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PCA closes two Bangladesh Accord arbitration cases

The Permanent Court of Arbitration (PCA) has closed two landmark cases against multinational fashion brands brought under the Bangladesh Accord on Fire and Building Safety. The brands met all terms of the settlements, including paying more than $2.3 million towards remediating unsafe conditions in Bangladesh ready-made garment factories. The Accord will distribute the money to eligible factories.

The arbitrations were filed in July 2016 and October 2016 to bring recalcitrant brands into compliance with the terms of the Accord. The brands did not require the contracted factories to remedy hazards in a timely manner—leaving thousands of workers in dangerous conditions. The unions also charged that the brands did not ensure that contracted factories had the financial resources to fix ongoing safety issues.

 

 
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