ON THE LIFE BLOOD AND MISERY OF WOMEN WORKERS
(Asia Labour Update n. 26 - April-July 1996)

  You buy toys from the shopping centers around the country and abroad for gifts, for your children to play with and to help them learn and create with out thinking too much about where they were made. The stuffed dolls which look so pretty, in the shape of people, animals or cartoon characters, made from plastic, rubber and wood, are produced in large factories which use mostly women labourers. However, the toy industry is full of unbelievably terrible misery. We believe that the era of slavery has ended, but in fact it still exists in the new industrialised societies. This is particularly true of the toy factories in Thailand.
  This report is from the work of NGOs which followed the Kader case since May 10, 1993. The writer has interviewed and collected inforrnation directly from the toy factories, and has compiled information from a broad variety of other sources. This report is an initial survey of the working conditions in various industries in order to inform the public and concerned organisations so that they can put forth a practical plan of action to solve the problems, and to prevent the problems from continuinuing unabated.

The Tragedy of Kader

  On May 10, 1993 thewhole world was shocked at the catastrophic fire of the Kader toy factory, a joint venture between Thailand and Hong Kong. In the fire, 188 workers were killed, 500 injured, 500 handicapped and 3,000 left without jobs. It was clear that the most significant cause of the fire was the factory owners' lack of attention to the most basic safety standards. At the same time, the government ignored this case and did not use the appropriate legal measures. Kader workers had to protest for three months before they received compensation for the families of the victims - 214,000 bath for each person killed. This effort was successful because of the intemational cooperation involving numerous organisations globally which put the blame on Kader and the Thai government.
  But in the process of punishing those responsible, it became evident that the Thai and Hong Kong investors were not among those punished. Only a few managers of the factory were prosecuted, and only Mr. Wiroot Yusak, who the investigators believed is responsible for causing the fire from a cigarette, is targeted as being responsible. Under Thai law, violating the industrial safety laws calls for a fine of 20,000 bath or a maximum of 6 months in prison, a minimal punishment for the crime.
  The tragedy is fading away, and seems like only an entry in the annual record books. There were only some labour NGOs and unions which cooperated by forming a committee to campaign to demand that the Thai government improve safety in the workplace and to designate May 10 as a national safety day in Thailand, in remembrance of the fire at Kader. However, a structural change in the law to change to safety standards in working environment has not come about.

The Toy Industry ... A Migrating Industry

  The toy industry is a labour intensive industry. It originated in Europeand later moved to the United States, who was at one time the biggest produced and exported in the world. Since 1985, the toy industry has shifted from the US. American companies are producing their own products less often, and focusing more on marketing and distribution. Production is now being designed to use foreign producers, which costs less than in the United States, particularly considering the low wages in many developing countries. The toy industry moved first to Japan, and then to the NIC countries, such as South Korea, Hong Kong and Taiwan. Beginning in 1988, the wages in NICs rose and the number of strikes and the influence of the labour unions in South Korea increased. This caused the toy manufacturers to migrate to Thailand, China and Indonesia, which have low wages and weak unions.
  In Thailand, the toy industry has developed and grown very quickly due to the Thai government's support for exporting since 1977. Many multinational corporations from Hong Kong, South Korea and Taiwan have invested in the toy industry in Thailand. In addition to low wages, they receive special tax concessions when exporting to the US and European countries.
  The value of exports from toys in Thailand increased rapidly in a period often years. In 1981 Thailand exported 51.9 million baht in toys, which increased to 7799.5 million baht by 1991 and 9,500 million baht in 1993. The project edvalue for exports in 1994 is 9,510 million baht. These dramatic increases show the rapid growth of Thailand's toy industry.
  There are 115 toy companies in Thailand which have export status and have received foreign investment. Most of the foreign investment comes from Hong Kong, Taiwan, Japan and South Korea. The toy factories are distributed throughout Bangkok and the industrial area surrounding Bangkok. There are some very large factories which employ more than 10,000 workers.
  The toy industry can be divided into three basic categories.
1. Plastic and metal toys, including mechanical and non mechanical. There are 35 factories of this type in Thailand. This type of toy is the number one export and accounts for about 70% of the total toy exports. The main markets for these toys are the United States and Europe.
2. Dolls, including human, animal and cartoon figures, made from cotton stuffing, animal fur and polyester. This kind of toy is very popular and due to market demand, the number of factories has increased to 30 at the present time. The export value is 25% of the total toy exports.
3. Wooden toys made for educational purposes for children ages 1-6 years. There are few producers of these wooden toys, and at the current time only 10 factories in Thailand produce them.

The Conditions of Work and the Quality of Life of the Workers in the Toy Factories in Thailand

  The fire at the Kader factory, which belonged to Hong Kong investors, revealed the bad working conditions at Kader, and by example, the conditions and practices at many factories in Thailand.
  Most of the workers received minimum wage, which is 135 baht per day (US$ 5.52). This amount does not even cover the basic living expenses of a single person living alone. From a survey conducted by the Center for Labor Information Service and Training (CLIST), the basic needs of a single workers required a minimum of 150 baht per day in order to cover basic expenses. As the minimum wage was not enough, workers were required to work overtime, working a total of 12 to 16 hours per day on average, in order to earn enough to cover their basic living needs.
  Workers were also pressured by the factory to work overtime, which is against Thailand's labour laws. They typically have to work on holidays, and especially long hours during the high seas on for toys, which is May through December.
  Because the toy industry is labour intensive, they prefer to hire unskilled women workers. These factories do not need skilled labour, so they typically hire workers who are 15 to 20 years old. These workers are generally hired on a temporary basis of four months. Workers will generally renew their four month agreement at the end of each agreement, working for years for the same factory, but never working under more than a four month agreement. This short term labour agreement is used to by-pass the legal requirement of providing certain benefits to workers . If a worker is employed on a temporary basis only, she is not eligible to certain benefits. Also, when hired under a short term contract, the factory can lay-off workers during the low season without having to pay any compensation.   It is apparent from the working conditions that a considerable number of factories do not follow basic safety standards. After the fire at Kader, it can be assumed that there are many factories that are lacking in safety standards in the workplace, especially regarding fire hazards in factories. In addition, from interviews with people who have worked in the toy industry, we learned that the temperature in the factories is very high, there was no clean drinking water nor adequate toilet facilities for the number of workers employed. The work space was crowded and congested with large machines. For production involving rubber and plastic, the workers had to work with chemicals containing potent odours, and were provided no proper protective devices. In the doll factory, there is a lot of dust in the air generated from the cloth and stuffing used in production. The factories do not have equipment to filter dust out of the air, and do not provide face masks to protect to workers from inhaling the harmful dust.   The workers work under the close control of the supervisor. The supervisors insist on the workers meeting the production target, without concern for the effects on the workers. Some supervisors are very strict, and give no opportunity to the workers to voice any objection.
  However, there are about 25 unions in the toy industry. But, these unions are only in-house unions, which generally are able to effect little change for the workers. This means that the majority of workers in the toy factories can not get the protection afforded by the labour laws to raise their quality of life.

Case Study: The Giant Doll Producer in Asia

  Dynamic Toy Industry, located in Kratumban, Samutsakorn Province, was established in 1984. Originally,it was a joint investment between Mr. Charan Giawaranon from Kluacareenpokaphan (CP), a Hong Kong group, and Mr. Taweesin Jaruwungchajon. The Dynamic Toy Company grew rapidly until 1987 when the Hong Kong group and Charan separated to form their own companies, Kader and Thai Chewfu, to take advantage of the toy industry boom. Taweesin maintained control over Dynamic Toy Company. In 1991 the company expanded its factories and created Dynamic Industry which had the highest production of stuffed toys, doll clothed and Barbie dolls of any toy factory world-wide.
  The Dynamic group of companies, including both Dynamic Toy and Dynamic Industry, produces toys for Mattel, Tyco, Hasbro and Kenner of the USA and Sega in Japan had an annual turnover of approximately US$ 90 million. The company has managed to successfully compete producing toys in Thailand with companies who have moved to China, to take advantage of the cheaper wage rates.
  Dynamic Toy has expanded very quickly and now has seven large companies under its control, and 90 rai (1 rai = 1,600 square meters) under operation. It also produces household goods, plastic bottles, children's clothes, and coloured playpaints. All in all the Dynamic group of companies employ over 6,000 workers.
  In one of its companies, Dynamic Industry employs 1,500 women workers. The workers receive the minimum wage of 135 baht per day, regardless of the number of years worked. During the peak season the workers are forced to work four hours overtime every day, for a total of 12 hours, with a one hour break from 12:00 to 1:00. Workers who refuse to work overtime are fired immediately.
  Over 80%, of the workers at Dynamic Industry are hired as temporary workers on a four month basis. These workers will be let go at the end of their contract, and will have to reapply after seven days. Temporary labour agreements are against the labour law, and are used by employers to escape responsibility for paying compensation to workers who are laid off due to no fault of their own. This system prevents workers from joining unions as well. Although the workers have made demands to government officials, there has yet to be an adequate response by government to this issue. These workers have been deprived of their rights according to the labour law. For example, they do not receive sick pay or annual leave, etc.
  Furthermore, every newly hired worker is charged 75 baht for scissors and a spindle. If these tools are broken, the worker has to buy replacements. If the needles are lost or broken, the workers have to pay 2 baht per needle. If a piece of cloth from an item of clothing is dropped on the floor, the worker is charged 10 baht per piece.
  The poor working conditions are evident from the fact that the 700 workers on the first floor of the building have only 9 toilets. Their time to use the bathroom is restricted and they are constantly supervised in order to make to that they work for the full 8 hours. The air is full of cotton and stuffing dust in the work areas. Most of the women workers have lung disease, sinus problems and allergies.
  As for benefits, there are not any dormitories or transportation provided. The workers have to rent dormitory rooms that are four meters by four meters, which they share with 2-3 other workers. On average, rent is approximately 400 to 500 baht per month, and travelling expenses come to about 10-20 baht every day. The factories do not have yearly health examinations, and the workers are only treated with pain relievers.
  The work leader supervises production by setting a production target for each person. If the worker does not reach their goal, the reason is not considered, and the worker is harassed into quitting their job. Workers work on a closely supervised production line of 70-80 people. The supervisors use any way they can to try to coerce the workers into reaching the target.
  In addition, the company hires staff from the govemment. For example, government officials who have worked in the labour department previously come to help supervise workers. Or the company hires retired bureaucrats to manage and help build networks and patron-client relationships, especially within government divisions.

The Industrial Victims Group: The Beginning Point in the Struggle with Dynamic

  After the tragedy of the Kader fire began to fade, the Kader workers organised a meeting for people who had been hammed in the workplace (Industrial Victim's Organisation: IVO). The purpose was to bring together people who worked in the toy industry to protect their rights and benefits, bringing together for the first time the members of Dynamic Industry. A groups of 20 people began analysing their own situation and planning to fight for several issues, such as health and safety. The company tried to identify member of this groups and get rid of them.
  The working group progressively increased their efforts to gather workers together. Training for the workers was organised so that they could learn their rights, freedoms and benefits according to the labour law. The group started to encourage the workers to form their own action group in order to eliminate the temporary work agreements by distributing documents to the Dynamic workers. This effort was not immediately successful. Most of the workers were so afraid of losing their job that they were willing to accept any condition, even those which violated their basic human rights and the laws of Thailand.
  The struggle began again seriously in September 1994 when the temporary workers finished the period of their work agreements and had their contract extended by the company. There were four women, Waraphan Archan, Sinsmuthan Wongsabutan, Lameey Komlcitahan and Manatha Laprakhoon, who refused the contract extension. These workers objected that they had worked in the factory for one year already and extending the temporary contract was in violation of the labour law. The company management suggested that these individuals sign a statement that they were quitting. When the four workers refused to sign the statement that they were quitting, the company ordered them transferred to the most difficult and uncomfortable work area, where they had to work with dangerous machinery. All four workers wrote a statement to the company committee demanding that the company immediately end the practice of temporary contracts. The statement was brought to the labour office in Samutsakorn Province to continue the efforts to force the employer to comply with the law.

(by Somyot Pruksakasemsuk, Center for Labour Information Service and Training, Thailand)

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