PCA allows complaints to proceed against 2 fashion brands for alleged violation of Bangladesh Accord
- Claimants in the arbitration are IndustriALL Global Union and UNI Global Union.
- Names of the two brands accused of breaking the Accord to remain confidential, according to the Permanent Court of Arbitration (PCA).
- Complaints allege that the two brands failed to compel their suppliers to improve their facilities within the mandatory deadlines
- Cases will be the first test of the Accord's accountability mechanism.
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Settlement agreement reached with one fashion brand in arbitration case over alleged violation of Bangladesh Accord
"Settlement reached with global fashion brand in Bangladesh Accord arbitration", 15 Dec 2017
IndustriALL Global Union and UNI Global Union have reached a settlement agreement in a case under the legally-binding enforcement mechanisms of the Bangladesh Accord on Fire and Building Safety.
This settlement will ensure that the supplier factories associated with this leading fashion brand are remediated and that substantial funds are available for that remediation work consistent with the 2013 Bangladesh Accord.
Global union federations, IndustriALL and UNI, launched arbitrations against two leading fashion brands in 2016. This settlement agreement applies to one of those two cases.
The case hinged on whether the global brands involved met the Accord requirements to require their suppliers to remediate facilities within the mandatory deadlines imposed by the Accord and to negotiate commercial terms to make it financially feasible for their suppliers to cover the costs of remediation.
17 October 2017
Trade unions...hailed a landmark ruling allowing complaints to proceed against two global fasion brands for allegedly violating an agreement to improve builiding and fire safetly in garment factories in Bangladesh.
The two cases will be the first that the Permanent Court of Arbitration (PCA) in The Hague judges under the [Bangladesh] Accord...
The complaints allege that the two brands failed to compel their suppliers to improve their facilities within the mandatory deadlines, and did not help them to cover the costs to do so...
The names of the two fashion brands accused of breaking the agreement must remain confidential, according to the PCA, which ruled...that the claims were admissible and within [the PCA's] jurisdiction. The court will judge the cases in March 2018.
A unanimous decision by an arbitral tribunal in The Hague bolsters the legally-binding enforcement mechanisms of the Bangladesh Accord on Fire and Building Safety. The ruling...allows complaints lodged by IndustriALL and UNI against two leading fashion brands to proceed to the next stage of arbitration, where they will be judged on their merits.
These cases represent the first tests of the Bangladesh Accord’s ground-breaking accountability structures...
PCA press release: Arbitrations under the Accord on Fire and Building Safety in Bangladesh between IndustriALL Global Union and UNI Global Union (as claimants) and two global fashion brands (as respondents)
Author: Permanent Court of Arbitration
…Decision on Preliminary Issues:
On 4 September 2017, having considered submissions of the Parties, the Tribunal decided that the pre-conditions to arbitration under Article 5 of the Accord had been met. Accordingly, the claims were held to be admissible and within the Tribunal’s jurisdiction. The arbitrations will now proceed to a merits phase, with hearings scheduled for the first half of 2018…