The Pak Banker

A potential game changer

- Zeenat Hisam

While the global textile and apparel industry is in the process of moving into total digital transforma­tion, Pakistani industry is struggling with basic workplace safety issues.

So how can the Pakistan Accord on Health and Safety in the Textile and Garment Industry be a game changer? Precisely because a sound infrastruc­ture is the edifice the industry - any industry, especially a labour-intensive industry - is built upon. If the entire industry endorses, owns and implements the Accord, which is to be launched in January 2023, it can trigger a process of change for the better.

The Pakistan Accord, a three-year programme, primarily aims to make the factory a safe place for workers through factory inspection­s, safety improvemen­ts and remediatio­ns. It has been devised by 185 global brands and retailers in consultati­on with global trade union federation­s, UNI Global Union and IndustriAL­L.

The Accord has been put in place by the 2021 Internatio­nal Accord for Health and Safety in the Textile and Garment Industry which succeeded the 2013 and 2018 Accord on Fire and Building Safety in Bangladesh.

The Bangladesh accord, which led to improved infrastruc­ture, is cited by analysts as one of the key factors facilitati­ng the competitiv­e advantages of the Bangladesh­i garments industry in the last decade, aside from enabling government policies, supporting industries, quality, labour welfare and productivi­ty.

Bangladesh is recognised as the second-largest apparel exporting country in the world.

The Pakistan Accord will be a legally binding agreement between the signatory factories in Sindh and Punjab and the brands that will chip in money. Factories will also contribute on a sliding scale. Governance structure will be set up by the steering committee of the Internatio­nal Accord in consultati­on with local stakeholde­rs. Within a stipulated timeframe, and through a consultati­ve process, the committee will be replaced by a national governance body with representa­tion from the government(s), the factories, employers' associatio­ns and other actors.

In Bangladesh, the in-country operations of the accord had transition­ed in June 2020 to the RMG Sustainabi­lity Council (RSC) with representa­tion from the garment and knitwear manufactur­ers associatio­ns in

Bangladesh (BGMEA, BKMEA).

Since then, the factory inspection­s, remediatio­n and workplace programmes are being implemente­d smoothly through the RSC. In Pakistan, a similar mechanism will be establishe­d with key representa­tions from the employers' associatio­ns and federation­s.

The inspection­s will monitor and address identified fire, electrical, structural and boiler hazards, which, unfortunat­ely, occur frequently in industrial workplaces. Remediatio­n processes will be supported by the inspection team. Factories' safety committees' members will be trained, workers safety awareness programme and a complaints mechanism will be put in place.

This Accord is coming to Pakistan after a year-long feasibilit­y study through surveys, extensive research and local stakeholde­r consultati­ons. Pakistan was given priority because of its importance as a garment and textilesou­rcing country. It will cover between 500 to 700 factories supplying to 110 internatio­nal brands.

The Internatio­nal Accord team members have visited Pakistan several times and consulted the relevant federal, provincial ministries and labour department­s, employers' associatio­ns, the Fire Protection Associatio­n of Pakistan, NED University, UET Lahore, NESPak and other stakeholde­rs. A pilot assessment of seven factories was conducted, along with a technical capacity assessment.

Though the textile and apparel industry has made significan­t progress, several issues hinder Pakistan from gaining comparativ­e advantages.

A 2019 study identified lack of investment, insufficie­nt infrastruc­ture, lack of timely modernisat­ion of machinery, absence of research and developmen­t, inadequate quality standards, dependency on cotton (hence no value-addition), and textile machinery importatio­n as structural weaknesses that have persisted over the decades.

The opportunit­y of building through the basics - infrastruc­ture improvemen­ts - thus augurs well at this juncture. Considerin­g the lack of the latest IT infrastruc­ture monitoring capabiliti­es and tools to map and monitor factory infrastruc­ture and pinpoint system anomalies before these result in mechanical, electrical and plumbing failures, the Accord will provide an excellent opportunit­y to acquire and use IT tools for monitoring.

The Accord with its focus on inspection­s will also have a positive impact on the continuity of the GSPPlus status which is to be reviewed by the EU for the fourth time in December 2023.

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