Effects of Rana Plaza

accident.

sanjia_sivan |

Effects of Rana Plaza

accident.

Prepared for
Mr. Muhammad Mohiuddin
Professor
Department of Management Studies
University of Dhaka
Dhaka-1000

Prepared by
Sanjia Khan Sivan
ID_ B1304087
BBA_4(A)

23rd October, 2013.

Letter of Authorization:

Letter of Transmittal
October 23, 2013
Mr. Muhammad Mohiuddin
Professor
Department of Management Studies
University of Dhaka
Dhaka-1000
Subject: Submission of report on effects of Rana Plaza
accident.
Dear Mr. Mohiuddin,
Here is the report on the effects of Rana Plaza
accident that you requested to prepare last October 9,
2013.
The report is prepared on the primary and secondary
data collected from different sources of Bangladesh.
Experts or people of different areas and region have
been consulted for their opinions. Data are classified
and tabulated with objective judgment.
I sincerely hope that the report would help you making
effective decisions. I truly appreciate this assignment
and I enjoyed it very much. If you need any further

assistance in interpreting my analysis, please call on

me.

Sincerely yours,
Sanjia Khan Sivan
ID_ B1304087.
BBA_4 (A).

Acknowledgement:
The report has been prepared with the help of many
people to whom I must express my heartfelt regard. I
show my gratitude to the chairman of the investment
board to offer me this responsibility. I am indebted to
all concerned head of the departments who are
consulted and has provided with needed information
and documents. I am also grateful to Mr. Muhammad
Mohiuddin, professor, Department of Management
Studies of University of Dhaka for giving me his
valuable time and advice. I am equally thankful to all
others who have been consulted for their valuable
opinion.

Sanjia Khan Sivan.

Table of Contents:

Part

Page

Letter of Authorization

Letter of Transmittal

ii

Acknowledgement

iii

Executive Summery

Introduction
Collapse and rescue
The house of cards
Extracting pinned victims
RMG workers burst into protest
20th Day: End of Savar Battle
Multi-national company response after
the accident:
Consumers response after the
accident:
GSP suspension:
Suggestions/ Recommendation:
Bibliography:
Appendix:
Conclusion:

Executive Summery :
The recent collapse of Rana Plaza have brought our
country to the attention of the world. The main cause
behind all the major collapse incidents is unplanned
building construction. It is the duty of an architect to
design an industrial building following the existing
building code. At the design phase, many technical
personnel are involved with the architect. Despite a
sincere and highly sophisticated design, insincerity of
the entrepreneur can make the construction
vulnerable.
However, the immediate effect of the recent US
decision on suspension of GSP facilities is not very
serious but in the future, it can go beyond our
imagination. We should now work for safe working
place. Right to trade union for the workers is must. We
have laws but the main problem is lack of
implementation. Trade unions can play a great role at
this implementation phase. We should create

conducive environment for building strong trade unions

abiding by existing laws.

Introduction:
On 24 April 2013, Rana Plaza, an eight-story
commercial building, collapsed in Savar, a subdistrict in the Greater Dhaka Area, the capital
of Bangladesh. The search for the dead ended on 13
May with the death toll of 1,129. Approximately 2,515
injured people were rescued from the building alive. It
is considered to be the deadliest garment-factory
accident in history, as well as the deadliest accidental
structural failure in modern human history.

The building, Rana Plaza, was owned by Sohel Rana, a

leading member of the local Jubo League. It housed a
number of separate garment factories employing
around 5,000 people, several shops, and a bank. Rana

Plaza's architect, Massood Reza, said the building was

planned for shops and offices but not factories.

Collapse and rescue

The building collapsed at about 09:00, leaving only the
ground floor intact. The Bangladesh Garment
Manufacturers and Exporters Association president
confirmed that 3,122 workers were in the building at
the time of the collapse. One of the garment
manufacturers' websites indicates that more than half
of the victims were women, along with a number of
their children who were in nursery facilities within the
building. On 10 May, 17 days after the collapse, a
woman named Reshma was found and rescued alive
and almost unhurt under the rubble.

The house of cards

As we can see Rana Plaza was a under construction
building. The owner of this plaza, was illegally raising
the height of the building.

The
architect of
Rana Plaza,
Massood
Reza, said
the building
was planned
for shops
and offices
but not
factories.

Extracting pinned victims

The first and foremost policy of the rescuers was to

bring out the people trapped inside the building, even
if the operation progresses slowly to free them out. The
rescuers supplied food, water and oxygen to people

trapped inside the building.

As people were not seen to be satisfied with the

preparations taken by the government, they started to
help with whatever they can. People used Facebook as
a media to convey the latest requirements needed for
the survivors, which included cash money, oxygen
cylinders, foods, medicine and many more. Many
organizations, citizens contributed according to the
capability.

RMG workers burst into protest

Thousands of workers of many garment factories in
different parts of the capital took to the streets
Thursday to protest the deaths in Savar building
collapse the previous day.

Siddiqul Alam told the

media, Many others are
still alive but trapped
and we wont give up
the operation till we find
the last man.He also
said Prime Minister
Sheikh Hasina made such directive in this
connection.We cant conduct massive search with
heavy equipments as this could kill the people who are
still alive inside debris, he, however, added.

20th Day: End of Savar Battle

The rescue operation was declared finish on May 13,
2013. No more body was found from the debris of the
collapsed Rana Plaza in Savar. According to the
sources, the death toll from the building stood at

1,127. Of the recovered corpses, 834 have been

handed over to the families while 59 were kept at
Dhaka Medical College Hospital (DMCH) morgue. The
rest 234 unidentified bodies have been buried at Jurain
Graveyard in the capital.
A total of 3,565 people dead and alive - have so far
been pulled out of the rubble.

Multi-national company response after the

accident:
The spotlight is therefore on the multinational
companies whose orders from local factory owners
have led to the rapid recent growth of the garment
industry in Bangladesh, the worlds second-largest
exporter of clothing after China. Familiar brands now
stand accused of exploiting poorly paid workers with a
callous indifference to their safety. Two companies
whose products were found in the rubble at Rana Plaza
Primark, a cheap British label, and Canadas Loblaw,
whose brands include Joe Freshhave rapidly promised
compensation to victims and their families.

Walmart along with 14 other North American

companies, refused to sign the accord. Walmart,J.C.
Penney and labour activists have been considering an
agreement to improve factory safety in Bangladesh for

at least two years. In 2011, Walmart rejected reforms

that would have had retailers pay more for apparel to
help Bangladesh factories improve safety standards.

Joe Fresh will send representatives from Canada to

inspect their supply chains in Bangladesh. The Irish
brand Primark will review the structural integrity of
buildings making its clothes.

Consumers response after the accident:

Dozens of consumers in the United States spoke out
against unsafe working conditions found in the factory
building. People also unleashed their anger at retailers
that did not have any connections to that specific
building, but are known to source from factories
located in Bangladesh.

GSP suspension:

The USA suspended the GSP facilities on the entrance

of Bangladeshi product in the USA market has created
lack drop in the economy. Because of this suspension
each and every Bangladeshi becomes very upset.USA
is our long outstanding partner of development. In fact,
there was no such kind of GSP facilities in garments
sector in the USA.
They have talk about the safety, development of the
standard of the labor. It is unfortunate that, they have
brought into consideration the accident of Savar Rana
Plaza, Tazrin fashion, unsolved case of Aminul murder
case. Since 2007, the biggest laborer union of the
U.S.A, AFL- CIO has been persuading the USA to stop
the GSP facilities for Bangladesh.

Suggestions/ Recommendation:
As for this unwanted tragedy, we have lost a huge
people in garment history. So, we should make a real
awareness. Our RMG sector should be improved by

bringing about following changes in policy and support

system:
a.Ensure enforcement of Labour Laws, building code,
electrical safety, Fire Safety Act and Environment
Act.
b.In an unsuitable land, we have to particularly
ensure proper layout plans, ground investigation
and load distribution plans.
c. Factory machineries should be strengthened and
upgraded with proper human resource and
equipment.
d.Responsibility of the owner should be distinctly
mentioned in the labour law and provision of
appropriate punishment clause for negligence
needs to be included in the labour law.
e.Adequate compensation should be ensured by
amending the labour law.
f. The present amount of compensation must be
increased as per some recent High Court verdicts.
g.All personal protection equipment (PPE) should be
available and workers should be motivated to use
these.
h.Formation of safety committee should be
mandatory with proper workers participation.

Bibliography:
i. "It crumbles like a pack of cards". The Daily Star.
25 April 2013. Retrieved 25 April 2013
j. Survivors demand wages after building collapse".
AFP. Retrieved 8 May 2013
k. Bangladesh building collapse death toll passes
700". Bbc.co.uk. 2013-05-07. Retrieved 2013-08-26
l. Garment workers remain restive". The Daily Star.
28 April 2013. Retrieved 28 April 2013
m.
http://www.nytimes.com/2013/05/14/business/global/hm-agrees-to-bangladeshsafety-plan.html?google_editors_picks=true&_r=0

n.Suddenly the Floor Wasnt There, Factory Survivor

Says". Retrieved 28 April 2013

Appendix:

Conclusion:
The 'Savar Tragedy' will always remain as the black
page of the country. Only thing to get rid of it is to
remember the incident and make sure no other
"Rana Plaza" demolish by itself.