China Labor Watch: Labor Violations, Bogus Standards in
Wal-Mart's Chinese Supply Chain
PR Newswire
NEW YORK, July 27
NEW YORK, July 27 /PRNewswire-USNewswire/ -- Facing consumer scrutiny, Walmart has
established corporate responsibility standards, enforced through factory audits.
Yet despite rising production costs, Walmart has not increased prices it pays
for goods. As a result, factories exploit and cheat on environmental
commitments. During Walmart inspections, records are hidden and workers are forced to
lie about conditions. Like Wal-Mart’s standards, these inspections are a PR
performance.
China Labor Watch has published a report on its long-term
investigation of Wal-Mart’s Chinese supply chain. The report is based on
CLW’s investigations from April toChina Labor Watch has published a report on its
long-term investigation of Wal-Mart’s Chinese supply chain. The report is based
on CLW’s investigations from April toJune 2009
of Walmart suppliers Huasheng Packaging Factory and Hantai Shoe Factory.
Violations at Huasheng include:
- Elaborate system to cheat Walmart audits.
- Some
workers make only $0.51/hour, 60% of the minimum
wage.
- Poor working conditions: workers inhale large amounts of paper
particles and other debris.
- Twelve workers live together in cramped
dorms.
- Workers not paid overtime wages.
- During busy season, workday is 11
hours or 77 hours per week, and overtime is mandatory.
CLW
first investigated Hantai Shoe Factory in July
2008. Although Walmart pledged that it would address violations, no public update
materialized. CLW’s follow-up reveals new violations, and old problems have
also persisted. Violations include:
- Overtime only paid up to Wal-Mart’s limits. When
overtime surpasses the limit, extra wages are not paid until the following
month.
- Workers forced to lie to Walmart inspectors.
- 5 hours overtime daily.
If workers request not to work overtime once, they will be denied any overtime
for a month.
- Disguised layoffs to avoid paying severance payments to
workers. Workers are abused by management or switched to undesirable jobs until
they quit voluntarily.
As the world's largest retailer,
Walmart has the responsibility and ability to implement basic standards. CLW
Executive Director, Li Qiang, stated,
“Wal-Mart’s Social Responsibility standards are merely a public relations gimmick and have
not actually been implemented; they are a cost-free way to improve public
perceptions of Wal-Mart.”
Although Chinese workers lack recourse against abuses suffered in
Wal-Mart’s supply chain, the world can condemn Wal-Mart’s unethical behavior.
The China-U.S. Economic and Strategic Dialogue, which opened in Washington today, will focus on economic, environmental
and security cooperation. CLW calls on senior officials of both governments to
encourage multinational companies to improve labor conditions and promote
effective implementation of China’s Labor Contract Law.
Visit www.chinalaborwatch.org or call 212-247-2212.
SOURCE China Labor Watch