Gap Inc to execute fire safety program in Bangladesh

03 Oct '12

4 min read

After the inspection, the Chief Fire Safety Inspector will then outline remediation steps with a specific action plan and regular check-ins to help ensure that these facilities are in full compliance with building, fire and electrical safety standards.

The company will also work with these facilities to ensure that the necessary fire safety training is done and that management systems are in place to ensure remediation. Progress and results will be transparently shared with the Bangladesh and US government agencies, as well as with the ILO.

Gap Inc.’s long-standing vendors with the highest production volume in Bangladesh will be inspected first. The remaining vendors will be prioritized accordingly. While termination of a vendor relationship is a last resort, the company will end production in the event that a factory is found to have failed to remediate a severe and imminent safety risk in a timely manner, is persistently delinquent in remediating other significant safety risks and/or has failed to cooperate with the inspection process.

As part of Gap Inc.’s commitment, the company will launch a Worker Support Program to ensure that factory employees displaced from work because of remediation of significant fire safety risks receive payment of up to one month’s wages for work days missed. Gap Inc. will make available up to US$2 million to its long-standing vendors who have the highest production volume in Bangladesh to help support these payments as necessary.

Gap Inc. is committed to assisting factory owners in Bangladesh in making the necessary fire and building safety upgrades. Recognizing the expensive cost of capital in Bangladesh, Gap Inc. will provide accelerated access to capital of up to US$20 million as necessary to support the implementation of the required safety improvements.

To create comprehensive change, the company will transparently share with appropriate Bangladesh and U.S. government agencies and the ILO the fire inspection learnings, the plans for vendor remediation and progress against those plans.

Gap Inc

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