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As Death Toll Rises, Report Shows Big Retail Brands Chose Profit over Safety in Bangladesh April 26, 2013

Posted by rogerhollander in Asia, Bangladesh, Labor.
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1 comment so far

Hundreds of thousands protest dangerous “sweatshop” conditions as police fire tear gas, rubber bullets

- Jacob Chamberlain, staff writer

A Bangladeshi woman was lifted out of the rubble by rescuers at the site of a building that collapsed in Bangladesh. (Kevin Frayer/Associated Press)

As the death toll soared past 300 in the aftermath of Wednesday’s garment factory disaster in Dhaka, Bangladesh, and over 1,000 remained unaccounted for on Friday, police fired tear gas and rubber bullets at hundreds of thousands of mourning protesters fed up with an international garment industry that continues to place profit over workers’ lives.

Meanwhile, the Associated Press reports Friday that in 2011 several major western retailers rejected a proposal made by a group of Bangladeshi and international unions that outlined a way to clean up Bangladesh’s garment factories. The plan would have established an independent inspectorate to oversee all factories in Bangladesh “with powers to shut down unsafe facilities as part of a legally binding contract signed by suppliers, customers and unions.”

“The proposal was presented at a 2011 meeting in Dhaka attended by more than a dozen of the world’s largest clothing brands and retailers — including Wal-Mart, Gap and Swedish clothing giant H&M — but was rejected by the companies because it would be legally binding and costly,” AP reports.

At the time, Wal-Mart’s representative told the meeting it was “not financially feasible … to make such investments,” according to minutes of the meeting obtained by AP.

‘Not Financially Feasible…’: Inspections would have been funded by contributions from the companies of merely $500,000 per year, compared to the $20 billion Western brands such as Walmart, the Gap and H&M make from the garment industry in Bangladesh per year.

The inspections would have been funded by contributions from the companies of merely $500,000 per year, compared to the $20 billion Western brands such as Walmart, the Gap and H&M make from the garment industry in Bangladesh per year. All told, garment manufacturing is a $1 trillion global industry.

Five garment factories were housed in the eight-story building that collapsed on Wednesday in Dhaka. The factories have been sub-contracted to supply clothing for Wal-Mart in the past, but Wal-Mart officials said that they are still investigating whether their products were being produced in the factory at the time of the disaster.

Among the factory owners in the building were Phantom Apparels Ltd., New Wave Style Ltd., New Wave Bottoms Ltd. and New Wave Brothers Ltd. garment factories, who at the time were making clothing for a number of brands including Benetton, Primark, Loblaws, The Children’s Place and Dress Barn.

On Friday, the New York Times reports, labor groups distributed photos showing that they had discovered garments with labels from J.C. Penney and El Corte Inglés, a Spanish retailer, at the site of the collapse.

The collapse is the latest in a series of factory disasters in Bangladesh tied to western brands including a massive blaze which broke out in the Tazreen factory in November, killing 112 workers. Clothes made for Disney, Wal-Mart and other western labels were found at that factory.

Factory owners from the building ignored a warning not to allow their workers into the building after a crack was detected in the building’s structure on Tuesday.

On Friday, hundreds of rescuers continued to dig through the masses of factory rubble for the third day in a row as “the cries of the trapped and the wails of workers’ relatives gathered outside the building,” AP reports.

Meanwhile hundreds of thousands of workers and relatives from the hundreds of garment factories continued to protest throughout the day Friday.

Bangladeshi media reported that two factories have been burned by protesters demanding the death penalty for the owner of collapsed building, said to have broken many building codes, as well as the owners of the factories inside the building.

However, as Dara O’Rourke, an expert on workplace monitoring at the University of California, Berkeley, reminded the New York Times, it is important to remember the source of labor exploitation in places such as Bangladesh: “Even in a situation of grave threat, when they saw cracks in the walls, factory managers thought it was too risky not to work because of the pressure on them from U.S. and European retailers to deliver their goods on time,” O’Rourke, said, adding that the prices Western companies pay “are so low that they are at the root of why these factories are cutting corners on fire safety and building safety.”

“Improvement is not happening,” said Amirul Haque Amin, president of the National Garment Workers Federation in Bangladesh, who said a total of 600 workers have died in factory accidents in the last decade. “The multinational companies claim a lot of things. They claim they have very good policies, they have their own code of conduct, they have their auditing and monitoring system,” Amin said. “But yet these things keep happening.”

Rescue workers, army personnel, police and members of media run after they heard someone shouting that a building next to Rana Plaza is collapsing during a rescue operation in Savar, 30 km (19 miles) outside Dhaka April 26, 2013. REUTERS/Andrew Biraj

_______________________

Walmart: “Not Financially Feasible” To Take Minimal, Legally Required Steps to Save Workers’ Lives December 6, 2012

Posted by rogerhollander in Bangladesh, Labor.
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1 comment so far
Roger’s note: Marx wrote that one of the essential flaws of capitalism is that it is inherently incapable of protecting living human beings.  It is all about competition, profit, and the expansion of capital.  In our lifetime we are witnessing the coming to fruition of the logical consequences of capitalist economic relations, and this is truly frightening.  Government was forced to intervene in the late nineteenth and early twentieth centuries to mitigate the barbarism of unfettered industrial capitalism; in our time nothing less that the kinds of popular uprisings we see today in Europe and the Middle East and last year in the Occupy movements can save us from the consequences of twenty-first century capitalism with its massive resources directed at militarization and total control of governments.
12.06.12 – 10:54 AM, www.commondreams.org

by Abby Zimet

_walmart_fire

In the wake of last month’s fire in a Bangladesh garment factory that killed over 100 workers, Bloomberg has gained access to notes from a 2011 meeting where Walmart officials decided against paying suppliers high enough prices to cover costs of needed safety improvements because they deemed it “not financially feasible for the brands to make such investments.” The meeting was attended by more than a dozen retailers, including Gap, Target and JC Penney. Over 300 Bangladeshi garment factory workers have died since 2006. Walmart reported a 9% increase in third-quarter net income, bringing their earnings for that quarter to $3.63 billion. An estimated half of Bangladesh’s garment factories don’t meet legally required work safety standards. At a fire in a nearby warehouse two days after the Tazreen factory fire, workers had to climb down a bamboo pole because they couldn’t get to the stairs; graffiti on a restroom wall there read: “Work here and your life is a living hell.”

“Specifically to the issue of any corrections on electrical and fire safety, we are talking about 4,500 factories, and in most cases very extensive and costly modifications would need to be undertaken to some factories,” they said in the document. “It is not financially feasible for the brands to make such investments.”

bangladesh-fire-mourner-horizontal-gallery

COMMENTS

  • gardenernorcal

     

    “It is not financially feasible for the brands to make such investments.”

     

    Guess what if that is their firm position, then mine is: It’s no longer morally feasible for me to purchase your goods.  I am thinking if fewer people buy their goods they may change their way of thinking.

  • sLiM_mC_sHaDy

    Yes, please do not shop there. I never have; they sicken me.

  • Catherine Carre

    People forget that it is precisely this type of immoral exploitation that led Marx and Engels to develop their communist philosophy…Engels’ “The condition of the working class in England” describes very similar conditions as suffered by those workers in developing countries employed by behemoths such as Walmart…communism is the child of capitalism..

  • nveric

    Show me how Communism works?

  • Tom Carberry

    Communism works fine in Cuba, despite over 60 years of a crushing blockade.  Communism worked fine in the Soviet Union if you consider general equality and the absence of crime a good life.  Muhammad Ali said he felt safer in Moscow than any other city in the world, because it had no crime.

    Communism had its horrors, like Stalin’s gulags.  But the American slavery system, followed by 160 years of Jim Crow, and the largest prison system in the history of the world (dwarfing Stalin’s gulags at their largest point), makes those horrors look like minor glitches.

    And don’t forget the many tens of millions of people America has slaughtered in its wars for profit.

    American capitalism works for the top 20% of the people, but not for the rest.

  • Gubdeb

    I dunno…which is worse?: 1: Walmart, or, 2: the MIC/American Capitalism that makes a “Walmart”possible? How many wars did we wage to get to this point. How many “Deals” were cut to have these products sold here? (see NAFTA & Robert Reich) The POINT is, until we face who we really are, things will never change. Walmart is just a symptom, not the problem.

  • AmonVerite

    Here is the problem: http://www.stateofnature.org/d…

  • giovannalepore

    Remember Bhopal India and now Bangladesh: Symbols of why they hate the USA. Your “democracy” and “freedom” are nothing but smoke screens for crimes against humanity.

  • Gubdeb

    I thought Indians loved the USA(?) Why, the MSM in recent years has woven Indians into the very fabric of American life. In network programming, ads, and they seem to all love Walmart. Yes, Walmart.

  • giovannalepore

    I doubt that this is the case with the overwhelming numbers of Indians IN India especially those who were the US victims. At the rate the US is going it will have the entire world despise it.

  • Matthew Grebenc

    Money is power, and corporations pursue it at any cost. They are psychopathic.

  • wildcarrots

    Well yes there is a sick mentality.  Once a factory burns down it will have to been re-built or replaced.  You either re-build it before or after the employees are there working.  that is the sick really stupid part.

  • theoldgoat

    This is where we are, its emblematic of the massive shift that must be brought about in order to restore balance.

    “Work here and your life is a living hell.”

    … the system, owned by interests that value profit over life, scorn those who see from other perspectives – an absolutely essential aspect of life – yet do so brutally, without compunction, on the backs of BILLIONS OF PEOPLE AROUND THE WORLD>

    Boycott any brand you cannot identify and source to ethical satisfaction.

  • itsthethird

    Corporations and workers  can take the heat while the stockholders, capitalists, consumers, and  management, can take the profits.  However the costs of profit are spread disproportionate to benefits if any exist the benefits are captured immediately while costs are avoided by all.  The whole system is dysfunctional because cost avoidance or shifting is acceptable and or encouraged.

  • greatbear215

    Walmurder: Were they value profits over people!

  • Shantiananda

    Not just Walmart, but the whole American Empire, “value profits over people”!   Walmart is just the paradigm of the American corportocracy.

  • AmonVerite

  • Gubdeb

    Thank you, Shan.

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