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Bangladesh Safety Pact to Cost Retailers $60 Million

Twenty-five retailers including Hennes & Mauritz AB and Inditex SA pledged at least $60 million over five years to monitor safety in Bangladesh factories ahead of a midnight deadline to sign the accord after a building collapse that killed more than 1,100 people.

The pledge, which would cost a company like H&M less than 0.1 percent of its annual profit, calls for the appointment of a committee that will oversee safety inspections and a training program for workers, managers and security staff. Companies would then be required to ensure their suppliers have enough money to repair and renovate factories, according to the agreement announced today by the IndustriALL global union.