U.S. Retailers Near Pact on Bangladesh Factory Safety

from The wall Street Journal..

June 26, 2013

By SUZANNE KAPNE and SHELLY BANJO

VIDEO

http://on.wsj.com/18gMKNj

U.S. retailers are close to reaching an agreement on factory safety in Bangladesh that would help factory owners obtain financing for repairs. Suzanne Kapner reports on the News Hub.

Wal-Mart Stores Inc., WMT +1.27% Gap Inc. GPS +0.71% and other large U.S. retailers are nearing an agreement to establish a $50 million, five-year fund to improve safety conditions in Bangladesh garment factories, a person familiar with the proposal said.

The deal could be announced as soon as mid-July, but the details are still being worked out, said the person. The $50 million fund, a critical component of the deal, is contingent on the Bangladesh government meeting certain criteria that would ensure accountability for safety improvements, this person added. It wasn’t immediately clear what level of cooperation Bangladesh officials have agreed to provide.

Two months ago, these major U.S. retailers were criticized for not joining a group of Western retailers that adopted a legally binding pact to improve worker safety in Bangladesh soon after a building collapse in April killed more than 1,100 garment workers…

Link to the entire article:  http://online.wsj.com/article/SB10001424127887323419604578569631699636720.html?KEYWORDS=Bangladesh

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