one significant Alliance signatory 

brand, Fruit of the Loom, one of the oldest apparel companies in 

the United States, recently chose to sign the Accord agreement, 

and it may be that other Alliance companies will do so. I certainly 

would reiterate the longstanding invitation of the Accord to have 

companies in the United States, both those inside the Alliance and 

those outside, that are not signatories of the Accord, to join. Ideally, we would have one program. That would, in a very clear and 

decisive way, eliminate the possibility of duplicative efforts and 

confusion. 

To the extent that there are now two initiatives, we will cooperate in every way that we can. 

The CHAIRMAN. Let me ask you both—Human Rights Watch reported several instances of intimidation and mistreatment of labor 

leaders, organizers, and members in Bangladeshi garment factories 

over the past year. This is over the past year, the year that we 

have focused all this attention on it, so somebody does not get it 

here. How do both of your associations plan to ensure that such illegal activity is not taking place in its members’ supplier factories? 

I note that H&M took action to stop anti-union activities in its factories in Bangladesh, so we applaud them for that. How do both 

of your efforts come to bear upon that issue? 

Ms. TAUSCHER. Well, Mr. Chairman, all the Alliance companies 

and factories absolutely abhor any kind of intimidation, reprisals 

to workers, anything that is going to prevent workers from having 

active participation, not only in the securing of a safe building integrity and fire safety environment, but also in the training of 

workers to make sure that they can decide, on a day-to-day basis, 

whether the factory is a safe place to go to work, and to make sure 

that they have no reprisals. So, you know, our activities include the 

worker hotline, the very extensive 3,200-member survey we just 

did, and making sure that everyone understands, through the staffing that we have in Bangladesh, that this is not allowed. 

The CHAIRMAN. Okay. Well, that is different than—so, I am a 

worker, and I call the worker hotline, and I report an active intimiVerDate Nov 24 2008 10:29 Mar 17, 2015 Jkt 000000 PO 00000 Frm 00060 Fmt 6633 Sfmt 6602 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 2ND SESSION\2014 ISSUE TE
57 

dation or I report some dangerous problem with the factory. What 

is going to happen then? 

Ms. TAUSCHER. An inspector will go out and, you know, find out 

what is going on. And it could include having, you know, quiet inspections, people watching over a period of time, doing everything 

you can, interviews with management, making sure that, you 

know, the worker participation committee or the safety and occupational health committee or the union representatives on the ground 

are asked what is going on, and that a decision will be made. No 

Alliance company will work with a factory that is either unsafe or 

that is intimidating its workers. 

The CHAIRMAN. Let me ask you—and, you know, of course you 

are here as the representative—what is the fundamental concern 

or problem that Alliance members have, vis-a-vis the question of 

organizing workers and workers having a union ability to be part 

of their safety and security? Even our Ambassador there, who has 

visited with me twice while he was visiting the United States, 

makes it very clear that a critical part of achieving the goals we 

all want—I believe the Alliance wants it, I believe the Accord 

wants it, and, of course, Ms. Akter and fellow workers want it— 

which is the safety and security of these individuals—but, why is 

it that the Alliance seems to have a arms-length view as it relates 

to—— 

Ms. TAUSCHER. I just think that is a bad—— 

The CHAIRMAN [continuing]. Organizing labor? 

Ms. TAUSCHER. I think that is a misimpression. Just as I think 

Mr. Nova’s—— 

The CHAIRMAN. Well, you are going to have to work to change 

my impression, because that is my impression. 

Ms. TAUSCHER. Well, I am happy to do that, Mr. Chairman. But, 

just as Mr. Nova’s consistent allusion to some kind of uniqueness 

to the agreement of the Accord is really a fallacy. We both have 

business models that are compatible. Both of us have the ability to 

hold people accountable and responsible. The only difference between the two agreements, frankly, Mr. Chairman, is that the Accord members agree to be able to sue each other and the Alliance 

members agree to go to binding arbitration. That is the only difference in the agreements. 

And I think that the record of the Alliance and the Accord working together on technical matters is exceptional. Within months, we 

came to agreement on common building integrity and fire standards, harmonized with the Bangladesh University of Engineering 

and Technology, with local governments, with the Government of 

Bangladesh. Now, perhaps we need an nonaggression pact between 

the political ends of the Alliance and the Accord. But, the truth is, 

we work very well together on the technical issues. 

And it should not be about two different organizations. It should 

be about the people of Bangladesh that need our capacity-building 

and our investment and our leadership to make their workplace 

safer. 

The CHAIRMAN. Well, Mr. Nova, I am going to give you a brief 

chance, since—— 

Mr. NOVA. Well, I would just note the—— 

The CHAIRMAN [continuing]. Your association was—— 

58 

Mr. NOVA [continuing]. The dispute resolution mechanism contained within the Accord is binding arbitration. And that—that has 

been the case from outset of the agreement. So, I am not sure— 

and I am happy to discuss it with her, with Ms. Tauscher, about 

the impression that there is a program under which all disputes 

will be resolved through lawsuits. 

There are significant differences between the agreements. There 

are elements of the Accord, including the enforceable obligation to 

ensure that each factory has sufficient funds to undertake all necessary safety repairs, renovations, and retrofitting, including the 

very fact that the agreement is actually enforceable by worker representatives, that are unique. And I note its uniqueness, not necessarily in exclusive reference to the differences with the Alliance, 

but, in fact, its uniqueness relative to all other prior agreements 

that have been intended to address labor rights issues in challenging environments like Bangladesh, and specifically in the Bangladesh context, as I noted earlier, have not been very successful, 

especially with respect to worker safety. 

So, it is a new kind of agreement, a binding, enforceable agreement with equal power shared between unions and companies, 

with clear financial obligations for companies, with clear, unequivocal protection for the right to refuse dangerous work. These are 

substantial innovations, and we think they are at the heart of what 

the Accord will do and why we believe it will ultimately make a 

fundamental, measurable difference in terms of the safety of workers. 

The CHAIRMAN. Ms. Akter, I do not want you to feel left out, 

here, so what—you have heard both representatives, here, talk 

about how they approach the issue. Do you have any perspectives 

on that, or do you have any insights you want to share with the 

committee? 

Ms. AKTER. Yes—— 

The CHAIRMAN. If you would put your microphone on. 

Ms. AKTER. Oh. Thank you. 

Just one thing I wanted to share, that I am on the ground, so 

I see that day-to-day activity, both Accord and Alliance. So, in my 

sense, like there is a—two inspection that I can talk about, like one 

inspection has been done by Accord, when they went to the factory 

and pre-—they informed the union, the factory-level union and also 

the federation, that they are going to have this inspection. And 

then, during the inspection, whole union team, union member, was 

with them. This is one. And second, when they have done their inspection, they have the followup meeting with the union, what was 

the findings during the—you know, an inspection that they found 

in that particular factory. So, this is what workers has involved. 

And they totally understand that it is because of their safety there 

is an inspection being done. 

On the other hand, when Alliance has done their inspection, as 

I stated, that none of the workers has been informed that, you 

know, the Alliance going to have their inspection at the factory, 

and they have been handpicked out by the factory management to 

talk to the Alliance members, and who—and Alliance also demanded that they spoke to the workers participating committed in 

that factory, but, in the reality, they have not. 

59 

So, for us, definitely Accord is a great piece, or we would say that 

this is one which can make our factories safe for our workers. On 

the other hand, it will also help workers to raise their voice and 

join with union in future. 

The CHAIRMAN. Let me ask you—you are part of a union, no? Are 

you part of a union? 

Ms. AKTER. My organization is a—NGO, but we closely work 

with the national unions. 

The CHAIRMAN. Okay. So, your observation—how do Bangladeshi 

workers—do they have a concept of what a union is? Do they understand what a union is? Do they fear joining a union? 

Ms. AKTER. Of course they understand there is a rights of union 

in the law that they have. Our law provision has been ratified by 

the country, so they know that. I should not demand that 4—whole 

4 million workers know that, but majority—a good percentage of 

workers, they know they have union rights. And they have to face 

all this retaliation by the factory management and by the state 

when they try to organize in their factory-level unions. So, that was 

even 1-year-back scenario. 

After the GSP suspension by the U.S. Government, the government has opened a little window for workers to get their unions 

registered. So, last 8 months, I should say that about 100 union 

has been registered, officially, but it is a long way to go for their 

collective bargaining. I think among 100, one, two, or three of them 

were able to submit their charter of demand. And among this 100 

union, which even been registered, but they are facing a lot of retaliation by the factory management. And many of union has submitted, but their application has been rejected, that has been happened, too. So, it is changing a little bit, in compared to last 1 year. 

The CHAIRMAN. So, under the new unions, how many of them— 

or, do you have a sense of their ability to go—because creating a 

union is one thing, going and representing workers is another. Do 

you have a sense of how that is unfolding? 

Ms. AKTER. Among even—among—if we consider these 100 

unions, I would say at least 70 unions, they have their strong leadership and they can go for the bargaining if they are free to. 

The CHAIRMAN. All right. Well, I appreciate your testimony. Obviously, it is something the committee is going to continue to be engaged in. I said we would not go away with just one hearing, and 

we do not intend to go away. So, we look forward to continuing to 

engage with the Alliance, the Accord, and the workers, as well as 

the Government of Bangladesh. 

I would like to submit, for the record, written statements from 

the Government of Bangladesh, the Bangladesh Garment Manufacturers and Exporters Association, the AFL-CIO, the International 

Labor Rights Forum, and the Center for Business and Human 

Rights at the NYU Stern School of Business. Without objection, 

they shall all be included. 

The CHAIRMAN. And, with the thanks of the committee, this 

hearing is adjourned. 

[Whereupon, at 12:05 p.m., the hearing was adjourned.] 

60 

ADDITIONAL MATERIAL FOR THE RECORD

RESPONSE OF ASSISTANT SECRETARY NISHA BISWAL TO QUESTION

SUBMITTED SENATOR ROBERT MENENDEZ

Question. The Rohingya are possibly the most persecuted people in the world, and 

yet few people are aware of their plight. A Muslim minority long resident in Burma, 

they are essentially stateless, lack basic rights, and continually facing restrictions 

on work, travel, marriage, and education. In Burma, they routinely suffer forced 

labor, confiscation of property, arbitrary arrest and detention, and physical and sexual violence. Decades of exclusion and myriad humanitarian abuses against the 

Rohingya drove hundreds of thousands of them to flee their homeland to Bangladesh and other countries throughout the region. In Bangladesh, several hundred 

thousand reside in both formal camps and squalid makeshift camps. Please describe 

the current challenges facing the Rohingya population in Bangladesh, and the 

details of the Government of Bangladesh’s recent announcement of a ‘‘Rohingya 

strategy.’’ 

Unregistered Rohingyas receive very limited aid, and are subject to arrest, extortion and detention. Unregistered refugee women and girls are particularly vulnerable to sexual and physical attacks. Please describe specific actions taken by the 

USG to urge the Bangladeshi Government to register undocumented refugees and 

improve protection for all vulnerable Rohingyas. In addition, detail any efforts made 

by Bangladesh to appeal to international donors to address the issue of Rohingya 

refugees. 

♦ Please detail restrictions the Government of Bangladesh has placed on humanitarian access and provision of assistance, both by U.N. partners and NGOs, to 

registered and unregistered Rohingya refugees. 

♦ Furthermore, describe USG interbureau and interagency efforts made on the 

Rohingya issue, any efforts to seek resettlement of Rohingya refugees to third 

countries, and the Bangladesh Government’s response to resettlement efforts by 

the USG or other governments. 

♦ Please describe USG’s multilateral efforts to find a durable solution to the 

Rohingya issue. 

♦ Please detail any upcoming opportunities for the U.S. Government to engage the 

Government of Bangladesh on this issue. 

Answer. The State Department remains deeply concerned about intercommunal 

violence and tension in Burma’s Rakhine State, which we continue to monitor very 

closely. We have called on the Government of Burma to prevent the conditions that 

lead to outward migration. We have urged the authorities to take appropriate 

actions to maintain calm and restore security and stability according to international standards. We have also called on the government to hold those responsible 

for the violence fully accountable under just and transparent procedures according 

to the rule of law. President Obama requested of Burmese President Thein Sein last 

May that the Rohingya’s ‘‘rights and their dignity is recognized over the long term,’’ 

and we continue to advocate that the solution, which includes a path to citizenship, 

lies in Burma. 

As you noted, there are approximately 25,000 Rohingya refugees registered with 

the U.N. High Commissioner for Refugees (UNHCR) in two official camps, 

Kutupalong and Nayapara, in southeastern Bangladesh. However, UNHCR estimates there are an additional 5,000 to 7,000 refugees physically present in the 

camps and at least 200,000 unregistered Rohingya living in the surrounding areas 

outside of the camps. The Bangladeshi Government estimates this figure to be closer 

to 500,000. Many Rohingya face acute malnutrition and lack of access to essential 

services. The challenge is to provide humanitarian aid that matches the size of the 

population. Bangladesh only allows UNHRC to assist the 25,000 registered 

Rohingya. 

UNHCR and nongovernmental organizations continue to provide life-saving 

humanitarian assistance despite limits placed on their operations, with some modest 

success. Bangladesh has granted UNHCR permission to provide semipermanent 

housing, female police officers, a biogas plant, and 1 year of secondary education in 

the camps. 

We have stressed to the Government of Bangladesh that it should grant humanitarian status to undocumented Rohingya, allow the provision of basic services, and 

follow accepted UNHCR methods in surveying this population. Our Embassy in 

Dhaka coordinates closely with UNHCR, and following its survey will monitor the 

government’s implementation of a new five-point Rohingya strategy, which has yet 

to be announced. 

61 

The United States is the main international donor assisting Rohingya refugees. 

In FY 2013, the State Department provided over $39.2 million in humanitarian 

assistance for vulnerable Burmese, including Rohingya, in Thailand, Bangladesh, 

Burma, Malaysia, India, and elsewhere in the region. These programs provide lifesaving humanitarian assistance to Burmese internally displaced persons, refugees, 

and asylum seekers in the areas of health and medical care, nutritional services, 

water, sanitation and hygiene, and access to services for people with disabilities. We 

are in early discussions to determine the possibility of providing third-country resettlement, but remain focused on repatriating Rohingya safely to their homes in 

Burma as the best possible durable solution. 

The State Department has made the protection of Rohingya refugees a priority 

in our engagement with the Government of Bangladesh. I raised it during my visit 

to Dhaka in November, as did Senior Advisor for Burma, Judith Cefkin, in her December visit. I will discuss Rohingya during Foreign Secretary Shahidul Haque’s 

February 18–20 visit to Washington and in senior officials’ future visits to the 

region. Assistant Secretary for East Asian and Pacific Affairs Daniel Russel, Assistant Secretary for Population, Refugees, and Migration Anne Richard, and I continue 

to reinforce the importance the administration places on the conditions faced by 

Rohingya—in Burma, Bangladesh, and elsewhere in the region. 

RESPONSES OF ASSISTANT SECRETARY NISHA BISWAL TO QUESTIONS

SUBMITTED BY SENATOR EDWARD J. MARKEY

Question. In your testimony, you mentioned that Bangladeshi courts had begun 

a trial in absentia for a suspect in the murder of labor activist Aminul Islam. Can 

you provide any additional details about the trial and investigation—in particular, 

whether the government has fully and independently investigated allegations that 

Bangladeshi security forces were implicated in Islam’s murder? 

Answer. While the courts have started the trial for Mustafizur Rahman, a suspect 

in the 2012 murder of labor activist Aminul Islam, in absentia, we remain concerned 

about the investigation. The Government of Bangladesh reports that it conducted 

an investigation into allegations that Bangladeshi security forces were involved in 

Islam’s murder, but did not find sufficient evidence to bring charges against any 

security force officials. However, there are concerns that the investigation was not 

transparent and that important evidence from independent reports has not been 

addressed. The Government of Bangladesh reports that Rahman, who was the last 

person seen with Aminul Islam, fled the country. The government has taken some 

positive steps, such as offering a reward for information on his whereabouts, publishing calls for information in leading papers, and designating this case as ‘‘sensitive,’’ which requires the Ministry of Home Affairs to monitor the case regularly. 

We continue to monitor the situation carefully and push the government to carry 

out justice. 

Question. In January, Bangladeshi human rights defenders Adilur Rahman Khan 

and Nasiruddin Elan of Odhikar were criminally charged with publishing false 

information, for reporting that the government had killed 61 protesters in May 

2013. As you know, the Department of State often cites Odhikar’s reporting in its 

own reports on Bangladesh’s human rights practices, and denounced Rahman’s and 

Elan’s initial detention in August. Can you provide any comment on the ongoing 

proceedings against them? 

Answer. The Department of State, both in Washington and through our Embassy 

in Dhaka, continues to raise publicly and privately at the highest levels our concern 

about reports of ongoing harassment of Odhikar and other human rights defenders. 

We are deeply concerned by attempts to restrict operating space for Bangladesh’s 

historically vibrant civil society, including prosecutions of not only Adilur Rahman 

Khan and Nasiruddin Elan, but of other leading human rights activists under the 

Information and Communication Technology (ICT) Act. The ICT Act contains vague 

provisions that have a chilling effect on freedom of expression on Internet and social 

media platforms. This free expression is a fundamental right protected by Bangladesh’s Constitution, and the new legislation runs contrary to Bangladeshi traditions of vigorous and open debate. 

The stifling of expression, including dissent, undermines Bangladesh’s long-term 

stability, and we have urged the Government of Bangladesh to reconsider the ICT 

Act. Ambassador Mozena welcomed Mr. Khan to the Ambassador’s residence on 

October 20, 2013, upon his release from jail, and in November Mr. Khan participated in a meeting with A/S Biswal in Dhaka. Throughout the ongoing proceedings, 

62 

the Embassy has been in close personal contact with Mr. Khan, Mr. Elan, and other 

Odhikar officials, and will continue to support their right to free expression. 

RESPONSE OF HON. ELLEN TAUSCHER TO QUESTION

SUBMITTED BY SENATOR EDWARD J. MARKEY

Question. Has the Alliance for Bangladesh Worker Safety taken any position on 

whether international companies whose clothing was manufactured at Rana Plaza 

and Tazreen should compensate the families of workers who were killed in the Rana 

Plaza collapse and the Tazreen fire? Have any members of the Alliance provided 

such compensation? 

Answer. Alliance members believe we have a shared responsibility to support victims. Recent factory tragedies in Bangladesh revealed major problems and failures 

at all levels. The buildings were not safe. Workers were not heard. We have to 

ensure that does not happen again. 

This is what the Alliance is all about. We intend not only to inspect all of our 

factories and train all of our workers and management; we also intend to engage 

with workers to ensure their voice is heard. 

We are actively exploring more formal mechanisms for our members companies 

to contribute to both the ILO victims fund, as well as other humanitarian funds. 

We are also currently planning several fundraising efforts for victims—the first 

is the International Trade Expo on Building and Fire Safety, where all proceeds 

raised for the exhibition will be donated to the ILO victim’s fund. We are very proud 

of our team in Dhaka that has been leading this effort. 

RESPONSES OF HON. ELLEN TAUSCHER TO QUESTIONS

SUBMITTED BY SENATOR JAMES E. RISCH

Question. You testified about collaboration in Bangladesh between the Accord and 

the Alliance on factory standards and training. If legislation were passed favoring 

the Accord in U.S. Government procurement how would this affect collaboration? 

Answer. As noted in the Alliance testimony, we have had very good engagement 

with the Accord leadership in Europe and Dhaka. We have hundreds of factories in 

common, we have worked together and we will continue to do so. 

For example, the Alliance and Accord worked together on developing a common 

set of fire and building safety standards, and have had world-recognized experts 

prepare them. We are also in discussions with the Accord regarding the creation of 

a common inspection report as well as a similar methodology for worker involvement in the inspection and remediation process. Technical experts from the Accord 

and the Alliance recently met for an ongoing discussion pertaining to shared factories and their assessments. Finally, we are jointly hosting an International Trade 

Expo on Building and Fire Safety later this month in Dhaka. 

Given the common approach to standards, training, and worker empowerment, we 

believe that legislation favoring one approach over the other is fundamentally 

flawed and potentially detrimental to ongoing collaboration. We should be dedicating all our resources and energy to improving conditions on the ground in Bangladesh instead of creating unnecessary and arbitrary schisms in the United States. 

Question. I understand the common inspections standards between the Alliance 

and Accord exceed the standards set by the National Tripartite Committee in Bangladesh. Please explain the reasons for doing so and what are the key enhancements? 

Answer. The Alliance and Accord worked together on developing a common set of 

fire and building safety standards, and have had world-recognized experts prepare 

them. Those experts considered not only what is feasible in Bangladesh, but also 

what is necessary to be considered on par with international standards and what 

is necessary to prevent future tragedies in Bangladesh. 

In a few rare instances, the new requirements do exceed standards set by the 

National Tripartite Committee and these exceptions were thoroughly discussed with 

BUET, the BMEA, and others as to why. For example, the Alliance/Accord safety 

standards require sprinkler systems in some situations where the National Tripartite Committee in Bangladesh does not. We simply feel that given the challenges 

with the existing infrastructure and traffic situations we will not always be able to 

rely on a rapid response from first responders. We believe we need the ability to 

extinguish fires with onsite resources rather than waiting on remote resources to 

63 

arrive. Again, our deviations are limited and are based on the findings of hundreds 

of fire and safety audits already completed. 

Some of the changes required by the new standards, like sprinkler systems, for 

example, will take time and money to get fully implemented—but we are committed 

to seeing this through. 

Question. What is the volume of exports from Bangladesh for your respective 

members? 

Answer. We estimate that Alliance members account for about $4 billion of the 

nearly $19 billion in exports from Bangladesh. 

PREPARED STATEMENT OF REBA SIKDER, FORMER GARMENT WORKER AT ETHER TEX

FACTORY AT RANA PLAZA, DHAKA, BANGLADESH

(Testimony provided verbally by Reba Sikder in Bangla, then transcribed and translated into English.) 

Thank you for the opportunity to share my story. 

I am 18 years old and was born in Gopalganj, a district just south of Dhaka. My 

parents could not afford for me to attend school after third grade, so at the age of 

eight I began working as a domestic worker. In 2008, I moved to Dhaka because 

my cousin said I could earn more money there. I started working in a garment factory when I was 14 years old. In 2012, I began working as a sewing machine operator at Ether Tex, a clothing factory on the sixth floor of Rana Plaza. I earned 3,800 

taka (US$49) as a base salary and with overtime, I earned approximately 8,000 taka 

(US$103) per month. I usually worked 14 hours per day, 6 to 7 days per week. My 

regular shift was from 8 a.m. to 10 p.m. but sometimes I would work as late as 3 

a.m. if the factory was rushing to finish an order. 

On April 23, 2013, I reported to work as usual. During the day, my colleagues 

and I heard that a massive crack had appeared in one of the columns of the building. Management allowed us to leave but with the strict instruction that we must 

return to work the following morning. When I arrived at Rana Plaza on the 24th, 

I found many workers standing outside, refusing to enter the building because they 

believed it was unsafe. However, my line chief insisted that if we did not return 

to work we would not get paid our wages for the month and also would not receive 

our overtime benefits. I saw one of the production managers slap a female worker 

who refused to enter. One of the managers announced to us that the building had 

been inspected and was safe and that we needed to get to work because we had to 

meet our shipment deadline. Finally, despite our fears about the cracked column, 

my colleagues and I entered the building and began to work at our machines. Within 15 minutes, the electricity went out and the generator was switched on. Moments 

later, I heard a loud noise, like an explosion, and the building collapsed. 

In those first seconds, surrounded by the sound of the building crumbling, my colleagues and I began to run toward the stairs. Suddenly, caught on a sewing 

machine, I fell to the floor, landing on top of two male and three female colleagues. 

The two men died instantly and I passed out. When I awoke, I heard one of my 

coworkers crying for help and asking for water. I said, ‘‘I am sorry, I cannot help 

you, my foot is pinned beneath the machine.’’ Then he handed me his cell phone 

and asked me to give it to his mother. He spoke to me for a few minutes and then 

fell silent and I realized that he had died. I started screaming for help and asking 

for water because I was so thirsty. Some workers lying near me responded that they 

did not have any water. I said, ‘‘Please, whatever you have, please give it to me. 

I am so thirsty, I am dying.’’ Then one of my coworkers gave me her urine to drink. 

Finally, I was able to move the machine off of my foot and I started crawling 

toward the sound of other workers’ voices. I crawled a little further and reached a 

small opening that was created by the columns and walls that had fallen. There 

were 30 other workers in this small area. I did not know how much time had passed 

since the collapse, but one of the workers checked her cell phone and told us that 

we had been trapped for 2 days. I could not believe it. 

We began looking for a way to escape and we found another worker who was 

trapped and asking for help. We told her that we could not help her because there 

was barely enough room to move around and she said, ‘‘If you cannot help me, at 

least I can help you escape from this place because I saw many workers go this 

way,’’ and she pointed us in the direction that the other workers had gone. It was 

very dark and we had to crawl a long way. I began to cry because I thought I would 

never escape and would never see my parents again. Finally, we felt some air coming from the outside and crawled toward it. We yelled for help and about 30 minutes 

64 

later some members of the Army rescue team came and were able to get us out. 

Of the 30 workers who were trapped in that small space, only 6 of us survived. 

It was not until I was rescued that I realized that my ankle was broken and I 

began to feel tremendous pain. I was rushed to the hospital where I was able to 

contact my family. I had to have surgery on my ankle and I still bear the scars from 

the column that cut my neck. I have almost constant pain in my lower back and 

both of my ankles still hurt. I have difficulty sleeping and often experience nightmares. But what has been most debilitating is the trauma and panic I still feel, 

which has made it virtually impossible to find new work. I feel afraid just looking 

at tall buildings and I am scared to go inside. I worry there will be another collapse. 

Once I was discharged from the hospital, I went to live with my parents in their 

village in Gopalganj. Both of my parents are elderly and cannot work. After the accident, I received 30,000 taka (US$390) in compensation from Primark. When I was 

in the hospital, I was given 10,000 taka (US$129) from the Prime Minister’s fund. 

But my family and I had to use all of this money to cover our living expenses and 

now we have nothing. My younger brother, who works at a jute mill in the Khulna 

area, sends home 2,000 taka (US$25) per month to our family. We live on a small 

patch of land where we are able to grow a small amount of rice, which we must 

split with our landlord. It is extremely difficult to live off the money that my brother 

sends home every month. 

My life has been so incredibly hard in the last year and my heart breaks even 

more for all the other workers and families affected by the Rana Plaza building collapse. Because of the accident, I no longer have any hopes or dreams for the future 

like I did before. 

I would like to ask the U.S. Government to help ensure that the brands—including the American companies Children’s Place, JCPenney, Cato Fashions, and 

Walmart—that benefited from the work of my colleagues and me pay us full and 

fair compensation. Please think about the workers who have lost their limbs, their 

feet and their hands, and about the families who have lost their sons and daughters, 

wives, and husbands. Please think about their pain and how they are forced to live. 

I would also urge the U.S. Government to tell American brands to sign the Accord 

on Fire and Building Safety in Bangladesh. This is the only way to prevent future 

workers and their families from suffering the same tragedy that I have experienced. 

PREPARED STATEMENT OF BANGLADESH GARMENT MANUFACTURERS

& EXPORTERS ASSOCIATION (BGMEA) 

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) 

takes the opportunity to present its views and developments in the area of workers’ 

rights and welfare with specific regards to apparel industry of the country. 

The ready-made garment (RMG) sector of Bangladesh tells an impressive story of 

the country’s successful transition toward a major export-oriented economy. However, in order to continue prospering, in the face of recent tragic incidents that has 

caused worldwide concern, we must overcome several challenges with regards to the 

safety and social compliance practices in this industry. 

The post-Rana Plaza era has brought a new dimension toward reforming the 

ready-made garment industry in Bangladesh, not only in terms of safety, but also 

to empower the 4.4 million workers. The Government of Bangladesh, private sector 

representatives like BGMEA, buyers and international organizations like ILO, IFC 

are working hand in hand with a common objective to rebuild the industry and 

ensure safety. BGMEA is committed to ensuring that our workers have a safe place 

to work in, and enjoy at least the rights assured by our laws and codes. This submission covers updates on some of the major initiatives and developments achieved 

so far in this industry in the mentioned area. 

WORKERS’ RIGHTS

The Labor Law of Bangladesh was amended in July 2013 making the law more 

favorable toward ensuring workers’ rights, including the right to freedom of association and collective bargaining. Through this amendment the legal requirements for 

trade union formation have been made more flexible. It should be relevant to mention here that the number of trade unions at the garment factories has significantly 

been increased in recent times. Currently the total number of trade unions registered in the RMG sector is 237 of which 101 trade unions were registered from 

January 2013 to February 2014. 

Despite the fact that the labor law has been made more favorable toward workers 

resulting in a new wave of union formation, we have to also admit that we are still 

in the early stage of industrialization in the country and most of the entrepreneurs 

65 

are first generation businessmen. In addition, the lack of education, awareness on 

the principles of trade union, motivation, and cultural backwardness of the people 

are the major drawbacks to internalize the true spirit of trade unionism and enforcing proper union in Bangladesh. Against this backdrop, the surge in trade union 

formation may give birth to problems. Keeping this in mind BGMEA has taken an 

initiative to mediate and resolve the problems in a proactive manner. In this connection BGMEA has formed a new department to deal with issues related to workers’ 

rights. A Senior Additional Secretary of BGMEA is currently supervising the activities of the department and we are in a process to recruit a labor consultant on a 

permanent post. Besides, BGMEA is preparing a plan to aware and educate factory 

employees and entrepreneurs on Bangladesh Labor Act. 

To ensure the better living of the workers the Government of Bangladesh has also 

increased the minimum wages of garment workers by 77 percent with an effect from 

December 1, 2013. This may be noted that the consolidated increase in minimum 

wages for garment workers during the last 5 years has been around 219 percent. 

The owners will have difficulty in ensuring this, but are committed to delivering 

what they have agreed. 

Better Works Program has been started by the ILO at the garment factories of 

Bangladesh. BGMEA is in close touch with ILO and extending cooperation and support for smooth and successful implementation of this program. 

WORKPLACE SAFETY

BGMEA is determined to bring positive changes in the area of workplace safety. 

To ensure that we have taken a number of initiatives by ourselves, and also collaborated with the Government, brands/retailers, and ILO on several other initiatives, 

particularly—National Tripartite Plan of Action, Accord, and Alliance. We are also 

in close cooperation with the Government of Bangladesh in implementing the recommendations made by the United States in the Bangladesh action plan 2013. Yet, 

it remains a long-drawn and continuous process. However, BGMEA itself has taken 

a number of steps to address the issue of workplace safety in its member factories. 

The following instructions were given by BGMEA to member factories to comply 

with on mandatory basis: 

• Moving the generators from any level of the building to the ground floor. • Keep all the stairs free for easy and convenient entry and exit to and from the 

factory floors at all time. No goods/materials are to be kept on the stairs/ 

passage, which might cause obstruction for free movement of personnel. • Factories must keep all the gates open during working hours. • Check fire alarm and emergency lights at regular intervals. • Arrange required number of Fire Extinguisher, ensure sufficient water in 

hydrant and install hose-reel and other related equipment serviceable for use. • Factories should hold Fire Drill as per rule and keep records of all such activities. 

BGMEA itself proactively recruited a team of experts comprising 12 engineers in 

order to assess structural integrity and electrical safety of the garment factories of 

Bangladesh. Until now the BGMEA experts have inspected 920 factories. The 

inspection is still going on. 

For improving the working condition of the garment factories BGMEA launched 

a crash program. Under the crash program 14,000 mid-level factory management 

and supervisors in around 1,600 factories have so far been imparted training by 

BGMEA on fire safety measures. BGMEA has also recruited 35 fire trainers. The 

trainers who are ex-officials of Bangladesh Fire Defense Service, Air Force or Bangladesh Navy have undergone high-skill 1-month Training of Trainers (Tot) course 

on fire prevention, fire extinction, safe evacuation, search, rescue and first aid in 

October 2013. The trainers are now conducting safety courses at the member factories of BGMEA. 

CONCLUSION

Bangladesh is one of the least developed countries with limited resources. The 

growth of RMG industry in the country has significantly contributed to women 

empowerment, poverty alleviation and overall socioeconomic progress. It is true that 

the RMG sector of Bangladesh has witnessed a few unfortunate incidents, but we 

have learnt lessons from them and trying our best to adapt to the globally accepted 

standards to avoid further mishaps. However, we cannot do it all at once; it requires 

some more time for the development process to take firm roots. We have already 

acted on many issues and prompted quite a few initiatives as mentioned above. We 

believe that our trade partners will not take any steps that instead of establishing 

a semblance of order may impede our progress. We believe our positive attitude to 

66 

1See 19 U.S.C. § 2462 for more information on the Generalized System of Preferences. 

2The original filing can be found in the online Docket No. USTR–2012–0036, at http:// 

www.regulations.gov/#!docketDetail;D=USTR-2012-0036. 

correct the incorrect and adopt the best are our strength. We are progressing everyday and what we need most to continue our march forward is the friendly support. 

PREPARED STATEMENT OF THE AFL–CIO 

The AFL–CIO is pleased to submit testimony for the record on the status of labor 

rights in Bangladesh with particular reference to labor rights practices in the country’s Ready Made Garment Industry and in its Export Processing Zones where the 

production of garments dominates. This testimony will also briefly comment on the 

status of labor rights in the Shrimp Processing Sector. 

The AFL–CIO commends the committee and in particular, Chairman Senator 

Menendez, for conducting sustained oversight of the Government of Bangladesh’s 

willingness to follow through on its promises to bring its labor law in compliance 

with international standards and to enforce current labor and occupational and 

safety laws related to the garment sector. The AFL–CIO wishes to recognize the 

committee’s efforts to focus the Obama administration’s attention of the wide-range 

of labor rights abuses that surround garment production in Bangladesh. Moreover, 

the AFL–CIO believes that the work of the committee has been helpful in expanding 

the space for workers to exercise their right to associate in unions that have the 

potential to help avoid the appalling workplace tragedies that led to the deaths of 

over 1,200 workers in just the last 2 years. 

For nearly 30 years, the AFL–CIO has sought to promote worker rights in Bangladesh and has worked closely with the Solidarity Center, which provides a wide 

range of technical assistance to garment worker unions, labor rights activists, legal 

aid lawyers and labor support organizations. The goal of these efforts has been to 

ensure that Bangladesh complies with International Labor Rights conventions and 

standards. 

Given Bangladesh’s poor record of compliance, the AFL–CIO has filed a series of 

labor rights petitions under the statute governing the Generalized System of Preferences (GSP) that would remove such preferences from a beneficiary country if it 

fails to take steps to enforce core International Labor Rights Conventions.1

On June 27, 2013, the United States Trade Representative (USTR) announced 

that it was suspending GSP benefits on products imported into the United States 

from Bangladesh (Docket No. USTR–2012–0036). On July 19, 2013, the USTR publicized its ‘‘Bangladesh Action Plan 2013,’’(Action Plan) outlining ‘‘significant 

actions’’ the Government of Bangladesh (GOB) was encouraged to take to provide 

a basis for reinstating GSP benefits. 

This testimony briefly enumerates and expands upon the AFL–CIO’s observations 

and comments provided to the Office of the United States Trade Representative 

(USTR) on November 15, 2013, on the actions taken by the GOB toward the goals 

set forth in the action plan.2 The AFL–CIO believes that the GOB has only begun 

to implement a few of the actions spelled out in the action plan. 

Set forth below is the AFL–CIO’s list of actions in the action plan which, to our 

knowledge, have not been acted upon at all. To date, the AFL–CIO has not observed 

evidence demonstrating that the GOB has taken any action or significant action in 

the following areas: 

Enforcement of labor laws— 

• Passing new labor law amendments that address key concerns related to freedom of association and collective bargaining (while amendments have been 

passed, the changes were inadequate to resolve the problems and in several 

areas created new problems). 

• Increasing fines for labor law infractions. 

• Levying of fines. 

• Removing licenses to export from offending companies. 

• Establishing a public database to track inspections or enforcement actions. 

Efforts to promote freedom of association (FOA) in the ready-made garment 

(RMG) sector— 

• Effectively protect union officers and activists in new unions. 

• Publicly report on the number of new unions and collective bargaining agreements. 

• Conduct a credible investigation of the death of Aminul Islam. 

67 

3 Additional information regarding labor inspections, union registration, anti-union discrimination, and related issues are included in appendices to this letter. 

• On the public database, also report on union discrimination and other unfair 

labor practice complaints, their status, and fines and sanctions levied. 

• Train industrial police on labor law to prevent intimidation. 

Export Processing Zones (EPZs)— 

• Issue interim regulations to ensure transparency, prevent anti-union discrimination and blacklisting. 

• Begin process of bringing EPZ law into compliance with ILO standards. 

• Establish interim regulations that provide an inspection regime similar to the 

RMG sector. 

Shrimp processing sector— 

• Publicly report on status of anti-union discrimination cases, remediation and 

fines. 

Set forth below is a list of obligations on which some partial actions appear to 

have been taken by the GOB: 

• Some labor inspectors are being identified and trained, but nowhere near the 

number promised by the GOB. 

• There is some progress toward addressing building and fire safety, but as yet 

there is no independent verification of how many factories have been closed, 

relocated or improved. 

• Registration of an increased number of unions has occurred (see Appendix 1) 

but not all of these are independent, worker-led unions, and there has been significant employer retaliation and discrimination, which has not been sanctioned 

or remediated (see Appendix 2). 

• The Bangladesh Center for Worker Solidarity (BCWS) has had its registration 

restored, but the Social Activities for Environment (SAFE) organization, which 

works in the Shrimp Processing Sector, still does not have permission from the 

Government’s NGO bureau to receive foreign funding. 

• The AFL–CIO is pleased that all but one case has been dropped by the Government against BCWS activists. However, we are concerned about efforts by the 

GOB to paper over the murder of labor activist Aminul Islam by announcing 

the trial in absentia of one individual, given that there is evidence indicating 

a conspiracy that does not appear to have been thoroughly investigated. 

• There is some evidence that the GOB is discussing a tripartite agreement on 

freedom of association in the shrimp industry. Nonetheless, workers in that 

industry still lack union representation, there are widespread labor standards 

violations, and the rights of contract workers are abused.3

Finally, the AFL–CIO notes the following additional concerns: 

Minimum Wage Implementation 

While the AFL–CIO welcomed a long overdue increase in the minimum wage for 

garment workers, we have received reports that employers are demoting workers to 

lower paying classifications so that they do not pay the higher wage set for each 

classification. In addition, in some cases, employers are significantly raising production quotas to cut labor costs. If workers cannot meet the higher quotas, managers 

then force unpaid overtime work, or suspend a few workers without pay as a means 

to intimidate other workers into achieving the higher rate of production. 

ATMOSPHERE OF INTIMIDATION

Intimidation of workers or those who would assist them remains a recurring problem in Bangladesh’s Ready Made Garment Industry and Export Processing Zones. 

For example, over the past several months, the AFL–CIO has received information 

that local police, under the direction of employers, are intimidating union organizers 

including by using short-term detentions. In the Export Processing Zones, workers 

have recently reported that leaders of Worker Welfare Associations (proto-unions) 

are not allowed to openly communicate with each other. Within individual factories, 

workers fear that they will be fired or suspended for even the most minor offenses. 

‘‘Counselors’’ who work for the Zone authority and whose job it is to solve workplace 

disputes are viewed by workers as agents of management, and have threatened 

workers who raise issues regarding management abuses. Beyond these problems 

faced by workers, government security personnel have surveiled the Solidarity Center and have questioned visitors and staff about the Center’s activities. 

68 

The Role of the Brands 

The AFL–CIO welcomes statements by foreign businesses and the two associations that they have formed to improve safety standards in the Bangladesh garment 

industry. There is agreement by the Accord and the Alliance that empowered workers are the ultimate guarantors of a safe workplace because they have the ability 

to withdraw from work in a way that allows individual workers protection that they 

would not have otherwise. However, only the Accord has integrated unions and 

NGOs into its governance structure. The Alliance says that it wants to cooperate 

with unions, but it is unclear what this means in practice. In the meantime, the 

members of both associations need to support nascent unions who are struggling to 

function following their successful registration. Such support, which involves 

demands that employers negotiate with unions and comply with government directives to rehire union leaders and activists, will be the true test the Brands’ commitment to safer workplaces. 

Coordination Among Foreign Governments 

The AFL–CIO is pleased to see the U.S. Embassy taking the lead in promoting 

coordination with the European Union, key European donor governments, governments in other countries and the International Labor Organization. It is vitally 

important that these governments give a consistent and clear message of their commitment to workers’ safety and to the enforcement of core labor standards. The 

European Union through carefully modulated statements must use the conditionality under its Generalized System of Preferences to nudge the Bangladeshi Government forward. It is also important that these governments closely consult unions 

and NGOs in their own countries as they develop policy in the future. 

At your direction, we would be pleased to provide the committee with any followup information. 

[EDITOR’S NOTE.—Appendix 1 and Appendix 2 submitted as an attachment to AFL– 

CIO’s prepared statement were too voluminous to include in the printed hearing. 

They will be maintained in the permanent record of the committee.] 

PREPARED STATEMENT OF THE INTERNATIONAL LABOR RIGHTS FORUM

I. INTRODUCTION

Chairman Menendez and Ranking Member Corker, thank you for the opportunity 

to submit written testimony on the ‘‘Prospects for Democratic Reconciliation and 

Improving Workers’ Rights in Bangladesh.’’ 

The International Labor Rights Forum (ILRF) is a human rights advocacy organization dedicated to achieving dignity and justice for workers worldwide. Founded in 

1986 and based in Washington DC, ILRF works with trade unions and communitybased labor rights advocates to expose violations of workers’ rights, including child 

and forced labor, discrimination, and violations of workers’ rights to organize and 

bargain collectively. Our field research helps to build and promote worker-driven 

organizations and solutions. We develop, propose, test, and assess government and 

corporate policies to ensure that global trade, procurement, and development practices support workers’ rights. 

ILRF has worked closely with labor unions and labor rights NGOs in Bangladesh 

for many years to research and report on safety and labor rights violations in the 

garment sector, and to advocate for corporate and governmental policies that 

strengthen workers’ own capacity to demand safe and decent working conditions. 

II. BACKGROUND: WORKERS HAVE NO VOICE TO DEMAND CHANGE

As is by now commonly recognized, the infrastructure problems in Bangladeshi 

garment factories are daunting. The Bangladesh Institute of Architects estimates 

that as many as 50 percent of Bangladesh’s factories may be unsafe.1 Buildings 

need to be repaired. Engineers and fire safety inspectors are sorely needed. After 

many years of social auditing without addressing fire and building safety, apparel 

retailers, and brands are finally acknowledging this problem. We would like to focus 

on a problem that is just as serious but as yet not fully acknowledged by industry 

and the Bangladeshi Government: the fact that workers—who are best placed to 

monitor workplace hazards—still do not have adequate capacity to report on safety 

and labor violations and to demand change. 

Workers Without a Voice are Killed in Fires and Building Collapses 

Since 2005, more than 1,800 workers have been killed in dozens of factory fires, 

building collapses, and other deadly garment factory incidents in Bangladesh. In 

69 

case after case, workers interviewed after the tragedies reported that they found 

exits locked or blocked and managers refusing to heed their concerns. Workers 

smelled smoke, but were told to continue working only to be killed in fires. They 

observed cracks in the walls but were threatened to report to work or lose their 

meager wages, only to be crushed under collapsing buildings. They consistently 

reported that raising safety concerns with managers or joining with other workers 

to address the problems could be a punishable offense that would get them fired. 

A few examples will help to illustrate the connection between unsafe workplaces 

and the suppression of workers’ voices. 

In April 2005, workers at the Spectrum factory reported a crack in the ceiling to 

management. They were told to keep quiet lest they would worry their coworkers 

and to return to work. Five days later the factory collapsed, killing 64 workers. 

There was no union or health and safety committee that could insist that management listen to the workers’ concerns.2

On November 24, 2012, workers at the Tazreen Fashions factory discovered 

smoke. A worker yelled, ‘‘There’s a fire in the factory!’’ Workers rushed for the door, 

but managers, worried about meeting production goals, ordered the workers to continue working. ‘‘There is no fire! It is a lie!’’ they yelled at the workers and locked 

the door. One hundred twelve workers were killed in the fire. These workers could 

not demand safe working conditions, because they had no voice and no union representation.3

On April 23, 2013, workers in the factories of the Rana Plaza building noticed 

cracks in the building. Managers in a bank and small shops that occupied the first 

and second floor of the building also noticed the cracks, closed shop, and told their 

employees to stay home the following day. But the garment factories ordered their 

workers to return to work on April 24, threatening the loss of 1 month’s pay if they 

did not comply. At least 1,135 workers were crushed to death under the collapsing 

building. The vast majority of these workers had no union representation and no 

voice to demand their rights or to refuse dangerous work. 

Bangladeshi garment workers have been killed in factory fires and other deadly 

incidents for decades, with few people paying attention. The first recorded garment 

factory fire occurred on December 27, 1990, at Saraka Garments in the capital 

Dhaka. At least 32 workers died and more than 100 workers were injured.4 Between 

the Tazreen Fashions fire in November 2012 and January 2014, at least 26 workers 

have been killed and nearly 823 workers injured in 57 factory fires.5 During that 

period there has been on average one factory fire a week in Bangladesh, with an 

average of two workers injured or killed per day due to factory fires. These figures 

do not take into account the Tazreen Fashions and Rana Plaza tragedies, but only 

the everyday fires and ordinary deaths and injuries that do not make mainstream 

news because they appear not to reach catastrophic proportions. Workers continue 

to lose their lives, quietly, with few people paying attention because they still have 

no effective voice to demand change. 

Repression of Worker Organizing 

As the examples above indicate, unsafe working conditions are integrally linked 

to the systemic violations of workers’ rights to organize and bargain collectively for 

safe conditions—to have a voice at work. Although the government has recently registered new unions in the garment sector, several problems remain. 

In April 2012 Aminul Islam, a worker organizer with the Bangladesh Garment 

and Industrial Workers’ Federation (BGIWF), was tortured and murdered.6 The circumstances suggest government security forces murdered Mr. Islam in retaliation 

for his labor rights work in the garment industry.7 To date, nobody has been held 

responsible for this crime; a message not lost on workers. 

The government has allowed unsubstantiated criminal charges against worker 

organizers to linger for years. For example, leaders of the Bangladesh Center for 

Worker Solidarity, Bangladesh Garments & Industrial Workers Federation, the Garments Trade Union Center, the Bangladesh Textile-Garments Workers Federation, 

the Sadhin Bangla Garments Workers Federation, the Jago Bangla Garments Federation, the Garments Workers Forum, and the Bangladesh Garments and Shilpo 

Sromik Federation, as well as dozens of workers were until recently charged with 

a number of unsubstantiated criminal offenses and faced trial in several cases connected to garment worker demonstrations for a decent wage in July and August 

2010.8 Some of these worker leaders faced 10 separate charges and were required 

to report to court one out of three workdays for 3 full years, severely impeding their 

work to protect labor rights. The government only recently dropped most of these 

charges, and only after significant pressure from the U.S. Government and international rights organizations. Some union leaders from the Bangladesh Garments 

and Industrial Workers Federation (BGIWF) and Bangladesh Independent Garment 

70 

Workers Union Federation (BIGUF) continue to face unsubstantiated criminal 

charges. 

At the same time, the authorities continued surveillance of a lengthy list of labor 

rights advocates.9 In November 2013, the Dhaka press reported that two workers 

were killed during a protest for wage increases.10

III. PROSPECT FOR IMPROVING WORKER RIGHTS: THE ACCORD ON FIRE

AND BUILDING SAFETY IN BANGLADESH

After decades of garment workers being ignored, silenced, and marginalized it is 

clear that the only meaningful corporate social responsibility policy is one that puts 

workers’ interests in the center of health and safety reforms, strengthens workers’ 

voices to negotiate safe and decent working conditions through legally established 

unions, and, as a last resort, gives workers the right to refuse dangerous work. 

Unions are vital to workers’ safety for three core reasons: 

1. Trade unions have historically played a pivotal role in driving the development and enforcement of occupational safety and health regulations in many 

countries; 

2. Well-informed trade union leaders can provide an important counter balance to outside business pressures to lower cost and compliance levels by ensuring that safety measures are fully incorporated into the costs of doing business; 

and 

3. Respect shown by government and employer representatives to trade union 

demands provide an important signal to workers and managers alike that the 

workers are vital to improving the industry. 

Today in Bangladesh, there is one established worker safety program that 

strengthens workers’ voices and strives to balance the relation between workers and 

management by including an equal number of union and company representatives 

in its governance structure and involving unions in its implementation. That program is the Accord on Fire and Building Safety in Bangladesh, which at the time 

of writing includes 151 private-sector brands and retailers. 

The Accord on Fire and Building Safety in Bangladesh involves unions both in 

the governance and implementation of the program. The Accord’s executive committee includes an equal number of representatives of trade unions and companies. 

The Accord’s training teams also include trade union representatives to educate 

workers about their rights, including the right to refuse dangerous work. As a signatory to the Accord, trade unions can initiate binding arbitration against another signatory to compel it to comply with the terms of the agreement. By fostering a more 

equal relationship between companies and unions, the Accord helps to address 

workers’ fear about speaking up to defend their safety and their rights.11 The 

Accord model of social compliance should be strengthened in Bangladesh and replicated elsewhere. 

IV. RECOMMENDATIONS FOR THE U.S. GOVERNMENT

Continue to Use GSP as a Lever for Labor Rights Compliance 

The months leading up to the GSP review for Bangladesh in May 2014 are critical 

for the U.S. Government to insist on full respect for freedom of association and other 

labor rights for garment workers in Bangladesh. In July 2013, the U.S. Government 

suspended Bangladesh’s tariff benefits under the Generalized System of Preferences 

program (GSP) citing its repeated failure to improve worker safety and labor 

rights.12 Bangladesh should not receive trade benefits under the GSP program without implementing the GSP Action Plan. Among other steps, the Bangladeshi Government must: 

• Advance a transparent investigation into the murder of Aminul Islam and publicly report on the findings of this investigation. 

• Ensure full freedom of association in the Export Processing Zones. 

• Continue to register unions expeditiously when they present applications that 

meet administrative requirements, and ensure the unions can negotiate collective bargaining agreements in which workers are afforded benefits beyond the 

minimum levels guaranteed by law. 

• Publicly report on unfair labor practice complaints received and labor inspections completed. 

• Ensure full compliance with the new 5,300 taka per month (US$ 68) minimum 

wage law of December 2013. 

71 

Urge U.S. Apparel Brands and Retailers to Pay Compensation to Workers and Join 

the Bangladesh Safety Accord 

The U.S. Government has a duty to protect human rights by working proactively 

to ensure that U.S. multinational enterprises identify, prevent and mitigate actual 

and potential human rights violations in their operations and supply chains. In this 

case, this means that the U.S. Government should insist U.S. apparel brands and 

retailers mitigate the harms both to the workers who have been injured in factory 

fires and building collapses and to the families of workers who have been killed in 

factory fires and building collapses associated with the supply chains of the brands 

and retailers. 

Unfortunately, as of yet, none of the U.S. brands and retailers whose products 

were made at Rana Plaza, Tazreen, or Aswad have paid the compensation that they 

owe to the survivors and families who lost loved ones. The U.S. Government should 

call on these companies to immediately pay the compensation they owe.13

In addition, the U.S. Government should ensure that apparel brands and retailers 

identify and prevent human rights violations in their Bangladeshi supply chains. 

The Bangladesh Safety Accord provides a good model for the apparel industry to 

meet their human rights due diligence responsibilities in this regard. The U.S. Government should explicitly urge companies to join the Accord. 

Set a Positive Example through the Government’s Own Procurement 

Marine Corps licensed apparel was found in the rubble of the Tazreen Fashions 

factory, where 112 workers were killed in November 2012. However, in November 

2013 the Marine Corps Trade Mark and Licensing Office adopted a licensing policy 

that requires a licensee that provides garments from Bangladesh to certify that: ‘‘it 

has become a signatory of or otherwise complies with applicable requirements set 

forth in the Accord on Fire and Building Safety in Bangladesh.’’ 14 In the Defense 

Appropriations Act of 2014 the U.S. Congress praised the Marine Corps Trade Mark 

and Licensing Office for adopting the Accord standard, and urged the rest of the 

Armed Forces to do the same.15

The U.S. Government has a singular opportunity to promote the Accord standard 

through its own procurement. The government buys more than $1.5 billion of 

clothes from overseas factories,16 most of it through the U.S. military exchanges. 

The Department of Defense requires the exchanges to assure that private-label merchandise is not produced with forced or child labor. The exchanges have adopted 

supplier codes of conduct, addressing child labor, forced labor, working hours, compensation and benefits, disciplinary practices, freedom of association, the right to 

collective bargaining, discrimination, and health and safety.17

However, a new ILRF report 18 shows that the military exchanges are buying 

clothing from unsafe and abusive factories in Bangladesh without investigating the 

working conditions. In relying on factories’ own unverified claims of compliance with 

labor law or the audits of companies such as Walmart and Sears—audits that have 

persistently failed to protect workers from fires and building collapses—the 

exchanges are, in effect, ‘‘flying blind’’ the report argues. 

This recklessness toward working conditions in their supply chains first came to 

light when Marine Corps licensed apparel was found in the rubble of the Tazreen 

Fashions factory. 

The military exchanges should no longer outsource social responsibility to the private sector, but take responsibility for safe and decent working conditions in their 

supply chains. By working with members of the Bangladesh Safety Accord they can 

maximize their impact, and ensure that workers themselves have an effective voice 

in their workplaces. 

With the Marine Corps licensing policy as a model, the military exchanges should: 

1. Join the Accord on Fire and Building Safety in Bangladesh or fully abide by 

its requirements. 

2. Require licensees that use Bangladeshi suppliers to join the Accord. 

3. Require vendors that supply products from Bangladesh to join the Accord. 

The military exchanges should also work collaboratively with other federal agencies to extend the Accord model to address compliance requirements beyond fire and 

building safety in Bangladesh and other supplier countries. In this respect, the 

administration and Congress can provide support and guidance. In particular, the 

White House can set up a system of interagency coordination and collaboration 

among the military exchanges and other government agencies that purchase apparel 

internationally. A collaborative interagency body that pools information and 

resources can assist the military exchanges and other government agencies and 

entities to conduct their own coordinated supply chain investigations and remediation activities in Bangladesh and elsewhere. It can also help to develop and proVerDate Nov 24 2008 10:29 Mar 17, 2015 Jkt 000000 PO 00000 Frm 00075 Fmt 6633 Sfmt 6621 S:\FULL COMMITTEE\HEARING FILES\113TH CONGRESS, 2ND SESSION\2014 ISSUE TE
72 

mote best practices in procurement and human rights, and provide training and 

other support to contracting officers. A standardized approach on safety and labor 

rights compliance across government would benefit contractors, licensees, and suppliers, and would provide far greater efficiency than separate agency approaches or 

outsourced social responsibility. 

V. CONCLUSION

The continued repression of worker organizing and worker voices in Bangladesh 

is integrally linked to unsafe workplaces in Bangladesh. The most promising worker 

safety program in Bangladesh is the Accord on Fire and Building Safety, in part 

because it involves trade unions in both governance and program implementation, 

helping to balance the relation between management and workers. The U.S. Government should continue to insist on strict labor-rights compliance criteria for Bangladesh to receive GSP benefits, consistent with the GSP Action Plan. The government should protect against potential human rights abuses by U.S. apparel brands 

and retailers by urging them to join the Bangladesh Safety Accord. In addition, the 

U.S. Government should set a positive example with the procurement of its own 

retailers, operated by the U.S. military exchanges. Following a new Marine Corps 

licensing policy, the exchanges should join the Accord, or fully implement its requirements, and require licensee and vendors that supply goods made in Bangladesh to do the same. 

Thank you for the opportunity to submit this testimony. 

———————— 

End Notes 1 Nessman, Ravi, ‘‘More Bangladesh Factories Dangerous,’’ AP, 13 June 2013, http:// 

news.yahoo.com/ap-exclusive-more-bangladesh-factories-004057310.html (accessed 22 January 

2014). 2Maher, Sam. ‘‘Hazardous Workplaces: Making the Bangladesh Garment Industry Safe.’’ 

Clean Clothes Campaign: 2012. 3 ‘‘Survivor of Bangladesh’s Tazreen Factory Fire Urges U.S. Retailers to Stop Blocking Worker Safety,’’ Democracy Now, 25 April 2013, http://www.democracynow.org/2013/4/25/survivorloflbangladeshsltazreenlfactorylfire (accessed 22 January 2014); Eidelson, Josh, ‘‘‘I 

Jumped to Save My Body,’’’ The Nation, 18 April 2013, http://www.thenation.com/blog/173921/ 

i-jumped-save-my-body-walmart-slammed-over-nicaragua-stabbings-and-bangladesh-fire# 

(accessed 22 January 2014). 4See, for example, ‘‘Major RMG Fires Since ’90,’’ The Daily Star, February 27, 2010, available 

at http://www.thedailystar.net/newDesign/news-details.php?nid=128066 (accessed December 2, 

2012). 5The American Center for International Labor Solidarity, Bangladesh office, uses local media 

reports and worker interviews to maintain the figures on garment factory fire incidents in Bangladesh. 6See, ‘‘Labour leader, Aminul Islam, was allegedly killed after being abducted by the law enforces,’’ Odhikar fact-finding report, on file with International Labor Rights Forum. 7This is not just the judgment of former colleagues of Mr. Islam and his family. In the letter 

to Prime Minister Hasina, 11 industry associations from Europe and North America express 

concern that ‘‘the apparent circumstances leading up to and surrounding Mr. Islam’s death could 

be perceived to be part of a deliberate campaign to repress efforts to raise and address issues 

related to unsatisfactory working conditions in the RMG sector.’’ See ‘‘A Chronology of the Investigation of the Murder of Labor Activist Aminul Islam,’’ International Labor Rights Forum, 6 

August 2012, http://www.laborrights.org/creating-a-sweatfree-world/sweatshops/partner-spotlight-bangladesh-center-for-worker-solidarity/reso. 8 ‘‘Enemies of the Nation or Human Rights Defenders, ‘‘International Labor Rights Forum, 

http://laborrights.org/creating-a-sweatfree-world/resources/enemies-of-the-nation-or-humanrights-defenders-fighting-povert. 9 Islam, Rabiul and Khan, Mohammad Jamil, ‘‘Lawmen Identify ‘Instigators,’ ’’ Dhaka Tribune, 

20 November 2013, http://www.dhakatribune.com/labour/2013/nov/20/lawmen-identify-%E2%80 

%98instigators%E2%80%99 (accessed February 3, 2014). 10 Islam, Rabiul, Ibid. 11 ‘‘Accord on Fire and Building Safety in Bangladesh,’’ 13 May 2013, http://www. 

bangladeshaccord.org/wp-content/uploads/2013/10/thelaccord.pdf (accessed 5 February 2014). 12 United States Department of Labor, ‘‘Statement by the U.S. Government on Labor Rights 

and Factory Safety in Bangladesh,’’ 19 July 2013, http://www.dol.gov/opa/media/press/ilab/ 

ILAB20131494.htm (accessed 22 January 2014). 13The U.S. companies that owe compensation for Rana Plaza (building collapse of April 24, 

2013, that killed at least 1,135 workers and injured an estimated 2,500) are Cato Fashions, 

Children’s Place, JCPenney, and Walmart. The U.S. companies that owe compensation for 

Tazreen (factory fire of November 24, 2012, that killed at least 112 workers and injured 150) 

are Delta Apparel, Dickies, Disney, Sears, Sean John Apparel, and Walmart. The U.S. Companies that owe compensation for Aswad (factory fire of October 8, 2013) are Gap Inc and 

Walmart. Information on the Rana Plaza Arrangement on compensation is available at http:// 

www.ranaplaza-arrangement.org/ 14Greenhouse, Steven, ′′Marines Toughen Rules for Makers of Licensed Garments,′′ The New 

York Times, November 22, 2013. 

73 

15 United States Defense Appropriations Act, 2014, http://www.gpo.gov/fdsys/pkg/CREC-2014- 

01-15/html/CREC-2014-01-15-pt2-PgH475-2.htm (accessed 6 February 2014). 16 Urbina, Ian, ′′U.S. Flouts Its Own Advice in Procuring Overseas Clothing,′′ The New York 

Times, 22 December 2013, http://www.nytimes.com/2013/12/23/world/americas/buying-overseasclothing-us-flouts-its-own-advice.html?lr=0 (accessed 22 January 2014). 17 ′′The Social Responsibility policy of the Army & Air Force Exchange Service (The Exchange), 

Navy Exchange Service Command (NEXCOM) and Marine Corps Exchange (MCX),′′ http:// 

www.shopmyexchange.com/DoingBusiness/QualityAssurance/ (accessed 22 January 2014). 18Please contact bjorn@ilrf.org to receive a copy of the report. 

PREPARED STATEMENT OF THE CENTER FOR BUSINESS AND HUMAN RIGHTS, NEW

YORK UNIVERSITY STERN SCHOOL OF BUSINESS

More than 1,800 people have died in Bangladeshi factories in the last 24 months, 

victims of tragic factory fires and a building collapse that ranks as one of the largest 

industrial accidents in modern history. In the context of an acute lack of government oversight, poor infrastructure, and loose sourcing relationships, the risk of 

further deadly industrial accidents remains high unless serious reform is undertaken to address these chronic problems. We commend the Committee on Foreign 

Relations for convening this timely and important hearing to examine the role of 

the U.S. Government and American and European brands in enhancing workplace 

safety and workers’ rights in the supply chain. 

American consumers and companies have played an important role in the growth 

of the garment industry in Bangladesh. Employers in the garment sector that supply American brands and retailers have created millions of jobs that provide a path 

out of extreme poverty for many young Bangladeshis, especially rural women 

Apparel now represents 80 percent of the country’s export economy. 

But the work environment in the garment industry in Bangladesh is dire. Industrial accidents happen at an alarming rate, demonstrating a deep breakdown in the 

way the supply chain operates. Fundamental reform is needed in three key areas: 

the sourcing strategies of global brands and retailers, oversight of the garment sector by the government of Bangladesh, and investments in development to address 

infrastructure failings that contribute to the cycle of factory disasters. 

The committee’s hearing examines efforts to address shortcomings in workplace 

safety and respect for workers’ rights in Bangladesh by the U.S. Government and 

two separate private initiatives on the part of multinational brands, as well as local 

unions. Over the last year, the Center for Business and Human Rights at New York 

University Stern School of Business has studied these efforts, including through two 

research missions to Bangladesh and a meeting convened at NYU Stern that 

brought together major players in the garment sector. Our conclusion is that 

reforms proposed to improve working conditions in the last year are not sufficient 

to bring about fundamental change in the supply chain. There is an urgent need 

to identify and address underlying causes of industrial accidents and to chart a 

practical and achievable way forward for the garment sector in Bangladesh. 

CONTEXT

The premise of globalization and global supply chains is that they benefit people 

in developed and developing countries. Consumers in the United States and other 

developed countries have wide access to affordable products, while workers in places 

like Bangladesh are lifted out of extreme poverty and their countries become more 

prosperous and stable partners. The tragedies that have unfolded in Bangladesh in 

the last year are a stark illustration that deep reform is needed to make this equation add up. 

Bangladesh is by no means the only country that has capitalized on a large labor 

force and low production costs to build an export economy centered on apparel 

exports. China, Vietnam, Indonesia, Honduras, Cambodia, Mexico, and India all 

have followed similar strategies. But Bangladesh is unusual in its production volumes (it follows only China and Vietnam in U.S. apparel imports) and the outsized 

role garments play in its export economy, coupled with the country’s exceptionally 

weak governance. 

Bangladesh ranks at or near the bottom among the 97 countries measured in the 

World Justice Project’s annual Rule of Law Index, across all measures of good governance. It ranks 97th in civil justice, 90th in regulatory enforcement, and 89th in 

absence of corruption. In these areas, it joins Liberia, Cameroon, Cambodia, Sierra 

Leone, Venezuela, Zimbabwe, Ethiopia, and Pakistan. In short, the government 

lacks the political will, technical capacity, and resources necessary to protect the 

basic rights of its own workers. 

74 

INITIAL STEPS TOWARD DEEPER REFORM

Some important steps have been taken in the last year which begin to lay the 

groundwork for deeper reform. In June 2013, the Obama administration suspended 

Bangladesh’s participation in the Generalized System of Preferences (GSP) program, 

which gives preferential trade status to least developed countries. While the GSP 

program does not include apparel exports from Bangladesh, it sent an important 

signal that the United States considers a lack of respect for worker safety and workers’ rights to be a serious diplomatic issue. As Senator Levin and Congressman Miller said at the time, ‘‘this decision sends a strong message that Bangladesh must 

take serious and concrete action to improve the situation on the ground.’’ 

The Government of Bangladesh complained bitterly about the decision, despite 

the fact that it affects only 1 percent of Bangladesh’s exports to the United States. 

In their statement, Senator Levin and Congressman Miller also expressed an expectation that the ‘‘decision will be viewed with interest by others considering similar 

action, such as the European Union.’’ The European Union’s GSP program includes 

garments for Bangladesh; suspension would represent a serious economic blow, 

though it has not indicated whether it will consider such a move. 

Second, two important private initiatives have been formed around the issue of 

fire and building safety, each bringing together separate groups of global apparel 

brands and retailers, the Accord on Fire and Building Safety (‘‘Accord’’) and the Alliance for Bangladesh Worker Safety (‘‘Alliance’’). Both aim to improve factory safety 

through three-part programs that include factory inspections, worker trainings, and 

the provision of resources to make factory improvements over a 5-year period. 

Considerable attention and energy has been devoted to parsing differences 

between these two initiatives, including in the context of this committee’s hearing. 

One important difference is the participation of global and local unions in the 

Accord. The Accord also imposes stricter requirements for global retailers in providing mandatory funding for remediation, whereas the Alliance makes contributions for remediation voluntary. But our analysis of the Accord and the Alliance 

(Appendix 1) concludes that the similarities outweigh the differences. Both bring 

together large groups of companies operating in the same sector to conduct specific 

activities centered on fire and building safety in a coordinated and accountable manner. It is a very positive development that more than 150 American and European 

companies are working together on these issues and embracing common standards 

for implementation, but more needs to be done. 

On a parallel track, the Government of Bangladesh has initiated its own 

‘‘National Tripartite Plan of Action on Fire Safety in the RMG Sector.’’ The plan 

identifies many of the issues that are relevant for transforming the garment sector, 

including setting up a transparent and accountable system for subcontracting. But 

the plan includes an overly ambitious timeline, and deadlines have passed for the 

majority of the 21 actions steps. Especially in Bangladesh’s turbulent political and 

electoral climate, it seems unlikely that there will be either sufficient political will 

or government resources to implement the plan’s complex administrative and programmatic activities. 

BUSINESS AS USUAL IS NOT AN OPTION

‘‘Business as usual is not an option’’ was a common refrain in the immediate 

aftermath of Rana Plaza. But since last April, little has changed in the way business operates. Professor Richard Locke, now of Brown University, has conducted 

extensive research on systems to improve working conditions in the manufacturing 

sector. His recent book, ‘‘The Promise and Limits of Private Power: Promoting Labor 

Standards in a Global Economy’’ (Cambridge 2013), concludes that the two most 

important factors for improving working conditions are long-term, trust-based business relationships between buyers and suppliers, and a strong rule of law. 

Locke also concludes that systems based on labor inspections by multinational 

brands that are conducted independently of any sourcing incentives or disincentives 

are largely ineffective in achieving better working conditions. Many apparel brands 

initiated this kind of private compliance model in the late 1990s, and Locke’s conclusion resonates among people who struggled to make improvements under this 

model. 

Since they both launched last year, it appears that the Accord and the Alliance 

are doubling down on the private compliance model and are investing heavily in the 

same regime of inspections and remediation plans that have constituted conventional wisdom in the apparel sector for the last 15 years. Both initiatives are in the 

early stages of development and there is room for both to innovate and expand their 

scope. For now, while the Accord and the Alliance should be commended for bringing together more than 150 global companies to collectively address factory safety 

75 

and for increasing accountability to outside stakeholders, neither agreement goes far 

enough. 

The collapse of Rana Plaza last April was the most deadly industrial accident ever 

to occur in the global apparel industry. Yet it is not at all clear that the deaths of 

more than 1,200 workers in a single accident have changed the underlying structure 

of the supply chain model that helped create the circumstances leading to the 

tragedy. 

REAL REFORM REQUIRES FURTHER ACTION

Reforming the supply chain will require significant investments in three key 

areas: supply chain management, government oversight, and infrastructure development. Investing in these areas does not mean that business—either globally or in 

Bangladesh—should not be profitable. We believe strongly in the power of business 

to create value for business and society, as it has done in Bangladesh and around 

the world. But the current model is not sustainable. A supply chain that is literally 

falling down is bad for workers, business, American consumers, and Bangladesh’s 

prospects for growth in its export economy. 

1. Supply chain management 

As Locke’s research has shown, the best thing global companies can do for working conditions is to develop long-term, trust-based business relationships directly 

with suppliers. For most companies, especially those that are heavily reliant on 

intermediaries and sourcing agents to procure their products, this means fundamentally reexamining their sourcing strategies. Some companies, including Nike, 

Adidas, H&M, and Fast Retailing (Uniqlo) have started to make strides in this area 

by shortening their supply chains, establishing relationships with strategic suppliers, and maintaining direct relationships with a significant portion of their supplier networks. 

It is concerning to see repeated reports of American and European companies 

expressing surprise that their products were found to have been made in an 

‘‘unauthorized’’ facility, often with acutely substandard conditions and even child 

labor. It is not credible for major brands to claim ignorance of where their products 

are being made. The answer to this problem is not yet another supplier code of conduct or inspections on top of inspections, but investments in better supply chain 

management. 

There is something wrong with the way the supply chain is managed if the only 

way to meet demands for price, quantity, and delivery time is to split up orders 

among an opaque network of suppliers, some of whom operate substandard facilities. This is what many in the garment sector describe as an open secret—the 

dependence on a system of authorized and unauthorized subcontracting in which 

workers ultimately pay the price. 

Companies are quick to point out that they have policies against unauthorized 

subcontracting, and many supplier relationships have been cut in recent months 

over allegations of improper subcontracting. Addressing this problem will require 

more than a finger-in-the-dike approach. What is needed is better data about the 

nature of subcontracting and an open conversation about how to meet the pressures 

suppliers face in a more sustainable way, for workers and for business. 

The Center for Business and Human Rights at NYU Stern is urging a more open 

conversation about the nature of business relationships in the supply chain and 

their effect on working conditions and respect for workers’ rights. This spring, we 

will publish a detailed report on situation in Bangladesh and will convene a second 

meeting in Dhaka that will bring together buyers, suppliers, worker organizations, 

governments, and international organizations. 

Reexamining sourcing strategies will not be easy. Doing so is likely to have far 

reaching implications well beyond Bangladesh, and it may increase costs for brands 

and consumers. But failing to look at the connection between business practices and 

working conditions will only perpetuate the tragedies of Rana Plaza, Tazreen, and 

countless other factories. 

2. Government oversight 

Primary responsibility for protecting the rights of Bangladeshi workers rests 

firmly with the Government of Bangladesh. Since its inception in the 1980s, an 

almost total lack of oversight has characterized the ready-made garment sector in 

Bangladesh. In the heyday of the Multifibre Arrangement (MFA), Korean factory 

owners facing limits on export quotas turned to Bangladesh as a place ripe for 

development in apparel exports. With few regulations and no building code in place 

until 1993, apparel factories were allowed to spring up almost anywhere in and 

76 

around Dhaka—in back yards, above auto body shops, in shopping centers, and tenement buildings. 

The legacy of this system is well known. With increasing demand for high production volumes, floors have been added illegally to existing buildings to accommodate 

yet more factory space. Historically, the few factory inspectors employed by the government were paid so little that corruption was inevitable. And the government has 

devolved important regulatory functions, including issuance of an import and export 

permit and maintenance of the database of factories, to the leading trade association 

of garment manufacturers, the Bangladesh Garment Manufacturers and Exporters 

Association (BGMEA). 

It is critically important that the government assume much more significant oversight duties in the garment sector and devote the resources and personnel to make 

its oversight effective. Unfortunately, the government remains incredibly weak, 

especially in the midst of electoral turbulence and ongoing political protests. 

The international community rallied around the launch of Better Work Bangladesh last fall, with donor governments in the Netherlands, Norway, Switzerland, 

the United States, and the U.K. providing significant funding to underwrite the program. Better Work program, now operating in eight countries, was initially developed in Cambodia with the aim of preventing exporting countries from exploiting 

low labor standards to attain competitive advantage in the global marketplace. The 

program also is intended to shift the burden of labor inspections in exporting countries from private actors—brands, retailers, and third-party auditors—to the public 

sector. 

But Better Work’s own assessment of its progress to date indicates that it has 

struggled to sustainably devolve enforcement of labor standards to the government 

or to enhance respect for ILO core labor standards in the most challenging areas. 

The Thirtieth Synthesis Report issued by the flagship Better Factories Cambodia 

program noted that child labor, discrimination, and freedom of association violations 

persisted, even after 12 years of auditing under the program. 

Despite these challenges, Better Work Bangladesh is certainly worth investment 

by the international community. But it should not be a substitute for government 

oversight. Foreign governments should keep up diplomatic pressure on the Government of Bangladesh, as the United States has done around GSP suspension, to continue to press for greater attention and investment in oversight functions. 

The BGMEA, too, should work with the government to gradually stop serving in 

its current pseudo-regulatory role. The BGMEA is a powerful political and economic 

entity. This is a moment for it to lead to ensure the sustainability of what has been 

Bangladesh’s most profitable export industry. This means leading its membership 

to accept changes that will likely impose additional responsibilities on its members—increased regulations, greater public oversight, and strategies to relocate and 

even close some factories. These are the areas that are most critical for long-term 

sustainability of the garment sector, and they cannot be negotiated by outsiders. 

The failure of the government to regulate the labor market is also evident in the 

lack of adequate judicial remedy for victims of industrial accidents. Documentation 

by the Bangladesh Legal Aid and Services Trust (BLAST) and the Bangladesh Institute for Labor Studies illustrates a pattern of inadequate remedy and compensation 

for victims, which adds to the burden of families who have already suffered greatly 

and further erodes trust in the garment sector. 

3. Infrastructure development 

A third critical area for lasting change in workplace safety is infrastructure development. Bangladesh lacks important infrastructure in industrial production facilities and electricity, among other areas. A lack of purpose-built production facilities 

and insufficient electrical production and delivery are major contributing factors to 

fire and building safety risks. 

Bangladesh’s infrastructure is one of the most underdeveloped in the world. The 

2013–2014 Global Competitiveness Report of the World Economic Forum (WEF) 

ranks Bangladesh’s infrastructure was 132nd out of 148 countries under review. The 

World Bank, IFC, and foreign government donors have made attempts over the 

years to invest in infrastructure. Their efforts have been stymied by endemic corruption and an entrenched unwillingness on the part of the government to investigate 

and prosecute corruption. 

Here, too, the BGMEA has a leadership role to play in helping to develop new 

industrial parks where garment factories can relocate. It is notable that the export 

processing zones, which were purpose-built for large-scale industrial production, 

have not been plagued by fires and building collapses. There are other concerns 

regarding the zones, most importantly around a lack of respect for freedom of association, but on the issues of fire and building safety, they provide a lesson for the 

77 

broader garment sector. The government, the BGMEA, and foreign donors should 

redouble efforts to speed the creation of more industrial parks. 

A second major issue is the quality of the electrical supply. Again, Bangladesh 

ranks near the bottom among the 148 countries included in the WEF survey, at 

133rd. The country currently is unable to meet the rising demand for electricity 

from increasing industrialization. From 2000 to 2012, electricity consumption 

increased by an annual average of 12 percent, with little increase in electricity 

production. 

Power shortages and power black outs occur frequently in the garment sector, 

causing factory owners to turn to generators. As was well-documented in the Rana 

Plaza collapse, the combination of heavy generators resting on unstable foundations 

can have tragic results. Moreover, generators consume more than 300 million liters 

of diesel and furnace oil a year, which adds significantly to production costs. And 

when power outages cause manufacturing delays, factory owners assume the high 

cost of airfreight. Some of the larger and better-resourced factory complexes have 

even built their own private power plants, which help those few factories that can 

afford them, but do little to address sector-wide shortcomings. 

At present, most foreign development funding is focused on investments in Better 

Work Bangladesh, worker empowerment and skill development programs, food security, labor inspections, and combating human trafficking. But in the absence of 

major infrastructure overhaul in a few key areas, development programming in the 

garment sector will have an insufficient effect. Workers empowered to work in 

crumbling buildings still face grave risks. Investing in the kind of major infrastructure development Bangladesh needs has proven to be a frustrating and often fruitless task because of corruption. It is up to the government and local industry to 

make the case that Bangladesh is a sound investment. 

CONCLUSION

The Center for Business and Human Rights at NYU Stern is hardly the first to 

assert that the way to increase respect for workers’ rights in Bangladesh is better 

government oversight and investments in infrastructure development. Many people 

also acknowledge privately that loose business relationships, a lack of incentives for 

better labor practices, and the priority placed on negotiating the absolute lowest cost 

of production are what really drive poor working conditions. 

But it is also common to hear that these issues are too difficult to take on or that 

‘‘we have to start somewhere,’’ with the same kind of inspection and remediation 

programs that have constituted CSR in the apparel industry since the mid-1990s. 

The priorities outlined above are ambitious because this is a moment for bold action. 

Media coverage of workplace safety in the global supply chain has not been this 

high in recent memory. Consumers are hungry for information and assurance that 

the products they buy meet basic standards of workers’ rights. The administration 

is using its leverage through trade policy to encourage reform on labor rights. And 

Congress is paying attention, as demonstrated by this important hearing. 

Enhancing the dignity of work and the sustainability of the garment sector in 

Bangladesh will require more than foreign solutions. The Government of Bangladesh and local industry must lead a transition to a better managed and better 

regulated garment sector that remains competitive over the long term. The first 20 

years of the garment industry have helped lift millions out of extreme poverty in 

Bangladesh. We believe strongly that business also can be a force to ensure that 

the next two decades are brighter for Bangladesh’s workers. We stand ready to work 

with local and global businesses, policymakers, workers’ organizations, and other 

experts to chart a sustainable future course. 

* * * * * 

APPENDIX 1 

Analysis of the Accord and the Alliance, Center for Business and Human Rights, 

New York University Stern School of Business 

The following analysis compares the Accord and the Alliance across five dimensions: participation, decisionmaking and governance, commitments, program and 

approach, and fees and funding. It is intended as a snapshot of the two initiatives 

at an early stage of their development, not as an exhaustive comparison. The 

Center’s conclusion, discussed in its written submission to the February 11, 2014, 

Senate Committee on Foreign Relations hearing on Bangladesh, is that while the 

participation of unions in the Accord represents an important distinction, the similarities between the two initiatives outweigh the differences. 

78 

PARTICIPATION

Both the Accord and the Alliance are comprised primarily of multinational corporations from North America and Europe. Significantly, the Accord includes 10 

unions as signatories, including 6 unions from Bangladesh. In this respect, it 

reflects the European industrial relations context, which have been characterized by 

political involvement through labor parties, worker participation in company decisionmaking, and relatively high levels of union membership. 

Accord Alliance 

Brands and retailers 139 retailers. The majority of participants 

are based in Europe; a smaller group is 

from the Americas. Also includes Asia’s 

largest retailer. 

26 retailers. All are North American companies, representing 90% of ready-made 

garment exports to the United States 

from Bangladesh. 

Worker organizations or 

unions 

10 union signatories, including six unions 

from Bangladesh. 

None. 

Other participants, observers, or advisors Four international labor rights NGOs are 

‘‘witness signatories.’’ 

‘‘Supporting associations’’ include several 

North American trade associations and 

the NGO BRAC. Li & Fung serves in an 

advisory capacity. 

DECISIONMAKING AND GOVERNANCE

Both initiatives are led by small governing boards with a neutral chair. Membership in the Accord’s steering committee is split between retailers and unions. The 

Alliance’s board is split between retailers and outside experts. Both have some 

international staff, as well as offices and staff in Dhaka. 

Accord Alliance 

Decisionmaking body The steering committee is comprised of 3 

representatives selected by trade union 

participants and 3 representatives selected by retailer participants. The ILO 

selects a neutral chair. 

The board of directors includes 4 brand 

representatives, 4 outside experts, and 

an elected chair. 

Staff Led by an Executive Director for International Operations and an Executive 

Director for Bangladesh Operations, with 

an office and staff in Dhaka. 

Led by a President and CEO in Washington, DC, with an office and staff in 

Dhaka. 

79 

COMMITMENTS

Each initiative is envisioned to last for 5 years, through 2018. The Alliance 

requires that members participate for 2 years; the Accord requires 5 years, with 

some requirements for maintaining order volumes for the first 2 years. If a member 

company leaves the Alliance, the member pays a financial penalty. If an Accord 

member is subject to a dispute, the issue is referred to the Steering Committee, 

whose decision either party can appeal to binding arbitration. Advocates of the 

Accord have emphasized that this constitutes a legally binding agreement, but it is 

not clear that the penalties associated with dispute resolution are significantly different from the more straightforward financial penalties contained in the Alliance. 

Accord Alliance 

Overall program commitment 5 years (2013 –2018). 5 years (2013 –2018). 

Individual participant commitments 5 years of participation in the initiative. 

Member companies commit to maintaining order volumes for 2 years with Tier 

1 and 2 suppliers as long as such business is commercially viable and the 

factory meets the member company’s 

requirements. 

Minimum commitment of 2 years participation in the initiative. 

Penalties for leaving the initiative Disputes between parties are referred to 

the Steering Committee, whose decisions can be appealed to a binding arbitration process. 

Financial penalties assessed if a member 

leaves the initiative before the 2-year 

mark; lesser financial penalties if a 

member leaves after the 2-year mark. 

PROGRAM AND APPROACH

In total, the two initiatives encompass approximately 2,400 factories out of the 

approximately 5,000 –6,000 factories in Bangladesh. The two initiatives offer similar 

programs, focused on factory safety and building inspections, worker training and 

empowerment, and making funds available for factory remediation. All program 

activities in both initiatives focus on building and fire safety and do not address 

broader issues of labor rights, freedom of association, or business relationships in 

the supply chain. 

Accord Alliance 

Core program elements Safety inspections, remediation, fire and 

building safety training, member-sponsored funding for factory improvements. 

Safety inspections, safety and empowerment training, voluntary loans for factory improvements. 

Factories covered All suppliers producing products for signatory companies; approximately 1,700 

suppliers across three tiers. 

100% of factories in the members’ respective supply chains; approximately 700 

factories. 

80 

FEES AND FUNDING

In both initiatives, corporate participants make an annual contribution based on 

dollar volume of exports to cover the inspection and training programs and operational expenses. The initiatives differ in the degree to which companies are 

required to cover the costs of remediation. In the Accord, it is mandatory for each 

member company to make sufficient funds available to pay for structural repairs 

and renovations, while in the Alliance such funding is made available through voluntary loans. 

Accord Alliance 

Participant fees to support 

core programming and 

operations 

Company signatories make a maximum annual contribution of $500,000 on a sliding scale basis relative to volume of 

sourcing from Bangladesh. Fees cover 

safety inspections, trainings, and operational expenses. 

Members contribute up to $1,000,000 per 

year to a Worker Safety Fund. Fees are 

assessed on a tiered basis, based on 

dollar volume of exports in the previous 

year. Fees underwrite fire and building 

safety initiatives in factories supplying 

member companies and operational expenses. 

Additional costs to support 

factory-level remediation 

Each member company is responsible for 

ensuring sufficient funds are available 

to pay for structural repairs or renovations in factories where remediation is 

required. 

Individual members may make affordable 

financing available to suppliers in their 

individual supply chains to help finance 

factory repairs and improvements on a 

voluntary basis. Terms are set by the 

individual member company. 

Support for displaced workers during remediation Each company is responsible for covering 

the cost of displaced workers in its supplier factories. 

10% of fees directed to the Worker Safety 

Fund are reserved to support temporarily 

displaced workers. 

81 

PREPARED STATEMENT FROM THE GOVERNMENT OF BANGLADESH

82 

83 

84 

85 

86 

87 

88 

89 

90 

91 

92 

93 

94 

95 

96 

97 

98 

99 

100 

Æ