Issue 310
February 5, 2015
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Welcome to the WRAP Weekly Newsletter! Please enjoy it and thank you for being a loyal reader. 
The WRAP Up
Last week we certified 50 factories in 15 countries:
Bangladesh, Cambodia, China, Egypt, India, Indonesia, Kenya, Malaysia, Mexico, Pakistan, Peru, Philippines, Sri Lanka, Taiwan, and Vietnam.




Bangladesh
At least 13 people have been reported dead following a fire at a plastics recycling plant in Mirpur on January 31. Investigators say that the fire was sparked by combustible chemicals stored on the facility's ground floor and that at least 70 people were inside at the time. The government of Bangladesh has ordered a probe into the incident. (CNN)

Over 100 workers at a factory in Savar became ill from panic after learning that part of their building was constructed on the grounds of a former crematorium. Factory managers closed the facility for the day after several workers were hospitalized with illnesses stemming from panic. All affected workers are expected to recover. (BDNews24)

Bangladesh's garment sector has lost over US$56 million due to the ongoing political unrest that sparked early last month, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The group says that the country loses hundreds of thousands of dollars each day the unrest continues and that many buyers are taking their orders elsewhere. More than 50 people have been reported dead in violent clashes between supporters of the ruling Awami League and the opposing BNP.

The government of Bangladesh, along with the International Labor Organization (ILO), have hired two private-sector companies to complete inspections of some 1,200 factories that are not part of the Alliance for Bangladesh Worker Safety or the Accord on Fire and Building Safety in Bangladesh. The move comes after local officials in Bangladesh said that the University of Engineering and Technology (BUET) failed to complete the inspections on time. The new round of inspections is already underway and is expected to be completed by April. (The Financial Express)

Bangladesh's trading ties with the European Union could be getting stronger thanks to a new cooperative business council. Eight E.U. members have formed the council along with Bangladesh in an effort to identify and address obstacles to trade between Bangladesh and Europe. The group held its first meeting on February 4 in Dhaka. (BDNews24

Cambodia

The Garment Manufacturers Association of Cambodia (GMAC) is blaming union-led protests for a drop in purchase orders from U.S. buyers. In a press release, the GMAC blamed the "constant threat of large-scale, illegal industrial action" for an 11% decline in exports to the United States. The group also denied allegations from unions that they colluded with the courts to force workers out of their jobs or into jail. At least 436 strikes took place in 279 factories last year. (Xinhua News)

 

Workers at a factory in Phnom Penh protested in front of the U.S. embassy in hopes that American officials would push their factory to re-hire union activists. The head of the Cambodian Alliance of Trade Unions says that the activists were let go illegally last year after being accused of starting a 3,000 worker protest for higher wages. Workers say they all participated in the demonstration voluntarily and urged the return of the unionists in order to protect their rights. (Khmer Times)

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WRAP Blog 
Latest Entry:
By: Avedis Seferian
Purchasing Managers Index (PMI)

January 2015 Readings
Brazil: 50.7
China: 49.7
India: 52.9
Indonesia: 48.5
Mexico: 56.6
South Korea: 51.1
Taiwan: 51.7
USA: 53.9
Vietnam: 51.5

 

The PMI (Purchasing Managers' Index) measures growth in a country's manufacturing based on surveys of selected companies. Readings above 50 indicate growth while readings below 50 indicate contraction.  

The number of garment workers who fainted on the job in 2014 more than doubled from the year before, according to the National Social Security Fund of Cambodia. The group says that 1,806 workers fainted while on the job in 2014, compared to 823 in 2013. Inhalation of noxious fumes along with poor air circulation were among the primary causes of fainting. (Khmer Times)

France

An investigation into the possible involvement of French retailer Auchan in the 2013 Rana Plaza collapse has been suspended less than a year after it began. Last May, France's public prosecutor opened a preliminary inquiry into whether or not the company misled consumers about the labor conditions in factories that made its clothes. The company was also sued by three human rights groups who accused the company of not doing enough to ensure that its products were not being made in the facility. Auchan says its products were never manufactured in the Rana Plaza building and denies having any business relationships with Rana Plaza companies. (Just Style*NOTICE: This article requires a paid subscription


India

Exports from Tirupur, which is known for its knitwear manufacturing, crossed US$2.4 billion during the first 9 months of the current fiscal year, according to the Tirupur Exporters' Association (TEA), growing 19% year-on-year from the same period in the previous fiscal year. Analysts say that if this trend continues, exports could top US$6 billion as early as 2016. (Fibre2Fashion)

    

Iran

Textile industry leaders in Iran say that the country is ready to take on foreign investment. Speaking at a meeting of industry leaders of the Developing 8 (D-8) countries, Iran's Minister of Industries, Mines, and Trade said that his country is ready to become a major player on the world economic stage and that cooperation among all D-8 members would generate a shared benefit. Iran shares D-8 membership with Bangladesh, Egypt, Indonesia, Malaysia, Nigeria, Pakistan, and Turkey. (Fibre2Fashion)

 

Mexico

Time is ticking down for textile importers in Mexico to complete a mandatory registration process or risk losing permission to conduct business. The mandate is part of a new regulation passed late last year designed to crack down on undervalued imported textile goods. Importers have until March 1 to complete the registration process or they will be denied authorization to operate as an importer. New policies have also been implemented regarding minimum prices for imported goods that require importers to make up any difference between the price of their goods and the reference price established by the government.

(STR Trade)

 

Myanmar

The Myanmar Garment Manufacturers Association (MGMA) has published the country's first-ever Code of Conduct in an effort to establish ethical standards for the country's growing garment industry. The publication comes following extensive consultations with the European Union's SMART Myanmar project and several international brands and retailers. It's estimated that the country is now home to over 300 garment and textile companies employing over 150,000 workers. (Just Style)

*NOTICE: This article requires a paid subscription
 

Global athletic apparel company Adidas says it it will begin sourcing from Myanmar this year. The announcement was made after the company released its latest global factory list. Adidas says that it has committed to put in the necessary time and investment to make Myanmar a reliable sourcing destination for many years to come. (Adidas Group)


 

Uzbekistan

The World Bank says it will not investigate whether or not its agricultural-sector loans are perpetuating child labor in Uzbekistan. Bank leaders say that the country has made "considerable progress" in addressing the systemic issues that have been blamed for causing chronic labor abuses in the country. Many human rights groups have criticized the decision, however, saying that the bank's loans are directly responsible for causing the problem. (Radio Free Europe)

 

Vietnam

The International Labor Organization (ILO) has received a US$8 million award from the U.S. government to combat child labor in Vietnam. The grant marks the 15th anniversary of bilateral cooperation between the United States and Vietnam to combat child trafficking and will increase the capacity for national institutions and stakeholders in Vietnam to respond to and prevent incidents of child labor. It's estimated that the country is home to some 1.75 million child laborers, mostly in the agricultural sector.

(U.S. Labor Department / Sourcing Journal)

*NOTICE: Sourcing Journal article requires a paid subscription


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.

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