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The Rana Plaza disaster led to the establishment of an Accord on Fire and Building Safety. Signed by major industrial brands like Calvin Klein, PVH, H&M and Fruit of the Loom, the accord seeks to promote the safety and operational continuity of the garment industry in Bangladesh. The accord will be operational for 5 years, and will guide safety initiatives in Bangladeshi-based garment brands and trade unions. Mainly, the Accord will facilitate inspection of the companies involved to ensure succinct safety measures have been integrated. The initiative is intended to facilitate a reduction in human capital loss in the event of tragedies in the subject industries. International brands committed to the accord will be required to accept and facilitate inspections by the relevant authorities. Notably, brands that decline the safety inspections will be kicked out of the Accord. Such a decision is intended to improve compliance among the signed brands. Such a measure justifies the inspection of 1,677 factories in Bangladesh, which sought to remedy fire, structural and electrical safety initiatives (Sinkovics et al. 2016, p. 624). Mainly, the accord is a measure which seeks to avoid crisis in the industrial settings through the promotion of different safety frameworks within manufacturing institutions operating in Bangladesh.
The Accord is expected to expire on May 218. To facilitate the extension of the security inspection and safety measures overseen by the Accord, individuals will be allowed the freedom to extend their commitment to the pre-emptive framework to the year 2021. The extended agreement will also carter for the need to protect the rights of workers against abuse by industrial players. Currently, 154 of the major 220 brands operating in Bangladesh have signed to extend the mandate of the Accord. The remaining brands have not yet committed to the decree.
The Accord on Fire and Building Safety operates in conjunction with the Business Social Compliance Initiative (BSCI). Like the Accord, the latter institution seeks to promote improved working conditions, adherence to human rights by different organizations and the establishment of an appropriate wage framework (Sinkovics et al. 2016, p. 637). So far, the Accord and BSCI have played an indispensable role in the improvement of working conditions for workers in factories which operate in Bangladesh. Nonetheless, there is need for improvement of the protectionist measures taken by the government agencies to protect workers against manipulation.
There are several steps that can be integrated to facilitate safety in the organizational settings within Bangladesh. As the second-largest clothing manufacturing country in the world, there is need for increased attention towards the human rights issues which affect individuals working in the region. The government should play an increasingly active role in strengthening the roles and influence that workers exert in the organizational dynamics. The major issues that need to be reflected on in addressing worker welfare in the garment industry include wages and medical insurance.
It is important for the Bangladesh government to establish a minimum wage in addressing the interests of the Bangladeshi workers. The current minimum wage rate of $43 per month is not enough to fully support the needs of the workers in garment factories (Reinecke and Donaghey 2015, p. 257). The integration of a government-sanctioned minimum wage will compel companies to pay their employees more for work committed over a given duration of time.
Equally, there is need for the adoption of the lean production process to streamline productivity within the organization involved in manufacturing garments. Many manufacturing companies across the globe operate within the limits if the principle of lean production (Tommelein 1998, 282). The lean production concept is efficient and responsive in the improvement of the quality in labor and final produce. Other advantages of the lean production include elimination of wastage, promotion of flexibility and the integration of skilled workforce in the production process. Ideally, the lean production concept inspires effective and notable progress within the organization.
Alternatively, the government should be tasked with the duty of determining a framework which encourages increased remuneration for the hardworking members of the garment factories. The initiative spurs innovation and the commitment of employees towards their various duties within the factories. The approach to payment enables competitive payment where a factory will be able to pay the employees based on the prevailing market rates (Nohria et al. 2008, p. 79). To motivate the employees, the government firms will need to engage a transparent reward system which rewards individuals for the work committed. Exceeding the company expectations should trigger increased payment.
The factories should also take responsibility for the training of the workers in their institutions. According to Aguinis and Kraiger (2009), the training process improves employee skill and ability, which in turn leads to better services and products (p. 458). The training initiatives should also include the creation of awareness regarding various aspect of the garment factories. Employees should be able to discern any unusual occurrences which may point to danger in the institution.
Conclusively, safeguarding employee welfare is an extension of corporate responsibility. Companies are expected to be able to safeguard the welfare and safety of their employees. Notably, companies should be able to advocate for employee wellbeing if they are to realize sustainable growth.
Aguinis, H., and Kraiger, K. (2009). Benefits of training and development for individuals and teams, organizations, and society, Annual review of psychology, vol. 60, pp. 451-474.
Nohria, N., Groysberg, B., and Lee, L. E. (2008). Employee motivation, Harvard Business Review, vol. 86, no. 7, pp. 78-84.
Reinecke, J., and Donaghey, J. (2015). The ‘Accord for Fire and Building Safety in Bangladesh’in response to the Rana Plaza disaster, Global governance of labour rights: Assessing the effectiveness of transnational public and private policy initiatives, p. 257.
Sinkovics, N., Hoque, S. F., and Sinkovics, R. R. (2016). Rana Plaza collapse aftermath: are CSR compliance and auditing pressures effective? Accounting, Auditing & Accountability Journal, vol. 29, no. 4, pp. 617-649.
Tommelein, I. D. (1998). Pull-driven scheduling for pipe-spool installation: Simulation of lean construction technique, Journal of construction engineering and management, vol. 124, no. 4, pp. 279-288.
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