A separate safety plan including coordinated inspections was announced by a group of mainly European brands on Monday.
A few student protesters were outside the building in Washington, where the plan was announced. The group United Students Against Sweatshops handed out fliers, saying “Gap and Walmart: Bangladeshi Workers Reject Your Fake Safety Plan.”
Funding for the North American plan is based on how much production each retailer has in Bangladesh; those at higher levels will pay $1 million a year for five years.
So far, $42 million has been raised for the project. Ten percent of the funds will be set aside to assist workers temporarily displaced by factory improvements or if a factory closes for safety reasons. The money will also support a non-governmental organization chosen to implement it. A decision on the NGO should come within 30 days.
The 17 current members of the alliance include: Canadian Tire Corp Ltd (CTCa.TO); Carter’s Inc (CRI.N); The Children’s Place Retail Stores Inc (PLCE.O); Gap; Hudson’s Bay Co (HBC.TO); IFG Corp; J.C. Penney Co Inc (JCP.N); Jones Group Inc (JNY.N); Kohl’s Corp (KSS.N); L. L. Bean Inc; Macy’s Inc (M.N); Nordstrom Inc (JWN.N); Public Clothing Co; Sears Holdings Corp (SHLD.O); Target Corp (TGT.N); VF Corp (VFC.N); and Wal-Mart.
Hong Kong sourcing company Li & Fung Ltd (0494.HK), which does business with many of the companies involved, is serving as an adviser. Additional members are expected to join in the future.
“The safety record of Bangladeshi factories is unacceptable and requires our collective effort,” member chief executives said in a joint statement. “We can prevent future tragedies by consolidating and amplifying our individual efforts to bring about real and sustained progress.”