Wal-Mart Orders Review After Bangladesh Factory Collapse

Morning Business Memo…

Wal-mart (WMT) will not sign a legally binding pact aimed at improving worker safety in Bangladesh, but the world's biggest retailer has come up with its own proposal. Major European stores agreed to an accord in Bangladesh that was negotiated with international labor groups. The plan is aimed at preventing another tragedy after the massive building collapse last month when more than 1,100 clothing industry workers were killed. Wal-mart has announced a plan for improving safety, and says an outside auditor will be hired to inspect the 279 Bangladesh factories it does business with. The results of the investigation will be published on Wal-mart's website. Wal-Mart is promising to shut down production at factories were urgent safety problems are discovered and press for improvements at substandard plants.

Newly found documents indicate that clothing had been produced for Wal-mart at the factory building that collapsed, according to the New York Times. The Bangladesh Center for Worker Solidarity reportedly provided The Times with photos of several documents that were recovered in the building's rubble. They give evidence that a Wal-Mart contractor from Canada produced jeans last year at a site on the 5th floor of the building.

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Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesabc

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