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Wal-Mart Stores Inc., the world's largest retailer, said Tuesday that it didn't plan to sign on to the legally binding pact and announced its own steps that it believes meet or exceed the contract. The Bentonville, Ark., company said it will conduct in-depth inspections at all of the 279 factories it uses in Bangladesh and will make the inspection information public, starting on June 1. It will be using an inspection company to provide fire safety training to factory workers. It also is contracting with a hotline call center run by an organization called Labor Voices so that factory workers in Bangladesh can report safety concerns. Dara O'Rourke, professor of environmental and labor policy at the University of California, Berkeley, applauded Wal-Mart's move to be more public with the results of its factory inspections. But he said that Wal-Mart needs to commit to a contract. "They should be using their market power and coordinating with other retailers, to move the entire apparel industry upwards in Bangladesh," he said. Gap Inc. reiterated Wednesday that it couldn't join the pact unless a provision was made that it felt would free it from any legal liability. Labor groups have pushed retailers to sign the legally binding plan, a lengthier version of an agreement that was proposed about two years ago. In fact, many workers' rights groups have threatened protests and other increased pressure on clothing brands that do not sign the agreement by Wednesday. In addition to requiring that retailers pay for safety upgrades, the plan calls for the companies to pay up to $500,000 annually to run the program, to stop doing business with any factory that refuses to make safety upgrades and to allow workers and their unions to have a voice in factory safety.
Those that sign on to the pact will have 45 days to form a governing board and develop an implementation plan. The board includes three labor representatives, three retailer representatives and a chairman chosen by the International Labor Organization. The board will oversee dispute resolutions that would be enforceable in the courts of the country where the company is based.
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