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Published byJason Carroll Modified over 8 years ago
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The case of Spectrum Sweaters Dealing with Disasters International Conference 2010
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Overview The Ready Made Garment (RMG) sector for Bangladesh The Spectrum factory collapse – cause and effect Multinational responses - Rights vs Relief Elements of the Scheme and the socalled ‘Purdah’ Project Some outcomes and initiatives Dealing with Disasters International Conference 2010
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Bangladesh in the the Global Apparel Production and Value Chain Raw materials Processing Component Networks Assembly Export Networks Retail Networks Logistics After G. Gereffi 2001 Backward linkageForward Linkage
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The RMG Sector – Some indicators $16.2 Billion export earnings Ranked 4 th apparel exporter by the WTO 80% of 2 million workforce are female- Rural migrants Amongst lowest wage rates in the industry Worst factory health and safety record Excessive working hours Non compliance a major issue High degree of sub-contracting in the RMG
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Dealing with Disasters International Conference 2010
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7 th Floor: Sweater operators Dealing with Disasters International Conference 2010
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3 rd Floor: Circular Knitting Machines Dealing with Disasters International Conference 2010
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Ground floor: Dyeing machines Dealing with Disasters International Conference 2010
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The ‘Trigger' Dealing with Disasters International Conference 2010
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The Human and Social Cost Dealing with Disasters International Conference 2010 64 dead – 27 married with dependants 80% of wives have no income 118 dependant relatives identified 54 injured – 30 married 125 dependants 2,700 workers unemployed overnight Wages not collected Widows are particularly vulnerable
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Dealing with Disasters International Conference 2010 21000 Taka state provision 79000 Taka top up by BGMEA Euro 950 Compensation for workplace fatality in Bangladesh in 2005
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Company Responses Relief – Friendship Fastrack Initiative Rights- Inditex-ITGLWF Voluntary Relief Scheme Carrefour KarstadtQuelle Cotton Group Steilmann Scapino Inditex Arcandor (formerly Karstadtquelle Solo Invest New Wave Dealing with Disasters International Conference 2010
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Relief vs Rights FriendshipInditex/ITGLWF Immediate Fasttrack relief Rickshaw vans – sewing machines Income generation activities - choice controlled by the NGO – e.g. milk cow, land, shop Replicable Pension Scheme Enhanced compensation Plus cover for loss of earnings Dealing with Disasters International Conference 2010
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Two Innovations A Replicable Pension Scheme A ‘Purdah’ Project Dealing with Disasters International Conference 2010
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The Pension Scheme Information Requirements Personal Data The Yield Curve Pension Data Lump Sum Exchange Dealing with Disasters International Conference 2010
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Personal Data: Fact Finding Mission Dealing with Disasters International Conference 2010
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Pension Scheme: Personal Data Dealing with Disasters International Conference 2010
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Purdah data Dealing with Disasters International Conference 2010
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Calculating the Yield Curve Dealing with Disasters International Conference 2010
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Calculating the Pension Dealing with Disasters International Conference 2010
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Calculating the Lump Sum Dealing with Disasters International Conference 2010
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Converting and allowing for Exchange Rate fluctuations Dealing with Disasters International Conference 2010
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Allowing for Bangladesh Inheritance Law Dealing with Disasters International Conference 2010
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Some outcomes and initiatives GLOBAL: International Framework Agreement between Inditex and the ITGLWF Potential replicable tool for LDCs Dealing with Disasters International Conference 2010
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Some outcomes and initiatives NATIONAL Export Promotion Bureau set up a compliance monitoring cell Worker Welfare Foundation Act 2006 and New Labour Act Dealing with Disasters International Conference 2010
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Some outcomes and planned initiatives Industry wide in the RMG Insurance premium for member firms Pension Scheme Safety Nets Dealing with Disasters International Conference 2010
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Some outcomes and planned initiatives New survey on violence against women (VAW) Risk assessment tool for widows and children Dealing with Disasters International Conference 2010
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Some outcomes and initiatives Greater trade union involvement Fact Finding Mission Social dialogue with the Government and the BGMEA (employers association) on a compensation scheme for the industry Dealing with Disasters International Conference 2010
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