Progress being made in Bangladesh after Rana Plaza tragedy

Last updated: April 30, 2014

Dhaka, Bangladesh (BBN)-One year later of Rana Plaza disaster, has anything changed?

For Loblaw and our Joe Fresh brand, the answer to the question on the anniversary of the Rana Plaza collapse in Bangladesh is simple: a lot has changed.

In the past 12 months, Loblaw publicly committed to relief, compensation and improved standards in Bangladesh, report thestar.com.

Since then, we became the only Canadian signatory to the Accord for Fire and Building Safety in Bangladesh, inspected every Bangladeshi factory from which Loblaw goods were bought, raised our factory standards, and relocated a senior Canadian employee – one of our most seasoned supply chain experts – to oversee a new, locally engaged team.

The first to join the team was a young Bangladeshi woman who has lived near the community where Rana Plaza once stood, an opinion piece of the news site reports.

Many of our executives have travelled to Bangladesh to work with individuals, industry, government, NGOs and the International Labour Organisation (ILO), to respond to the human tragedy of Rana Plaza and to improve the standards that will define and protect the safety of workers in future.

Finally, while the article mistakenly credits Loblaw and Joe Fresh with a $3 million contribution, we have actually committed $5 million for relief programs and compensation for local workers and their families.

This includes $1 million to a rehabilitation centre and Save the Children Bangladesh and $4 million paid to the ILO-led trust fund.

The collective industry response to the Rana Plaza collapse has not been perfect. Many commitments have taken too long; many necessary next steps have yet to take shape; and, based on the initial compensation model – calculated on a shared basis between government, industry and brands – Loblaw, as one of the top contributing organizations, has paid more than its share.

However, we believe that progress is occurring, most notably in the improvement of factory inspections and workplace improvements as well as related information sharing within the industry. And, we are pleased with unprecedented coordination – between our company and a small number of other retailers – to account for the very real human and financial costs of the Rana Plaza collapse.

BBN/AS/ANS/30Apr14-4:00pm (BST)

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