PROTESTLETTER CAMPAIGN: GARMENT PRODUCTION IN CHINA

PROTESTLETTER CAMPAIGN:

GARMENT PRODUCTION IN CHINA

(Clean Clothes Campaign - August 1997)

Dear friends,

This is the second "international protestletter". Our proposal is to adress companies who source in China.
We picked out Walt Disney, C & A, and Reebok. Mainly because they all have their Company Code of Conduct. By taking these companies as an example it is both possible to give consumers some information about the ongoing discussion on codes of conducts, and the weaknesses of company codes, and further to make some critical remarks to the companies about the validity of such codes. We do not ask companies to pull out of China! What we want to ask them is how they think they can guarantee that their products are made according to the standards laid down in their codes of conduct.

In other countries it might be more interesting to choose one of the companies mentioned below.

Greetings, Rik & Jantien
Clean Clothes Campaign

China is on it's way becomming the worlds largest garment exporter; all investors want to go there because of the low labour costs.

About 15 million people work in China's garment and textile industry. China is the biggest exporter of clothes and textiles to the European and North-American market. With Hong Kong as a part of China, onefifth of the garmentexports come from China. Foreign investors are interested in China because of the very low wages. They don't care abourt labourrights or take only reponsability for it on paper.

China's labour law in itself isn't bad. It stipulates that the maximum workinghours is 44 a week (48 is common elsewhere). The minimumwage is different in each region. For all Chinese workers the law is that women workers who are pregnant for 7 months or longer, or have a child younger than one year, are not allowed to work during night hours. Overwork for women is limitted to one hour a day. Pregnancyleave is 90 days, with wages fully paid by the company. Before and after giving birth it's forbidden to lay off the worker. There are rules for childcare. Women and men have to be treated equally, for the protection of women workers against sexual violence, however, no laws have been drawn up.

De government is responsible for punishment of companies who violate the laborlaw, and for the payment of compensation to laid off workers. In the fall of 1996 the Chinese government stipulated that all employers in the country have to draw up labor contracts with their employees. In a circular the Ministry of Labor threatens with severe punishment for not complying with the new rules. The Ministry stated that this process had to be finished by the end of this year. Apart from the Chinese labor law a lot of companies did draw up extra regulations, like the right to 2 days menstruation leave. Despite the relatively good laws the rights of workers in joint-ventures and private companies are under constant pressure. In state-owned companies labor rights are usually better protected.

The right to collective bargaining is part of the 1995 labor law. But what means this right in a country where it is forbidden to setup an independent trade union? The right to strike is no part of this law. To strike, and the organisation of a strike, is illegal and is punnished with imprisonment. In the country of workers the ACFTU is the only trade union allowed. This union mainly conducts research and is hardly able to do something for the workers. In practice, the working conditions are bad, which results in severe problems and laborconflicts.

An extra reason to tackle these problems now is the transition of Hong Kong to China on June 30 1997.
In Hong Kong they have a big part of the intermediate trade. More important is that the independent trade union and labor organisations are in Hong Kong. In this way it was amongst others possible in the past to support workers in China. Although Hong Kong formally keeps a status aparte for the next 50 years the expectation is that these organisations will become under strong pressure. At this moment already a few laws have been restricted because of selfsensorship. For this reason it's important to support the independent labor organisations now by asking critical questions to European garment retailers.

A large amount of European companies are buying clothes from Chinese factories. A few wellknown companies which have subsidiaries in Europe are: Makro, Puma, Disney, V & D, Marks & Spencer, Otto, Reebok, C & A, Wrangler, Kreymborg, Peek & Cloppenburg, Neckermann, Nike, Adidas, Hennes & Mauritz, and M & S mode.

In China:
K & L Rupert (german), BhS, Littlewoods, Debenhams, Burtons, Next, Makro, Kaufhof, Horten, Kaufring, KMT, Euretco, Puma, Acon SpA (Italian), Colona of Corona SpA (Italiaans), Cortefiel (spanish), Laura Ashley, Disney.

In the Shenzen zone:
Marks & Spencer, Otto Versand, Reebok, C & A, Wrangler (VF Corporation), Kreymborg, Peek & Cloppenburg.

In the Guangdong zone:
V & D, La Redoute, Manor (Swiss), Karstadt, Neckermann, Joseffson (Swedish), Auchan, Decathlon, Lapagayo, Fred Perry, Linea Promero (germany), Spring (spanish),Nike, Adidas, H & M(swedish), M&S Mode, Berghaus.

This isn't a complete list, but the result of limited research conducted in 1997. The real list is much longer; Levi Strauss is the only company that on purpose doesn't produce in China because of violations of human rights.

A constantly increasing group of companies, like C & A, Reebok and Walt Disney, did draw up their own Codes of Conduct in respons of the increasing criticism of consumers. The biggest problem with these Codes is that they aren't monitored by independent organisations. Basic rights like a liveable wage and the right to form independent trade unions are hardly ever included in the Codes. The codes are often writen down in vague terms. Although the clean clothes Campaign has doubts about these company codes, the retaillers give us the guarantee that they respect basic human rights. They claim to respect national law as a minimum and to do often more. In the case of China this offers opportunities because on paper the national law isn't bad.

We want to ask retailers how they translate their basic policies to the Chinese situation. In reaction to questions of consumers retaillers respond in a very general way. They don't succeed in giving concrete guarantees.

In 1996 research was done on the working conditions in Shenzen. Of the 547 foreign investors in Shenzen only 29.6% took any safety measures for the work with machines. It became clear that the enforcement of the law fails severely. Warnings by the police, fire-brigade, health bureau and labor bureaus aren't taken seriously by the management of factories. The ACFTU fails in compelling improvements and often doesn't do more than research (AMRC; Pearl River Delta Labour Rights Report, 1996).

In Guangdong more than 1000 laborconflicts have been reported in 1994. In april 1996 the ACFTU, the state union, conducted research amongst workers of 20 joint ventures in 10 cities in Guangdong. Their conclusions are:

61% of the workers did overtime work, 20,2% of them didn't get overtime wage.
28% worked in factories without any insurance for accidents during work.
37,4% was threatened with dismissal.
17,6% was the victim of bodysearches or was witness of bodysearches of collegues.
55,3% didn't have right to maternity leave.
32,8% didn't have a laborcontract.

If even the state trade union produces figures like this it's clear that these results only present the tip of the iceberg of violations of workers rights in China. The Guangdong Bureau of Labor is aware of the fact that their warnings to companies are neglected. Mainly they are interested however in maintaining an "investor friendly climate".

We want to ask a number of companies the following questions:

Has your company production in China, and if so, in which region?
How many people are working there?
What wage is being paid, and when?
Do workers have a laborcontract?
How much hours are worked on average per week?
Are there seperate dormitories, or '3 in 1' (dormitory, factory, warehouse)?
How much space is there in the dormitory per women?
Are their fire extinguishers/emergency exits?
What is the age of the youngest employee?
Are you prepared to start discussions with the local management on freedom of organisation? Here should be asked if it is possible that a delegation of free trade unions and NGO's visit the factory and have talks with workers, without the presence of the management.
Has the Code of Conduct of your company been posted in Chinese in the factories, so workers know with arangements have been made with the management. If not, on what term you think you can arrange this?

These questions have been based on the worst problems. The Fair Trade Charter of the Clean Clothes Campaign contains more demands e.g. based upon the standard conventions of the ILO (International Labor Office). If the raised questions are answered they do give a clear picture of the policy of companies. You furthermore push for independent monitoring of working conditions in China.

You can address your protestletter to one of the following three companies:
Walt Disney, C&A, Reebok

Walt Disney has clothes produced in the province of Kiangsiang. Walt Disney has extensive demands to their producers. Forced labor, child labor, corporal punsihment, threats, sexual violence and discrimination are forbidden. From the producing company is expected to guarantee a safe and healthy working environment. Workers have the right to organise and collective bargaining. Walt Disney's main directive for minimum demands is the national legislation of the producer countries. Walt Disney amongst others produces in Haiti, Vietnam, Inonesia, Thailand, India and, in the past, Birma. These are not really the countires that give confidence on the implementation of their labor laws, let alone improvements. That's why we want to ask Walt Disney how they think to implement their Code of Conduct in China.

C & A has, in respons to the last protestletter about the violation of workers rights at the Eden group factory in Thailand, send it's Code of Conduct to everyone who did send them a protestletter. Since this time a couple of articles where published which draw a possitive picture of C & A. We came across C & A however in a couple of countries; still a lot is missing in the Code and the monitoring of it. We want to ask C & A how they are going to tackle this problem in a country like China. Can they give an convincing answer on the questions raised above?

Reebok uses, compared to others, a reasonable Code of Conduct. Reebok states in it's 'Human Rights Productive Standards' that fair wages have to be paid, 48 hours is a normal workingweek, forced labor is forbidden and workers have the right on freedom of association and a safe working environment. Reebok, however, doens't succeed in implementing their code everywhere. One of the producers of Reebok is the KTP Holding Ltd. This Holding has ca 9000 employees in 4 factories in China and produces sportshoes for the Asian, European and North-American market. 45-50% of the production is Reebok. KTP also produces for Converse, LA Gear and Nike. Research in april 1997 shows that:

workers didn't get paid for their first month of work.
workers get paid less than the legal minimum wage and get paid less than the minimum for overtime work.
workers are forced to work 16-17 hours a day (Hon Tim factory), with two days off a month.
workers have to pay 30-50 Rmb entrance fee (!)
workers are fined 30-50 Rmb if they refuse to do the morning exercises.
refusal to do overtime work is seen as absency, the wage for the hours that have been worked that day is not paid.
a fine of 20 Rmp has to be paid if workers don't walk on the proper path from factory to dormitory.
there is no trade union.
protective clothing is only handed out in case of foreign visitors.
there are never health checks.
there is no ventilation in the glue department, there are no protective masks.

In short: all demands of the Code of Conduct are violated.

To the General Manager

Dear Madam, Sir,

With this letter we want to insist that you give some thought on the working conditions in the garment industry in China. Your company is one of the many buyers of goods from Chinese factories. Because you claim that your company values good working conditions I want to ask you a couple of questions regarding the policy your company has in a country like China. In China, human rights violations are common, so are labor rights violations.

The Chinese laborlaw isn't bad. Despite of the relatively good laws, in practice the rights of workers are under constant pressure.

I appreciate your company set minimum demands for your production in a company Code of Conduct. My question is how this general policy is translated to the practice of China.

As a consumers I would like to receive answers to the following questions:
1. Has your company production in China, and if so, in which region?
2. How many people are working there?
3. What wage is being paid, and when?
4. Do workers have a laborcontract?
5. How much hours are worked on average per week?
6. Are there seperate dormitories, or '3 in 1' (dormitory, factory, warehouse)?
7. How much space is there in the dormitory per women?
8. Are their fire extinguishers/emergency exits?
9. What is the age of the youngest employee?
10. Are you prepared to start discussions with the local management on freedom of organisation? Here should be asked if it is possible that a delegattion of free trade unions and NGO's visit the factory and have talks with workers, without the presence of the management.
11. Has the Code of Conduct of your company been posted in Chinese in the factories, so workers know with arangements have been made with the management. If not, on what term you think you can arrange this?
I realise that the demand for freedom of association and the implementation of the right for collective bargaining are difficult to realise at present in China. The forming of an independent trade union is illegal. To strike and to organise a strike is forbidden and is punished with jail sentences. In the country of workers the ACFTU is the only allowed tradeunion. this union mainly conducts research but is in no way able to defend the rights of workers.

I want to stress, however, that your company also on this point can't hide behind the laborlaws of a country.
The fact that the right to form independent trade unions and the right to arbitration has been laid down in article 87 and 98 of the ILO can't in my view be neglected by your company. I want to ask you to discuss these demands with your suppliers.
Furhter I want to emphasize that I am not asking you to pull out of China. I think that your company should take it's responsibility and do everything within it's power to guarantee good working conditions.

I'm looking forward to your answers on the questions I raised.

Sincerely,

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