The Legacy of Rana Plaza: Improving Labour and Social Standards in Bangladesh’s Apparel Industry

Abstract

This chapter examines the system of compliance assurance prior to the Rana Plaza tragedy regarding arrangements for the safety of workers, workplace environment, enforcement of labour laws and workers’ rights, minimum wages, regulatory systems and institutional oversight. We review the various initiatives involving the government of Bangladesh, major buyers, business associations and the International Labour Organization (ILO), as part of the Accord, Alliance and the Tripartite agreement. We assess the new institutional set-up and enforcement mechanisms. We take the view that for this newly emerging governance architecture to be sustainable and replicable, fiscal and financial support to enterprises must be provided. Developing domestic capacities concerning technical aspects of compliance assurance and putting in place institutional mechanisms for enforcement of labour and social standards are also required. To ensure sustainability of the ongoing measures, particularly after the Accord and Alliance end in 2018, we recommend setting up a Ready Made Garments (RMG) Coordination Cell vested with adequate responsibilities and power. Efforts should be taken to ensure that similar systems of governance and management are also put in place across all major supplying countries.