Question: rana plaze case: On April 2 4 , 2 0 1 3 , the Rana Plaza factory building collapsed in the Savar industrial district outside
rana plaze case: On April the Rana Plaza factory building collapsed in the Savar industrial district outside of Dhaka, the capital of Bangladesh. Over people were killed in the worst industrial accident since when over people were killed and injured in the Union Carbide plant gas leak in Bhopal, India
Most of the victims worked for the five garment factories housed in Rana Plaza, whose primary clients were European, US and Canadian firms. Export contracts to such firms had helped Bangladesh become the worlds secondlargest clothing exporter.
international brand owners, domestic and foreign governments, labor unions, and nongovernmental organizations NGOs began to discuss responsibilities for improving conditions for Bangladeshi garment workers.
The garment industry became a major force in Bangladesh after the MultiFiber Arrangement MFA was enacted in The MFA regulated the sale of garments and textiles from developing countries to First World countries. The MFA, which was in effect until imposed quotas on garment exports from Korea, China, Hong Kong, and India No quotas were imposed on Bangladeshs garment exports, and its industry grew from $ worth of exports in to over $ billion in Even after the MFA expired, Bangladesh maintained export volume, thanks to its low labor costs. In Bangladesh was the secondlargest garment exporter in the world, after China
The garment industry accounted for of GDP
he industry employed million people and an additional million, through indirect employment or roughly of the population
Workers in garment factories were paid approximately more than workers in other industries The vast majority of garment workers were women. In around of Bangladeshi women between and years of age were employed in the garment industry
In of garment factories had export contracts, with many of the remaining factories working as subcontractors that provided additional capacity for the factories with international orders.
Nearly of garments produced in Bangladesh were exported to the United States, Europe, and Canada. In the US alone received $ billion worth of garment exports from Bangladesh
Brands with operations in Bangladesh included wellknown global fastfashion labels such as H&M Inditex Zara and Loblaws Joe Fresh as well as other low to midpriced labels like Walmart, Gap, and PVH Calvin Klein, Tommy Hilfiger, Timberland
Lowcost production and large capacity were key incentives for multinational corporations MNCs to produce garments in Bangladesh. The minimum wage in was $ per month and had only increased by $ over the past years
In comparison, China, the largest clothing exporter, had a minimum wage four times that of Bangladesh and saw its labor costs increase by in
More than garment workers were thought to have died and to have been injured working in Bangladeshs garment industry since
The quick growth of the garment industry had resulted in fast construction of factories, often at the expense of adhering to building codes. The government feared foreign investment and export contracts would flow to other lowcost garmentproducing countries if MNCs perceived Bangladeshs factory safety record and labor disputes as risks to their brands. In the US ambassador to Bangladesh shared with the Bangladesh Garment Manufacturers and Exporters Association BGMEA details of a call he received from the US CEO of one of Bangladeshs largest garment export customers. The CEO stated his concern that the tarnishing of the Bangladesh brand may be putting our companys reputation at risk.
The BGMEA claimed to regularly monitor member factories for safety compliance. However, it was unclear the extent to which compliance was enforced
Following the Tazreen garment factory fire caused by unsafe storage of flammable materials in November which killed over workers, BGMEA inspectors were sent to member factories to check labor and safety compliance. Four of the buildings inspected, which belonged to BGMEA president Atiqul Islam, were found to have multiple violations
Numerous NGOs sought to improve labor and safety conditions for Bangladeshs garment workers. Care Bangladesh partnered with MNCs to create programs to help female garment workers develop leadership skills. The Global Womens Economic Empowerment Initiative, a partnership between Care Bangladesh and Walmart, helped nearly female garment workers learn thei Why did the tragedy occur and who in your opinion is responsible ie how would you assign blame or responsibility for the tragedy?
What are your recommendations going forward to prevent the reoccurrence of the tragedy? Your recommendations can be targeted to the various parties who have been assigned responsibility in Q
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