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April 25, 201 4

U.S. Ambassador DanMozena Pushes for LaborChanges in Bangladesh

By MAYU SAINI (/WWD-

MASTHEAD/MAYU-SAINI-5793880)

FROM:

WWD Issue 04/25/2014 (/w w d-publications/w w d/2014-04-25/)

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Q&A With Mikail Shipar, BangladeshSecretary for Labor (/business-news/government-trade/mikail-shipar-

Dan MozenaPhoto By Mayu Saini

U.S. Ambassador

(http://www.wwd.com/search/results/?

query=AMBASSADOR&lc=int_mb_1001) Dan

Mozena has been at the forefront of many of the

many discussions and negotiations among the

multiple stakeholders in the wake of the Rana

Plaza disaster. He’s one of the key

representatives of Western nations pushing for

change in Bangladesh

(http://www.wwd.com/search/results/?

query=BANGLADESH&lc=int_mb_1001).

Here, Mozena talks about the last year and what

needs to be done.

WWD: Are there times when you have lost

hope for an agreement among such widely

differing parties?

Dan Mozena: My mother always said, and I

really practice this, that the darkest clouds of life

have a silver lining. What happened at Tazreen

Fashion (http://www.wwd.com/fashion-news?

lc=int_mb_1001) — that horrible fire of

November 2012 — and April 24, 2013 at Rana

Plaza…those were the darkest clouds you can

imagine. But I do believe, and it’s now shown

and demonstrated, that those dark clouds have

the silver lining of energizing the transformation

— that’s the only word I can think of — the

transformation of Bangladesh’s ready-made

garment sector in terms of bringing it to

international standards for fire safety,

2Like

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ARTICLEFINDER

talks-labor-changes-in-bangladesh-7 655831?module=more_on)

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Fostering Change From the BGMEA(/business-news/government-trade/fostering-change-from-the-bgmea-7 651840?module=more_on)

MORE ARTICLES BY

May u Saini (/wwd-masthead/may u-saini-57 93880?module=more_by )

international standards for factory structural

soundness and international standards for

respect for workers’ rights to freely associate and

organize.

When I look at what has really happened over

the last year, I see so many elements coming

together in a constellation of progress that is

really tremendous.

I’m not discounting the challenges but I see so

many forces coming together in a constructive

way that gives Bangladesh an opportunity —

and I think they will seize it, although there are

no guarantees in life, so we don’t know. But I

commit myself to doing everything that America

can to support this process so that Bangladesh becomes a preferred brand in the global

marketplace. That’s the goal.

WWD: What do you see as the main forces that have come together?

D.M.: When I look at all these forces coming together, I see last June, President Obama

suspended GSP [Generalized System of Preferences] privileges for Bangladesh. That was a real

engine, a wake-up call to deal with these issues of workers’ safety and labor rights. And then, in

July last year, in Geneva, there was a negotiation — EU, Bangladesh, ILO, America — called the

Sustainability Compact. But the GSP action plan that Obama gave to Bangladesh, showing the

kinds of measures that would need to be addressed to restore the GSP to Bangladesh —those

steps are reflected in the Sustainability Compact to which Bangladesh made a commitment in

July last year. There you have it: a commitment by Bangladesh to do a whole variety of things

related to workers’ safety and workers’ rights. So you had the GSP Restoration Action Plan, you

had the Sustainability Compact, you had another phenomenon — never before has it happened

in the history of the ready-made garment industry ever — and that’s where you have competing

brands coming together in two different groupings: One is called the Alliance [for Bangladesh

Worker Safety], 26 or so North American companies, largely, and the other one called the

Accord [on Fire and Building Safety], largely European and some American companies. Those

two groupings coming together to affect change through inspections and through

recommendations for remediation of safety concerns.

So that’s sort of a third area of engagement. You have the ILO, with financial assistance from

the U.K., and Canada and the Netherlands — about $22.5 million, I think — it’s a program that

ILO gives leadership to the inspection of those factories not covered by the alliance and the

accord.

So all of the factory inspections are being covered. This is the critical piece. It is 100 percent —

not 98 percent — of the factories must be inspected, must have plans for remediation to come up

to international standards — or they’re closed. They have to make a decision. But they are not

allowed to make their profits by putting their workers at risk. That cannot be.

WWD: Is the coordination between the different stakeholders happening in a cogent way?

D.M.: ILO has been playing a critical role and coordinating all this stuff. You have the ILO

launching the largest ever “better work” program in the history of the ILO. This is fabulous. And

their goal is within the initial period of the program, 500-and-some factories will come in, but

they want to keep growing this and get up to about 800 factories. This is amazing stuff.

You have the alliance, the accord, you have the government (http://wwd.com/business-

news/government-trade?lc=int_mb_1001) of Bangladesh, you have everybody going

everywhere.

So you have that, you have donors like America: We’ve had, over the last year and a half,

something like $9 million, and another $5 million coming in to support all of this

transformation process. And we’re also very much engaged in driving this — working with our

fellow development partners, working with the government of Bangladesh — driving this

process.

You also have many of the owners — not all the owners —who are also part of this

transformation process. This is really important.

And the key ingredient, the absolute most-impressive element, is the government of Bangladesh

WWD: Has the government been playing its role sufficiently?

D.M.: It is impressive. The government of Bangladesh, led by the Secretary of Commerce, the

Secretary of Labor and the Foreign Secretary…hose three secretaries have come together and

they’ve been tasked with driving the government of Bangladesh leadership in affecting this

transformation. And out of this has come a process called the 3-plus-5: those three secretaries,

and on the other side of the table, five ambassadors. There’s me: I represent the GSP Restoration

Action Plan, I represent the Sustainability Compact, with which America is associated. And I

represent the single largest market for Bangladesh’s ready-made exports, about 25 percent.

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Then there’s the EU Ambassador. He represents the Sustainability Compact, and the largest

collective market: 60 percent of Bangladesh’s exports go to the EU collective.

We have the Dutch ambassador there, he is wearing the hat of the local consultative group for

private sector development. Those are all the donors promoting private-sector development. So

you have the donors coming in through there.

And then you have Canada, because they are big contributors. And then you have a floating EU

chair.

So that’s the five. We get together once a month for very dynamic meetings: These are not

diplomatic wah-wah-wah kind of stuff. This is straight talk. The ILO is usually there; they are

playing a supportive role. And we do business (http://www.wwd.com/business-news?

lc=int_mb_1001). And this is the process that’s driving the whole transformation.

WWD: Yet there are many things in many other areas that are not moving along.

D.M.: Yes, there’s much yet to do. I mean, the database is not populated. Where are the

inspection results? That’s not in there yet. Where are the recommended remediations? Not in

there yet. What’s the status of fulfilling the remediation efforts? Not in there yet.

I’m not a very patient person, so I want everything done yesterday. But things are happening,

change is happening, and that’s very positive.

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