Under mounting pressure to improve working conditions in Bangladesh’s garment factories, several of the world’s largest apparel companies agreed on Monday to a landmark plan to help pay for fire safety and building improvements after the collapse last month of the Rana Plaza factory complex, which killed more than 1,100 people.

The agreement, hailed by labor and consumer groups as a major breakthrough, came as the Bangladeshi government also took steps to respond to the April 24 disaster at Rana Plaza outside Dhaka, the Bangladeshi capital. In the last two days, the government has pledged to raise wages for garment workers and change labor laws to make it easier to form trade unions.

The parallel announcements by global brands and the Bangladeshi government were a significant shift: For years, Bangladesh has seen some of the worst practices in the global garment industry. Wages are the lowest in the world, starting at roughly $37 a month. Factory conditions are often unsafe. Yet global brands have often sought to deflect any direct responsibility for the problems, while the government has often been tepid in protecting worker rights.

But the Rana Plaza disaster, the deadliest in the garment industry’s history, has created tremendous pressure for change. On Monday morning, the Swedish retail giant H&M and Inditex, owner of the popular Zara chain, endorsed the safety plan. Within hours, the large Dutch retailer C&A also joined the agreement, as did the low-cost British retailers Primark and Tesco.