Local retail giants Target and Kmart have hit out at claims they refused to support a global accord to improve fire safety and working conditions in Bangladesh, following the recent industrial tragedy.
Speaking exclusively to ragtrader.com.au, the sister brands have both denied the verity of recent reports which claimed that Woolworths, Kmart and Target had declined to sign the legally binding agreement, which aims to improve fire, safety and working conditions in Bangladesh.
All three Australian retailers
currently operate factories out of Bangladesh.
In response to
accusations, a Target spokesperson told ragtrader.com.au that while
the company has not yet signed the agreement, it was exploring the
options available to improve conditions in Bangladesh.
“Target has not declined to sign the accord, we are looking at it as part of an overall review on the best ways to further improve garment worker safety and ethical sourcing from Bangladesh. This review also includes discussions with NGO’s such as Oxfam and having senior leaders, responsible for Target’s Ethical Sourcing, meet with relevant organisations - government, industry and NGOs - on the ground in Bangladesh in the coming weeks.”
Also weighing in on the matter, Kmart Australia managing director Guy Russo said the business is reviewing its operations in Bangladesh and is currently considering the agreement.
“Everyone at Kmart is truly saddened by the recent tragic events in Bangladesh factories. The safety of team members in Australia as well as in our overseas workplaces is always of critical concern to us,” he said.
“While none of the recent tragedies occurred in any Kmart related factories, the business is reviewing its operations in Bangladesh, satisfying itself that the factories it works with continue to meet Wesfarmers’ and Kmart’s codes of conduct and ethical sourcing policies. This review is intended to ensure that Kmart’s ethical sourcing code is being strictly observed and will also include consideration of joining an international agreement for safety in Bangladesh (the recently released Bangladesh Accord).
“Under our current ethical sourcing code factories in Bangladesh are approved against stringent criteria prior to any orders being placed with factory owners. If a factory does not meet essential ethical, health and safety standards we do not do business with the factory. In fact we have rejected a number of factories in Bangladesh on this basis.”
Russo added that Kmart is vigilant in monitoring and reviewing the performance of supplier factories and has ceased placing orders in instances where factory owners have not demonstrated the capacity or intention to improve standards or have breached one of Kmart's zero tolerance criteria.
“Zero tolerance criteria under the Kmart code applies to bribery, child labour, forced or bonded labour, physical or sexual abuse and, as a result of recent safety audits, unauthorised subcontracting to unapproved factories, inadequate safety standards and unsafe buildings. Kmart ceases placing orders with factories that breach its zero tolerance criteria,” he said.
“Since the recent incidents in Bangladesh, Kmart has undertaken fire safety audits benchmarked to Australian standards in all Bangladesh supplier factories - in December 2012 and January 2013.
“Kmart then convened a forum in Dhaka with factory owners and auditors, and visited local workplaces. One of the key outcomes of the audit process was the identification of high risk buildings which are those located above market places and factories located in multi-story buildings with shared ownership. Kmart no longer places orders with factories in these high-risk locations.”
According to Russso, a second round of audits is also currently being undertaken by the Kmart team in Bangladesh to ensure action plans for safety improvements have been implemented and maintained, including additional building safety assessments.
He said this second round of audits is being undertaken by a combination of experts internal and external to Kmart.
Going forward, Russo also confirmed that Kmart will convene a further Bangladesh supplier forum in Dhaka next month and meet with factory owners, factory workers, auditors and NGO's to review the outcomes of the second round of audits and will again visit local factories.
The international accord on fire and building safety, headed by the two international union bodies IndustriALL and its sister union UNI Global Union, will see participant companies establish and pay for a fire and building safety program in Bangladesh for a period of five years.
The program will include routine building and fire inspections, improved and fair working conditions, appropriate compensation in the case of a fire.
To date, several retailers in Europe, including H&M, Benetton, Primark, Tommy Hilfiger, Calvin Klein, Zara and Tesco, have signed the Bangladesh Accord.
Both Kmart and Target are owned by parent company Wesfarmers.