HRM 470: Negotiations: Case: Tazreen Fashion Fire Accident

HRM 470: NegotiationsSection: 02Case: Tazreen
Fashion Fire Accident

Executive Summary
The first part of the report analyzes the background of the ready-made garment
industry of Bangladesh. It follows a tragic fire incident that occurred with one of the
biggest manufacturing company- Tazreen Fashion. It explains how RMG industry is
imperative to the national economy as a source of trade and exterior cash and how
the industry constitutes around four-fifths of the country’s clothing exchanges, and
the industry is expected to create rapidly. This is one of the most successful
industries, which causes the rapid growth of our national economy.
The next part of the analysis illustrates some significant dates and data about the
incident that happened to Tazreen Fashion back in 2012, is one of the most
shocking incidents which is highlighted among the accidents of the industry. These
sorts of mischances are especially troublesome to outlive but they may have been
saved.
Then, we justified with logical reasoning why are we choosing PESTLE analysis tool
for our assessment. The external environment of the whole RMG industry is more
focused in this case. This one incident affected the whole industry which causes
tremendous financial harm and misfortune may be a common wonder in our nation.
We then proceeded to identifying a few problems that we realized while going

through the scenarios of the case study. For instance, not having sufficient
workplace security, this could be able to tackle the fire incident. In total we identified
nine other issues. We also recognized the ‘main issue’ and raised an insightful
question about the context of the case.
The next part of the solution consist a thorough PESTEL analysis. While doing the
analysis we identified relevant factors such as, direct involvement of politicians and
local government, constant economic rapid growth by exporting, contribution to the
social dynamics for employment, advancement in technological equipment, focus on
green environment, a better workplace, and legal regulations for workers health,
Submitted By: rights.
safety and welfare Submitted To:
Group
Then,C
we proceeded to develop some effective agendas as a part of the
management, for Tazreen Fashion to revamp itself as a manufacturing plant that
Mubashira Khan
guarantees 1610976030
a secure and Mr. Tajuddin
sound work environment for its laborAhmed
force within the
manufacturing plants. We then proceeded to suggest a few recommendation as well
Mumta Hina Saif strategies
as implementation 1530158630 Lecturer,
for proper realization of the scenario.
Department of Management
Nawshin Jahan 1731258030
Then we recommended some solutions regarding the case
School and explained
of Business how the
& Economics
situations might have been different if those recommendations would have been
Tasmia Faiza Fatima 1610956030 North South Unviersity
implemented before and also what should be done after the accident. Some
recommendations that we have given are about the emergency response,
compensation package for the victims, proper training & development of the workers.
Date of Submission: April 8, 2020
Table of Contents
Background..............................................................................................1
Dates & Data............................................................................................6
SWOT vs. PESTEL: Justification.............................................................9
Problem Identification.............................................................................10
Main Issue..............................................................................................11
PESTEL Analysis...................................................................................11
Management Agenda.............................................................................17
Recommendation & Implementation......................................................20
Appendix................................................................................................26
Tazreen Fashion Fire Accident
Background
RMG- The Gold Mine Industry of Bangladesh
The Ready-made Garments (RMG) division has been a major
supporter of Bangladesh's economy. The labor costs appear to be
terrifyingly cheap in Bangladesh. Bangladesh has more than
4000++ pieces of clothing production lines, which utilize over four
million specialists, numerous of them are enthusiastic female
workers. The industry is vital to the national economy as a source
of business and outside money. This industry constitutes around
four-fifths of the country’s clothing trades, and the industry is
anticipated to develop quickly. Without a doubt, the industry has
had a crucial effect on the economy and image of Bangladesh. As
a matter of fact, the RMG industry is one of the two major export
product manufacturing sources. The contributions of the clothing
industry are giving employment to a tremendous number of
individuals particularly females who account for 90 percent of the
working population in this industry. Due to traditionalist standards
and values that exist within the nation, women are not able to work
in all sorts of businesses. The RMG has given a fabulous
opportunity for them with a possibility of work, bringing a critical
change within the socio-economics of the work culture of the
nation. In that way, a major social change has been brought by this
industry. The work openings in this segment are empowering
farmers in country regions to leave cultivating and connect to the
clothing industry.
The success in this industry is visionary as well. Numerous of the

talented youths would have gone overseas for different purposes
unless this industry had introduced trust among them to remain
within the country and make an investment. Rather than being a
worker in a foreign nation, they are providing employment to
numerous in their homeland. Moreover, this was another social
altar that this industry has brought.
1
Proudly ‘Made in Bangladesh’
The success of RMG has developed a positive image to

Bangladesh around the world. Numerous branded attires are now
proudly“Made in Bangladesh”. In this way, individuals from
overseas recognize Bangladesh as a place where their dresses
come from. It makes the non-resident Bangladeshis glad to see
items from their nation in stores like in the USA.
Tazreen Fashion Cooks Up a Calamity
This case is about one of those incidents “Tazreen Fashion

Limited” and other incidents also highlighted by other countries. A
fire broke out at Tazreen Designs, Nischintapur, Ashulia, and
Dhaka, Bangladesh on the night of November 24, 2012. The plant
utilized more than 1200 laborers nearly 95% of whom were
females. This occurrence slaughtered around 111 individuals, 102
charred bodies were found inside the production line. 59 bodies
burnt past acknowledgment. 6 individuals passed on when they
hopped outside the Windows. These sorts of mischances are
exceptionally difficult to outlast but they may have been spared.
This where the address lies, of whether it is a mishap or
barbarism. Wal-Mart canceled its business contract with this
manufacturing plant considering its insufficient awareness of
security measures. There were different examinations embraced
by the government and the factory affiliation which named the fire
as pre-planned and attacked.
The Bangladesh Health Security, Wellbeing and Environment

Establishment carried out a free examination into the occurrence
to highlight the root causes and disappointments coming about
within the huge number of deaths and wounds within the
occurrence.
Bangladesh garments industries include a long history of
mechanical incidents, but the fire at Tazreen Designs in November
2012 which slaughtered 112 specialists was the primary time that
the national partners and the worldwide community paid genuine
consideration. The fire, probably caused by a brief circuit, began
on the ground floor of the nine-story plant, catching the specialists
2
on the floors over. Since the expansive sum of texture and yarn
within the manufacturing plant, the fire was able to rapidly spread
to other floors, complicating firefighting operations. The fire burned
for more than seventeen hours sometime recently the firefighters
were effective in quenching it.
Diving into the Roots
The day of the fire was rather like any other day. There was a fire
caution and all got out of their seats but did not anticipate it was an
actual fire. Specialists listened to fire cautions within the factory
some of the time but the administration was never genuine, they
fairly sounded it but they were not inquired to go exterior. Some of
the time they said to their administration that they were not
keeping up drills legitimately since they were not practicing
clearing out the plant but they said it was not critical. After
approximately five minutes everyone saw smoke. Everything
began to go dim. They ran to the female stairs and found fire. Then
they ran to the male stairs and found fire. The exit was bolted.
Everybody was running in each heading, choking on the smoke,
blinded within the haziness and frightened. Laborers ran to the test
room and broke the windows and bounced onto the roof of the
building another to the plant, at that point onto the ground.
Specialists don’t know where the directors were. It appears they
got out through the exit, bolted it and cleared out. No one truly
knows who bolted the entryways since they couldn’t see any
faces,it was just dull and full of smoke. People don't truly know
what happened after they bounced. Some broke their arm in
numerous places and harmed their back. The rescue team put a
plate in the arm and said that after two long hours they will do
another operation and take out the plate.
There are numerous issues that the garments businesses of

Bangladesh confront each year due to a few lackings. There are
very frequent occurrences of fire within the article of clothing
businesses. Fires each year claim numerous lives and make broad
3
misfortune of properties. In case appropriately outlined and

basically sound, the causes of fire within the garments production
lines will be diminished. Each plant ought to have required a
number of fire quenchers as well. There ought to be customary fire
security and seismic tremor drills.
The Sequel to the Tragedies
Each year a few and huge scales of fire in garments production

line coming about tremendous financial harm and misfortune may
be a common wonder in our nation. Harm and Misfortune depend
on distinctive markers. Agreeing to data of Bangladesh Fire
Service and Civil Defense 2427 small and expansive scale of fire
events have happened in the RMG segment in Bangladesh from
the year of 2000-2014 in which misfortune has decided to pass
300+ and harming 600+. To plan this proposal six surprising fire
episodes and their impacts have been watched.
Catastrophe Stroke World-wide
Similar incidents happened in western countries where there

hardly any garment factory of clothing and cotton had faced. 2006
Sago mine fiasco that has slaughtered 12 individuals, 2010 Upper
Enormous Department mine blast which slaughtered 29 murdered,
2007 Crandall Canyon mine cave-in slaughtered 9 slaughtered
individuals, 2008 Modern York City crane collapse 7 murdered
additionally the 2010 Profound water Skyline oil stage blast that
has murdered 11 slaughtered. In 2000, May 13, Enschede,
Netherlands firecrackers calamity: A fire and blast at a firecrackers
terminal in Enschede, Netherlands came about in 24 passings and
another 947 were harmed. About 1,500 homes were harmed or
crushed. The harm was evaluated to be over US$300 million in
back up plan misfortunes. Falk Organization Blast, December 6,
2006, a gas spill activated a huge blast and resulting fire at an
adapted fabricating office in Milwaukee, Wisconsin. Three were
4
slaughtered and 47 harmed, with a few of the buildings at the

office being leveled. February 1, 2008, Istanbul firecrackers blast,
an unlicensed firecrackers plant detonated inadvertently, clearing
out by a few reports at slightest 22 individuals dead and at
slightest 100 harmed.
A few dangerous circumstances happened in East locale Pieces of

clothing businesses Particularly in China, India, and Pakistan.
China incorporates a long history of mechanical mischances, from
plant blasts and mine collapses to torrential slides. On April 25,
2011, Monday, a colossal fire broke forward approximately 1 am
neighborhood time within the four-story building within the capital’s
southern Daxing area. Ninety individuals were slaughtered and 45
harmed in a blast at an illicit Beijing building. On 11 September,
Wednesday, 2012 a gigantic fire broke out at an article of clothing
production lines within the Pakistani cities of Karachi Which is
considered to be the foremost dangerous and most noticeably
awful mechanical plant fires in Pakistan's history. Karachi,
Pakistan's biggest city and commercial heart, has around 10,000
manufacturing plants on seven mechanical bequests.
Tazreen’s Holistic Consequences
The Tazreen manufacturing plant makes clothing for western

retailers counting Wal-Mart, C&A and The Edinburgh Woolen
Process. There are approximately 4,500 industrial facilities in
Bangladesh, utilizing more than two million individuals.
Bangladesh is the world's biggest exporter of readymade dress,
another as it were to China. Western retailers demand that they
source their dress from Bangladeshi industrial facilities which
comply with security benchmarks, our journalist includes.
Thousands of individuals joined road dissents after the fire,
requesting way better assurance from such occurrences. The
factory's fire security certificate had passed in June and was not
substantial, the head of the fire benefit and respectful defense told
the BBC final week. The building stood nine stories tall but had
consent for as it were three floors. Production line fires are
common in Bangladesh.
5
Dates & Data

1. Bangladesh has more than 4,500 garment factories, which employ
over four million workers, many of them young women.
2. Things have changed in the last 20-25 years and Bangladesh has
switched to second gear from agricultural sector to manufacturing
sector.
3. About 3.0 million people are directly related while another 20

million people are indirectly involved in the RMG sector.
4. According to a World Trade Organization (WTO) report,

Bangladesh ranked fourth in global apparel exports in 2007.
5. In that same year the country exported more than $10 billion of
apparel.
6. The garments industry is providing employment to a huge number

of people especially women who account for 90 per cent of the
work force in this industry.
7. Tazreen Fashion Ltd, a unit of Tuba Group at Nischintapur in

Savar, is reported to be exporting knit items worth $35 million
8. A factory, which was set up in 2009, with a sprawling 49,000

square feet equipped with twelve production lines, 1,200 workers,
machinery strength of 650 sets, produces knitted polo shirts, fancy
fleece jackets and basic t-shirts.
9. A fire broke out at Tazreen Fashions, Nischintapur, Ashulia, and

Dhaka, Bangladesh on the night of November 24, 2012.
10. The factory employed more than 1200 workers almost 95% of
whom were females.
11. The annual turnover of the factory was over USD 36 million.
6
12. The fire resulted in the deaths of 111 workers and more than 300
workers were injured.
13. The findings of the report were presented during a multistate

holder consultation on ―Safe Work at Garments Factories in
Bangladesh: Lesson Learned from Tazreen Fire Accidents-
Challenges and Way Forward‖ held at the CIRDAP Auditorium,
Dhaka on January 7, 2013.
14. 111 workers lost their lives out of which 58 have been identified.
15. 53 bodies are still unidentified.
16. The second floor collapsible gate was locked and the highest
numbers of dead bodies (69) were recovered from this floor.
17. Compensation of BDT 600,000 has been handed over to 45

families so far out of 58 deaths.
18. Almost 300 workers are injured, some seriously although BGMEA
has so far prepared a list of only 63 injured workers.
19. The OSHE team has compiled a list of 89 injured and 58 cases of
death due to the fire tragedy.
20. Only 40 workers out of 1200 had received a basic fire safety
introduction.
21. This incident killed around 111 people, 102 charred bodies were
found inside the factory.
22. 59 bodies burnt beyond recognition and 6 people died when they
jumped outside the Windows.
23. Bangladesh’s garment industry has a long history of industrial

accidents, but the fire at Tazreen Fashions in November 2012
which killed 112 workers was the first time that the national
7
stakeholders and the international community paid serious

attention.
24. This fire continued till the early morning of 25th November. It was
a nine storey building; the floors were burnt entirely by the furious
fire. A female worker, who was working at the second floor of this
factory, said when it was near 6.00 pm, fire alarms were ringing.
25. None of the floors had emergency exits. The second floor
collapsible gate was locked and the highest numbers of dead
bodies (69) were recovered from this floor.
26. According to information of Bangladesh Fire Service and Civil

Defense 2427 small and large scale of fire occurrences have been
occurred in RMG sector in Bangladesh from the year of 2000-2014
in which loss has determined BDT 8997426164, death 368 and
injured 680.
27. From the visited factories loss for the causing fire BDT
31110710177, death 140, injured 392. Tazreen Fashion is a 9
storey building conceives of 51000 sq. ft.
28. About 96% which indicates 49000 sq. ft. was affected during
setting fire.
29. Loss of affected area which damaged major parts of the factory
and only 10% of the affected was recovered, total damage was
considered in amount BDT 500000000.
30.The equipment were fully (100%) affected in Tazreen Fashion,

Smart Fashion and their rate of recovery respectively 10%, the
highest employee death 7.92% and injury is also recorded 21.42%
in Tazreen Fashion.
8
SWOT vs. PESTEL: Justification

SWOT and PESTEL are two very effective environmental
analytical tools. However, each tool is more appropriate for
different situations. We chose to do a PESTEL analysis to inspect
this particular case and we have justified this decision through
logical reasoning.
The case in discussion is about the speculation of Bangladeshi
garments factory, in light of the Tazreen Fashion tragedy. This
particular company is not considered under decision because the
company does not exist anymore. It stopped it operations right
after the fire incident due to lack of financial ability. A SWOT
analysis could successfully analyze both internal (strengths and
weaknesses) and external (opportunities and threats) aspects of
Tazreen Fashion. However, right now, there is not such company
operating, so an internal analysis would have been completely
irrelevant to the context of the case. This is the reason behind us
eliminating SWOT from our consideration.
The case moves on to explaining the before and after scenario of
the ready-made garments industry. It discusses various political,
economic, socio-cultural, technological, environmental and legal
impacts of the incident in the garment industry within and outside
of Bangladesh. These points cover all the essential elements for
conducting a thorough PESTEL analysis of the garment industry.
The example of Tazreen Fashion is only included to give the
scenario a real-basis.
As mentioned above, the case directly says that Tazreen Fashion
stopped its operations. This leads to our third reasoning why we
chose PESTEL over SWOT. Let’s suppose Tazreen Fashion
wants to revamp itself and initiate its operation in the same
industry once again. Before planning an overall strategy for the
company, they would need to analyze the current scenario of the
industrial macro environment. PESTEL is a tool that serves this
purpose.
Finally, PESTEL analysis will help Tazreen evaluate the direction
in which the company wants to move within the very real
influencing factors of the outside world. It can identify threats
before they impact the company and help understand the
9
environment in which Tazreen Fashion failed to survive at its first

attempt.
Problem Identification
1. Tazreen Fashion did not have a fire security certificate,

driving to more maligning after the incident.
2. Coordinate the inclusion of powerful musclemen and

politicians, influential business personnel negatively affected
the operations of Tazreen Fashion.
3. To protect around the world standard the growing whole of

crude materials taking a toll of rough materials is making a
tremendous issue to the industry.
4. The clients of Tazreen Fashion were only interested about

outsourcing clothing at low labor costs, they were not
concerned about keeping up international work standards for
the laborers to deliver at that cost.
5. Depending on local clients and prioritizing as the

international clients for financial development impaired
Tazreen Fashion to have solid bartering powers over them.
6. Low amounts of raw materials in Bangladesh lead the Tazrin

Fashion to outsource from other countries which pressurized
management by increasing costs.
7. Many details of the fire accident was wrongfully spread as to

be pre-planned and an sabotaged, which demolished the
company’s long constructed reputation.
8. The government is not helping with updating new

technologies in garment industries which can improve the
safety measures of laborers.
9. Laborers could not effectively communicate with the

management that led this fire incident to happen drastically.
10
Main Issue
What strategies can the management of Bangladesh garments
companies follow to regain their lost reputation and ensure
workplace compliance to prevent any further loss leading to the
economic struggle for the whole RMG industry?
PESTEL Analysis
Political Factors
Although it may seem like the same political party ruling for 10+
years indicates political stability, in reality, it illustrates the contrary.
Direct involvement of powerful local politicians, elite and
musclemen negatively impacted the operations of Tazreen
Fashion and other manufacturers in the industry.The government
has failed to lower production costs for the RMG industry by
implementing a better transportation network system for exporting
the products.
On the bright side, the stable government is interested in lobbying

with foreign countries particularly for this industry as it constitutes
the country's four-fifth of manufacturing export. The US duty-free
trade privileges order suspends Bangladesh under the terms of a
trade agreement called the GSP to encourage economic
development in developed countries accusing the Bangladesh
government of not taking action to give globally recognised rights
to its workers. As a result, Despite having a favorable market
climate for the RMG sector with low labor costs, duty-free export
facilities to 27 European Union countries and 10 developing
countries, this sector is facing a negative effect on business
operations due to uncertain political conditions.
11
Economic Factors
For years, the ready-made garment industry in Bangladesh is
facing constant and rapid export growth. Tazreen Fashion also had
the opportunity to choose partners and employees from 3 million
direct and 20 million indirect experienced people who contributed
to this economic growth. The ready-made garments (RMG)
industry in Bangladesh is one of the two major sources of foreign
exchange generating resources, attracting the government’s
interest in the sector. Foreign investment opportunities are very
high in this industry due to its positive image after the World Trade
Organization reported Bangladesh to rank fourth in the global
apparel exports in 2007. In fact, there are even many small
entrepreneurs of Bangladesh who find the ready-made garments
industry to be an attractive investment sector as well. The non-
resident Bangladeshis (NRB) are greatly interested in the
purchase of products that are ‘Made in Bangladesh’ also contribute
to this economic success. With big and sophisticated brands like
H&M, Zara, Wal-Mart, C & A GAP, Target are particularly
interested in this industry, the economic growth has been constant
as Bangladesh fits as the perfect manufacturer and meets those
criteria that these mature brands look for.
Bangladesh labor force is known for its low labor cost, making the
foreign countries choose this region for investment. However,
taking advantage of this the foreign brands pressurize Bangladeshi
ready-mage garments companies to manufacture at extremely
cheap rates, coercing the managers to not being able to maintain
the much-required workplace standards. As a result, the recent
disasters of Tazreen Fashion, Rana Plaza and other similar
incidents occurred and it escalated anger and frustration all around
the world and created a negative impact on the Ready-made
Garment Industry. Many foreign investors are cancelling their
orders trying to save themselves from the bad reputation that can
be caused by this affiliation. Bangladesh Garment Manufacturers
and Exporters Association (BGMEA) is now taking steps to stop
12
this from happening, and seeking national and international

investments in the sector to ensure the industry does not deviate
from its contribution to the country's economic development.
Socio-cultural Factors
The ready-made garments (RMG) industry has contributed
positively to the social dynamics of Bangladesh through its ability
to provide employment opportunities to millions of people in the
country. The female population of Bangladesh is particularly
interested to work in this sector and they have now become
especially skilled in this area. This type of social success of the
ready-made garments industry in Bangladesh has led to gaining of
good reputation and effective public image. With two decades of
experience, a good relationship with buyers, worldwide reputation,
and presence in quality-conscious markets provide the opportunity
of moving into high value-added products through diversification
based on social and cultural developments. For example,
businesses are taking ‘attires’ very seriously, creating an open yet
untouched market for Bangladesh manufacturing suits and
blazers. Working on the backward linkage for API production can
be considered an opportunity that can be grabbed by the country's
ready-made garments sector.
The downside is, foreign buying houses have been dominating the
marketing part of the business from the very beginning of its
operational success. As a result, the industry’ access to current
market intelligence and international trade information becomes
limited. Additionally, the sensitive issue of child labor has already
proved to be a major threat of exporting products in the western
market. The ineffective unions of Bangladesh’s ready-made
garments industry fail to play their social roles. They only focus on
their financial or political gains, ignoring the mention of bigger
concerns that they need to represent to their respective
management.
13
While the Consumer Rights Movement, the implementation of

government regulations and a formal perception of the economic
value of social responsibility are not yet so prevalent in
Bangladesh's corporate world, business entities should thus have
an inclusive political, commercial and social approach, leading to a
long-term plan to reduce risks linked to uncertainty. Alike quality
management, this can be considered to be an investment, not a
cost.
Technological Factors
The manufacturing technology of manufacturing garment items

has evolved from labor-intensive to more advanced and capital-
intensive production. This transition causes discontent for low
skilled labors due to their failure to adjust to the new manufacturing
system. Discontent about one’s job reduces their performance of
and, in effect, adversely impacts the efficiency of businesses. On
the other hand, positive relationships with technological change
include improving the value of jobs, increasing wages, improving
the standard of work, improving connections between employees
and the benefits. In addition, if qualified technicians are available
to train, pre-arranged clothing is a choice because labor and
energy costs are low in our country.
There is a big technological concern in the garment industry that is
terrorizing the labors. The Fourth Generation Industrial Revolution,
may exclude human employees from the industry, eliminating the
advantage of having a low labor cost and a highly skilled labor pool
in this particular industry. The ability of China and other global
competitors to be adapted to that system will move Bangladesh
from its current position as one of the best garment exporters.
Even if, Bangladesh does adapt to this technology, there is still a
bigger concern, that is what will the huge population earning
through this industry do after they are replaced with technological
substitutes for operating production facilities? This technological
change may bring a huge change in the current position of
14
Bangladesh Ready-made Garments (RMG) Industry in the near

future. Plus, there is always the added risk that the current
success of Bangladesh in the ready-made garments sector be
replaced by other sophisticated industries, such as software and
electronic products.
Environmental Factors
With the tragedies like Tazreen Fashion and Rana Plaza,
questions are raised about the work environments in the
flourishing garment industry of Bangladesh. The Bangladesh
Occupation Safety, Health and Environment Foundation failed to
work proactively to educate the manufacturing factories about
compliance to certain workplace standards to prevent future
losses. Detailed investigations of both national and international
organizations have found out another root of this problem. The
foreign brands were unwilling to spend a penny more than what
they import clothing from Bangladesh. The low labor cost was the
primary reason why they invested in the market. However, they
were paying extremely cheap rates, disabling the owner of these
factories to ensure a proper work environment. The investigations
also found out corruption and negligence in government
authorities. Finally, with a wakeup call, positive changes were
made within months after those tragedies. Improvements in factory
safety compliance would continue to reshape the future of the
garment industry and provide a sustainable framework for the
global fashion market. However, natural and man-made hazards
may still affect industrial production sites by both direct and indirect
losses.
In addition to meeting workplace requirements, the industry is also
introducing the Green Movement. Garment factories embrace
green practices and eco-friendly technology to meet the increasing
global demand for a green environment. For example, using non-
toxic chemicals and having a proper drainage system for waste
management that would not damage nearby water resources.
With the confirmation of workplace health and safety, as well as

the green initiatives, many garment factories are setting trends in
the industry by achieving certificates for their success. Bangladesh
15
is trying to gain their position back as a trusted name in the global

apparel market.
Legal
Currently, the government regulations are in favor of the local

manufacturers in the country. The Bangladesh Labor Act 2006 has
been amended in 2013 to ensure workers’ safety, welfare and
rights. Additionally, the National Occupational Health and Safety
Policy was adopted by the government in 2013. With these
changes, different legal regulations were published and imposed
on manufacturing factories.
Inefficiency and corruption in many government authorities fail to

ensure if legal codes are being maintained in various
manufacturing companies. The relevant authorities of the
Bangladesh government do not check if the factories meet
required building codes and safety standards, leading to accidents
occurring like the ones in Tazreen Fashion and Rana Plaza.
Things changed a little from a legal perspective after these
tragedies. For instance, an inspection plan and policy was
developed by the government where regular inspections are
carried out. This way, the management can be always aware of
their risks and work efficiently to minimize them
The Chittagong Port, which is responsible for nearly 90 percent of

the exports, is still reported as one of the most inefficient and
corrupt ones around the world. Poor container handling systems at
the ports can end up damaging products. Trade-Related Aspects
of Intellectual Property Rights (TRIPs) might also appear as a
deadly threat to developing countries like Bangladesh.
16
Management Agenda
1. Statement: The management of Tazreen Fashion aims to
restart its operations with a new name and revamp itself as a
factory that ensures a safe and healthy work environment in
the factories for its labors.
Justification: This particular agenda of management is

based on the fact that Tazreen Fashion has lost its well-
maintained reputation because of the tragedy that broke out
in November 2012. The incident was widely covered by
national and international media, that left the name ‘Tazreen’
under every foreign and national company’s radars even
today. Thus, the necessity of revamping the factory into a
positive place of work has occurred in the mind of the
management.
Explanation: Tazreen Fashion is a manufacturing factory

with an exemplary safety record that has never had an
accident before the greatest tragedy hit. The management
needs to remind the public this was a one-off. Additionally
opening-up its production operation once again needs a
revamp. So, management wants to come up with a new
appropriate name for the factory. Additionally, to brand itself
as a factory that considers workers’ safety as its ultimate
concern, it has to apply and gain workplace health and safety
certification from both national and international authorities.
2. Statement: The management’s agenda is to plan strategies

in order to seek investments by foreign clients with the
purpose of setting and enforcing workplace health and safety
standards.
Justification: Preventing such tragedies involves

implementing basic health and safety measures. However,
foreign brands like Wal-Mart and Ikea were only interested in
countries like Bangladesh for outsourcing their products
because of their low labor cost. However, these low labor
17
costs are the reason why even big factories like Tazreen lack
investments in workplace safety. It is the corporate social
responsibility of those foreign clients to ensure their
manufacturing plants can maintain certain workplace
standards. These sorts of investments will help Tazreen gain
their old clients and image back.
Explanation: Prevention of tragedies like the one that

happened in November 2002 in Tazreen Fashion is not a
choice; it’s a basic humane responsibility. Acknowledging
this, Tazreen wants to ensure proper workplace health and
safety standards are taken and maintained. The
management aims to form an arrangement with its foreign
clients to establish an investment structure that would allow
them to still produce at a lower cost but would also enable
Tazreen to maintain required standards. Developing a
common ground for these companies is also essential to
make them on-board with the idea. The management’s
agenda will help them understand why is it beneficial for
even their clients’ corporate image to ensure all their
stakeholders are maintaining an international standard.
3. Statement: The management wants to hire responsible PR

maintenance agencies to communicate the changes brought
within the factories to the public as well as national and
foreign authorities.
Justification: The management set this agenda to ensure

that the factory regains its reputation in the national and
international market once again. The foreign clients canceled
their orders soon after the fire accident happened. This has
to do with the fact that their association with this plant had
affected their sales to a great extent. To regain their trust,
Tazreen Fashion cannot stop at changing their name only,
they have to communicate the messages to everyone.
18
Explanation: The management wants to develop a human

resource management team, accountable for choosing a PR
agency among Impact, Masthead, Times or other PR
organizations to handle the communication process. The
human resource team also wants to conduct media training
for executives. Alongside this, the management will draft pre-
approved responses that can be used on social media and
public relations. The agenda basically aims to regain a
position by showing empathy and compassion.
4. Statement: Conduct essential training programs for all level

workers within the factory and plan a proper compensation
strategy to minimize losses and risks in case of future
emergency situations.
Justification: This agenda is based on the fact that there

are plenty of advantages of investing more time and thought
in a well-planned workplace safety training program other
than the obvious reasons like regulation and moral
responsibility. It is justified because it can lower insurance
premiums, reduce productivity loss due to illness or injury,
reduce worker compensation for medical leave due to work-
related injuries and illnesses, protect from liability lawsuits
and prevent hazardous incidents in the future.
Explanation: The management wants to develop modular

training and testing processes for all workers depending on
their roles in the factory according to regulations as safety
protocols might be different for each. Health and safety
training can minimize the effects of a possible future
accident. It also paints a good image to clients and attracts
talented employees. The management also wants to plan a
solid and well-structured compensation plan in case of any
future emergency occurs. Having a compensation fund will
enable the company to relive even after an unfortunate event
while providing a sense of relief to the workers as their health
is being taken seriously.
19
Recommendation & Implementation
Recommendation and implementation – 1

What is the problem?
After studying the case It is evident that there was not any
emergency response system if things go wrong. Tazreen Fashion
fire incident did so much damage due to this problem.
What is the recommended solution?
Tazreen Fashion and all the other garment factories should have
an emergency response system to handle any accident that may
happen in any garment factories. This kind of response system
should include an elaborate plan of prevention and exit plan in
case of emergency. The RMG companies can collaborate their
resources to make the emergency response system as efficient as
possible.
Why is it the best solution?

The collaborative response system is the best solution for this
problem because most of the RMG factories are situated in close
proximity. So, it makes sense for the garment companies to come
together and form an emergency response system. It will not be
financially feasible for RMG company like Tazreen Fashion to form
a response system just for its own company. Collaborating with
other companies of the industry will reduce this financial burden.
How would we implement our recommended solution?
For implementing this solution, a committee should be formed.

This committee will oversee the team and all the logistical
requirements to form the emergency response system. This
emergency response system will make sure that all the garment
factories have the necessary resources for evacuation and
controlling damage in case of any accident like the Tazreen
fashion fire.
20
Who would conduct the implementation process?

The RMG sectors can hire firm and safety experts to conduct
these drills and make them prepared for any major accidents. The
company can also form an expert team who will oversee these
drills.
When would it be implemented?

This emergency response system should be implemented as soon
as possible to avoid any future tragedy like Tazreen Fashion fire.

Tazreen Fashion could not provide any compensation package for

the victims of the accident. The government gave 6 lakh each to
the victim’s family. The government cannot do this every time. The
company is also responsible to compensate its employees in case
of any emergency.
The company should create funds to compensate its employees

for any such incident. They can use this fund to invest in various
employee safety programs.

This solution will enable RMG sector companies to designate a
fund for the betterment of employee’s safety in the workplace. It
will reduce the dependency of RMG companies on the government
for any relief in such situations. It will enable the company to be
better prepared for this kind of accidents.
The fund can be created from the employee betterment programs.

The company should allocate a percentage of their annual profit
for this fund. The finance department can invest this fund’s money
on various projects to increase the fund.

21
The higher management team of the company can take some

decision regarding the matter and implement the process.
We suggest that it should be implemented right after analyzing the
feasibility of such fund and financial constraints.

There are not sufficient effective training and development

programs on safety standards which is a concerning issue since it
increases the risk of accidents and fatalities where human lives are
at line. Employees are not well aware of the usage of safety
equipment either or evacuation processes.
Our recommendation is to develop the skills & knowledge of the
participants regarding health & safety issues & reduce the accident
rates through effective training and development program.
An effective training and development program help the
organization to comply with legal obligations and protect from
accidents that may result into fines, compensation claims or suits.
It also gains employees satisfaction which helps to decrease the
employee turnover rate because if the organization can gain their
employees trust by showing that the management cares, then
employees will never think to leave the organization.
The HR Department of the organization will have to come up with

a proper and effective training and program for the employees to
ensure safety standards are being taught to the employees to
reduce the accident rates and that employees are educated about
various safety equipment and tools while also complying with legal
obligations.
22

The HR Department of the organization would conduct the
implementation of an effective training and development program
along with specialist trainers to train them with all the necessary
information through both on the job and off the job training and
also providing refresher trainings after every three months.
The implementation of an effective training and development
program should happen inside the organization structure, at all
levels of employees.

The garment worker did not have worker representation, in the

form of labor unions. That is why all of their complaints were not
taken seriously. The company was reluctant to take any measure
to increase workplace safety.
A greater worker representation is required. It will enable them to

communicate with their employers and make demands for their
basic rights which are often ignored in the RMG industry of
Bangladesh. The garment workers complaints will not be taken
seriously if they do not come from unified source such as unions.

This will give Bangladesh's garment workers the power to enforce
their rights under the law. If the complains of the garment workers
were given any importance RMG company like Tazreen would
have taken basic safety measures and it would have been crucial
in reducing the death toll of tragic incident.
This could be implemented by making the workers aware of their

basic rights. Various NGOs can make them aware about it so that
23
they can form unions to voice their rights. They should be given
the basic rights that all other unions have in Bangladesh and
should be able to present their concerns to the party involved.

The union team needs to come up with union agent for them who
will basically handle all the problems for the union team.
We suggest that it should be implemented as soon as all the
research have completed regarding the situation.

The Tazreen Fashion fire incident how much the garment workers
lack knowledge about what to do in any such incident. It creates
confusion and panic in such accident and increase the damage
and in this case loss of life.
The Tazreen Fashion were not maintaining safety drills properly. It

is important for the garment workers to understand the safety
measures and take participate in drills to prepare them for any
incident that might happen in the future. These drills need to be
taken place frequently to keep the employees informed about
safety measures.

It will make the employees prepared for any accident that might
happen in workplace. It will reduce the damage of the accidents
and might save valuable life. These drills will help to reduce
confusion and panic during any accidents which will save valuable
time.
24
The company can hire firm and safety experts to conduct these
drills and make them prepared for any major accidents. The
company can also form an expert team who will oversee these
drills.

Professionals can provide valuable insights and provide training
session to the employees.
We suggest that it should be implemented as soon as all the
research have completed regarding the situation.
25
Appendix
Name: Mubashira Khan
Name: Mumta Hina Saif
26
Name: Nawshin Jahan
Name: Tasmia Faiza Fatima
27

HRM 470: Negotiations: Case: Tazreen Fashion Fire Accident

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HRM 470: NegotiationsSection: 02Case: Tazreen

Fashion Fire Accident

We then proceeded to identifying a few problems that we realized while going

Dates & Data............................................................................................6

SWOT vs. PESTEL: Justification.............................................................9

Recommendation & Implementation......................................................20

The success in this industry is visionary as well. Numerous of the

Proudly ‘Made in Bangladesh’

The success of RMG has developed a positive image to

Tazreen Fashion Cooks Up a Calamity

This case is about one of those incidents “Tazreen Fashion

The Bangladesh Health Security, Wellbeing and Environment

Diving into the Roots

There are numerous issues that the garments businesses of

misfortune of properties. In case appropriately outlined and

The Sequel to the Tragedies

Each year a few and huge scales of fire in garments production

Catastrophe Stroke World-wide

Similar incidents happened in western countries where there

slaughtered and 47 harmed, with a few of the buildings at the

A few dangerous circumstances happened in East locale Pieces of

Tazreen’s Holistic Consequences

The Tazreen manufacturing plant makes clothing for western

Dates & Data

3. About 3.0 million people are directly related while another 20

4. According to a World Trade Organization (WTO) report,

6. The garments industry is providing employment to a huge number

7. Tazreen Fashion Ltd, a unit of Tuba Group at Nischintapur in

8. A factory, which was set up in 2009, with a sprawling 49,000

9. A fire broke out at Tazreen Fashions, Nischintapur, Ashulia, and

13. The findings of the report were presented during a multistate

15. 53 bodies are still unidentified.

17. Compensation of BDT 600,000 has been handed over to 45

23. Bangladesh’s garment industry has a long history of industrial

stakeholders and the international community paid serious

26. According to information of Bangladesh Fire Service and Civil

30.The equipment were fully (100%) affected in Tazreen Fashion,

SWOT vs. PESTEL: Justification

environment in which Tazreen Fashion failed to survive at its first

1. Tazreen Fashion did not have a fire security certificate,

2. Coordinate the inclusion of powerful musclemen and

3. To protect around the world standard the growing whole of

4. The clients of Tazreen Fashion were only interested about

5. Depending on local clients and prioritizing as the

6. Low amounts of raw materials in Bangladesh lead the Tazrin

7. Many details of the fire accident was wrongfully spread as to

8. The government is not helping with updating new

9. Laborers could not effectively communicate with the

On the bright side, the stable government is interested in lobbying

this from happening, and seeking national and international

While the Consumer Rights Movement, the implementation of

The manufacturing technology of manufacturing garment items

Bangladesh Ready-made Garments (RMG) Industry in the near

With the confirmation of workplace health and safety, as well as

is trying to gain their position back as a trusted name in the global

Currently, the government regulations are in favor of the local

Inefficiency and corruption in many government authorities fail to

The Chittagong Port, which is responsible for nearly 90 percent of

Justification: This particular agenda of management is

Explanation: Tazreen Fashion is a manufacturing factory

2. Statement: The management’s agenda is to plan strategies

Justification: Preventing such tragedies involves