Workers' workplace safety and health at exporting countries' factories is a significant concern for importers of textiles and other labor-intensive products. And there are international or local organizations to ensure through audit processes the compliance of safety and health standards at exporters' factories as mandated by the buyers.
One such organization is the International Accord of the Netherlands. Accord desires to become the mandatory auditor to the textile companies of Pakistan exporting to the EU for now. However, Pakistan's exporting businesses and the government must evaluate the pros and cons of letting Accord self-appoint itself as a sole auditor. There are lessons to be learned from Bangladesh's experience of the Accord and how the country shifted to ensuring compliance through a homegrown solution with the acceptance and ample participation of the buyers.
The Accord experience in Bangladesh was, at best controversial, with the modus operandi of the auditor being aggressive rather than supportive. The focus was more on naming and shaming than capacity building, at least earlier. Even some court judgments, suits between a manufacturer and Accord, echoed similar sentiments.
Following a particular court case in Bangladesh, Accord was told to wrap up its activities, and its functions were absorbed into Bangladesh's RMG Sustainability Council (RSC). The reason was that Accord had violated Bangladesh's National Tripartite Plan of Action, as well as relevant UN conventions, by conducting allegedly questionable inspections. Even factories that complied with Bangladesh National Guidelines and, at least in one case, where the company was passed by another auditor and found short by Accord.
After its unceremonious exit from Bangladesh, this private entity started looking for another country to run its shop. Accord said it had four choices – India, Morocco, Sri Lanka, and Pakistan. For some inexplicable reason, India, one of the most prominent textile players, was spared Accord's landing. Meanwhile, Sri Lanka, which has a smaller textile footprint and, in any case, was going through a painful economic restructuring, also escaped Accord's embrace. Finally, Morocco was another small textile fry. That left only Pakistan in the crosshairs.
Pakistan is relatively big in textiles. Accord's aggressive marketing of itself and attempts at painting a dark picture of worker safety in Pakistan are thus no surprise. The entire Pakistan textile leadership vociferously contested their aggressive referencing of the Ali Enterprises, Baldia Town, Karachi’s massacre as a safety incident. The Ali Enterprises massacre was made the poster child of a sinister campaign launched in EU capitals, in which Accord denies its role, to scare EU buyers and governments into winning their backing to support the Accord narrative and avoid the next Rana Plaza. Apart from unregulated inspections (which were the case in Bangladesh), having Accord be the sole arbitrator could be detrimental for SMEs, second-tier players, and even some larger players operating in the sector.
Pakistan needs to act preemptively, learn from Bangladesh, and develop its corpus of compliance mechanisms strictly aligned with international standards – akin to RSC in Bangladesh. This is even more critical now that Accord has boasted a fictional relationship with the government of Pakistan, an insinuation denied by Islamabad.
While buyer brands and selling companies are free to choose Accord willy-nilly without any government involvement, there is a more permanent alternative formulated and committed to the EU, and to the US, by the government, i.e., the National Compliance Center (NCC) with several potential sub-chapters covering textiles, agriculture products, leather products, etc. with the sole purpose of regulating and ensuring compliance as required by the buyers, however stringent those might be. In this way, the government, textile entrepreneurs, and their international buyers can streamline the process, bypassing a replay of the Accord experience in Bangladesh. The Bangladesh RSC is a model worth exploring in Pakistan to avoid the chaos and costs at entry and exit of a private compliance organization.
It is pertinent to note that many textile producers already comply with several international requirements. Many exporters claim that they are aligned with the UN Sustainable Development Goals. Global development entities like GIZ have done plenty of work enlightening entrepreneurs and management, enhancing their capacity to be more compliant, better corporate citizens, and more profitable. Other programs like Better Work have also been contributing to building the capacity of local entrepreneurs. However, more must be done, and Pakistani sellers must comply with the customers' demands as manifested by the buying brands and their governments. Pakistani exporters must meet customer expectations. There are no two ways about it.
Suppose Accord is to be allowed to operate and become the mandatory auditor for certain brands (which they have been lobbying for). In that case, the industry will have to spend more treasure and time on compliance, with severe disruptions - all adding to manufacturers' costs. In contrast, the proposed NCC is designed to ensure support for existing and evolving compliances for all exports out of Pakistan, textile or other. Accord is hovering over Pakistan because the government and many entrepreneurs never took compliance seriously before this development. In contrast, many smaller players never had the wherewithal to opt for such investments.
However, it is still not too late. Big brands and their customers are very particular about their suppliers' compliance with international standards and ensuring that the factories supplying them are up to the mark. Therefore, it is better for everyone involved to have one national platform under NCC, conforming to international standards for safety, environment, and other such requirements. This would make our manufacturers stand tall in the marketplace and improve the well-being of our labor, men, and women. It is a win-win strategy.
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