Two China Olympics goods factories accused of rights abuses

HONG KONG Tue Jul 24, 2012 2:57pm EDT

Related Topics

HONG KONG (Reuters) - A Hong Kong-based labor rights group slammed London Olympics organizers on Tuesday for failing to prevent "rampant" abuses at two China suppliers of Games merchandise.

In the latest investigation into outsourced manufacturing in China, SACOM (Scholars and Students against Corporate Misbehaviour) probed two Olympics suppliers and said it found patchy workplace safety, minimum wages and excessive overtime.

The group said the London Olympics organizers (LOCOG) had failed to bolster monitoring of Chinese suppliers after a high-profile report by the U.K.-based Playfair campaign in January.

"The rampant rights violations reveal that the LOCOG codes are really no more than lip service with no commitment to the enforcement of labor rights standards," SACOM, an active labor rights advocacy group in China, said in a report on its investigation in May and June.

In response, LOCOG said British toy company Golden Bear, which supplies licensed products including Olympic mascots, was reviewing all the factories in its supply chain.

"HAZARDOUS ENVIRONMENTS"

The two factories named in the report are Xinda, a production facility of Zindart Manufacturing Limited, and Shiwei Toys, a Hong Kong-owned toy supplier for brands such as Hasbro, both based in the southern "world factory" of the Pearl River Delta.

In both factories, the report said, workers had 11-to-12-hour shifts six days a week with overtime work up to 120 hours a month. At Xinda, workers who dozed off during work lost two-four hours' wages. At Shiwei, being five minutes late for work led to a half-day salary deduction.

"Workers are exposed to hazardous working environments without adequate protective equipment," the report said. "At Xinda, some workers have to bring their own masks to work."

Zindart CEO Chris Franklin said the company complied with industry labor standards including those set by the International Council of Toy Industries (ICTI), and dismissed accusations that it failed to supply adequate safety equipment.

"I know without doubt we provide all necessary clothing and protection. The spray departments are properly ventilated and extracted," Franklin said in emailed comments to Reuters.

He said most workers were only paid minimum basic wages of around 1,100 yuan ($170) per month as manufacturers across China faced pressure from rising costs and shrinking demand in core markets like debt-stricken Europe.

"We pay minimum wages but that is all we can pay based on the price paid for the products by our customers. They already think we are high priced," he added.

Franklin recently allowed a Reuters television crew unlimited access to film in his factory.

China has long relied on cheap and intensive labor, though in recent years, there have been signs of rising wages and a more assertive generation of workers launching successful strikes at multinational plants.

London organizers said they had reviewed both factories in the report.

"An independent audit of the Xinda factory was conducted and no such issues were found," they said in a statement.

Regarding conditions at Shiwei, LOCOG said it had undertaken a full review of Golden Bear's ethical trade management systems.

"Golden Bear has now fully committed to implementing all recommendations of that review and is in process of reviewing all factories in its supply chain."

(Reporting by James Pomfret and Twinnie Siu in Hong Kong, additional reporting by Keith Weir in London; Editing by Nick Macfie and Ken Ferris)

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
Janeallen wrote:
Well, I believe I read that the
London Olympics have cost about twice
as much as the original estimation
when London bid for the 2012 Olympics.
So London now owes the workers compensation.
Will the final cost be two and a half times
over the original estimate?

Jul 24, 2012 3:37pm EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

Full focus