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Walmart to conduct diligence of Bangladesh factories
May '13
Walmart announced that it will conduct in-depth safety inspections at 100 percent of the factories in Bangladesh that produce goods for the retailer, require remediation as necessary, and increase transparency by making the results available to the public. 

This plan will help set a new standard for the safety of factories, the quality of safety inspections, and transparency in Bangladesh.

Walmart has participated with other stakeholders in discussing group efforts to improve working conditions in Bangladesh.  The company, like a number of other retailers, is not in a position to sign the IndustriALL accord at this time. 

While we agree with much of the proposal, the IndustriALL plan also introduces requirements, including governance and dispute resolution mechanisms, on supply chain matters that are appropriately left to retailers, suppliers and government, and are unnecessary to achieve fire and safety goals.

Walmart believes its safety plan meets or exceeds the IndustriALL proposal, and will get results more quickly.  For example:

Walmart committed to rigorous inspections of 100 percent of factories that supply private label or goods directly to the company within six months.  The IndustriALL proposal commits to inspecting 65 percent of each participating company’s sourcing volume.

Walmart will immediately release results of fire, safety and electrical inspections where worker safety is in jeopardy.  The IndustriALL proposal makes inspection reports available to the public after as many as six weeks.

Walmart believes the issue of worker safety requires urgent attention, and has already begun a new, intensive safety inspection program and will have inspected, at its own cost, all 279 factories in its private label and direct supply chain within six months.  The IndustriALL proposal provides 45 days to develop a plan.

Since the IndustriALL accord affords a 45-day discussion period, Walmart looks forward to participating in the continued discussion.  If the issues with the accord could be addressed, Walmart would be pleased to join the effort.


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