EU considers trade action after Bangladesh factory collapse

n">May 1 (Reuters) - The European Union voiced strong concern over labour conditions in Bangladesh after a building collapse there killed hundreds of factory workers, and said it was considering action to encourage improvements, including the use of its trade preference system.

The European Union is Bangladesh's largest trade partner and clothes made inside the building - an illegally built structure that toppled last week, killing at least 390 people - were produced for retailers in Europe and Canada.

"The EU is presently considering appropriate action, including through the Generalised System of Preferences (GSP) - through which Bangladesh currently receives duty-free and quota-free access to the EU market under the 'Everything But Arms' scheme - in order to incentivise responsible management of supply chains involving developing countries," said the statement, issued on Tuesday by EU foreign affairs representative Catherine Ashton and trade commissioner Karel de Gucht.

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WRAPUP 1-EU considers trade action after Bangladesh factory collapse

* EU considers action on Bangladesh, including trade preferences

* Canadian retailers say they will also issue new guidelines

* Rescuers give up hope finding any more alive; death toll passes 390

May 1 (Reuters) - The European Union voiced strong concern over labour conditions in Bangladesh after a building collapse there killed hundreds of factory workers, and said it was considering action to encourage improvements, including the use of its trade preference system.

Anger has been growing since the illegally built structure collapsed last week, killing at least 390 people. Hundreds remain unaccounted for but rescue officials said on Tuesday they had given up hope of finding any more survivors.

It was the third deadly incident in six months to raise questions about worker safety and labour conditions in the poor South Asian country, which relies on garments for 80 percent of its exports.

Representatives of major international garment buyers - some facing sharp criticism in home markets for doing too little to safeguard the mostly female workers making their clothes - met industry representatives in Dhaka on Monday and agreed to form a joint panel to put together a new safety plan.

Clothes made in five factories inside the Rana Plaza building on the outskirts of the capital, Dhaka, were produced for retailers in Europe and Canada.

Late on Tuesday, the EU issued a brief statement expressing concern and suggested it would look at Bangladesh's preferential trade access to the EU market in considering taking action to encourage better safety standards and labour conditions.

"The EU is presently considering appropriate action, including through the Generalised System of Preferences (GSP) - through which Bangladesh currently receives duty-free and quota-free access to the EU market under the 'Everything But Arms' scheme - in order to incentivise responsible management of supply chains involving developing countries," said the statement, issued by EU foreign policy chief Catherine Ashton and Trade Commissioner Karel de Gucht.

About 3.6 million people work in Bangladesh's garment industry, making it the world's second-largest apparel exporter. The bulk of exports - 60 percent - go to Europe.

Ashton and de Gucht said they were deeply saddened by the "terrible loss of life", particularly because it followed a fire in the Tazreen Fashion factory in a Dhaka suburb in November that killed 112 people.

"The sheer scale of this disaster and the alleged criminality around the building's construction is finally becoming clear to the world," Ashton and de Gucht said.

Also on Tuesday, following a private emergency meeting of Canadian retailers, the Retail Council of Canada said it would develop a new set of guidelines.

That emergency meeting brought together retailers including Loblaw, Sears Canada Inc and Wal-Mart Canada, to discuss how they would deal with the tragedy.

Representatives of some 45 companies, including Gap Inc , H&M, J.C. Penney, Nike Inc, Wal-Mart, Britain's Primark, Marks & Spencer and Tesco , and Li & Fung, also met officials from the Bangladesh Garment Manufacturers and Exporters Association in Dhaka on Monday to discuss safety.

The Retail Council of Canada, which represents operators of more than 43,000 stores in Canada, said it would work with international organisations, the Bangladeshi government and others to find ways to address safety in the Bangladesh garment industry.

Primark and Loblaw have promised to compensate the families of garment workers killed while making their clothes.

AGONISING WAIT

With no hope left of finding survivors, heavy machinery is being used to clear concrete and debris from the site in the commercial suburb of Savar, about 30 km (20 miles) from Dhaka.

It was still an agonisingly slow process for families waiting for news on loved ones who worked in the Rana Plaza, which collapsed with about 3,000 people inside. About 2,500 people have been rescued so far, many of them injured.

With angry protests continuing daily since Bangladesh's worst industrial accident, the building's owner was brought before a court in Dhaka on Monday, where lawyers and protesters chanted "hang him, hang him".

About 20 people were injured on Tuesday as police fired teargas, rubber bullets and water cannon to disperse protesters in Savar calling for the death penalty for the owners of the building and factories.

Officials in Bangladesh have said the eight-storey complex had been built on swampy ground without the correct permits, and more than 3,000 workers entered the building last Wednesday despite warnings it was structurally unsafe.

Eight people have been arrested - four factory bosses, two engineers, building owner Mohammed Sohel Rana and his father, Abdul Khalek. Police are looking for a fifth factory boss, Spanish citizen David Mayor, although it was unclear whether he was in Bangladesh at the time of the accident.

The garment industry employs mostly women, some of whom earn as little as $38 a month.

View the original article here

WRAPUP 1-EU considers trade action after Bangladesh factory collapse

* EU considers action on Bangladesh, including trade preferences

* Canadian retailers say they will also issue new guidelines

* Rescuers give up hope finding any more alive; death toll passes 390

May 1 (Reuters) - The European Union voiced strong concern over labour conditions in Bangladesh after a building collapse there killed hundreds of factory workers, and said it was considering action to encourage improvements, including the use of its trade preference system.

Anger has been growing since the illegally built structure collapsed last week, killing at least 390 people. Hundreds remain unaccounted for but rescue officials said on Tuesday they had given up hope of finding any more survivors.

It was the third deadly incident in six months to raise questions about worker safety and labour conditions in the poor South Asian country, which relies on garments for 80 percent of its exports.

Representatives of major international garment buyers - some facing sharp criticism in home markets for doing too little to safeguard the mostly female workers making their clothes - met industry representatives in Dhaka on Monday and agreed to form a joint panel to put together a new safety plan.

Clothes made in five factories inside the Rana Plaza building on the outskirts of the capital, Dhaka, were produced for retailers in Europe and Canada.

Late on Tuesday, the EU issued a brief statement expressing concern and suggested it would look at Bangladesh's preferential trade access to the EU market in considering taking action to encourage better safety standards and labour conditions.

"The EU is presently considering appropriate action, including through the Generalised System of Preferences (GSP) - through which Bangladesh currently receives duty-free and quota-free access to the EU market under the 'Everything But Arms' scheme - in order to incentivise responsible management of supply chains involving developing countries," said the statement, issued by EU foreign policy chief Catherine Ashton and Trade Commissioner Karel de Gucht.

About 3.6 million people work in Bangladesh's garment industry, making it the world's second-largest apparel exporter. The bulk of exports - 60 percent - go to Europe.

Ashton and de Gucht said they were deeply saddened by the "terrible loss of life", particularly because it followed a fire in the Tazreen Fashion factory in a Dhaka suburb in November that killed 112 people.

"The sheer scale of this disaster and the alleged criminality around the building's construction is finally becoming clear to the world," Ashton and de Gucht said.

Also on Tuesday, following a private emergency meeting of Canadian retailers, the Retail Council of Canada said it would develop a new set of guidelines.

That emergency meeting brought together retailers including Loblaw, Sears Canada Inc and Wal-Mart Canada, to discuss how they would deal with the tragedy.

Representatives of some 45 companies, including Gap Inc , H&M, J.C. Penney, Nike Inc, Wal-Mart, Britain's Primark, Marks & Spencer and Tesco , and Li & Fung, also met officials from the Bangladesh Garment Manufacturers and Exporters Association in Dhaka on Monday to discuss safety.

The Retail Council of Canada, which represents operators of more than 43,000 stores in Canada, said it would work with international organisations, the Bangladeshi government and others to find ways to address safety in the Bangladesh garment industry.

Primark and Loblaw have promised to compensate the families of garment workers killed while making their clothes.

AGONISING WAIT

With no hope left of finding survivors, heavy machinery is being used to clear concrete and debris from the site in the commercial suburb of Savar, about 30 km (20 miles) from Dhaka.

It was still an agonisingly slow process for families waiting for news on loved ones who worked in the Rana Plaza, which collapsed with about 3,000 people inside. About 2,500 people have been rescued so far, many of them injured.

With angry protests continuing daily since Bangladesh's worst industrial accident, the building's owner was brought before a court in Dhaka on Monday, where lawyers and protesters chanted "hang him, hang him".

About 20 people were injured on Tuesday as police fired teargas, rubber bullets and water cannon to disperse protesters in Savar calling for the death penalty for the owners of the building and factories.

Officials in Bangladesh have said the eight-storey complex had been built on swampy ground without the correct permits, and more than 3,000 workers entered the building last Wednesday despite warnings it was structurally unsafe.

Eight people have been arrested - four factory bosses, two engineers, building owner Mohammed Sohel Rana and his father, Abdul Khalek. Police are looking for a fifth factory boss, Spanish citizen David Mayor, although it was unclear whether he was in Bangladesh at the time of the accident.

The garment industry employs mostly women, some of whom earn as little as $38 a month.

View the original article here

Loblaw plans more actions after Bangladesh building collapse

n">May 1 (Reuters) - Loblaw Cos Ltd, Canada's largest food retailer, said it would soon announce more actions in the wake of the collapse of a building in Bangladesh where some of its "Joe Fresh" garments were manufactured.

More than 400 people died in the collapse of the illegally constructed building in Dhaka, which housed a number of apparel factories.

"I am deeply shaken by the event. Our hearts and prayers continue to go out to those who were injured, to all the families who have lost loved ones," Executive Chairman Galen Weston said on a conference call.

"We have taken action to address the situation including the announcement of a fund to provide relief to the victims of this tragedy. There is more we will do and we will make that public over the next few days."

He did not specify what further measures Loblaw would take.

Loblaw is majority-owned by George Weston Ltd, which is controlled by the Weston family.

Loblaw, along with some other retailers supplied from the collapsed building, has offered to compensate families of victims of the tragedy.

"This is an evolving situation that we need to be very close to," Loblaw President Vicente Trius said on the call.

The Joe Fresh clothing line, launched in 2006, represents a key part of Loblaw's growth strategy.

Following a private emergency meeting of Canadian retailers, the Retail Council of Canada said on Tuesday it would develop a new set of trade guidelines.

View the original article here

Loblaw plans more actions after Bangladesh building collapse

n">May 1 (Reuters) - Loblaw Cos Ltd, Canada's largest food retailer, said it would soon announce more actions in the wake of the collapse of a building in Bangladesh where some of its "Joe Fresh" garments were manufactured.

More than 400 people died in the collapse of the illegally constructed building in Dhaka, which housed a number of apparel factories.

"I am deeply shaken by the event. Our hearts and prayers continue to go out to those who were injured, to all the families who have lost loved ones," Executive Chairman Galen Weston said on a conference call.

"We have taken action to address the situation including the announcement of a fund to provide relief to the victims of this tragedy. There is more we will do and we will make that public over the next few days."

He did not specify what further measures Loblaw would take.

Loblaw is majority-owned by George Weston Ltd, which is controlled by the Weston family.

Loblaw, along with some other retailers supplied from the collapsed building, has offered to compensate families of victims of the tragedy.

"This is an evolving situation that we need to be very close to," Loblaw President Vicente Trius said on the call.

The Joe Fresh clothing line, launched in 2006, represents a key part of Loblaw's growth strategy.

Following a private emergency meeting of Canadian retailers, the Retail Council of Canada said on Tuesday it would develop a new set of trade guidelines.

View the original article here