ACCORD Rules in Industrial Relations / Labor Law Context

 


ACCORD Rules in Industrial Relations / Labor Law Context

In HR, especially in the Ready-Made Garment (RMG) and manufacturing sector, the term “ACCORD” generally refers to the Accord on Fire and Building Safety in Bangladesh, established after the Rana Plaza tragedy in 2013.


🛡️ What is the ACCORD?

The Accord is a legally binding agreement between global brands, Bangladeshi garment factories, and trade unions to ensure safe working conditions for workers, especially focusing on fire safety, electrical safety, and structural integrity in factories.


🔹 Key Features of the ACCORD Rules

AreaDescription
Safety InspectionsIndependent inspections of fire, electrical, and building safety in factories
Corrective Action Plans (CAP)Factories must fix safety issues identified in inspections
TransparencyInspection reports and progress are publicly available
Worker EmpowermentTraining on worker rights, safety committees, and complaint mechanisms
Legally BindingBrands are legally bound to ensure factory compliance
Dispute ResolutionDisputes between brands and unions can go to arbitration
No Retaliation ClauseProtects workers from retaliation when raising safety concerns

📅 Timeline Summary

  • First Accord (2013–2018): Initial 5-year agreement

  • Transition Accord (2018–2021): Extended for brands not joining the new RSC

  • RSC (RMG Sustainability Council, 2020–Present): Took over Accord’s functions, combining BGMEA, brands, and unions


🏭 Impact of ACCORD on HR & Compliance

  • HR professionals must ensure:

    • Factory follows CAP deadlines

    • All workers receive safety training

    • Worker Participation Committees (WPC) function properly

    • Incident reporting and remediation systems are in place

    • Close coordination with compliance, maintenance, and production teams


⚠️ Non-Compliance Risk

Factories failing to comply with Accord/RSC standards may face:

  • Blacklisting from international buyers

  • Order cancellations

  • Reputational damage

  • Legal or labor unrest risks

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