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LGS commits to Bangladesh labour standards
Local Government Super (LGS) has signed the ‘Investor Statement on Bangladesh' which calls on brands and retailers to implement the International Labor Organisation's (ILO) international standard on labour.
The fund said the move came in response to the recent spate of deadly incidents in Bangladesh garment factories, including the November 2012 Tarzeen garment factory fire, the collapse of Rana Plaza in April and another fire in Dhaka in May this year, which have killed over 1,500 Bangladeshis.
Late last month, the Australian Council of Superannuation Investors (ACSI) said an increasing trend towards sourcing inputs from the least developed Asian countries was increasing supply chain risks for retailers and investors. It found imports sourced from Bangladesh had increased 15-fold between 2006 and 2012.
LGS is the first Australian super fund — in a pool of over 190 global shareholders and investors including the United Church of Christ pension boards and representing over $US1.5 trillion — to have signed the initiative.
"In signing the Investor Statement on Bangladesh, Local Government Super is taking a first — but important — step to support change for the better from an investment perspective," said LGS chief executive Peter Lambert.
"The Statement includes a pledge to engage with relevant companies to highlight the investment risks associated with perpetuating the unsafe working standards that are all too prevalent in emerging markets."
The statement asks companies to join the ‘Accord on Fire and Building Safety', and to commit to strengthening labour unions and fair remuneration to workers, public disclosure on suppliers and occupational health and safety measures.
It requests that companies implement appropriate governance mechanisms, resolutions and compensation for workers and families.
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