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Governance of Labor Standards in Australian and German Garment Supply Chains: The Impact of Rana Plaza

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  • Elke Schuessler
  • Stephen J. Frenkel
  • Chris F. Wright

Abstract

This article analyzes the impact of the 2013 Rana Plaza building collapse on garment lead firms’ labor standards policies in the light of new governance approaches, particularly the pathbreaking Accord on Fire and Building Safety in Bangladesh. Based on a sample of 20 Australian and German garment firms, the authors find that firms with low prior baseline standards revised their supply chain and sourcing policies and signed the Accord. Firms with medium and high baseline standards responded variously, from making no changes to revising their policies and signing the Accord. Firm response variation can be explained by stakeholder pressure occurring in different national industrial and institutional contexts following the Rana Plaza incident, which served as a focusing event. Results suggest the wider applicability of the focusing event framework for industrial relations scholarship and highlight some of the mechanisms driving changes in industrial relations institutions.

Suggested Citation

  • Elke Schuessler & Stephen J. Frenkel & Chris F. Wright, 2019. "Governance of Labor Standards in Australian and German Garment Supply Chains: The Impact of Rana Plaza," ILR Review, Cornell University, ILR School, vol. 72(3), pages 552-579, May.
    • Handle: RePEc:sae:ilrrev:v:72:y:2019:i:3:p:552-579
    DOI: 10.1177/0019793918771360
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    Cited by:

    1. Stephen J. FRENKEL & Elke S. SCHUESSLER, 2021. "From Rana Plaza to COVID‐19: Deficiencies and opportunities for a new labour governance system in garment global supply chains," International Labour Review, International Labour Organization, vol. 160(4), pages 591-609, December.
    2. Chikako Oka & Niklas Egels‐zandén & Rachel Alexander, 2020. "Buyer Engagement and Labour Conditions in Global Supply Chains: The Bangladesh Accord and Beyond," Post-Print hal-02952114, HAL.
    3. Chikako Oka & Niklas Egels‐Zandén & Rachel Alexander, 2020. "Buyer Engagement and Labour Conditions in Global Supply Chains: The Bangladesh Accord and Beyond," Development and Change, International Institute of Social Studies, vol. 51(5), pages 1306-1330, September.
    4. Stamm, Andreas & Altenburg, Tilman & Müngersdorff, Maximilian & Stoffel, Tim & Vrolijk, Kasper, 2019. "Soziale und ökologische Herausforderungen der globalen Textilwirtschaft: Lösungsbeiträge der deutschen Entwicklungszusammenarbeit," EconStor Research Reports 209119, ZBW - Leibniz Information Centre for Economics.
    5. Rajneesh Narula, 2019. "Enforcing higher labor standards within developing country value chains: Consequences for MNEs and informal actors in a dual economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1622-1635, December.
    6. Ashwin, Sarah & Oka, Chikako & Schüßler, Elke & Alexander, Rachel & Lohmeyer, Nora, 2020. "Spillover effects across transnational industrial relations agreements: the potential and limits of collective action in global supply chains," LSE Research Online Documents on Economics 100997, London School of Economics and Political Science, LSE Library.
    7. Juliane Reinecke & Jimmy Donaghey, 2021. "Towards Worker‐Driven Supply Chain Governance: Developing Decent Work Through Democratic Worker Participation," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(2), pages 14-28, April.
    8. Jennifer Bair & Mark Anner & Jeremy Blasi, 2020. "The Political Economy of Private and Public Regulation in Post-Rana Plaza Bangladesh," ILR Review, Cornell University, ILR School, vol. 73(4), pages 969-994, August.
    9. Kelly Pike, 2020. "Voice in Supply Chains: Does the Better Work Program Lead to Improvements in Labor Standards Compliance?," ILR Review, Cornell University, ILR School, vol. 73(4), pages 913-938, August.
    10. Oka, Chikako & Egels-Zandén, Niklas & Alexander, Rachel, 2020. "Buyer engagement and labour conditions in global supply chains: the Bangladesh Accord and beyond," LSE Research Online Documents on Economics 106695, London School of Economics and Political Science, LSE Library.
    11. Juliane Reinecke & Jimmy Donaghey, 2021. "Political CSR at the Coalface – The Roles and Contradictions of Multinational Corporations in Developing Workplace Dialogue," Journal of Management Studies, Wiley Blackwell, vol. 58(2), pages 457-486, March.
    12. John S. Ahlquist & Layna Mosley, 2021. "Firm participation in voluntary regulatory initiatives: The Accord, Alliance, and US garment importers from Bangladesh," The Review of International Organizations, Springer, vol. 16(2), pages 317-343, April.
    13. Schüßler, Elke & Lohmeyer, Nora & Ashwin, Sarah, 2022. "We can't compete on human rights: creating market-protected spaces to institutionalize the emerging logic of responsible management," LSE Research Online Documents on Economics 115506, London School of Economics and Political Science, LSE Library.
    14. Helfen, Markus & Wirth, Carsten, 2020. "Management von Arbeit in pluralen Netzwerkorganisationen: Trends, Deutungen und Handlungsoptionen," Working Paper Forschungsförderung 185, Hans-Böckler-Stiftung, Düsseldorf.
    15. Mark ANNER, 2021. "Three labour governance mechanisms for addressing decent work deficits in global value chains," International Labour Review, International Labour Organization, vol. 160(4), pages 611-629, December.
    16. Mark ANNER, 2022. "Power relations in global supply chains and the unequal distribution of costs during crises: Abandoning garment suppliers and workers during the COVID‐19 pandemic," International Labour Review, International Labour Organization, vol. 161(1), pages 59-82, March.
    17. Sarah Ashwin & Chikako Oka & Elke Schuessler & Rachel Alexander & Nora Lohmeyer, 2020. "Spillover Effects across Transnational Industrial Relations Agreements: The Potential and Limits of Collective Action in Global Supply Chains," ILR Review, Cornell University, ILR School, vol. 73(4), pages 995-1020, August.
    18. Sarah Ashwin & Chikako Oka & Elke Schüssler & Rachel Alexander & Nora Lohmeyer, 2020. "Spillover Effects Across Transnational Industrial Relations Agreements: The Potential and Limits of Collective Action in Global Supply Chains," Post-Print hal-02952125, HAL.
    19. Mark Anner & Matthew Fischer-Daly & Michael Maffie, 2021. "Fissured Employment and Network Bargaining: Emerging Employment Relations Dynamics in a Contingent World of Work," ILR Review, Cornell University, ILR School, vol. 74(3), pages 689-714, May.

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