Retailers and union groups have succeeded in extending the tenure of the Accord agreement by three months. As per a Reuters report, over 200 brands and retailers were negotiating to extend the agreement period.

The signatories include top apparel retailers like Zara-owner Inditex and H&M. However, trade unions have threatened to pull out of the organization currently running the Accord if retailers do not commit to the legally binding portion of the agreement, obliging them to pay for fixes at supplier factories and banning them from working with these factories until they are deemed safe by accord inspectors.

The Accord on Fire and Building Safety in Bangladesh was signed in 2013 after the collapse of garment production complex Rana Plaza killed at least 1,100 people. It created an independent body to run inspections at factories and obliged retailers to pay for any repairs, collecting $500,000 from each signatory per year to fund its activities.

Originally due to expire in May 2018, the Accord was extended that year, culminating in the creation of a new organization called the Ready-Made Garments Sustainability Council (RSC).

Governed by factories, unions and retailers, the RSC took over the accord’s team and duties in June 2020 but did not immediately commit to extending the legally binding portion of the agreement beyond its expiration date of 31 May.