Bangladesh factory shutdowns cause thousands of job losses
Thousands of textiles workers in Bangladesh have been sacked after two factories making clothes for international retailers were partially closed over safety fears. The shutdowns came as a result of inspections carried out under the Bangladesh Accord, signed by over 150 apparel corporations following the collapse of the Rana Plaza complex last year, which left more than 1,100 garment workers dead. Campaigners said the decision to shut down the factories, due to a host of failings including overloaded floors, poor wiring, locked fire exits and a lack of fire doors, showed that the programme was working. However, one of the factories, Softex, which supplies French supermarket chain Auchan, immediately sacked 3,500 staff, declaring it “risky to continue operations”. Softex’s chief executive, Rezwan Selim, said that, “I know what has happened to the workers is unfair. But the inspectors told me that the building has serious structural problems and asked us to evacuate the floors.” Unions condemned the two companies for not compensating staff, but the Bangladesh Garment Manufacturers and Exporters Association said that it was up to Western retailers to pay. (Independent)
NGOs warn of squeeze on banana growers
Two of the world’s best known banana brands – Fyffes and Chiquita – are to merge in a deal that will create the world’s largest producer and leave 80 percent of the world banana market in the hands of three companies. The deal comes in the face of deep cuts on retail prices that have left workers in the banana trade facing poverty around the world, with the Fairtrade Foundation warning that growers could be squeezed further, and left with even less power. Barbara Crowther, a director at the Fairtrade Foundation, said that, “it’s already really, really tough for them. The cost of production has gone up but the cost of bananas in British supermarkets has halved. Banana farmers might be paid the legal minimum wage but that’s usually not enough.” Alistair Smith, of NGO Banana Link, said that while both Fyffes and Chiquita had better reputations in the banana industry than many of their competitors, downward pressure on prices from retailers made it difficult for companies to improve working conditions or reduce their environmental impacts. (Guardian, Times*)
Corporate Reputation
Orange pulls advertising from Uganda’s anti-gay Red Pepper newspaper
An activist group has claimed victory after global telecom company Orange withdrew advertising from a Ugandan tabloid newspaper that printed the names of 200 suspected homosexuals following severe anti-gay legislation last month. In a statement yesterday, All Out announced that Orange had made the decision after more than 77,000 of its members petitioned the company to remove advertisements from the Red Pepper newspaper. Uganda’s President, Yoweri Museveni, signed the country’s anti-gay bill last month. The new legislation, which strengthens already strict laws against homosexuals, will see those found guilty of homosexuality sentenced to 14 years in jail with the possibility of a life sentence for certain violations. The original draft called for the death penalty for some homosexual acts, but was removed from the legislation following an international outcry. (Independent)
Climate Change
Sir Richard Branson says climate change deniers should ‘get out of the way’
Sir Richard Branson has said he was “enormously impressed” by Apple CEO Tim Cook, who told climate sceptic investors last week that their money was not welcome at the firm. Writing on his blog, the founder and chairman of the Virgin Group said responsible businesses should follow the example set by Cook, who was responding to a conservative think-tank’s claims that Apple’s sustainability programmes were not profitable. Branson wrote that, “if 97% of climate scientists agreeing that climate-warming trends over the past century are due to human activities isn’t compelling data, I don’t know what is.” Branson has previously indicated that protecting the environment is a great entrepreneurial opportunity, founding the Carbon War Room, a pressure group that works with businesses to promote sustainability. Branson added in his blog, “while Tim told sustainability sceptics to ‘get out of our stock’, I would urge climate change deniers to get out of our way.” (Blue and Green Tomorrow)
Consumers
UK energy bills to come with compulsory QR barcodes
Energy bills are to come with compulsory Quick Response (QR) codes designed to help customers compare prices and switch providers more easily, in the Government’s latest efforts to boost competition across the sector. The barcodes, which can be scanned by smartphones and tablets, will let customers upload tariff and consumption data directly from their bills. They can then feed this information into price comparison websites to make sure they are on the best rate. It is hoped that the codes will be made a compulsory addition to energy bills by the end of the year. The idea is to allow customers to make “instant cross-market comparison” when they scan the barcodes. The Government said it is “taking action” under the Energy Act to push through the changes and encourage the industry to develop apps that allow people to use the QR codes. The energy sector said that it was already working hard to streamline tariffs and encourage customer choice. (BBC, Marketing Week)
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