Suppliers whose business with Accord signatory companies has been terminated for reasons of workplace safety.

Under the Accord (article 21), “each signatory company shall require that its suppliers in Bangladesh participate fully in the inspection, remediation, health and safety and, where applicable, training activities. If a supplier fails to do so, the signatory will promptly implement a notice and warning process leading to termination of the business relationship if these efforts do not succeed.”

Examples of a failure to participate include: refusal to temporarily evacuate the factory; lack of progress in finalizing corrective action plans or executing required safety renovations, refusal to resolve worker complaints on safety issues; lack of cooperation with Accord trainers, case handlers and engineers.

Suppliers listed below have gone through a process of notice and warning by the Accord and the signatory companies, but continue to inadequately participate in the Accord program. Accord signatory companies are required to terminate business with this supplier’s factories in such cases. For further information, please see the Accord Escalation Flowchart.

The Accord policy on fraud will be zero tolerance. A supplier will be terminated with immediate effect where fraudulent acts by that supplier are verified.

Criteria for identifying RMG company groups
“RMG company” is the term used to describe a legal entity producing ready-made garments in one or more factories. “Group” refers to any aggregation of legal and/or natural persons sharing common control of suppliers. Control shall be presumed where there is common ownership, unless proven to the contrary.

Among the criteria the Accord will consider when deciding if a company is part of an RMG company group are the following:

1. Companies are presented as a group in their own marketing materials (e.g websites, brochures, or business cards).

2. Companies are presented as being under the same management (e.g. having the same director(s) or same corporate email domain).

3. Registration document(s) of the Bangladesh Office of Registrar of Joint Stock Companies and firms.

4. Companies are listed in BGMEA or BKMEA registration books with the same owner.

5. Company ownership documents show group structures (e.g. Company registration, shareholder information, or annual reports).

6. A supplier has informed Accord or signatories that they own other companies or factory management has informed that they are part of a company group.

7. A company signatory has informed Accord that one of their suppliers is part of a group.

8. Other representations where a company has been presented as part of a group or as a “holding” (e.g. entries in trade association description of the company or group, biographies of owners, presentations of the company at industry conferences).

Requalification
A terminated RMG company group may requalify for placement of business by an Accord signatory company after a period of no less than 24 months from the date of termination.

To requalify after such period, the RMG company group is required to demonstrate that all remediation from the Accord initial inspections at all affected RMG companies has been satisfactorily completed and that an acceptable, time bound corrective action plan is in place to correct any new findings identified after the initial inspections. It shall be the Accord Chief Safety Inspector who determines if initial remediation has been satisfactorily completed through an Accord verification inspection. The onus shall be on the terminated RMG company group, after the above-described 24 month period, to inform the Accord CSI that remediation has been completed and to request an Accord verification inspection.