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BANGLADESH

Unions hail Bangladesh garment industry deal

Swiss-based labour federations Industrial Global Union and UNI Global Union on Thursday praised top retailers for joining their drive to make Bangladesh's garment factories safer, after 1,127 people died in a factory collapse last month.

"This accord is a turning point," Philip Jennings, UNI Global Union's general secretary, said in a statement.

"We are putting in place rules that mark the end of the race to the bottom in the global supply chain."
   
The two union umbrella groups — which claim a combined global 
membership of 70 million — have been working for several years with Bangladeshi labour activists to craft an accord with Western retailers to improve shocking safety conditions at factories.
   
Efforts were given new urgency by the April 24th disaster in which the 
nine-storey Rana Plaza factory complex outside Dhaka crumbled, causing one of the world's worst industrial disasters.
   
The complex, which was found to have seriously violated construction laws, 
made clothes for a string of global names.
   
The full list of deal signatories released 
on Thursday was: H&M, Inditex, C&A, PVH, Tchibo, Tesco, Marks & Spencer, Primark, El Corte Ingles, jbc, Mango, Carrefour, KiK, Helly Hansen, G-Star, Aldi, New Look, Mothercare, Loblaws, Sainsbury's, Benetton, N Brown Group, Stockmann, WE Europe, Esprit, Rewe, Next, Lidl, Hess Natur, Switcher, and Abercrombie & Fitch.
   
"The companies who signed up are to be applauded," said Jyrki Raina, 
general secretary of IndustriALL Global Union.
   
"We are talking improving the working conditions and lives of some of the 
most exploited workers in the world, earning $38 a month in dangerous conditions," he added.
   
The Bangladesh Garment Manufacturers and Exporters Association, which 
represents 4,500 apparel factories, has also welcomed the accord.
   
The agreement binds retailers to hold independent building and fire safety 
inspections and pay for repairs.
   
Industry experts say most garment factories are unsafe as they are housed 
in converted blocks of flats or complexes such as Rana Plaza, designed to accommodate shops and banks.
   
Jennings criticized US groups Walmart and Gap for not joining in.

   
"Walmart, the world's largest retailer, is out of step. By not signing up 
the Walmart brand sinks to a new low. Equally Gap's refusal to join is a mistake that shoppers will not forget. We will make progress without them," he said.
   
Walmart, however, has undertaken to inspect all 279 of its Bangladeshi 
suppliers and publish the results, while Gap has underlined that it launched its own drive last October.
   
Bangladesh is the world's second-biggest apparel maker and the $20 billion 
(15.5-billion-euro) industry accounts for up to 80 percent of annual exports.

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WORKING IN GERMANY

German steelworkers agree 6.5 percent pay hike after strike

Tens of thousands of steel workers in western Germany will get a 6.5-percent pay hike this year - the biggest jump in three decades - in a settlement that could set the tone for industry as inflation soars.

German steelworkers agree 6.5 percent pay hike after strike

The agreed increase would come into effect “from August 1st”, the IG Metall union in the region of North Rhine-Westphalia said in a statement Wednesday.

The 68,000 steelworkers in the industrial region would also receive a one-off payment of 500 euros for the months of June and July, the union said.

The outcome of the negotiations was “the biggest increase in wages in the steel industry in percentage terms in 30 years,” said IG Metall boss, Joerg Hofmann.

Germany’s largest union, IG Metall launched a strike action at steelworks in the west in May after management failed to meet its demands for an 8.2 percent pay increase.

On Thursday at the peak of the movement, around 16,000 workers across 50 firms downed tools, the union said.

READ ALSO: Should foreign workers join a German union?

“Rising inflation” and the “good economic situation” of the steel industry were the basis for IG Metall’s demands.

Consumer prices rose at a 7.9-percent rate in Germany in May, a record for the country since reunification in 1990 driven by the outbreak of the war in Ukraine.

The smaller number of steelworkers in the east of Germany, who are also seeking an 8.2 percent pay boost, have yet to reach their own agreement.

Negotiations are currently taking place in a number of sectors. In the textile industry, 12,000 workers in the east of Germany sealed a 5.6 percent pay increase at the beginning of May.

Meanwhile, negotiations covering the auto industry, and mechanical and electrical engineering will begin in November.

Despite the agreed rise the onus was still on government to relieve the pressure on workers form rising prices “in the coming months”, IG Metall boss Hofmann said.

Significant wage demands have prompted concerns of a wage-price spiral, where rising pay sustains higher inflation.

The European Central Bank last week said it would raise its interest rates for the first time in over a decade this July as it seeks to stamp out price rises.

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