OECD side session: Expansion of the International Accord to Pakistan

Updates

February 17, 2023

Event

The OECD Forum on Due Diligence in the Garment and Footwear Sector was held online and offline (Paris, France) from 13-17 February 2023. The OECD forum brought together representatives from government, business, trade unions, and civil society to promote transparency and due diligence in global garment supply chains.

The International Accord organised a virtual side session as part of this forum on 13 February to discuss the challenges & opportunities for the recently launched Pakistan Accord. Around 110 participants across academia, media, government, industry associations and clothing brands joined this session.

Moderated by Joris Oldenziel, Executive Director of the International Accord, the session featured a distinguished panel of speakers who shared their perspectives on how best to implement the Pakistan Accord, so it works for and benefits everyone. The speakers reflected on the workplace safety program in Bangladesh and discussed how its learnings can be best adapted and applied to the Pakistan Accord.

Highlighting the key impact of the Accord on the Bangladeshi textile and garment industry, Masarrat Quader, H&M Group, and member of the Accord Steering Committee, shared that the safety assessments and trainings at nearly 1200 garment factories covered by the Accord have contributed to making Bangladesh one of the safest sourcing destinations in the world and have promoted responsible business conduct throughout the brands’ supply chains.

Christina Hajagos Clausen, IndustriALL Global Union and member of the International Accord Steering Committee, added that the Accord has put workers and industrial relations at the centre of the global conversation on a safer garment sector. She added that the Accord’s transparency mechanisms introduced in Bangladesh have encouraged more global brands and retailers to be open about their supplier lists, auditing reports and remediation plans. Furthermore, she underlined the critical role of the Accord complaints mechanism in ensuring workers have a way to raise concerns and safeguard their own health and safety at work.

Usman Rasheed, Taiga Apparel (Pvt.) Ltd (Pakistan), emphasised that instilling a culture of workplace safety, a trained workforce, and robust buyer-supplier relationships would be central to building a safer textile and garment industry in Pakistan.

Contextualising his experience with the Accord, Mohammed Sohel, Managing Director at Bangla Poshak Limited (Accord-covered factory) shared that the health and safety improvements made under and with the support of the workplace programs have contributed to doubling his factory’s turnover from $5 million to $10 million since 2013. He also highlighted the initial challenges faced by factories in Bangladesh and the importance of ensuring clear communication on safety requirements and financial support for remediation under the Pakistan Accord.

Bushra Baten, PVH Corp. (Bangladesh and Pakistan) underscored the shift in perspective on workplace health and safety as the biggest achievement of the Accord in Bangladesh. Her recommendations on the Accord implementation in Pakistan included open dialogue and consistent engagement with local stakeholders at every stage.

Kaschif Israr, Euro Centra (Pakistan), emphasised that health & safety improvement is an important mission for the industry and reiterated the need for proactive engagement with the Pakistani industry and creating open dialogue with factory owners to address their questions and bring all factories along on the journey.

We thank the panel for sharing their experience and insights on wide-ranging topics and look forward to continuing our engagement in the coming days.

The recorded session can be viewed here.


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Accord Steering Committee member brands affirm their commitment to Pakistan Accord

Updates

January 23, 2023

Accord Steering Committee member brands affirm their commitment to the workplace safety program in Pakistan, in close collaboration with their Pakistani suppliers and other stakeholders. 

The International Accord for Health and Safety in the Textile and Garment Industry is an agreement between 190 global brands and retailers and 2 global union federations. Collectively, the Accord signatory brands source over $2.6 billion worth of garments and textiles from Pakistan. The undersigned brands, BESTSELLER, C&A, H&M, Inditex, Otto Group, and PVH Corp. represent Accord signatory brands on the Board of the International Accord.

Statement

The International Accord is preparing for continued engagement with Pakistani stakeholders in the coming weeks, as we take steps towards the establishment of a Pakistan Accord office and the commencement of programs.

We, together with our Accord brands’ colleagues, are committed to supporting our suppliers in meeting the highest safety standards. This includes efforts to establish local governance structures that ensure industry and local brand and union participation in decision-making in every phase of the program.

The International Accord aims to protect the health and safety of millions of workers while helping the industry achieve sustainable growth in exports. With the signing of the Pakistan Accord and our brands’ commitment to this new safety program, we are renewing our commitment to a long-term sourcing relationship with Pakistan.

The Pakistan Accord provides an opportunity both to increase the visibility of the efforts already made by many manufacturers to invest in fire and building safety measures in recent years and deepen and expand them throughout Pakistan’s garment and textile sector, making it an increasingly attractive option for buyers across the globe.

We encourage all brands around the world to sign the Pakistan Accord agreement and join us in our collective commitment to raise the safety standards at supplier factories in Pakistan.

Accord Steering Committee Member Brands,

BESTSELLER, C&A, H&M, Inditex, Otto Group, and PVH Corp.


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Accord signatories form Human Rights Due Diligence Working Group

Updates

January 5, 2023

Update on ongoing feasibility studies

Article 40 of the International Accord provides that the parties to the agreement will explore the expansion of the scope to address human rights due diligence. To this end, the Steering Committee agreed to create a Working Group consisting of brands and trade union representatives that would be chaired by the Accord Secretariat.

The Human Rights Due Diligence Working Group held its first meeting on 9th September 2022 and worked on a survey to be shared with Accord signatories, trade unions, and NGOs. The survey was shared in November and its results are currently being discussed by the working group. A summary of the findings will be shared with all signatories and respondents in the coming months.

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Pakistan Accord: Supplier Briefing #1

December 14, 2022

Supplier Briefing #1

These Supplier Briefings are designed for all factories/suppliers listed by Pakistan Accord signatory brands. They include updates on key developments under the Pakistan Accord, along with information on upcoming events, guidance materials, and resources for suppliers.

We encourage all suppliers/factories covered by the Pakistan Accord to read these briefings regularly and to share their recommendations, ideas, and suggestions by contacting us via pakistan.factories@internationalaccord.org.

This briefing includes:

  • The rationale for a Pakistan Accord
  • Key goals and benefits of the Pakistan Accord
  • What factories can expect once the programs start


In a Nutshell

  • The Pakistan Accord for Health and Safety in the Textile and Garment Industry (Pakistan Accord) is an agreement between brands, retailers, and global trade unions to ensure health and safety at textile and garment factories supplying Accord signatory brands and retailers.
  • The Pakistan Accord agreement was announced on 14th December 2022 with the intention to begin implementation in early 2023.
  • The Pakistan Accord covers cut-make-trim (and vertically integrated) suppliers of ready-made-garments, home textile, fabric & knit accessories and fabric mills in company signatory supply chains. The timing and process of the implementation of the Accord in relation to not vertically integrated fabric mills will be determined by the Accord Steering Committee at a later stage.
  • Pakistan Accord safety programs include: Independent fire, electrical, structural and boiler safety inspections and remediation, safety committee training, independent complaints mechanism and local capacity-building.
  • For the first years, the costs of implementing Pakistan Accord programs are funded by the brands and retailers that sign the Accord. Accord signatories commit to negotiating commercial terms with their individual suppliers to ensure that remediation is financially feasible.


The Rationale for an Accord Program in Pakistan

Whilst much has been done to advance working conditions in the garment and textile industry globally, fires and other preventable safety incidents are still prevalent in the industry.

Since September 2021, the International Accord signatories and staff have been exploring the feasibility of establishing factory safety programs in key garment and textile producing countries, including Pakistan, as a significant source of garments and textiles for Accord signatories. The Accord Secretariat assessed the feasibility of expansion through signatory surveys, desk research, interviews, and local stakeholder consultations. Pakistan emerged as a priority country, in part because of its increasing importance as a garment and textile sourcing country for the Accord brands and the opportunity to renew EU trade benefits.


National Governance Body 

A national governance body will be established which will include national constituents, including industry, brands, trade unions, and others upon agreement. The mandate and composition will be determined through a consultative process, which the Accord Secretariat and brand and union representatives will initiate immediately starting in January 2023.


Key Goals of the Pakistan Accord 

The safety programs which will be established under the Pakistan Accord aim to achieve the following outcomes at factories supplying to the Pakistan Accord signatory brands:

  1. Compliance with fire, electrical, structural, and boiler safety standards.
  2. Functional safety committees and informed workers who address and monitor health and safety at factories.
  3. A trusted avenue for workers to raise health and safety concerns through an effective complaints mechanism.
  4. Collaboration with government institutions, ILO – Better Work Pakistan, and other similar initiatives to build capacity and enhance a culture of health and safety in the country.


Benefits For Manufacturers To Participate In the Accord 

  • Achieve health and safety standards to protect all workers from preventable health and safety incidents.
  • Access technical support and advice to implement corrective actions identified by qualified engineers during fire, electrical, structural and boiler safety inspections in accordance with global safety standards.
  • Comprehensive training for labour management health and safety committees, promoting constructive labour relations and joint problem solving between factory management and workers.
  • Effective resolution of worker grievances through the Accord’s health and safety complaints mechanism, which conforms to United Nations’ standards for effective grievance mechanisms.
  • Strengthen and potential increase commercial relationships with more than 180 global brands and retailers signed up to the Accord by giving assurance of health and safety standards through independent Accord monitoring.
  • Reduce audit fatigue through collective monitoring of workplace safety for more than 180 global brands and retailers.
  • Gain public recognition for maintaining health and safety standards because remediated factories are listed on the Accord website.


What Factories Can Expect When the Accord Programs Start

Identifying factories to participate in the Pakistan Accord

  • In early 2023, the Accord will publish a list of all brands and retailers that sign the Pakistan Accord on internationalaccord.org.
  • Signatory brands will prepare a list of the garment and textile facilities supplying them in Pakistan and may seek additional data from each factory about each supplier’s facilities to assist Accord prioritisation of program rollout.
  • Around March 2023, the Accord will publish the list of factories producing for all Pakistan Accord signatory brands, without mentioning which company signatories are sourcing at each factory.

Phased rollout of Accord programs

  • The Accord will identify the first batch of factories to begin implementing Accord programs.
  • The Accord will work with the selected factories to prepare for and schedule initial inspections.
  • Fire, structural, electrical, and boiler inspections will be conducted and reports will be shared with each factory and their signatory brand customers.
  • Each factory will be invited to meet the Accord team to discuss the inspection findings and remediation solutions, then requested to develop a suitable Corrective Action Plan (CAP).
  • The inspection reports and CAP will be published on the Accord website.
  • The Accord will conduct follow-up inspections to monitor remediation progress.

Public recognition for implementing workplace safety programs 

  • When a factory has fully remediated findings from the initial inspections, the factory will receive a letter of recognition and the Accord will make a public statement recognising that factory’s remediation.
  • When a factory has completed the Safety Committee training program, this will be recorded on the Accord’s public factory list.


The Accord Safety Standard

After consultations with government authorities and engineering experts in Pakistan, the Accord will publish a Pakistan Accord Standard in early 2023 which references the relevant Pakistan Building Codes. This Standard will be the basis for the Pakistan Accord inspections and remediation program. In case factories inspected by the Accord want to discuss a particular interpretation of the Standard regarding their factory safety measures, there will be an opportunity to raise this with an Accord Lead Engineer and ultimately the Chief Safety Officer.


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Agreement on new, expanded Accord

Updates

August 25, 2021

Building on the Bangladesh Accord’s progress, garment brands and global unions reach agreement on new, expanded worker safety pact.

Press release

Amsterdam/Geneva, 25 August 2021

Negotiations between a representation of international textile retailers and the global trade union signatories to the former Accord on Fire and Building Safety in Bangladesh have resulted in an agreement that continues legally binding commitments to workplace safety in Bangladesh and promises to expand the program to other countries.

The new agreement called the International Accord for Health and Safety in the Textile and Garment Industry, takes effect on 1 September 2021.

Like its predecessor agreement, this is a legally binding agreement between companies and trade unions to make Ready-Made Garment (RMG) and textile factories safe. The renewed agreement advances the fundamental elements that made the Accord successful, including: respect for freedom of association, independent administration and implementation, a high level of transparency, provisions to ensure remediation is financially feasible, Safety Committee training and worker awareness program, and a credible, independent complaints mechanism. In Bangladesh, the agreement is already implemented by the independent national tri-partite RMG Sustainability Council (“RSC”) consisting of brands, unions and industry.

Key new features of the International Accord include:

  • A commitment to focus on the health and safety program in Bangladesh, and on building a credible industry-wide compliance and accountability mechanism
  • A commitment to expand the work of the International Accord based on feasibility studies
  • An option to expand the scope of the agreement to address human rights due diligence
  • An optional streamlined arbitration process to enforce the Accord’s terms

Starting today, the trade union signatories, IndustriALL Global Union and UNI Global Union, will join along with leading brands into this new agreement. On 1 September, the Accord will announce the first wave of brands and retailers that have signed the agreement.

The Accord encourages all garment and textile companies to sign this agreement and join our collective goal of safe and sustainable RMG and related industries.


For more information:

media@internationalaccord.org

Joris Oldenziel, Deputy Director
Bangladesh Accord
joris.oldenziel@internationalaccord.org
Mobile: +31 614954430

Matthew Painter, Head of Communications
UNI Global Union
matthew.painter@uniglobalunion.org
Mobile: +41 79 682 3376

Petra Brannmark, Communications Director
IndustriALL Global Union
pbrannmark@industriall-union.org
Mobile: +41 79 198 69 13

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