U.S. Retailers See Big Risk in Safety Plan for Factories in Bangladesh

Source: NY Times.

By STEVEN GREENHOUSE

American retailers remain sharply opposed to joining an international plan to improve safety conditions at garment factories in Bangladesh as their European counterparts and consumer and labor groups dismiss the companies’ concerns about legal liability.

A few shareholders at Gap’s annual meeting this week questioned the company’s refusal to sign on to a plan that commits retailers to help finance safety upgrades in Bangladesh, where 1,127 workers died when the Rana Plaza factory building collapsed on April 24.

“In the United States, there’s maybe a bigger legal risk than there is in Europe,” Gap’s chief executive, Glenn Murphy, responded. “If we were to sign onto something that had unlimited legal liability and risk, I think our shareholders should care about that.”

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