The collapse of Rana Plaza and the limits, options and challenges of transnational labour regulation

Abstract

The collapse of the Rana Plaza in Bangladesh on 24 April 2013 resulted in the death of over 1,100 workers and many more injured workers. Consequently, it has again raised the debate about the social responsibility of multinational companies (MNCs) for their full production chain. European and North-American MNCs have responded to this with the adoption of two agreements. Although these agreements have been welcomed, being transnational private agreements, from a legal point of view, they raise some questions, especially about their legal status. This paper describes in brief the main legal challenges of these transnational, private agreements and how they can be (partially) be met. Secondly, the two agreements are analysed to what extent they meet those challenges. The paper concludes with some general considerations about their promises and limits to actually make a difference