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Tesco stops sourcing from a Bangladesh factory due to safety concerns

soumya1989

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LONDON (Reuters) - Tesco , the world's No. 3 retailer, has stopped sourcing clothes from a factory in Bangladesh after discovering serious problems with the safety of a building, the company said on Saturday.

The move follows a survey the British-based supermarket chain conducted in the wake of the collapse of the Rana Plaza factory complex in Dhaka in April that killed 1,129 people.

"A structural survey of a site we source from in Bangladesh, owned by Liberty Fashions, has revealed serious problems with the safety of one of the buildings," Tesco said in a statement.

"We immediately made the owners aware of our findings, and tried to find an alternative to ceasing production of Tesco products on this site. We are disappointed that this was not possible...

"Our concerns about the structure of this building are so serious that we decided our only option was to stop taking clothes from this site with immediate effect."

Tesco, which has promised to conduct structural surveys of all the factories it sources from, said it had urged the owners of the site to stop all production and to evacuate the premises to ensure the safety of its workers.

It had also informed the relevant authorities, other customers of the site and the Bangladesh Garment Manufacturers and Exporters Association (BMGEA) of the survey results and its decision to stop sourcing from the site.

The retailer said it had stopped using 15 factories of concern in Bangladesh in the past 12 months.

Bangladesh has pledged to improve safety in the garment industry after the Rana Plaza collapse but has not pledged any new money to relocate dangerous buildings.

The collapse of Rana Plaza, a factory built on swampy ground outside Dhaka with several illegal floors, on April 24 ranks amongst the world's worst industrial accidents and has galvanised brands to look more closely at their suppliers.

Very low labour costs and, critics say, shortcuts on safety, makes the country of 160 million the cheapest place to make large quantities of clothing.

Companies are split over how to improve conditions. Big European names have signed an accord that would make them legally responsible for safety at Bangladesh factories. U.S. firms like Wal-Mart Stores Inc have broken ties with non-compliant factories.

Tesco stops sourcing from a Bangladesh factory due to safety concerns

60 percent of Bangladesh garment factories 'vulnerable to collapse', says survey

London, June 4 (ANI): A majority of garment factories in Bangladesh are in danger of collapse, according to a survey by engineers in the country.

The survey comes following the last month collapse of the Dhaka factory, in which more than 1000 people, mainly young women, making clothes for UK retailers such as Primark, were killed in one of the world's worst industrial accidents, the Guardian reports.

According to the report, the survey is the work of a team of engineers from the Bangladesh University of Engineering and Technology (BUET), who have surveyed so far a sixth of 600 buildings that house more than 3,000 clothes factories, as well as examining soil tests and original plans.

The report further said that the survey's revelations that three-fifths or 60 percent of garment factories in Bangladesh are vulnerable to collapse putting in risk the lives of millions of Bangladeshi workers, will concern western retailers which are now moving to improve security and conditions in the Bangladesh factories that supply their shops.

According to the report, two different agreements among western firms such as Primark, Walmart, Carrefour, HandM, Gap, Tesco are being negotiated to improve working conditions, under which, retailers can be theoretically committed to take measures that would prevent another tragedy, as well as providing funds for improvements.

Bangladesh is the world's second biggest supplier of clothes, of which more than 80 percent are exported to Europe or the US.

The 13 billion-pound industry employs about 3.5 million people, mainly young women, and is a major foreign currency earner for Bangladesh, the report added. (ANI)

http://in.news.yahoo.com/60-percent-bangladesh-garment-factories-vulnerable-collapse-says-101129366.html
 
BD economy is gonna tank if western people stop buying BD under garments :woot:

On the contrary, all this media coverage have given Bangladesh some free branding (Bangladesh, a country from where you can get garments product at inhuman price and compensation for accidents is next to nothing.) Furthermore, there is a three stage investment security. If accidents happens, the government of Bangladesh will take care of it. If its very hard to cover there are some scrap goat(Garments owner:butcher:) who will take the fall for you, the foreign buys can always play the innocence card "We didn't know :angel:". Finally, if the first two option doesn't work you can leave with dignity saying "we are leaving because the garment owners haven't make our safety requirements".

Capitalism is a synonyms for maximizing profit(at any cost). The phrase "There is no such thing as bad publicity" is originated and used mostly in west. So, in conclusion what we can say there is a possibility for a second boom in the garments industry of Bangladesh.
 
On the contrary, all this media coverage have given Bangladesh some free branding (Bangladesh, a country from where you can get garments product at inhuman price and compensation for accidents is next to nothing.) Furthermore, there is a three stage investment security. If accidents happens, the government of Bangladesh will take care of it. If its very hard to cover there are some scrap goat(Garments owner:butcher:) who will take the fall for you, the foreign buys can always play the innocence card "We didn't know :angel:". Finally, if the first two option doesn't work you can leave with dignity saying "we are leaving because the garment owners haven't make our safety requirements".

Capitalism is a synonyms for maximizing profit(at any cost). The phrase "There is no such thing as bad publicity" is originated and used mostly in west. So, in conclusion what we can say there is a possibility for a second boom in the garments industry of Bangladesh.

This aint a ramp show where even bad publicity is a good publicity ! It is nation's image ! Like Indians and Chinese are supposed to be highly intelligent in US :woot:
 
Very good decision by Tesco, the garment owners are not the human only, labors are human also.
 
This aint a ramp show where even bad publicity is a good publicity ! It is nation's image ! Like Indians and Chinese are supposed to be highly intelligent in US :woot:

:lol: It seems your knowledge is limited to ramp show only unlike the ones you exported to USA. Publicity and Branding is not only limited to ramp shows.
 
BD economy is gonna tank if western people stop buying BD under garments :woot:
Dont worry, I think we will be just fine as a potential market is just across the border. We will manufacture millions of anti-rape under garments which is desperately needed in India. I can see billions of dollars coming that way. :azn:
 
On the contrary, all this media coverage have given Bangladesh some free branding (Bangladesh, a country from where you can get garments product at inhuman price and compensation for accidents is next to nothing.) Furthermore, there is a three stage investment security. If accidents happens, the government of Bangladesh will take care of it. If its very hard to cover there are some scrap goat(Garments owner:butcher:) who will take the fall for you, the foreign buys can always play the innocence card "We didn't know :angel:". Finally, if the first two option doesn't work you can leave with dignity saying "we are leaving because the garment owners haven't make our safety requirements".

Capitalism is a synonyms for maximizing profit(at any cost). The phrase "There is no such thing as bad publicity" is originated and used mostly in west. So, in conclusion what we can say there is a possibility for a second boom in the garments industry of Bangladesh.

That's quite a nice twist you have given to the prevailing situation - I believe no situation is irreparable or lost - anything can be salvaged with a bit of ingenuity. The problem I see here is the re - brand building will take quite a while.
 
Opportunity for Indian manufactures... :yahoo:

Hopefully Indian garment manufacturers will seize the opportunity.

Why sir?? Why your eyes on this chaddi-banyans?? What happened to your software jobs??
Why not find any noble jobs?? Like weapon or mechanical hardware producing?? :hang2:

BTW we offer worlds most inhuman price. So no one can compete us. If they are turning their back they will come back soon by U turn :lol:
 
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