HONG KONG, July 24 (Reuters) - A Hong Kong-based labour
rights group slammed London Olympics organisers 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 Olympics organisers (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 labour rights standards," SACOM, an active labour
rights advocacy group in China, said in a report on its
investigation in May and June.
The two factories 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 labour 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 labour, though
in recent years, there have been signs of rising wages and a
more assertive generation of workers launching successful
strikes at multinational plants.
Executives at Shiwei could not be immediately reached for
comment. The ICTI CARE Process, which promotes safe and humane
working conditions worldwide, said it would study the SACOM
report.
Earlier this year, LOCOG said in response to the U.K.-based
Playfair report that it had "taken supply chain engagement and
management further and deeper than any previous organising
committee.
"However, there is still scope for improvement and there are
valuable lessons to share."
There was no immediate response from LOCOG to the SACOM
report.
(Reporting by James Pomfret and Twinnie Siu; Editing by Nick
Macfie)