Will the US govt proposal to the Bangladesh govt improve garment factory conditions

An article in the New York Times (July 20, 2013) describes a proposal by the US govt to Bangladesh for the country to regain its suspended trade privileges with the US. The plan includes creation of a public database of all garment factories, public reporting of violations, inspector names, penalties assessed and corrective action. It requires easing constraints on union formation and a hotline for anonymous reporting of code violations. It also requires the Bangladesh govt to impose greater penalties on garment manufacturers who violate safety or labor laws including suspension of their export privileges. Will such a system reduce costs or risk for US and European retailers who manufacture in Bangladesh ? Will such steps make manufacturing in Bangladesh uncompetitive with other global choices ? Given such steps planned to be taken by Bangladesh, should US and European retailers be required to commit to maintain a certain manufacturing volume (e.g., the current level) if the country complies with US demands ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , , . Bookmark the permalink.

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