Wal-Mart is now demanding its suppliers be authorized. It claims...

Wal-Mart is now demanding its suppliers be authorized. It claims a fatal fire in Bangladesh last year was at an unauthorized factory. (Nov. 25, 2012) Credit: AP

Wal-Mart's stricter contracting rule, along with other changes to its policy, comes amid increasing calls for better safety oversight after a fire in November at a Bangladesh factory that supplied clothing to Wal-Mart killed 112 workers. Wal-Mart has said the factory wasn't authorized to make its clothes.

In a letter sent Tuesday to suppliers, the company says it will adopt a "zero tolerance" policy on subcontracting without the company's knowledge, effective March. 1. Previously, suppliers had three chances to rectify mistakes. Wal-Mart also said it plans to publish on its website a list of factories that haven't been authorized to manufacture goods for Wal-Mart.

Also, starting June 1, suppliers must have an employee stationed in countries where they subcontract to ensure compliance, rather than relying on third-party agents.

"We want the right accountability and ownership to be in the hands of the suppliers," said Rajan Kamalanathan, Wal-Mart's vice president of ethical sourcing. "We are placing our orders in good faith."

Wal-Mart will meet with clothing suppliers from the United States and Canada Thursday to explain the new policy changes.

Critics quickly dismissed Wal-Mart's moves as inadequate and said that the retailer needs to do more.

"It shows that Wal-Mart is feeling a great deal of pressure in the wake of public scrutiny," said Scott Nova, executive director at Workers' Rights Consortium, a labor-backed advocacy group.

But Nova said the company's response isn't adequate unless Wal-Mart and others pay suppliers more so they can cover the costs of repairs.

Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week. Credit: Newsday

Sarra Sounds Off, Season 3, Ep 3: Top football teams in action, fantasy update and plays of the week Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week.

Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week. Credit: Newsday

Sarra Sounds Off, Season 3, Ep 3: Top football teams in action, fantasy update and plays of the week Gregg Sarra sounds off on the Northport and Half Hollow Hills East matchup, plus Tess Ferguson has an update on the high school fantasy football standings and Jared Vailuzzi has the plays of the week.

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