A sample shirt with the Canyon Creek label hung inside the charred remains of a factory in Karachi where at least 262 workers died in a fire in September.
The garment factory, owned by Arshad and Shahid Bhaila, who are brothers, had been certified as safe three weeks before the blaze.
SAN FRANCISCO (Reuters) – Google Inc is replacing the head of its in-house mergers and acquisitions group, David Lawee, with one of its top lawyers, according to a person familiar with the matter.
Don Harrison, a high-ranking lawyer at Google, will replace Lawee as head of the Internet search company‘s corporate development group, which oversees mergers and acquisitions, said the source, who spoke anonymously because he was not authorized to speak publicly.
Google is also planning to create a new late-stage investment group that Lawee will oversee, the source said.
Google declined to comment. Lawee and Harrison could not immediately be reached for comment.
One of the Internet industry’s most prolific acquirers, Google has struck more than 160 deals to acquire companies and assets since 2010, according to regulatory filings. Many of Google’s most popular products, including its online maps and Android mobile software, were created by companies or are based on technology that Google acquired.
Harrison, Google’s deputy general counsel, will head up the M&A group at a time when the company is still in the process of integrating its largest acquisition, the $ 12.5 billion purchase of smartphone maker Motorola Mobility, which closed in May.
And he takes over at a time when the Internet search giant faces heightened regulatory scrutiny, with the U.S. Federal Trade Commission and the European Commission conducting antitrust investigations into Google’s business practices. Several recent Google acquisitions have undergone months of regulatory review before receiving approval.
As deputy general counsel, Harrison has been deeply involved in the company’s regulatory issues and many of its acquisitions. He joined Google more than five years ago and has completed more than 70 deals at the company, according to biographical information on the Google Ventures website.
Harrison is an adviser to Google Ventures, the company’s nearly four-year old venture division which provides funding for start-up companies.
While most of Google’s acquisitions are small and mid-sized deals that do not meet the threshold for disclosure of financial terms, Google has a massive war chest of $ 45.7 billion in cash and marketable securities to fund acquisitions.
Lawee, who took over the M&A group in 2008, has had hits and misses during his tenure. Google shut down social media company Slide one year after acquiring it for $ 179 million, for example.
The planned late-stage investment group has not been finalized, the source said. The fund might operate separately from Google Ventures, according to the source.
“Think of it as a private equity fund inside of Google,” the source said.
The company recently said it would increase the cash it allocates to Google Ventures to $ 300 million a year, up from $ 200 million, potentially helping it invest in later-stage financing rounds.
Google finished Friday’s regular trading session down 1 percent, or $ 6.92, at $ 684.21.
(Reporting By Alexei Oreskovic; editing by Carol Bishopric and Jim Loney)
Wireless News Headlines – Yahoo! News
"It's a hard time of year," Susan's father, Chuck Cox, tells PEOPLE. "Our daughter's still missing. Someday, we will find out what happened to her."
He added that he is not sure what to make of a West Valley City, Utah, police announcement Thursday that their investigation into Susan's Dec. 6, 2009 disappearance remains active but "has been scaled down," with a reduction in the number of full-time investigators working the case.
The announcement came at the same time that more evidence emerged of the alleged obsession Susan's father-in-law, Steven Powell, had toward her. Authorities released nearly 4,500 pictures that they say he secretly took of her at home and elsewhere.
Cox says he's hopeful that the police are still doing everything possible to solve Susan's case, but he hasn't ruled out suing the department for failing to arrest Susan's husband, Josh Powell, for her murder.
More than two years after Susan's disappearance, Josh on Feb. 5 murdered the couple's two sons and committed suicide by blowing up his house.
Cox's lawyer, Anne Bremner, says Cox "goes back and forth" over whether to sue West Valley City. "He wants them to find her. A lawsuit can have a chilling affect on things."
Cox and Bremner say they do plan to file a lawsuit against the state of Washington for continuing to give Josh visitation with his children despite what they claim were mounting concerns regarding his mental stability.
Although Cox and the police believe that Josh Powell knew more than anyone what happened to Susan, they also strongly suspect that his father, Steven Powell, should still be looked at more closely.
Steven Powell
Ted S. Warren / AP
In numerous interviews with PEOPLE, Steve and Josh Powell denied any involvement in Susan's disappearance and have suggested that she ran off with another man.
Steve Powell was prosecuted for surreptitiously photographing his neighbor's young daughters (and is serving a 30-month sentence), but the investigation also unearthed journals in which Powell described his interest in his daughter-in-law, as well as the thousands of photos, which were released Thursday to the Associated Press.
In a journal entry, Steven Powell recalls a sexually charged dream in which Susan asks him, “Do you think I would make a good wife for you?” None of the pictures show Susan naked, although there are images of her crotch and backside.
"We think he knows exactly where our daughter is," Cox says.
Once Susan disappeared, Josh sold the family's home in Utah and moved with the boys into Steven Powell's house in Puyallup, Wash., only about two miles from the Cox family.
On Thursday, families streamed to Puyallup’s Woodbine Cemetery to remember the Powell boys and other children who died tragically and to dedicate a memorial: a bronze angel inspired by the novella The Christmas Box, in which strangers learn the value of love following a child’s death.
The novella's author, Richard Paul Evans, also attended the dedication. The memorial is on a hill overlooking the boys' gravesites 75 yards away.
"We get a lot of support from a lot of people and we're going to make it through," Cox says.
SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.
Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.
Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.
"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."
In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.
That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.
The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."
Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.
Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."
Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.
But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.
The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.
"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.
The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.
That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.
Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.
___(equals)
Johnson can be reached at https://twitter.com/GeneAPseattle
TOKYO (Reuters) - Asian shares touched fresh 16-month highs on Friday following modest overnight gains in global equities as investors watched progress in U.S. budget talks with expectations for an eventual deal and awaited U.S. nonfarm payrolls data later in the day.
The euro hovered near a one-week low against the dollar, having fallen after the European Central Bank painted a bleak outlook for the euro zone and discussed cutting interest rates at its policy meeting on Thursday when it kept rates steady.
Recent indicators suggesting stabilizing growth in China, the world's second-largest, economy also helped improve sentiment, although the Asian Development Bank slightly lowered its 2012 and 2013 growth estimates for developing Asia on Friday as frail global demand drags on the region.
Buoyed by strong domestic demand, developing Asian economies have shown relatively more resilience compared with developed and more export-reliant economies such as Japan and south Korea.
MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> rose 0.6 percent, and was set for its third-straight weekly gain with a 1.4 percent advance. The index has gained about 17 percent year-to-date, compared to a loss of nearly 18 percent last year.
South and Southeast Asian bourses have outperformed, with a 32 percent year-to-date surge in the Philippines <.psi>, a nearly 31 percent gain in Thailand <.seti>, Indian shares <.bsesn> rising 26 percent and Indonesia <.jkse> up 12 percent to date.
Hong Kong shares <.hsi> were up 0.5 percent to a 16-month high and risen 21 percent so far this year, despite facing bouts of pressure from sputtering mainland Chinese markets.
South Korean shares <.ks11> were up 0.5 percent and Australian shares <.axjo> jumped 0.9 percent to its highest in nearly seven weeks, as top miners were supported by rebounding iron ore prices and banks recovered from losses the previous day.
"One of the reasons for the gains is better news we've seen from China and expectations the economy there has stabilized and growth has improved modestly," said Michael McCarthy, chief market strategist at CMC Markets.
Japan's Nikkei stock average <.n225> inched up 0.2 percent. <.t/>
U.S. stocks advanced modestly while the FTSEurofirst 300 index <.fteu3> of top European shares hit an 18-month closing high on Thursday.
As superstorm Sandy disrupted U.S. economic activity, nonfarm payrolls in November are expected to have increased only 93,000, compared to October's 171,000 job gain, a Reuters survey of economists showed. The unemployment rate is seen holding steady at 7.9 percent.
"A soft number should reinforce the case for the Fed doves ahead of next week's FOMC meeting where QE is likely to be increased in order to at least offset the expiration of Operation Twist. Hence a soft report should hurt USD and vice versa," Sean Callow, senior currency strategist at Westpac bank in Sydney, said in a note.
At its December 11-12 meeting, the Federal Reserve is expected to announce a new round of Treasury bond purchases to reinforce quantitative easing, replacing the expiring programme called Operation Twist, under which it bought $45 billion of longer-dated bonds a month while selling its shorter-date holdings.
The dollar traded at 82.47 yen, sticking close to a 7-1/2-month high of 82.84 hit on November 22.
With little to show after a month of posturing, the White House and Republicans in Congress dropped hints on Thursday that they had resumed low-level private talks on breaking the stalemate over the "fiscal cliff" but refused to divulge details.
Markets have been keeping up hope that Washington would eventually avert some $600 billion of tax hikes and spending cuts scheduled to start in January. Economists have warned that failure by Congress to reach an agreement on deficit reduction could tip the U.S. economy back into recession, further weighing on the fragile global economy.
"The main board is extending its upward trend that began in mid-November on hopes for a positive conclusion to the U.S. 'fiscal cliff' and economic growth policies from China," said Park Hae-sung, an analyst at LIG Investment & Securities.
Global rates: http://link.reuters.com/xyb96s
U.S. fiscal cliff: http://link.reuters.com/dut83t
Asset returns in 2012: http://link.reuters.com/nyw85s
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EURO ON DEFENSIVE
The euro steadied at around $1.2968, after falling nearly 1 percent to $1.2950 on Thursday in its biggest one-day loss in a month, and retreating from a seven-week peak of $1.3127 set mid-week.
ECB President Mario Draghi said on Thursday policymakers had held a wide discussion on interest rates, including negative deposit rates, leaving the door open to a possible cut in borrowing costs next year.
Creating negative deposit rates means effectively charging depositors rather than paying them interest, with an aim of forcing banks to put their money to work elsewhere.
The ECB's new staff also projected gross domestic product next year could range from a contraction of 0.9 percent to growth of just 0.3 percent, suggesting contraction is far more likely than not. It forecast inflation of 1.1 percent to 2.1 percent next year.
"It is unusual that a negative growth projection for the next year is offered before the end of the current year, but with such a view, markets are naturally pricing in a interest rate cut," said Daisuke Karakama, market economist for Mizuho Corporate Bank in Tokyo.
He expected the euro to remain vulnerable with the risk of falling back to $1.2 at some point, but the single currency appeared to be supported currently by year-end repatriation flows.
U.S. crude futures inched up 0.3 percent to $86.53 a barrel and Brent rose 0.2 percent to $107.27.
(Additional reporting by Joyce Lee in Seoul and Maggie Lu Yueyang; Editing by Kim Coghill)
Big-budget games such as Halo 4 and Call of Duty: Black Ops II might brag about how they rule the Xbox 360 in terms of sales, but indie games can also compete – if they’re addictive enough and offer enough value. Take Minecraft, an indie game developed by Markus “Notch” Persson’s company Mojang. According to Mojang, Minecraft, an indie game originally made for PC and ported to the Xbox 360 seven months ago has sold 4,476,904 copies as of the end of November with 40,000 to 60,000 copies sold every week. Minecraft is an anomaly because it doesn’t boast high-definition graphics that ooze of detailed lighting effects and didn’t cost millions of dollars to make, and yet it is the third-most played game on Xbox LIVE.
According to Gamasutra’s analysis and breakdown of November’s Xbox Live Arcade sales, only three other indie games managed to break 1 million copies downloaded last month. See below for the chart.
As you can see, every other game on Xbox Live Arcade other than Castle Crashers, Fruit Ninja Kinect, Happy Wars and Counter Strike: GO isn’t seeing the same type of success Minecraft is.
The lesson here is developers should always focus on the product and the users. If the gameplay mechanics are solid, the experience is fluid and bug-free, the gamers will come.
Get more from BGR.com: Follow us on Twitter, Facebook
Gaming News Headlines – Yahoo! News
The X Factor
With only four spots in next week's semi-finals, the six acts who performed two songs each Wednesday night were a tense bunch. Especially after last week's shocking elimination that sent home fan favorite Vino Alan.
A majority of PEOPLE.com readers picked Demi Lovato's only remaining contestant, CeCe Frey, as the singer who most deserved elimination. Was she able to make it through one more week? Keep reading for all the results ...
CeCe Frey was the first to go.
"I'm proud of everything that I've done on this show," she said. "I hope I've taught everyone at home that you need to love who you are, because the more you love who you are, the less you're going to need anybody else to."
Her coach tried to avoid tears but shed a few anyway. "I've grown so close to you," Demi said. "And I'm just so proud of you."
Three acts were then declare safe: Simon Cowell's boy band, Emblem3; Britney Spears's frontrunner, Carly Rose Sonenclar; and L.A. Reid's country singer, Tate Stevens, also a frontrunner.
That left Team Britney's Diamond White and Simon's other group, Fifth Harmony, to sing for survival.
Fifth Harmony sang Mariah Carey's "Anytime You Need a Friend," and Diamond sang Lee Ann Womack's "I Hope You Dance."
As expected, Simon and Britney voted to send home each other's acts. But it was the end of the road for Diamond, after L.A. and Demi both voted to send her home as well.
"I'm just thinking of Cher Lloyd right now," she said of the "Want U Back" singer. "She came in fifth and look where she is."
Here's how the top four ranked:
1. Tate Stevens
2. Carly Rose Sonenclar
3. Emblem3
4. Fifth Harmony
A new study sets the stage for wider use of gene testing in early pregnancy. Scanning the genes of a fetus reveals far more about potential health risks than current prenatal testing does, say researchers who compared both methods in thousands of pregnancies nationwide.
A surprisingly high number — 6 percent — of certain fetuses declared normal by conventional testing were found to have genetic abnormalities by gene scans, the study found. The gene flaws can cause anything from minor defects such as a club foot to more serious ones such as mental retardation, heart problems and fatal diseases.
"This isn't done just so people can terminate pregnancies," because many choose to continue them even if a problem is found, said Dr. Ronald Wapner, reproductive genetics chief at Columbia University Medical Center in New York. "We're better able to give lots and lots of women more information about what's causing the problem and what the prognosis is and what special care their child might need."
He led the federally funded study, published in Thursday's New England Journal of Medicine.
A second study in the journal found that gene testing could reveal the cause of most stillbirths, many of which remain a mystery now. That gives key information to couples agonizing over whether to try again.
The prenatal study of 4,400 women has long been awaited in the field, and could make gene testing a standard of care in cases where initial screening with an ultrasound exam suggests a structural defect in how the baby is developing, said Dr. Susan Klugman, director of reproductive genetics at New York's Montefiore Medical Center, which enrolled 300 women into the study.
"We can never guarantee the perfect baby but if they want everything done, this is a test that can tell a lot more," she said.
Many pregnant women are offered screening with an ultrasound exam or a blood test that can flag some common abnormalities such as Down syndrome, but these are not conclusive.
The next step is diagnostic testing on cells from the fetus obtained through amniocentesis, which is like a needle biopsy through the belly, or chorionic villus sampling, which snips a bit of the placenta. Doctors look at the sample under a microscope for breaks or extra copies of chromosomes that cause a dozen or so abnormalities.
The new study compared this eyeball method to scanning with gene chips that can spot hundreds of abnormalities and far smaller defects than what can be seen with a microscope. This costs $1,200 to $1,800 versus $600 to $1,000 for the visual exam.
In the study, both methods were used on fetal samples from 4,400 women around the country. Half of the moms were at higher risk because they were over 35. One-fifth had screening tests suggesting Down syndrome. One-fourth had ultrasounds suggesting structural abnormalities. Others sought screening for other reasons.
"Some did it for anxiety — they just wanted more information about their child," Wapner said.
Of women whose ultrasounds showed a possible structural defect but whose fetuses were called normal by the visual chromosome exam, gene testing found problems in 6 percent — one out of 17.
"That's a lot. That's huge," Klugman said.
Gene tests also found abnormalities in nearly 2 percent of cases where the mom was older or ultrasounds suggested a problem other than a structural defect.
Dr. Lorraine Dugoff, a University of Pennsylvania high-risk pregnancy specialist, wrote in an editorial in the journal that gene testing should become the standard of care when a structural problem is suggested by ultrasound. But its value may be incremental in other cases and offset by the 1.5 percent of cases where a gene abnormality of unknown significance is found.
In those cases, "a lot of couples might not be happy that they ordered that test" because it can't give a clear answer, she said.
Ana Zeletz, a former pediatric nurse from Hoboken, N.J., had one of those results during the study. An ultrasound suggested possible Down syndrome; gene testing ruled that out but showed an abnormality that could indicate kidney problems — or nothing.
"They give you this list of all the things that could possibly be wrong," Zeletz said. Her daughter, Jillian, now 2, had some urinary and kidney abnormalities that seem to have resolved, and has low muscle tone that caused her to start walking later than usual.
"I am very glad about it," she said of the testing, because she knows to watch her daughter for possible complications like gout. Without the testing, "we wouldn't know anything, we wouldn't know to watch for things that might come up," she said.
The other study involved 532 stillbirths — deaths of a fetus in the womb before delivery. Gene testing revealed the cause in 87 percent of cases versus 70 percent of cases analyzed by the visual chromosome inspection method. It also gave more information on specific genetic abnormalities that couples could use to estimate the odds that future pregnancies would bring those risks.
The study was led by Dr. Uma Reddy of the National Institute of Child Health and Human Development.
___
Online:
Medical journal: http://www.nejm.org
___
Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP
NEW YORK (Reuters) - A volatile trading session ended with U.S. stocks mostly higher on Wednesday, even as Apple, the most valuable company in the United States, suffered its worst day of losses in almost four years.
In a strange occurrence, Apple accounted for the entirety of the Nasdaq 100's <.ndx> fall of 1.1 percent, while the Dow industrials - which do not include Apple as a component - enjoyed the best day since November 28.
With the drop, Apple shed nearly $35 billion in market capitalization, its biggest one-day market-cap loss ever. The company's market value, or market capitalization, now stands at $506.85 billion.
"Today's move is because of index weightings, with the Nasdaq down because of Apple's decline," said Rex Macey, chief investment officer of Wilmington Trust in Atlanta. "The S&P is up because Apple isn't as big a weight in that index, and the Dow is up even more because it isn't there at all."
The broad market seesawed, with the S&P 500 dropping into negative territory before it rebounded off the 1,400 level, seen as a key support point over the past two weeks. Investors cited comments from President Barack Obama suggesting a potential near-term resolution to the "fiscal cliff" wrangling in Washington as a catalyst for the rebound.
Shares of The Travelers Cos Inc
The Dow Jones industrial average <.dji> rose 82.71 points, or 0.64 percent, to 13,034.49 at the close. The Standard & Poor's 500 Index <.spx> gained 2.23 points, or 0.16 percent, to 1,409.28. But the Nasdaq Composite Index <.ixic> fell 22.99 points, or 0.77 percent, to end at 2,973.70.
Apple, the largest U.S. company by market capitalization and a big weight in both the S&P 500 and the Nasdaq, fell 6.4 percent to $538.79. Apple is down more than 20 percent from an all-time high reached in late September, putting the stock into bear market territory.
Banking shares were led higher by a 6.3 percent jump in Citigroup
Cyclical sectors, which are tied to the pace of economic growth, rallied on optimism about progress on a solution to avoid the fiscal cliff. An S&P index of industrial stocks <.gspi> rose 1.1 percent, buoyed by Caterpillar Inc
Still, Apple struggled throughout the session. Market participants cited a host of reasons for the drop in the iPad maker's stock, including a consultant's report about the company losing share in the tablet market and reports that margin requirements had been raised by at least one clearing firm, as well as year-end tax selling ahead of a possible rise in capital-gains tax rates next year.
On the Washington front, Obama told the Business Roundtable, a group of chief executives, on Wednesday that a fiscal cliff deal was possible "in about a week" if Republicans acknowledged the need to raise taxes on the wealthiest Americans.
Equities have struggled to gain ground recently because of concerns over the fiscal cliff - a series of mandatory spending cuts and tax increases effective in early January that could push the U.S. economy into recession next year. Recently equities have moved on any whiffs of sentiment from Washington in headlines about negotiations.
"Obama's comments generated a lot of optimism, but to the extent the market believes them, that's how much we're setting ourselves up for a decline if that deadline passes with no progress," said Macey, who helps oversee about $20 billion in assets.
In an interview on CNBC after the market closed, U.S. Treasury Secretary Tim Geithner said that uncertainty over the fiscal cliff was standing in the way of stronger economic growth, and that there was no prospect for an agreement if tax rates didn't rise on the wealthiest taxpayers.
The stock of Freeport-McMoRan Copper & Gold Inc
McMoRan Exploration soared 87 percent to $15.82 and Plains surged 23.4 percent to $44.50.
About half of the stocks traded on the New York Stock Exchange closed in positive territory, while about 54 percent of Nasdaq-listed shares ended lower.
Volume was higher than it has been in recent sessions, with about 6.93 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, above the daily average so far this year of about 6.48 billion shares.
(Editing by Jan Paschal)
Khurshed Rinku/Associated Press
Burials on Nov. 27 for some of the 112 victims of the garment factory fire in Bangladesh.
Documents found at the Tazreen apparel factory in Bangladesh, where 112 workers died in a fire nearly two weeks ago, indicate that three American garment companies were using the factory during the past year to supply goods to Walmart and its Sam’s Club subsidiary.
The documents — photographed by a Bangladeshi labor organizer after the fire and made available to The New York Times — include an internal production report from mid-September showing that 5 of the factory’s 14 production lines were devoted to making apparel for Walmart.
In a related matter, two officials who attended a meeting held in Bangladesh in 2011 to discuss factory safety in the garment industry said on Wednesday that the Walmart official there played the lead role in blocking an effort to have global retailers pay more for apparel to help Bangladesh factories improve their electrical and fire safety.
Ineke Zeldenrust, international coordinator for the Clean Clothes Campaign, an anti-sweatshop group based in Amsterdam, said Walmart was the company that “most strongly advocated this position.”
The meeting was held in April 2011 in Dhaka, the country’s capital, and brought together global retailers, Bangladeshi factory owners, government officials and nongovernment organizations after several apparel factory fires in Bangladesh had killed dozens of workers the previous winter.
According to the minutes of the meeting, which were made available to The Times, Sridevi Kalavakolanu, a Walmart director of ethical sourcing, along with an official from another major apparel retailer, noted that the proposed improvements in electrical and fire safety would involve as many as 4,500 factories and would be “in most cases” a “very extensive and costly modification.”
“It is not financially feasible for the brands to make such investments,” the minutes said.
Kevin Gardner, a Walmart spokesman, said the company official’s remarks in Bangladesh were “out of context.”
“Walmart has been advocating for improved fire safety with the Bangladeshi government, with industry groups and with suppliers,” he said, adding that the company has helped develop and establish programs to increase fire prevention.
Ms. Zeldenrust said, “Everyone recognized that fire safety was a serious problem and it was a high time to act on it, and Walmart’s position had a very negative impact.” She added, “It gives manufacturers the excuse they’re looking for to say, ‘We’re not to blame.’ ”
Scott Nova, the executive director of the Worker Rights Consortium, a factory monitoring group based in Washington, was also at the meeting. He said that upgrading the factories’ safety would cost a small fraction of what Walmart and other retailers pay for the clothing they import from Bangladesh each year.
Bloomberg News first reported details of the Dhaka meeting on Wednesday.
Walmart has indirectly acknowledged that the factory, Tazreen Fashions, outside Dhaka, was producing some of its apparel, saying in a statement that a supplier had “subcontracted work to this factory without authorization and in direct violation of our policies.” In that statement, issued two days after the Nov. 24 fire, Walmart said, “We have terminated the relationship with that supplier.” Walmart has declined to name the supplier.
After Walmart was shown some of the documents from the factory on Wednesday, Mr. Gardner replied in an e-mail. “As we’ve said, the Tazreen factory was de-authorized months ago,” he wrote. “We don’t comment on specific supplier relationships.”
The photographed documents from the factory indicate that three suppliers — the International Direct Group, Success Apparel and Topson Downs — used the factory to make shirts, shorts and pajamas for Walmart. One document, written in July, provides product descriptions from Success Apparel for Walmart’s Faded Glory house-brand shorts. A photo taken inside the factory after the fire showed a pair of Faded Glory shorts.
The documents indicate that Success Apparel often worked through Simco, a Bangladeshi garment maker.
Mr. Nova of the Worker Rights Consortium said the documents raised questions about Walmart’s statements after the fire.
“It was not a single rogue supplier as Walmart has claimed — there were several different U.S. suppliers working for Walmart in that factory,” Mr. Nova said. “It stretches credulity to think that Walmart, famous for its tight control over its global supply chain, didn’t know about this.”
Mr. Nova works closely with the Bangladesh Center for Worker Solidarity and made the factory documents available.
Investigators also found apparel made for Sears and Disney inside the factory after the fire. Both companies said suppliers had given orders to the factory without their knowledge and authorization.
Mr. Gardner said accredited outside auditors had periodically inspected the factory on Walmart’s behalf. A May 2011 audit gave the factory an “orange” rating, meaning that there were “higher-risk violations” and that it would be re-audited within six months. If a factory gets three orange ratings over two years, it loses Walmart’s approval.
A follow-up audit in August 2011 for Walmart gave Tazreen an improved “yellow” rating, meaning “medium-risk violations.”
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