The collapse of an over-loaded floor in a Cambodian garment factor is the latest fatal accident in a series of deadly fires and collapses in third world garment factories. Six workers are known dead in the disaster at a factory near Phnom Penh, the nation's capital. The factory supplied footwear to Asics Corporation, a Japanese company, which sells its products in the U.S. and … [Read more...]
Cambodia Garment Factory Ceiling Collapses; At Least Six Dead In Latest Industry Disaster
May 18, 2013 by
Asulia Apparel Factories Reopen Friday
May 17, 2013 by
Apparel factories in Ashulia Industrial belt will be reopened on Friday after three days of indefinite shutdown enforced by the owners amid labor unrest. The owners announced the decision Thursday as the government assured that they could provide necessary securities to run the factories. A meeting was held at the Ministry of Labor and Employment on Thursday, with participation from … [Read more...]
Gap Wants Changes to New Safety Deal
May 16, 2013 by
Gap is refusing to sign on to a new safety agreement in Bangladesh, and Walmart is mute on the topic. Gap is calling for modifications to the dispute resolution aspect of the agreement. In a statement released May 13th, Gap said, "Gap Inc. is ready to sign on today with a modification to a single area – how disputes are resolved. This proposal is on the table right now with the parties … [Read more...]
2 Die In Cambodian Shoe Factory Collapse
May 16, 2013 by
The ceiling at a Cambodian shoe factory making Asics sneakers collapsed early Thursday, killing 2 workers. The accident spotlights continued safety problems in the garment industry. The factory, owned by a Taiwanese group called Wing Star, was located to the south of Phnom Penh. Shoes made at the factory are imported by the United States and Europe. The building where the collapse occurred was … [Read more...]
Breaking Down the New Accord on Fire and Building Safety in Bangladesh
May 16, 2013 by
A lot of ink has been spilled about the new Accord on Fire and Building Safety in Bangladesh, and two-dozen firms have signed on, but what does the agreement actually say? Gap has refused to sign because of a dispute resolution provision that it fears will create legal liability, and only one American firm has signed the deal at all - PVH, owner of Calvin Klein and other brands. Still, … [Read more...]
The E of the Tiger: China’s Online Purchasing Holds Ferocious Potential
May 15, 2013 by
The potential held by China's enormous population never fails to quicken the pulse of retailers. And e-commerce, especially via mobile devices, is one of the hottest avenues for doing business there. McKinsey & Company's Yougang Chen, principal, says e-tailing is generating significant incremental consumption. "It is bridging the consumption limitation gap between big and small … [Read more...]
Bangladesh Safety Agreement Gains Traction in Europe as Gap and Walmart Push Back
May 15, 2013 by
Six more firms have signed on to the new Bangladesh safety agreement, including Carrefour, Benetton, Marks & Spencer, and Spanish retailer El Corte Ingles. American brand owner PVH has signed on, but other American firms including Gap have been reluctant to do so. The plan would require rigorous independent inspections and money to pay for safety upgrades such as fire escapes, along with … [Read more...]
Walmart Asks Bangladesh Gov’t To Shutter Factories
May 15, 2013 by
Walmart released a statement calling for the Bangladeshi government to halt production at Stitch Tone Apparels in Chittagong, Bangladesh, and to inspect Nassa Group's Liz Apparels Ltd factory complex in Dhaka. Walmart reported finding structural issues at a factory next to Stitch Tone called Dresswell Ltd. Dresswell, which is not part of Walmart's supply chain, "appeared unstable and could … [Read more...]
E.U. Ends Burma Sanctions: Labor Advocates “Deeply Disturbed”
May 15, 2013 by
European Union (EU) foreign ministers permanently lifted trade and economic sanctions against Burma (Myanmar). The sanctions were temporarily lifted in 2012, as Burma began a political reform program. Labor rights groups, however, were not happy about the decision. The Clean Clothes Campaign (CCC) called it "An abdication of responsibility." In a statement issued by the EU, the sanctions … [Read more...]
RMG Factory Shutdown in Ashulia to Have Severe Impact
May 14, 2013 by
The apparel factory shutdown in Ashulia industrial belt outside Dhaka, will have a severe impact on the sector, owners say. Production in 300 garment factories has been suspended since Tuesday morning, leaving 300,000 workers without pay. During the production shutdown workers won’t get any wages, since the closing was declared under Section 13 (1) of the Labour Law. This clause allows … [Read more...]
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