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* EU considers action on Bangladesh, including trade

preferences

* Pope Francis condemns condition of workers as “slave

labour”

* Rescuers give up hope of finding any more alive; death

toll 411

* Protest march calls for death penalty

By Ruma Paul

DHAKA, May 2 (Reuters) – The European Union is considering

trade action against Bangladesh, which has preferential access

to EU markets for its garments, to pressure Dhaka to improve

safety standards after a building collapse killed more than 400

factory workers.

Pope Francis condemned the conditions of workers who died in

the disaster as “slave labour”, while in Dhaka several thousand

workers rallied to mark Labour Day, some calling for capital

punishment for those responsible for the tragedy.

“The owner of the building … should be hanged to death and

compensation should be given to the injured and those who died,”

said labour leader Moshrefa Mishu. “A healthy and safe

atmosphere should be made in the factories.”

Duty-free access offered by Western countries and low wages

have helped turn Bangladesh’s garment exports into a $19 billion

a year industry, with 60 percent of clothes going to Europe.

Any action by the EU on Bangladesh’s duty-free and

quota-free access would require the agreement of all member

states and could take more than a year to implement.

“The European Union calls upon the Bangladeshi authorities

to act immediately to ensure that factories across the country

comply with international labour standards …,” the 27-nation

bloc said in a statement issued by EU foreign policy chief

Catherine Ashton and Trade Commissioner Karel de Gucht.

In the United States, prominent Democrats Sander Levin and

George Miller wrote a letter to President Barack Obama urging

him to facilitate the development of a concrete plan of action

to address the range of issues relating to working conditions

and worker rights in the garment sector in Bangladesh.

The death toll from the collapse last week of the illegally

built Rana Plaza in Dhaka’s commercial suburb of Savar rose to

411 on Wednesday, and about 40 unidentified victims were buried.

One woman at the cemetery collapsed into tears when she

recognised the body of her sister by her dress.

“SHOT ACROSS THE BOWS”

With local anger growing over the country’s worst industrial

accident, a delegation from the International Labour

Organisation met Prime Minister Sheikh Hasina in Dhaka to offer

support and press for action to prevent any more such incidents.

The EU had already urged Bangladesh to adhere to ILO

standards in January after two earlier factory fires, including

one last November in which 112 people died.

A European Union official said the latest EU statement,

issued late on Tuesday, was “a shot across the bows”. “We want

to turn up the diplomatic heat on them and get them to sit down

and discuss this with us.”

About 3.6 million people work in Bangladesh’s garment

industry, making it the world’s second-largest apparel exporter

behind China. The industry employs mostly women, some of whom

earn as little as $38 a month.

The Bangladeshi prime minister warned factory owners they

would have to take care of their workers. “You will have to

ensure workers’ fair wages, allowances and other rights … you

must look after their workplace safety if you want to do

business,” she told a discussion forum.

Pope Francis added to pressure for change in his toughest

remarks on workers’ rights since his election on March 13, an

indication he plans to make social justice a plank of his

pontificate.

“Living on 38 euros ($50) a month – that was the pay of

these people who died. That is called slave labour,” Francis

said in a private impromptu sermon at his personal morning Mass

in his residence, Vatican Radio reported.

There were about 3,000 people inside the complex, which was

built on a swamp, when it collapsed. About 2,500 people have

been rescued, many injured, but many remain unaccounted for.

“Why are they taking so much time to pull out bodies?” asked

a grief-stricken father who, like many others, has been waiting

on the streets near the collapsed factory, hoping for

information about his son.

Police said DNA samples of the bodies buried on Wednesday

had been preserved, so tests could be done if relatives came

forward later.

The building’s owner Mohammed Sohel Rana and his father,

Abdul Khalek, are among eight people arrested so far, and police

are seeking a fifth factory boss, Spanish citizen David Mayor,

although it was unclear whether he was in Bangladesh at the time

of the accident.

EU IS BIGGEST MARKET

The factory collapse was the third deadly incident in six

months to raise questions about worker safety and labour

conditions in the poor South Asian country, which relies on

garments for 80 percent of its exports. Clothes made in five

factories inside the Rana Plaza building were produced for

retailers in Europe and Canada.

In the year to June 2012, Bangladesh’s garment exports to

the EU rose to $11.37 billion from $10.52 billion a year

earlier, according to Bangladesh’s commerce ministry. Germany is

the main EU market at $3.4 billion, followed by the UK at $2.13

billion, Spain at $1.71 billion and France at $1.27 billion.

Bangladesh’s next biggest garment export market is the

United States, which accounts for 23 percent, or $4.53 billion.

“The EU is presently considering appropriate action,

including through the Generalised System of Preferences –

through which Bangladesh currently receives duty-free and

quota-free access to the EU market,” Ashton and de Gucht said.

“The sheer scale of this disaster and the alleged

criminality around the building’s construction is finally

becoming clear to the world.”

The Ethical Trading Initiative (ETI), an umbrella

organisation that brings NGOs, unions and brands together to try

to improve working conditions, said retailers, major brands and

the suppliers who own the factories would have to contribute

towards factory inspections.

“Bangladeshi companies who supply to our retailers need to

be pricing in operating a decent factory, a safe factory and

paying proper wages,” ETI director Peter McAllister told

Reuters.

“And then the retail world needs to recognise that the real

cost of having sustainable businesses are going to be higher,”

he said, adding that he thought retailers would accept slightly

higher prices if all outlets agreed to the changes.

Following a private emergency meeting of Canadian retailers,

the Retail Council of Canada said on Tuesday it would develop a

new set of guidelines. That meeting brought together retailers

including Loblaw, Sears Canada Inc and Wal-Mart Canada

, to discuss how to deal with the tragedy.

Loblaw Executive Chairman Galen Weston said the company

would take further action “to address the situation” following

the collapse of the building, where some of its “Joe Fresh”

garments were made, although he did not offer specifics.

Representatives of some 45 companies, including Gap Inc

, H&M;, J.C. Penney, Nike Inc,

Wal-Mart, Britain’s Primark, Marks & Spencer and

Tesco, and Li & Fung, met officials from the

Bangladesh Garment Manufacturers and Exporters Association in

Dhaka this week to discuss worker and plant safety.

Primark and Loblaw have promised to compensate the families

of garment workers killed while making their clothes.