'Made in Bangladesh' doesn't deter shoppers
When businesses have high-profile accidents they usually come with consequences. Asiana Airlines saw its stock dip 6.2 percent after one of its planes crashed in San Francisco over the weekend. And when 1,129 workers were killed in a Bangladesh garment factory collapse in April, retailers doing business in the country were under pressure to push for improved worker conditions. But for the overall garment industry in Bangladesh the deadly incident hasn't resulted in negative financial consequences. Shoppers and retailers haven't lost their appetite for the country's cheap labor.
Reuters reports that last month the country's exports rose 16.3 percent, to $2.7 billion, thanks in large part to the garment business which accounts for about 80 percent of the country's exports. Last fiscal year, which ended last month, exports from the garment industry totaled $21.5 billion, a 13 percent gain from the year before, while the country saw total exports rise 11 percent to $27 billion.
Meanwhile, the factory collapse has lead to some positive changes for workers. Over 70 major retailers have agreed to the legally-binding Accord on Fire and Building Safety which, among other things, will require retailers to open factories to inspection. If safety concerns arise, the retailers must pay to improve the conditions.
And yesterday, Bangladesh officials told the European Union that it planned to enact improved labor laws by the end of the year.
Read more: Reuters
Photo: Wikimedia Commons/Fahad Faisal
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- H&M commits to safety plan for Bangladesh factories
- Why should retailers keep buying from Bangladesh?
This post was originally published on Smartplanet.com