News Summary: US companies detail Bangladesh plan

AP News
Posted: Jul 10, 2013 4:17 PM

THE NORTH AMERICAN RETAIL PACT: Nearly 20 North American retailers and clothing makers agreed to a pact that aims to improve safety conditions in Bangladeshi clothing factories.

BEHIND THE PLAN: U.S. retailers faced criticism for not joining a group of mostly European retailers in signing another safety pact. They say they're averse to that agreement because they believe it exposes them to unlimited liability.

KEY DIFFERENCES: The pact spreads accountability for worker safety to a wide spectrum from the Bangladeshi government to factory owners. The companies say total funding is $42 million and growing. But outside of administrative costs there is no contractual commitment to help pay for repairs at factories.