Those people who care about the plight of their fellow human beings might be interested in the Sept. 11 online issue of the Wall Street Journal.
The article – and other similar ones – reports of meetings in Geneva recently of the ILO (International Labour Organization) in which dozens of global retailers agreed to pay $77 million dollars in compensation to families of victims of two sweat shop factory disasters in Bangladesh. People will recall the media coverage of the factory collapse of the Rana Plaza building in April, which killed 1100 workers and injured 2000. Then there was the fire that killed 100 last November in Tazreen. Many of these killed and injured were women and the sole income earners for their families. Many of the injured lost limbs from being crushed.
One notable exception was Walmart Stores Inc., which declined to participate in the compensation package. It is noted in the article, however, to be one of the biggest buyers of clothes made in Bangladesh.
Walmart is instead focusing on providing loans to factories, joining a U.S. group that has been criticized because it doesn’t take into account factors such as lost earnings, pain and suffering and medical, funeral and other expenses.
The article states:
“The reason Bangladesh manufacturing is so cheap is, in part, because many factories don’t comply with safety standards, and retailers benefit from that,” said Peter McAllister, director of the Ethical Trading Initiative, which has helped co-ordinate negotiations among retailers. “It’s not the real cost of making clothes.”
So although cheap goods are appealing to all of us, it is worth remembering they come with a hidden human cost. As I drive by the new Walmart store and note the marketing for the grand opening in early November, I will be thinking about that cost.
Joan Bratty
