Issue 325
May 22, 2015
logo

Welcome to the  WRAP Weekly Newsletter! Please enjoy it and thank you for being a loyal reader. 
The WRAP Up
Last week we certified 56 factories in 19 countries:
Bangladesh, Cambodia, China, Dominican Republic, Egypt, El Salvador, Haiti, India, Indonesia, Jordan, Laos, Madagascar, Malaysia, Mexico, Myanmar, Pakistan, Sri Lanka, Thailand, and Vietnam.



 

 
 
Bangladesh
The Accord on Fire and Building Safety in Bangladesh and the Alliance for Bangladesh Worker Safety have warned 37 facilities of severing ties with them due to their failure to promptly address their Corrective Action Plans (CAPs). Earlier this year, the Accord sent remediation letters to 28 facilities while the Alliance sent letters to 9 facilities advising them of corrective actions that needed to be taken based on recent inspections in order to make their facilities compliant with Accord and Alliance standards. All facilities have been notified that they risk ejection from both programs if the stated issues are not addressed. ( The Financial Express)

The night watchman of a readymade garments warehouse in Ashulia was killed on May 17 after the building was burglarized by a clan of unidentified assailants. Witnesses say that the burglars tied the hands and legs of the guard and strangled him to death after he tried to resist them. Police continue to hunt for the suspects. ( Daily Star)

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) says that it will levy stricter punishments on member production facilities without worker insurance policies, including banning exports and expulsion from the group. BGMEA President Atiqul Islam has stressed that the group is focused on ensuring safe and secure working environments in all of its facilities and that they will undertake stricter enforcement actions of this policy. The insurance program is intended to compensate workers and their families affected by workplace injury or death. ( Bangla Apparel

The Anti-Corruption Commission (ACC) has filed a lawsuit against Sohel Rana, the owner of the Rana Plaza building that collapsed in 2013 and killed over 1,100 people, alleging illegal accumulation of wealth. The suit was filed after Rana, who remains behind bars, failed to voluntarily submit his financial statements to the ACC in accordance with a request made last month. The ACC alleges that Rana constructed the ill-fated building with illicit funds and still possesses significant, liquid wealth. ( New Age BD)

The Department of Inspection for Factories and Establishments (DIFE) says that 35% of readymade garment factories in Bangladesh have no first aid facilities. The findings were part of a recent survey administered by DIFE in 643 production facilities. Bangladeshi law requires that all facilities have adequate first aid facilities available for workers.
Like us on Facebook Follow us on Twitter View our profile on LinkedInView our videos on YouTube
 
 Upcoming Events   

Various Dates in China

Upcoming Training

May 25-29
Delhi, India

June 8
Shenzhen, China

June 10
Chittagong, Bangladesh

June 10
Shenzhen, China

June 11
Dhaka, Bangladesh

 

The Accord on Fire and Building Safety in Bangladesh recently observed the second anniversary of its founding on May 21. In a press release marking the occasion, the Accord noted that it has inspected all of its constituent factories and worked with those who had issues identified to form an action plan to address them. The group says it now has over 200 signatories and over 1,500 production facilities under its jurisdiction. (Bangladesh Accord) 

 

The tariff on Bangladeshi apparel exports to the United States could soon be reduced thanks to a new proposal from the U.S. ambassador to the country. State Minister for Labor Mujibul Hauqe told reporters that Ambassador Marcia Bernicat has agreed to push for lower tariffs on Bangladeshi imports to the U.S. after seeing that the country has made good progress on labor rights and factory compliance. Trade leaders in Bangladesh see this move as being more significant than restoration of GSP (Generalized System of Preferences) benefits because it directly affects apparel trade, which currently faces a 16% duty in the United States. (The Financial Express)  

 

Cambodia

At least 18 garment workers were killed and 21 others injured when the van transporting them to their workplaces crashed with a tour bus on May 19. Authorities say that the van was overcrowded and speeding at the time of the incident and that the driver has been taken into custody. Workers groups say that many poor workers are resorting to overcrowded vans as a means of low-cost transportation to and from work, though doing so is highly dangerous. The ILO has also released a statement condemning the incident and urging government officials to take steps to make road transportation safer for the country's thousands of workers. (AFP / ILO)

 

China

China has agreed to take steps to ease the flow of bilateral trade with India as part of a new 5-year trade deal focused on a number of different industries, including textiles. In a joint statement issued with Indian Prime Minister Narendra Modi during his recent visit to China, Chinese Premier Li Keqiang said that trade between the two countries has been on the upswing in recent years, which has led to a stronger overall bilateral relationship between the two countries. He added that greater bilateral trade between the two countries would benefit the world overall as well. (Fibre2Fashion)


A new survey released by the China National Textile and Apparel Council says that there is a huge gap between the desire of government authorities to use online technologies to upgrade the textile manufacturing industry and the actual reality of this implementation. Out of 103 textile enterprises surveyed by the council, only one was aware of the potential benefits of using cloud computing in their operations. The council also found that 11 of these businesses had faced threats to their information security at one point or another. The group is urging the government to implement more programs to raise awareness among textile companies about the potential of digital technologies. (China Daily)

 

India

India's National Green Tribunal has ordered the temporary closure of 739 textile plants in Baltora and surrounding areas until their Common Effluent Treatment Plant (CETP) is brought up to national standards. The order follows an inspection report issued by local and regional authorities that said the plant had fallen out of compliance with government guidelines and was not treating the wastewater of nearby textile units properly. This follows a previous order issued just last week by the Rajasthan State Pollution Control Board (RSPCB) to close nearly 900 facilities for a similar offense. (Times of India)

 

The government of India is looking to stakeholders in the country's textile sector to try and curb instances of child labor. Officials with India's Ministry of Labor recently met with industry stakeholders urging them to increase their vigilance when it comes to employing underage children in their production facilities. They pointed to the city of Surat as an example, saying that there may be upwards of 50,000 child laborers working in that area alone. (Times of India)

 

India's Ministry of Labor has instituted 2 new initiatives aimed at benefiting women working in the country's textile sector. The first will provide iron and folic acid supplements to over 350,000 women to battle anemia while the second will provide free transportation to and from work for the women. Both projects are slated to be launched in the first week of June. A recent survey found that 65% of women working in the garment sector suffer from anemia. (The Hindu)

 

Powerloom workers in the Pallipalayam region are staging a strike after not receiving wages promised to them. An agreement was reached with manufacturers and loom owners late last month to give a 20% pay increase to workers, though workers allege that they have not received those payments. Workers say they intend to meet with owners groups in an effort to resolve the issue. (The Hindu)

 

The head of India's Apparel Export Promotion Council (AEPC) is pressing the national government to pay more attention to the demands of the sector. Specifically, Chairman Virender Uppal is asking for a 3% interest subsidy for the industry to make lending more competitive with other major textile exporters and to keep customs inspectors on the job 24 hours a day to expedite the flow of imports and exports. The AEPC is also pressing for finalization of a pending Free Trade Agreement with India and the European Union, which buys 41% of India's readymade garment exports. (Fibre2Fashion)

 

Pakistan

Representatives of the All Pakistan Textile Mills Association (APTMA) recently met with representatives of the European Generalized System of Preferences (GSP+) program to review benefits of the program and assess Pakistan's progress on implementing standards related to labor and environmental policies. Trade leaders in Pakistan say that their exports have picked up since implementation of the GSP+ policy, with exports growing by 24% in volume and 30% in value during 2014 alone. In light of this, APTMA leaders say the industry continues to feel the effects of an energy crunch, which has had a negative effect on productivity. (Fibre2Fashion)  

 

The All Pakistan Textile Mills Association (APTMA) says that a 6% import duty on polyester staple fiber (PSF) has hampered the industry because other competing countries don't levy such tariffs. The head of the APTMA also noted that the situation is compounded by the other incidental charges added to the import duty, making textile exports from Pakistan as much as 18% more expensive than their nearest competitors. Experts estimate that 19% of Pakistan's textile industry is dependent on polyester material. (Fibre2Fashion)

 

Philippines

The Trade Union Congress of the Philippines is pressing the government to form a tripartite task force to look into last week's deadly fire at the Kentex sandal factory that claimed over 70 lives. The group is also asking for more stringent enforcement of labor laws and for the government to force factories found in violation to be closed immediately. The government of Valenzuela City, where the factory was located, has also announced compensation payments to the families of those who were affected by the blaze.

(Phil Star / The Manila Standard)

  

Switzerland

The International Labor Organization (ILO) says that only one quarter of the global workforce is in what it calls a "stable employment relationship." The findings were part of a new report titled "World Economic and Social Outlook 2015," which found that 75% of the global workforce were either employed on temporary or short-term contracts, in informal jobs without any contract, or in unpaid family jobs. The group says that while the increase in non-full-time jobs could help more people into the workforce, it also may be an indicator of wider global economic instability. (Fibre2Fashion / ILO)

 

Thailand

Thailand's military government has postponed national elections until at least August 2016 in order to allow for a referendum on a new constitution. The group that has drawn up the new constitution, reportedly appointed by the current regime, says that a public referendum on it needs to be held before it will consider restoring democratic rule. Critics of the new regime, however, say the process is designed to exclude the family of former Prime Minister Yingluck Shinawatra, who was forced out of office last year and has, more recently, been banned from leaving the country. (Reuters)


United States

The proposed Trade Promotion Authority (TPA) bill is one step closer to becoming law. On May 21, members of the U.S. Senate voted to end debate on the bill and put it to a final vote. If passed, the bill would give the U.S. president six years of authority to negotiate trade deals mostly unilaterally, with limited influence from Congress. President Barack Obama is hoping to use the TPA bill to expedite negotiations on the proposed Trans-Pacific Partnership (TPP) trade deal, which analysts say would link 40% of the world's economy. (CNN)

 

Several U.S. fashion and textile trade associations are pushing for immediate renewal of the African Growth and Opportunity Act (AGOA), which is set to expire on September 30. The organizations are also urging U.S. lawmakers to push for a longer 10-year extension of the measure, saying that AGOA not only allows U.S. companies to provide quality affordable apparel products to their consumers, but that it also provides much needed jobs to developing regions of sub-Saharan Africa. Among the organizations making the push are the U.S. Fashion Industry Association (USFIA), the American Apparel and Footwear Association (AAFA), and the Footwear Distributors and Retailers of America (FDRA). (Fibre2Fashion


About WRAP
Headquartered in Arlington, Virginia, U.S.A., with regional offices in Dhaka, Bangladesh, Hong Kong S.A.R., and representatives in India and Southeast Asia (Thailand and Vietnam), WRAP is an independent, objective, non-profit team of global social compliance experts dedicated to promoting safe, lawful, humane, and ethical manufacturing around the world through certification and education.
To learn more about WRAP, please visit www.wrapcompliance.org.

Notice: The WRAP Weekly Newsletter is a collection of links to current news articles, relevant to social compliance. While most articles are freely available, some may require a paid subscription to access. WRAP is not responsible for the content of external internet sites.

Tel: 1.703.243.0970   Fax: 1.703.243.8247