Archive for the ‘China’ Category

iPhone6

The second-ever post on this blog was about Apple and Foxconn. I haven’t come back to them since, mainly because I figured that the story had been picked up by the mainstream media and an investigation was commenced. Then I came across this:

Journalism is printing what someone else does not want printed. Everything else is public relations (George Orwell – via @FredrikGertten)

The so-called investigation into Foxconn which took place in 2012 has made me despair of the media who uncritically reported that lots of progress has been made. Anyone with a high school diploma who read the entire report could see that the main issues are not resolved at all, and wage levels are not even mentioned.

In response I have put together my own White Paper, highlighting the shortcomings of Apple and Foxconn’s remediation point by point, which you can download here:

I spoke with SACOM before publishing this. There is no democratic union at Foxconn so, as the people in touch with the workers, SACOM are probably the next best thing. They say the workers’ priorities are:

  1. A better system for scaling of production during peak times, and
  2. Worker input into selection of union reps.

As you’ll see in the Paper, neither of these issues have been addressed at all.

See also:

This business model was pioneered by Nike and adopted by others including Apple: companies ‘produce’ only their brand and people in lower-wage countries can do all the work. The brand companies shows themselves time and again to be disinterested in what happens on distant production lines until there’s a problem.

Adidas has been under pressure for some time for trying to dodge redundancy entitlements owed to workers in their Indonesian supply chain whose actual employer skipped out of the country. Their tight-fistedness earned them a spotlight at the London Olympic Games.

Now we have details of more problems. The information below details serious health and safety problems at one Chinese factory supplying Adidas.

From Rena Lau at Globalization Monitor:

One of TaylorMade-Adidas golf drivers’ suppliers – Dynamic Casting (Guangzhou) is responsible for the suffering of at least 69 workers, who have contracted Hand-Arm Vibration (HAV thereafter) disease. HAV is a non-curable disease which comes from the use of hand-held power tools and is the cause of significant health problems including painful and disabling disorders of the blood vessels, nerves and joints.

Victim's hands

After our investigation, we found that Dynamic Casting has several violations of China Laws and regulations.
I.            Dynamic Casting has been using substandard polishing machines which exceeded the maximum permitted level required by the National Standard on Occupational Health for a long period of time.
II.          Dynamic Casting failed to notice the hazardous factors of vibration units to workers.
III.        Dynamic Casting refused to send some workers for medical examinations.
IV.        Dynamic Casting forced workers to sign confidential agreement, which requires them to give up all their legal rights, before giving them compensation. Workers complained that the agreement is not a fair deal.
V.          Dynamic Casting unreasonably dismissed 4 affected workers and refused to reinstate two workers until today.
VI.        Dynamic Casting holds back part of the compensation of these 4 workers unless they agree to resign.

According to Adidas Group, they came to know the first cases of HAV disease in Dynamic Casting on late May 2010. Adidas only helped Dynamic Casting to up a timeline to provide medical examination and compensation in patches but not pushed Dynamic Casting to execute the plan.  Therefore, until today, still several workers were not sent to have medical examinations. This shows that Adidas Group does not take occupational and health issues seriously. It is shame for their statement on its website that “Every employee must have a safe working environment. Nothing less is acceptable.” Adidas Group claimed that Adidas SEA audits/ visited Dynamic Casting regularly. In fact, Adidas could not identify any HAV case through their audits. Thus workers working at Dynamic Casting have been always exposed in risky health condition. As the brand company of Dynamic Casting, Adidas Group has unavoidable responsibility to compensate the workers as it is negligent to protect workers from possible hazards.

Based on these facts, we demand:
I.            Adidas make sure all affected workers with HAV receive immediately comprehensive medical examination and compensation demanded by workers.
II.          Adidas set up an Occupational Hazards Victim Fund immediately to compensate all victims with HAV.
III.        Adidas launch a full and immediate investigation on tracking the full number of workers affected by HAV diseases along supply chain in China.

We sent out a full report on Dynamic Cast case to Adidas on 25th September and demanded a full reply from Adidas but until today, we have not received Adidas’s full explanation on the case. Thus we have reason to believe that Adidas may shirk its responsibility on solving the case immediately.

Therefore, we urge you to take action with us in order to support those HAV workers in China.

Suggested Action:
Sign the online petition addressed to the Adidas group expressing your concern about the 69 workers suffering from HAV disease.

Related posts:

I would have just tweeted this video link but it needs a little explanation.

Here is yet another example of supply chain water-muddying. I’m guessing you’ve never heard of Perfect Gem & Pearl Manufactury Company [sic]. They are a Hong Kong-based jewellery wholesaler, exporting worldwide.

This video tells the story of several employees from the company’s factory across the border in Huizhou, Guangdong, who contracted silicosis due to inadequate health and safety protections. A group of their family members travel to the company’s headquarters in 2005 to confront them about it. Their case was pursued by advocacy group China Labour Bulletin and each of the families received about US $40,000 in compensation.

Who knows how many thousands more receive no such assistance!

(If you want to skip right to it, this section of the video begins at 1:28)

Video credit: Asia Monitor Resource Centre

Story source:

Related posts:

Chongqing Taxi

Image by foxxyz via Flickr

Evidence continues to mount that the Chinese authorities are deliberately looking the other way when it comes to labour unrest. They don’t really have a choice. They either allow workers to get what they want in the form of moderate wage increases or face massive social dislocation from people who can’t keep their heads above water, financially.

In the last few years the number of known strikes has continued to increase, most visibly amongst taxi drivers in cities including Hangzhou, Zhengzhou, Qionghai, Foshan, Mengzi and Shanghai.

The particular issues vary but they are all essentially protesting over the same thing: meeting rising costs of living. In some cities the issue is the cost of fuel, in others it the government’s failure to increase taxi fares, in others it is over the proliferation of unlicensed taxi cabs.

Interestingly not only has this taken place without any sort of crackdown, the mainstream press has been allowed to report on it, suggesting that it is less frowned on.

Demographic pressure

Even though the Chinese labour market seems inexhaustible to the ears of Westerners, it is still fairly mobile and low-end manufacturers are under pressure to find people who will work bottom-end wages. There are now more options out there. Their response has been to move up the value chain, making more high-end goods such as laptop computers and iPads where the output justifies the higher pay. The same progression took place in Japan and then Korea.

Where does China’s anemic official state union fit into this? Hardly at all, it seems. Generally wage increases have been won by ad hoc worker coalitions working on their own. Supply and demand seems to be enough to force up wages when people feel the pressure enough. I wonder what will happen in five to ten years when, analysts suggest, growth slows down.

Sources:

Anyone remotely interested in workers’ rights in the developing world should get this book! Because it is self-published by Globalisation Monitor it does not appear in Amazon and probably few people in the big developing economies have seen it. It is really easy to get a copy – GM sells it for a song or you can simply download it in PDF format off their website.

Clearly this is not a book written to make a profit; it’s been written because the story is just so extraordinary and needed to be told.

The book describes the appalling neglect of the operators of the Gold Peak battery factory in Huizhou in China’s Pearl River Delta Manufacturing area, whose workers suffer cadmium poisoning after coming into direct contact with the poisonous chemical. The workers largely self-organise to find justice, bypassing the official union and going directly to the authorities and to the press. Only very late in the game do they receive support from groups across the border in Hong Kong. It is all rather tidy: The owners of Gold Peak and their major customers are in Hong Kong, only a few dozen miles away from the factory.

I finished the book feeling upbeat for the future of China’s workers. Injustice transcends cultural barriers, and they weren’t going to take it laying down.

The site management had poor health and safety controls from the beginning. Rather like big tobacco, they did not respond to it and tried to duck the issue when workers began to realise something was wrong. For a considerable time workers attempted to obtain cadmium blood level tests only to have the results altered or not released at all. At one point the factory owners even go so far as to conspire with local hospital officials to thwart people attempting to have tests from a third party.

Not directly relevant but one snippet was a revelation for me and may be for other Western readers: Did you ever wonder how China’s one child policy is enforced? It is done through the employer. The paperwork associated with employment includes family planning permits(!) Anyone who has more than one child suffers demotion or dismissal. This is why people in rural areas are less affected – they don’t work for registered employers, they just work their own land, thus the Central Government has no means of interfering.

Astonishingly the mainly female workforce are undeterred by management’s continued ducking and dodging, first striking and then presenting their case to all who will listen including several ministries in Beijing. Their case attracts media attention and thus the assistance of Globalisation Monitor, who organise direct action against Gold Peak and its chairman.

Gold Peak protest postcard

Protest postcard addressed to GP chairman Victor Lo

While GM’s involvement was helpful I was pleased to see that the most effective action occurs when the company is taken to court (in Mainland China, not Hong Kong) and many of the workers receive compensation settlements. It may not be well known outside the country that China actually has comprehensive health and safety laws – they just don’t have many occupational lawyers! The struggle continues though, with many workers still uncompensated, however I’m heartened that it didn’t endwith them being “rescued” by rich-world NGOs. They are finding their own path.

I’ll finish with an extract that I was particularly touched by. It doesn’t relate to the cadmium issue per se but speaks volumes about daily life in the factory:

Just after I put on the face mask given to me by the line supervisor, I saw that my workmate sitting across from me was crying. I was shocked and asked her what was wrong, but she just kept crying and didn’t say a word. Then a workmate nearby told me what had happened.

After SARS broke out in 2003, we were each allocated two 3M masks per week by the line supervisor. When this workmate got her mask, she found it was a little too tight and tried to loosen it, but the tie broke. She asked the line supervisor to trade it for another one, but the line supervisor said, “I don’t have any extras. Go ask the general line supervisor for another one.” The general line supervisor was a well-known grouch, so the workmate was afraid to ask for a new mask. Later, the general line supervisor passed by, saw that she had not started her machine and asked why. When the workmate said that the tie to her mask was broken, the general line supervisor yelled at her, “How could you be so careless! Do you realize that these masks cost money? And you think you can just waste them!” The workmate then started crying. I felt bad for her, went over to wipe off her tears, and said, “Don’t cry over this. If you cry, people will look down on you. Let me see if I can take care of it for you.” I went over to the general line supervisor and said, “Ling, would you do me a favor and exchange this for a new one?” The general line supervisor looked at me and said with a sigh, “Look, I can’t do anything about it. You know the higher managers are stingy with the masks – the line supervisors get one mask every four days.” I said, “Well, you shouldn’t be so harsh. We’re all migrant workers here. You don’t have to act so severely.” Later, the general line supervisor went to console the workmate for a while. As for the mask, I came up with a solution – we made a hole in the edge of the mask and strung it together with a piece of elastic.

Earlier post:

Guangzhou, China: Federation of Trade Unions o...

ACFTU building in Guangzhou. The obelisk commemorates a peasant revolution massacre. Image via Wikipedia

The official Chinese union body has been in the press in the last week, since Tianannmen square activist Han Dongfang wrote a piece in Britain’s Guardian newspaper which suggested it could actually work as a legitimate voice for Chinese workers.

It might seem strange that he would even need to say this, or that it could be controversial. Fact is, Western labor activists are broadly of the view that the All China Federation of Trade Unions (ACFTU) is compromised by its close association with the Communist party and not a legitimate worker association.

The reality is a little more complex.

As China Labour Bulletin have reported extensively, despite having 200 million members the ACFTU is seen by Chinese workers themselves as ineffective. When they are disgruntled they set up ad hoc worker forums and bypass the officially-sanctioned union by organising strikes by themselves.

The reason for this is not uniquely Chinese (or Communist) at all. It is corporatism. The ACFTU is the servant of two masters. On the one hand it purports to represent workers’ interests, but on the other hand it has a client relationship with the Communist Party in Beijing who do not want to see civil unrest. As a result its work has been heavily skewed towards conflict reduction or, if you like, social harmony and not advancing its members’ interests.

This can happen anywhere, including in Western countries. Charities that accept government funding discover that the government begins to set their agenda for them.

There is a cultural driver too. This situation is less a result of Communism as it is of Chinese cultural values, which generally rate community cohesion above personal well-being (see related post). Suffice to say, China is a very big place and these figures mask a lot of regional and generational difference.

I’m optimistic for the ACFTU in the long term. Apparently it has been more independent at other times in the past. Who’s to say it won’t be again. One thing’s for sure, with all of the disquiet in the country, the present state of affairs is not tenable.

In January 1984 then-premier of China Deng Xiaoping toured a sleepy village in the country’s Southeast called Shenzhen. He had some changes in mind.

Today the province is the most prodigious manufacturing area in the world. I’ve put together a video clip to give a sense of the scale of it:

The Pearl River Delta is the answer to the question, What if we were to just continue to grow indefinitely? What are the limits to growth?

Will you eventually end up producing more goods than people can buy? Once you make a ballpoint pen for every man, woman and child on the planet, that’s it right? Well apparently not. China makes 85 billion ballpoint pens a year; 12 a year for everyone on earth. No problem there.

Uniquely, the workers haven’t risen up. The state controlled unions keep their demands in check.

The end of the affair seems to be coming about because of rising prosperity coupled with labour mobility. In two separate articles this week, BusinessWeek reports that other parts of China now look much more attractive for new factories and that, as China closes the wages gap on the rich world, manufacturers may start calculating that it’s not worth their while to relocate at all. Foxconn, the iPad/iPhone manufacturer has been leading the charge, moving to set up operations in Turkey, Slovakia and Brazil.

Will we ever again see so much produced in one small place? Well never say never but it’s hard to imagine.

The struggle for better working conditions is far from being over in the Pearl River Delta, but its share of the world’s low-paid workforce has begun a long decline.

Related posts:

Three female workers in Sri Lanka apparel industry

Image via Wikipedia

There are two benchmark figures in the area of low-income and poverty wages:

- The Minimum Wage (where it exists) is the legally-enforceable minimum rate of pay, set either by legislation or by some administrative process. If it is not observed, it is fairly straightforward to take legal action against the offending employer.

- The Living Wage, on the other hand, is the minimum wage necessary for a person to make ends meet. Ideally this is less than the minimum wage but alas it has long been the case that in many States of the USA the Minimum Wage pays less than a Living Wage. The exact level of the Living Wage constantly changes as costs of living increase.

If an employer fails to pay the living wage there is no easy way to get them to do so!

Enter Asia Floor Wage.

AFW is a coalition of unions and other activists who pursue fair wages for garment workers in Asia (they refer to the Living Wage as a ‘Floor Wage’). This week they published revised minimum monthly rates for the six major garment manufacturing countries:

  • Bangladesh 12248 BDT
  • Cambodia 692903 Riel
  • India 7967 Rupees
  • Indonesia 2132202 Rupiah
  • Srilanka 19077 Rupees
  • China 1842 RMB

These rates are equal to 540 USD at purchasing-power parity.

According to AFW, the ‘gap’ between the Living Wage and the Minimum Wage in these countries is, on average, 1 to 2. Guangdong, China’s manufacturing province, comes close but still falls short.

AFW have also assembled a helpful guide for retailers and sourcing companies who want to take CSR seriously, explaining how they can meaningfully commit to fair wages in garment production.

Worker's hand with missing fingers

One victim of managerial neglect

Last month the Institute for Global Labour and Human Rights (formerly NLRC) published a report, ‘Dirty Parts: Where Lost Fingers Come Cheap’, about Ford’s supply chain in China.

The report focuses on the Yuwei Plastics and Hardware Product Company in Dongguan in the Pearl River Delta, who supply plastic components used by Ford in auto manufacture in Michigan and elsewhere.

The Institute found that workers in this factory work 14 hours a day, 6 days a week for 80 cents an hour.

Furthermore there have been a string of worker injuries for which the workers have been paid similarly little compensation.

Workers receive little or no training.

They do not receive time off if they are injured – in fact they have to compensate their employer for the lost work hours! – and injured workers remain ever after at risk of being fired due to their diminished productivity.

One worker told the researchers:

Life is dull. Basically I get up at 7:30 a.m. in the morning, quickly get ready and go to the factory around 7:45 to eat breakfast and begin working at 8:00 a.m. I operated a punch press machine…I repeated the exact same operation again and again. After the morning shift, I took a nap after lunch. My job was making auto parts. On weekdays, I rarely went out in the evenings. Usually I went to get some cheap midnight snack after work, and went back to the dorm, took a shower, washed my clothes and went to bed, because by that time it was already midnight. Occasionally when it was not busy in the factory, I might go to a nearby bar on weekends to relax with friends. We went to small ones which workers could afford.

That’s a person who made your steering column speaking.

You can tell Ford to get serious about the issue by signing the associated petition for a proper enquiry into conditions at Yuwei.

Ni-Cd batteries

Image via Wikipedia

GP (Gold Peak) is a brand of nickel cadmium battery sold in Asia.

Like many light manufacturing exporters, the company is headquartered in Hong Kong but the batteries are made in the Pearl River Delta. GP owns two factories in Huizhou.

The workers at these factories have been exposed to unacceptably high levels of cadmium in production of the batteries. Unsafe work practices include handling cadmium with bare hands. Several employees were poisoned by their exposure to toxic chemicals.

The company at first refused to reveal the results of medical tests which revealed that workers had excessively high levels of cadmium in their blood, and only did so after 500 workers went on strike. Even so, privately-arranged tests showed cadmium levels up to 86 times higher than the ‘official’ results.

Advocacy group Globalisation Monitor has assisted individual workers in obtaining press coverage and taking legal action against the company for improved practices and compensation. GM asserts  that the poisonings occurred as a result of:

  1. ongoing managerial negligence,
  2. noncompliance with Occupational Health and Safety laws, and
  3. failure to provide adequate training

A number of the lawsuits have been successful, with around ¥240,000 (roughly 50,000 USD) awarded in compensation and out-of-court settlements in 2009. However only a handful of the 250 affected workers have been compensated.

No Choice But to Fight cover image

The struggle has now gone on for more than six years. Globalisation Monitor has published the workers’ story in a 196-page book, No Choice But to Fight. You can order a printed paperback copy on their website or you can view the complete 189-page PDF by clicking the cover image at right.