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Wal-Mart Nixed Paying Bangladesh Suppliers to Fight Fire

Posted on December 5th, 2012 at 16:23 by John Sinteur in category: News -- Write a comment


At a meeting convened in 2011 to boost safety at Bangladesh garment factories, Wal-Mart Stores Inc. (WMT) made a call: paying suppliers more to help them upgrade their manufacturing facilities was too costly.

The comments from a Wal-Mart sourcing director appear in minutes of the meeting, which was attended by more than a dozen retailers including Gap Inc. (GPS), Target Corp. and JC Penney Co.

Details of the meeting have emerged after a fire at a Bangladesh factory that made clothes for Wal-Mart and Sears Holdings Corp. killed more than 100 people last month. The blaze has renewed pressure on companies to improve working conditions in Bangladesh, where more than 700 garment workers have died since 2005, according to the International Labor Rights Forum, a Washington-based advocacy group.

As long as companies can externalize costs like this, things won’t improve. We should be able to drag the whole Wal-Mart board into The Hague International Court of Justice for crimes against humanity.

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