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Jan 29, 2013

Garment Factory Fire in Bangladesh: How do this Affect your Company in Bangladesh?

A devastating fire in Bangladesh two months ago has left 112 people dead.  The matter is being blamed on lax enforcement of labor laws.  Companies operating in Bangladesh should be aware that the government is beginning to crack down, because of these many similar issues on companies that are perceived to be taking advantage of workers. 

Do yourself a favor and conduct a thorough compliance audit of your business.  The Bangladesh government will be conducting more inspections and will likely begin to file more prosecutions and fine more companies.  Avoid the embarrassment and get a compliance audit done immediately.

The problems in Bangladesh seem to lie within the negligent way that labor and workplace safety laws are enforced.  It has been pointed out that adequate exits and fire extinguishers would have prevented the ensuing stampede and inferno.

Factory officials claimed that firefighting equipment was available at the site, yet a member of the fire fighting brigade stated that the equipment was nowhere to be found. This was in direct violation of a law that requires all garment factories to be certified by the fire service to operate; according to a senior official of the fire service, quoted in the article below, the factory “didn’t have a fire license and so there was no way they could have received a factory license.”

The factory, which produced garments for Inditex did not even have a factory license - amazing. The question that should be asked is, how did a garment factory without even a license to operate as a factory become a vendor for Inditex, one of the largest textile companies in the world? We all know how this occurs.

What do you think.  More on the matter may be found at: New Bangladesh File Kills Seven
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SeanHayes@ipglegal.com

IPG is engaged in projects for companies and entrepreneurs doing business in Bangladesh, Cambodia, China, Korea, Laos, Myanmar, the Philippines, Vietnam and the U.S.

www.ipglegal.com