In this rapidly evolving political context, the level of attention requested from businesses operating in Bangladesh has become higher. As outlined in the United Nations Guiding Principles on Business and Human Rights (UNGPs), companies must respect international human rights and perform continuous due diligence to mitigate potential risks. This is especially true in times of instability, where the impacts on workers and supply chains can be profound.

Oberalp is committed to conducting enhanced human rights due diligence (eHRDD) to better understand the current situation in Bangladesh, identify actual and potential harms, and act accordingly to the results to prevent, mitigate, and remedy them. These increased efforts are based on the joint statement and recommendations for responsible business conduct in Bangladesh issued by the Fair Wear Foundation, Amfori, Cascale, Ethical Trade Denmark, Ethical Trade Sweden, Ethical Trade Norway, Ethical Trade Initiative UK, Fair Labour Association, and Mondial FNV.

The actions of the Oberalp Group include:

• Open and Regular Dialogue with Suppliers: The team is constantly communicating with suppliers to understand challenges and how the current situation impacts their business.
• Payment of Wages: The company ensures that all workers are paid in full and on time, including for days when factories are closed due to safety concerns.
• No Order Cancellations or Penalties: Oberap is committed to not canceling any orders or imposing penalties on suppliers for delays caused by factory closures or transportation issues, recognizing that these disruptions are a result of the current unrest.
• No Additional Pressure on Suppliers: Oberalp is avoiding additional demands that could lead to excessive overtime for workers or cancellation of day-offs.  

This development also highlights the importance of participating in programs that prioritize worker safety and welfare, such as the International Accord and the Employment Injury Scheme (EIS) Pilot. These initiatives are crucial for ensuring that workers are protected, both in terms of prevention and remediation.

A decade after the tragic Rana Plaza disaster in April 2013, the protection of workers in Bangladesh remains inadequate. Despite being one of the top 20 Ready-Made Garment (RMG) exporting countries, Bangladesh still lacks a social protection system that meets international standards for work-related injuries.

In recognition of this gap, Oberalp joined the Employment Injury Scheme (EIS) Pilot in 2023. This initiative addresses the unacceptable risks posed by weak protections for work-related injuries, not just for Oberalp workers but for all 4 million employees in Bangladesh’s export-oriented RMG sector. The EIS Pilot provides compensation for permanently disabled workers and the dependents of deceased workers through monthly pensions, supplementing the lump-sum payments provided by national institutions.

The pensions under the EIS Pilot are funded through voluntary contributions from international brands, including Oberalp. The scheme also covers accidents during commuting, extending its reach to all RMG workers. As a committed supporter of both the EIS Pilot and the International Accord, Oberalp reaffirms its dedication to the safety and protection of workers in Bangladesh.

For the development of the EIS pilot into a national framework and part of the social protection system of the country itself, the signature of more brands is necessary. Oberalp Group urges other companies sourcing from Bangladesh to join because it is through our collective action that lasting systemic change can occur in the Bangladeshi RMG sector.