Sourcing from Bangladesh: Our Responsibility and Commitment

We have stated it before and are standing by what we said: Producing in countries like Bangladesh goes hand in hand with obligations towards the workers.

One month ago, on Monday, 5th August 2024, Bangladesh’s Prime Minister Sheikh Hasina resigned amidst a fresh wave of nationwide protests. Public anger over civil service job quotas sparked the unrest, which had been escalating for weeks. In response to the growing instability, the President dissolved parliament and, in consultation with students, the armed forces, and various political parties, announced the formation of an interim government. Nobel Laureate Muhammad Yunus was appointed to lead this government, marking a significant transition for the country.

The Responsibility of Brands in a Volatile Environment

In this rapidly evolving political context, the level of attention requested from businesses operating in Bangladesh has become higher. As outlined in the United Nations Guiding Principles on Business and Human Rights (UNGPs), companies must respect international human rights and perform continuous due diligence to mitigate potential risks. This is especially true in times of instability, where the impacts on workers and supply chains can be profound.

Oberalp’s Proactive Measures

At Oberalp Group, we are committed to conducting enhanced human rights due diligence (eHRDD) to better understand the current situation in Bangladesh, identify actual and potential harms, and acting accordingly to the results to prevent, mitigate and remedy them.. Our increased efforts are based on the joint statement and recommendations for responsible business conduct in Bangladesh issued by the Fair Wear Foundation, Amfori, Cascale, Ethical Trade Denmark, Ethical Trade Sweden, Ethical Trade Norway, Ethical Trade Initiative UK, Fair Labour Association, and Mondial FNV.

Our actions include:

• Open and Regular Dialogue with Suppliers: We constantly communicate with our suppliers to understand their challenges and how the current situation impacts their business.
• Payment of Wages: We ensure that all workers are paid in full and on time, including for days when factories are closed due to safety concerns.
• No Order Cancellations or Penalties: We are committed to not cancelling any orders or imposing penalties on suppliers for delays caused by factory closures or transportation issues, recognizing that these disruptions are a result of the current unrest.
• No Additional Pressure on Suppliers: We are avoiding additional demands that could lead to excessive overtime for workers or cancellation of day-offs. ?

Supporting Worker Safety through Key Initiatives

This development also highlights the importance of participating in programs which prioritize worker safety and welfare, such as the International Accord and the Employment Injury Scheme (EIS) Pilot. These initiatives are crucial for ensuring that workers are protected, both in terms of prevention and remediation.

A decade after the tragic Rana Plaza disaster in April 2013, the protection of workers in Bangladesh remains inadequate. Despite being one of the top 20 Ready-Made Garment (RMG) exporting countries, Bangladesh still lacks a social protection system that meets international standards for work-related injuries.

In recognition of this gap, Oberalp joined the Employment Injury Scheme (EIS) Pilot in 2023. This initiative addresses the unacceptable risks posed by weak protections for work-related injuries, not just for Oberalp workers but for all 4 million employees in Bangladesh’s export-oriented RMG sector. The EIS Pilot provides compensation for permanently disabled workers and the dependents of deceased workers through monthly pensions, supplementing the lump-sum payments provided by national institutions.

The pensions under the EIS Pilot are funded through voluntary contributions from international brands, including Oberalp. The scheme also covers accidents during commuting, extending its reach to all RMG workers. As a committed supporter of both the EIS Pilot and the International Accord, Oberalp reaffirms its dedication to the safety and protection of workers in Bangladesh.

Our Commitment Moving Forward

For the development of the EIS pilot into a national framework and part of the social protection system of the country itself, the signature of more brands is necessary. We urge other companies sourcing from Bangladesh to join because it is through our collective action that lasting systemic change can occur in the Bangladeshi RMG sector.

At Oberalp, we understand that our responsibility goes beyond producing high-quality products. In times of uncertainty, we must act with integrity and a commitment to human rights. We will continue to monitor the evolving situation in Bangladesh, adapt our strategies as needed, and uphold our responsibility to protect and support the workers who are vital to our supply chain.

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Written by

Martine Riblan , Social Compliance Specialist

Marie-Luisa Roos , Sustainability Communications Specialist

Get in contact: [email protected] | ?[email protected]

The Italian Oberalp S.p.A. , based in Bolzano, was founded in 1981. With its six different brands, it is the only house of brands worldwide specialized in one topic and one adventure area within the mountain sports industry – the mountain.