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Article

20 Mar 2015

Author:
Brett Mathews, Ecotextile (UK)

Inadequate global supply chain laws cause lack of accountability for industrial disasters, says academic

“Factory disasters: who is accountable?" 10 Mar 2013 [Subscription only]

International laws which govern accountability in the wake of industrial disasters…are not fit for purpose and lag behind the interconnected nature of global business supply chains according to…Bjoern Fasterling, a professor of law…[A] new campaign…has been launched to secure long-term compensation for the victims of the Ali Enterprises factory fire in Pakistan...The campaign…is demanding compensation from KiK…the main buyer from the factory at the time…Fasterling suggests…[the] ultimate lack of accountability…is almost inevitable given the…legally complex nature of global apparel supply chains. He…[said]: “…The law is still largely based on the atomistic view of separate legal entities and isolated contractual relationships that run under fragmented national laws. Business realities are highly integrated supply chains that are global, and in which contracts and entities are interconnected…[I]ntroducing legal 'supply chain liability', as some would like, is incredibly complex…" Fasterling suggests a possible solution may lie in a form of insurance whereby independent global worker relief funds for industrial accidents are established on a rolling basis…