Memo from the Management Board

LPP has signed the Accord on Fire and Building Safety in Bangladesh aimed at improving working conditions and safety in the clothing industry in Bangladesh.

The Management Board of LPP SA announces that today LPP became the first Polish signatory of the agreement intended to ameliorate the safety at Bangladeshi garment factories – the Accord on Fire and Building Safety in Bangladesh. This is a pioneering agreement for clothing companies, and local and international non-governmental organisations signed with a view of making a lasting improvement in security and working conditions.

The agreement has been entered into by over 100 clothing industry companies, predominantly from Europe. It will be in effect for a period of 5 years, during which time a number of corrective actions will be taken – from independent auditing to modernisation of the factories. Throughout the programme, LPP SA will be making member contributions, which will be used to finance inspection and training activities to the total value of up to 2.5 million USD, and will also incur other expenses related to improving the safety at the factories.

Apart from signing the Accord, LPP SA will change its production ordering model used with our suppliers in Bangladesh by increasing order consolidation and reducing the involvement of independent agents. The objective is more effective control of the suppliers’ compliance with the cooperation principles set out by LPP SA in the Code of Conduct.

We truly hope that signing the Accord and undertaking a number of alternative activities will improve the safety and working conditions at the factories, and will prevent similar tragedies to that of the Rana Plaza building from ever happening again.

Management Board of LPP SA