SAVAR, Bangladesh — Several of the biggest Western retailers embraced a plan that would require them to pay for factory improvements in Bangladesh as the three-week search for victims of the worst garment-industry disaster in history ended Monday with the death toll at a staggering 1,127.
Bangladesh's government also agreed to allow garment workers to form unions without permission from factory owners. That decision came a day after it announced a plan to raise the minimum wage in the industry.
The collapse of the eight-story Rana Plaza factory building April 24 focused worldwide attention on hazardous conditions in Bangladesh's garment industry, where workers sew low-cost clothing that ends up on store shelves around the globe, including the U.S. and Western Europe.
The tragedy came months after a fire at another garment factory in Bangladesh killed 112 workers.
Swedish retailing giant H&M, the biggest purchaser of garments from Bangladesh; British companies Primark and Tesco; C&A of the Netherlands; and Spain's Inditex, owner of the Zara chain, said they would sign a contract that requires them to conduct independent safety inspections of factories and cover the costs of repairs.Comment on this story
The pact also calls for them to pay up to $500,000 a year toward the effort and to stop doing business with any factory that refuses to make safety improvements.
Two other companies agreed to sign last year: PVH, which makes clothes under the Calvin Klein, Tommy Hilfiger and Izod labels, and German retailer Tchibo. Among the big holdouts are Wal-Mart Stores, which is the second-largest producer of clothing in Bangladesh behind H&M, and Gap.
Gap, which had been close to signing the agreement last year, said Monday that the pact is "within reach," but the company is concerned about the possible legal liability involved.