I recall a marketing VP saying to me some 
years ago that safety is a cost without a 
return.  Meaning we don’t want to put any 
more money into safety than we absolutely 
have to.

In today’s paper, we learn that this mantra
continues. 

“At the April 2011 meeting in Dhaka, the Bangladesh capital, retailers 
discussed a contractually enforceable memorandum that would require them to pay 
Bangladesh factories prices high enough to cover costs of safety improvements.”

“Specifically to the issue of any corrections on electrical and fire safety, we 
are talking about 4,500 factories, and in most cases very extensive and costly 
modifications would need to be undertaken to some factories,” they said in the 
document. “It is not financially feasible for the brands to make such 
investments.” 

http://www.bloomberg.com/news/2012-12-05/wal-mart-nixed-paying-bangladesh-suppliers-to-fight-fire.html

Then the November 24 fire.

Now we find that the buyers of the goods made 
in that factory are not responsible because the
goods had been sub-contracted and sub-contracted
again to other factories without authorization.

“After the Nov. 24 fire, both Wal-Mart and Sears (SHLD) said they had fired 
unauthorized suppliers.” 

Of course.  (How do you fire a supplier who was
not authorized in the first place?)

“Bangladesh’s labor law requires safety measures such as fire extinguishers and 
easily accessible exits at factories. “

Of course.  The buyers of the (low cost) goods 
expect the government to assure workplace safety.

The incremental cost of safety for buyers of 
garments made in Bangladesh?  Zero.

Fortunately, this is not the case for most of 
us.  Regulations for safety certification mean
we must spend some minimal amount on safety.  


Richard Nute
Bend, Oregon


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