Update on the Bangladesh Accord — and Its Global Apparel Impact

In our two previous columns, we discussed the 2013 Accord on Fire and Building Safety in Bangladesh and the two “historic” arbitrations that labor unions subsequently brought under it. We also noted that the future of the Accord — and its role in encouraging companies toward human rights compliance and prompting such historic settlements — was unclear, as it was set to expire in May 2018. Since publication, the question has been answered twice: first in May 2018 and again in May 2019, doubly evidencing that companies are expected to continue acting in a “socially conscious” manner and that human rights compliance remains on-trend — for now. Overview of the Bangladesh Accord and “Historic” Arbitrations Following the disastrous building collapse in Bangladesh’s Rana Plaza on April 24, 2013, which killed more than 1,100 garment workers and injured 2,000-plus others, and previous fires that had occurred in Pakistan’s Ali Enterprises factory and Bangladesh’s Tazreen Fashions factory, more than 200 global brands and retailers, labor unions and private companies voluntarily entered into the Accord. The Accord is an agreement, which holds the signatories accountable to developing a fire and building safety program in Bangladesh. Failure to fulfill such obligations may be enforced through binding arbitration. In

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