This report aims to identify the problems of China’s current water supply sector reforms from a grassroots perspective and to present an overview of the issues casued by water privatization in Southern China.

Our world is facing a water crisis due to pollution, climate change and a surging population growth of such magnitude that close to two billion people now live in water-stressed regions.  China is not excluded from the impending water threats – she has almost one-quarter of the world’s population but only 6 per cent of its fresh water.  Industrialization and urbanization have raised the demand for water and the pollution level to new heights. When we talk about the water problems in China, however, people often think of the severe pollution problem, i.e. the water resources management problem. People seldom pay attention to another equally vital problem: water supply management.

We have chosen six cities for in-depth investigation into the water supply sector: Shenzhen, Guangzhou and Dongguan in Guangdong province; Fuzhou, Xiamen and Quanzhou in Fujian province. Our fieldwork has included observation, in-depth interviews and questionnaire interviewing.

“For labor unionists, activists, scholars and advocates who are outside of China — but deeply interested in what happens inside China — the process of going beneath the surface of things is very daunting. In the last three decades capitalists have made themselves at home in China and, along with international finance and trade envoys, political representatives and their allies within academia, think tanks, media and public relations, they have burrowed into Chinese government and business elites to powerfully advance their own interests. During this time, on the labor side however, there has been mostly reluctance, confusion and inability to gain serious traction on the critical issues of market development and labor exploitation, labor standards, labor relations and labor struggles. This report by Globalization Monitor helps correct that deficit by offering a deeply informed and nuanced look at how EU corporate interests – through their lobbying and sophisticated methods of influence – have impacted, and been impacted by — China’s emergence into the global economy under conditions of state-dominated marketization reform. It offers us a set of invaluable tools, both historical and conceptual, that will strengthen the capacity of labor advocates to keep advancing towards the goal of labor voice, empowerment and a return to egalitarianism within China.”

Ellen D. Friedman

Published by Globalization Monitor Limited

February 2010

ISBN: 978-988-18039-4-8

All rights reserved.

The content of this book may be reproduced in non-profit publication

Credit is requested

Globalization Monitor Limited

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To brothers and sisters in trade unions and civil society, and all friends who are concerned about the labor situation in China:

Please read the BACKGROUND INFORMATION and sign the JOINT STATEMENT below it.

BACKGROUND INFORMATION
Workers at Honda Auto Parts Manufacturing Co. Ltd., located in Foshan City Guangdong Province, have begun their 16th day of strike action. This is one of many strikes by Chinese workers, but is among the longest in recent years. While many people have been concerned and greatly moved by the tragedy of Foxconn’s workers who committed suicide by jumping from a building, the struggle of Honda workers undoubtedly is very encouraging.

According to the Honda workers, of more than 1,800 employees in the factory, 80 percent are student interns from technical schools. Since they signed an internship contract, they are not protected by the labor law and their wages are as low as 900 Yuan per month. This is lower than the minimum wage level, which since May 2010 has been 920 Yuan in Foshan. In addition to this they are not covered by any social insurance. When these interns were recruited in schools, the company promised free lodging and meals, but they ended up being provided with only one meal a day. After deducting the cost of utilities connected with their lodging, workers only get around 700 Yuan per month. Interns can become regular employees only after they have finished 12 to 16 months of internship and obtained a diploma. Even after these interns have become regular employees, their wages are only 1,000 Yuan per month.

On May 17 all the workers went on a strike and at the general assembly convened by the employers, the workers made 108 demands, and elected 30 representatives at their employer’s request. However, the employer not only failed to show good faith in the negotiations, but also dismissed two worker representatives in an attempt scare the others.

On May 24, the company agreed to give 55 Yuan a month for meals allowance, but this was sternly rejected by workers. The regular employees and the interns maintained a high degree of courage and solidarity and insisted on continuing the strike.

On May 26, Honda management proposed a wage increase but this was different for interns and regular workers. While interns would get a wage increase of 477 Yuan per month, the regular staff would only get an increase of 355 Yuan. All workers refused the differentiated wage increase.

On May 27 after discussing the matter collectively, the workers again proposed a few important demands:

1)       An increase to basic pay of 800 Yuan per month for all the workers. Within three days of the wage increase, allow the workers to re-sign a labor contract. The annual pay rise must not be less than 15% while the year-end bonus and festival subsidies must not be less than the previous year.

2)       A compensation subsidy for additional years of service –for each year of service there must be an increase of 100 Yuan per year with a 10-year cap.

3)       Reinstate the dismissed employees and impose no punishment for workers who joined the strikes.

4)       Reorganize the company’s trade union—Re-elect the trade union chairman and trade union-related staff.

On May 28, Honda management again came up with a new proposal:

The interns’ wages would be increased by 488 Yuan per month after the first three months of employment, but the regular staff’s wage increase would remain the same (355 Yuan per month - as the management had suggested on May 26). At the same time, through various means, Honda began to force the interns to sign a “no more strikes” promise which had to be submitted before 9 am on May 31. To make sure that workers would resume work as soon as possible, Honda called in some of the interns’ teachers and the local government officials to exert pressure on the interns and urged them to go back to work before the deadline. Throughout the process, the Honda trade union not only failed to provide any assistance for the striking workers, but urged them to resume production as soon as possible.

On May 31, employers continue to refuse negotiations. What is more, the local government, together with the trade union, went to each team of workers and tried to make them go back to work immediately, threatening to dismiss those who refused to resume work. The worker representatives’ complained to us and the mainland media (see Caixin website: www.caing.com) that about 200 men wearing union badges, who attacked some 40 workers who were insisting on continuing the strike. The assault led to multiple injuries and bleeding. We are shocked and outraged to learn that during the attack, Honda management, local government officials and the police, did nothing to stop the assault on workers. We severely condemn such illegal acts of violence. ACFTU, the official trade union must do investigation into such ridiculous behavior and respond to the public.

On June 1, Honda workers have begun their 16th day of strike action. The “zero inventory” policy under the Honda assembly plant has already forced a number of Honda component factories to stop production. We believe that Honda will continue to force the striking workers to resume work and will take retaliatory actions against those who refused. The young striking workers are now facing strong pressure and they urgently need outside support and solidarity. Globalization Monitor, upon receipt of requests for assistance from the workers, organized a global campaign yesterday to protest against Honda, and to appeal to the world labor movement, NGOs and friends who are concerned about working conditions in China, to support China Honda workers’ legitimate struggle, to put pressure on Honda and the ACFTU, to demand that they stop repressing and dividing the workers, to start negotiations, and for Honda to openly accept the legitimate demands of the workers.

Furthermore, a number of labor organizations from Hong Kong decided to raise their level of action and protested at the Honda showroom in Hong Kong, demanding that Honda, Chinese local government and the ACFTU stop repressing the striking Honda workers, start negotiations with the workers’ representatives, and openly accept their legitimate demands, which are as follows:

1)       Apologize for their attack on workers on May 31 which resulted in casualty.

2)       Accept workers’ demands for higher wages: a wage increase of 800 Yuan per month for all workers and a compensation subsidy of 100 Yuan for each additional year of service.

3)       Reorganization of the Honda company union – organize a re-election of the trade union chairman and officers so that workers may elect representatives who act in accordance with their interests.

4)       Reinstate the dismissed employees and impose no punishment for workers who joined the strikes.

5)       No retaliation against workers after the settlement of dispute.

We will continue to maintain contacts with Honda workers, closely monitor the situation, and further raise our level of solidarity action when necessary.

We call upon friends and allies who are concerned about the situation of Chinese workers to continue monitoring the developments of the incident and support the workers’ demands and actions when they are in need.

Online Petition: http://www.gopetition.com/online/36742.html

Contact us： info[at]globalmon.org.hk

1st June 2010

Now you can do the following to support the striking Honda workers:

Please add your name or organization’s name to this JOINT STATEMENT addressed to the HONDA CEO. It will be posted on our websites including www.globalmon.org.hk/en and www.atnc.org, and you are welcome to share widely.

Attention:
Honda Motor Co., Ltd.
President & CEO
Mr. Takanobu Ito

本田技研工業株式会社
〒107-8556
東京都港区南青山2-1-1
TEL.03-3423-1111（代表）

Dear Mr. Ito,

We have received information about the strike by workers at the Honda Auto Parts Manufacturing Co. in Foshan, China. We are informed that of more than 1,800 employees in the factory, 80 percent are student interns from technical schools, who are not protected by the labor law and whose wages are as low as 900 Yuan per month – below the minimum wage for the city. The interns are provided with only one meal a day and are charged for the cost of utilities connected with their lodging, reducing their earnings to only around 700 Yuan per month. Even after interns become regular employees, their wages are only 1,000 Yuan per month.

The workers went on strike to demand increased wages, yet during the negotiations the management has not shown good faith. The management has begun to force the interns to sign a “no more strikes” promise and has even mobilized some of the interns’ teachers and local government officials to exert pressure on the interns to go back to work on May 31. Throughout the process, the Honda official trade union has not provided any assistance for the striking workers, but urged them to resume production as soon as possible without regard for the resolution of the workers’ grievances and demands.

On May 31, your company in China continued to refuse negotiations. What is more, the local government together with the trade union, went to each team of workers and threatened with dismissal if they didn’t go back to work immediately. The worker representatives’ complained to us that about 200 men wearing union badges, attacked some 40 workers who insisted on continuing the strike. The assault led to multiple injuries and bleeding. We are shocked and outraged to learn that during the attack China Honda management did nothing to stop the assault on workers. We severely condemn such illegal acts of violence and Honda owes an apology to their workers.

You yourself reported in April 2010 that last year Honda’s sales achieved an all-time record of 580,000 units in China, the world’s largest automobile market. The workers of the factory are never able to afford one of the cars, which they are helping to produce by making auto parts. As the producing workers, they have a right to bargain for a greater share in the profits of the firm, and as management of a company originating in Japan, the management should respect the workers’ rights to free association and collective bargaining. The management should not shame itself by threatening and dismissing workers when they justly demand a greater share of the huge profits reaped by the company.

Rather, we hope that Honda management will lead the way in showing ‘harmonious relations’ with its workers, and we join the striking workers of Honda Auto Parts Manufacturing Co., Ltd. in demanding the following:

1)       Take responsibility for failing to ensure the workers’ safety by allowing the union men to attack the workers on May 31 which resulted in casualty, and paying for their medical treatment and recovery.

2)       Accept workers’ demands for higher wages: a wage increase of 800 Yuan per month for all workers and a compensation subsidy of 100 Yuan for each additional year of service.

3)       Reorganization of the Honda company union – organize a re-election of the trade union chairman and officers so that workers may elect representatives who act in accordance with their interests.

4)       Reinstate the dismissed employees and impose no punishment for workers who joined the strikes.

5)       No retaliation against workers after the settlement of dispute.

Regards

The undersigned:

Globalization Monitor, Hong Kong
Asia Monitor Resource Centre, Hong Kong
Hong Kong Confederation of Trade Unions, Hong Kong
Students and Scholars Against Corporate Misbehavior, Hong Kong
Justice and Peace Commission of the Hong Kong Catholic Diocese, Hong Kong
Cambodian Tourism and Service Workers Federation (CTSWF), Cambodia
Persatuan Sahabat Wanita Selangor, Malaysia
Workers Assistance Center, Inc., Philippines
Solidarity of Cavite Workers, Philippines
National Coalition for the Protection of Workers’ Rights – Southern Tagalog, Philippines
Labor Education Advocacy Development and Services and Research Institute, Philippines
and
ATNC Monitoring Network
China Labour Net, Hong Kong

June 1, 2010

Instead of helping them, the unionists attack the striking workers.

To brothers and sisters from trade unions, civil society and friends who are concerned about the labor situation in China:Honda Auto Parts Manufacturing Co., Ltd. located in Foshan City, Guangdong Province, has entered the 14th day of its strike. Of the many strikes by Chinese workers in recent years, this is one of the longest lasting. While many people are concerned and moved by the tragedy of Foxconn’s workers who have committed suicide by jumping from a building, the struggle of Honda workers undoubtedly is very encouraging.

Honda workers told us that their struggle had got some success. From a total of more than 1,800 employees in the factory, 80 percent of them are student interns from technical schools. As they signed an internship contract, they are not protected by the labor law and their wages are as low as 900 Yuan per month. This is lower than the minimum wage level. Additionally they are not covered by any social insurance. When these interns were recruited in schools, the company promised free lodging and meals but only one meal is provided a day. After deducting the cost of utility bills, workers only have around 700 Yuan per month. Interns can become regular employees only after they have finished one year’s internship and obtained a diploma. Even when these interns become regular employees their wages are only 1,000 Yuan per month.

On May 17, all workers went on strike and at the general assembly convened by their employers the workers made 108 demands and elected 30 representatives upon their employer’s request. However, the employer not only failed to show good faith in the negotiations, but also dismissed two worker representatives in an attempt scare the others.

May 24, the company agreed to give a 55 Yuan a month meal allowance. This was sternly rejected by workers. The regular employees and the interns maintained a high degree of courage and solidarity and persisted with the strike.

May 26, Honda management proposed a wage increase. This was different, however, for interns and regular workers. While interns would get a wage increase of 477 Yuan per month, regular staff would only receive an increase of 355 Yuan. All workers refused this differentiation formula.

May 27 after discussing collectively, the workers again proposed a few important demands:

1) A basic pay increase of 800 Yuan per month. Within three days of the wage increase, they would resign a labor contract. In addition the annual raise must not less than 15% and the year-end bonus and festival subsidies should not be less than the previous year.

2) Compensation for additional years of service subsidies–for each year of service there should be an increase of 100 Yuan per year with a 10-year cap.

3) Reinstate the dismissed employees and no punishment for workers who joined the strikes.

4) Re-organize the company’s trade union—Re-elect trade union chairman and the trade union related staff.

May 28, Honda management again came up with a new proposal.

Interns’ wages will be increased to 634 Yuan per month after the first three months employment while the regular staff’s wage increase would remain the same (355 Yuan per month). At the same time, through various means, Honda began to force the interns to sign a “no more strike” promise which had to be submitted before 9 am of May 31. What is more, Honda called in some of the interns’ teachers and local government officials to exert pressure on the interns and urge them to go back to work on May 31. Throughout the process, the Honda trade union not only failed to provide any assistance for the striking workers, but urged them to resume production as soon as possible.To fight against the unfair treatment of workers and suppression by Honda management, today (May 31) the workers are experiencing a crucial moment in their two-week strike. We call upon friends and allies who are concerned about the situation of Chinese workers to support the legitimate struggle of the Honda workers in China. To support the workers, you can put pressure on Honda to urge the company to stop the unfair treatment and suppression of the strike workers and publicly answer the reasonable demands made by the workers:

1) A wage increase of 800 Yuan per month for all workers
2) Compensate workers with the 100 Yuan service subsidy for additional year’s of service
3) Reinstatement of the dismissed worker representatives
4) Re-organize the Honda company union.

We call upon friends and allies who are concerned about the situation of Chinese workers to continue monitoring the developments of the incident and support the workers’ demands and actions when they are in need.

Please go to the link below and sign the petition in support of the striking workers:

http://www.gopetition.com/online/36742.html

Globalization Monitor

June 1st, 2010

A worker at the massive electronics firm Foxconn’s Shenzhen plant is said to have just committed suicide by jumping from the roof of a building.  This incident is a tragedy by itself, but it is made more so by the fact that this is the ninth time that a Foxconn employee has killed himself or herself in the past year. Who will be the next?   The company must initiate a thoroughgoing analysis of life on its production lines—not just roll out more superficial, short-term fixes.

China Labor Watch has long reported on problems at the Taiwan-based giant’s operations in Mainland China. After this ninth death, CLW followed up with 25 Foxconn workers to get their opinions on May 17, 2010.  Their responses confirmed many of our criticisms of the manufacturer.

“We are extremely tired, with tremendous pressure,” workers in a computer assembly department recently told us. “We finish one step in every 7 seconds, which requires us to concentrate and keep working and working. We work faster even than the machines. Every shift (10 hours), we finish 4,000 Dell computers, all the while standing up. We can accomplish these assignments through collective effort, but many of us feel worn out.”

Not all workers can adapt to such an intensive workload, even when experienced. They therefore have to ask for leave to rest, causing their wages to be deducted (and adding to their workload later on).

The 25 workers we spoke to talked about the recent suicide but their opinions on it varied. Seventeen of them attributed the worker’s death to high pressure. Five of them complained about a poor sense of community in the factory, describing the plant as lacking communication and love. At Foxconn, they said, even workers living in the same dormitory do not come to know each other and do not even greet each other.

Three employees said they were dubious about the factory’s explanation of the workers’ death because of the suspicious circumstances that have surrounded other suicides.  For example, Foxconn said that another employee, Ma Xiangqian, died because he fell from a building. However, because of Ma’s extensive head wounds, some workers suspected that he was beaten to death instead.  They believed that the factory deleted a video of the beating.

CLW Executive Director Li Qiang has highlighted several possible reasons for the suicides:  Foxconn’s military-style administration and harsh working conditions, Taiwanese administrators’ disrespect for mainland workers, and management strategies aimed at the creation of only short-term jobs.

Employees of Foxconn work punishing hours. The earliest shift begins at at 7:30 AM and ends at 4:30 PM, with two one-hour rest periods, one at noon and one in the afternoon. Workers on this shift have a “normal” workday that is eight hours long, but this figure does not include overtime, which typically lasts from 5:00 - 7:30 PM. In other words, they actually put in 10-hour days.  Workers on the second shift put in 12 hours per day, with the same two hours of rest as their early morning co-workers.  These hours are often endured standing up the whole time.

The factory has arranged for workers to take one day of rest every 7 days after May. Before May, they can be on leave for one day in every 13 days; if they take a day of leave on a working day, they have to work overtime for an additional day over the weekend. That is to say, some workers are on the line every day of the month.

According to regulations of Foxconn, employees must attend two staff meetings.  One is held in the morning, before work starts, and one in the evening, after work ends. These meetings last approximately 10 to 30 minutes, and workers are not paid for this time.

Workers are paid by the hour. Their wage is their basic wage plus their wage for overtime work. The basic wage is 900 RMB per month—or Shenzhen’s legal minimum wage for work outside of the Special Economic Zone. Working overtime on a normal workday earns a worker 7.8 RMB per hour, while weekend work is compensated at 10.34 RMB per hour.

During our recent interviews, what workers complained about most often was the great pressure they were under. While 15 of the workers we interviewed said they could adapt to work at Foxconn, 7 said they could not and three were unwilling to talk about their experiences.

It is true that Foxconn provides workers with a complaint box and and a hotline for psychological assistance. There is an enterprise-level branch of the All China Federation of Trade Unions at the factory.  But few workers have ever used any of these channels. They are but an empty shell. Some workers are even worried that if they appeal for help, the administrators will deliberately make things more difficult for them.

Six worker suicides in less than five months have put the management of Taiwan-based company Foxconn under a microscope again after another of its employees jumped from a building and died Tuesday in Shenzhen, Guangdong Province.

The six suicides and two-failed suicide attempts so far this year have prompted the company’s management to invite monks from Wutai Mountain, one of the most sacred Buddhist shrines, to pray for a positive working environment.

The latest suicide involved a female surnamed Zhu, 24, a Henan native, who reportedly plunged to death from her apartment in the Longhua district Tuesday night.

A police investigation is ongoing, the Xinhua News Agency said.

Foxconn, a unit of Taiwan electronics giant Hon Hai, has been plagued by suicides this year.

On May 6, employee Lu Xin jumped to death from his apartment. His colleagues said Lu was an open-minded worker who enjoyed singing, dancing and traveling.

Another worker surnamed Li also leaped to his death on March 11, after his bonus was reportedly stolen.

Six days later, another female employee jumped out of her dormitory building and injured herself, claiming she was under heavy pressure.

The company’s management has been blamed for the wave of the suicide attempts. A report by China Central Television said slogans such as “every second counts” are displayed at the company.

“There are good management rules for superiors, but when it comes to management at the grass-roots level, it is chaotic,” said Ma Liqun, the elder sister of Ma Xiangqian, who jumped to death in January, a report by CCTV said Wednesday.

Ma said workers in the company are trained to “work like machines and there is no respect.”

For entry-level workers, the average monthly income is about 1,000 yuan ($146) and working overtime can help raise their salaries an extra 600-yuan ($87).

As a result, working overtime is a common practice for many newcomers or fresh graduates, the report said.

Wan Hongfei, one of the senior managers at Foxconn, Shenzhen, told CCTV that the turnover of lower eschelon workers is high.

Liu Kun, a spokesman for the Shenzhen branch of Foxconn, admitted after Lu Xin’s death that there are shortcomings in management. However, he said that the company had tried to prevent the tragedies, making special arrangements for employees, such as allowing Lu’s friends to share a room with him.

Recently, the company invited monks from Wutai Mountain to pray for their employees, Chengdu Evening News reported Wednesday.

An employee called for revamping of the management style, and more psychological help to the workers.

“The workload and lack of care are only two factors. Other factors, like limited social circles, no services to treat depression and the inability to adapt to high pressure also lead to their desperation,” an employee with Foxconn, Shenzhen, told the Global Times Wednesday.

Mr. Mo Desong worked for MCID (Maersk Container Industry Dongguan Ltd) for three years since 2006. He died on October 30, 2009, after falling ill nine months earlier. He was diagnosed as having chronic occupational diseases and mild benzene poisoning, and died of multiple organ failure. MCID had delayed Mo’s application for occupational diseases diagnosis and treatment for five months. His death might have been avoided if MCID had not obstructed both the sending of Mo to the Guangdong Provincial Hospital for Prevention and Treatment of Occupational Diseases (Occupational Hospital hereafter) in time, and the providing of necessary documents to this hospital for Mo’s diagnosis within the time limit set by this hospital.

Mo Desong

Download the full report (439KB, PDF)

Mr. Mo joined the company on 12 June 2006 as a product finishing worker. His work meant that he had contact with paint and thinner when he processed containers during the final phase of production. He fell sick in March 2009 and went to a local hospital (Dongguan Machong Hospital) close to the factory, where he was diagnosed as having leukopenia. On 8 May, 2009 he was admitted to this hospital for treatment on his own account, and was hospitalized there until the middle of August. During this period, on 27 May, he paid a visit on his own account to the Occupational Hospital, which is a certified hospital for the diagnosis and treatment of occupational disease, and found that he had thrombocytopenia and hearing loss. He then approached the company’s management, providing them with the diagnosis and requesting that they send him to the Occupational Hospital for further diagnosis and to ascertain if the diseases were occupational. Cai Zhongtao, the manager, flatly refused however, and went so far as to say that they would not accept the diagnosis of the Occupational Hospital; the only hospital reports that they recognized were those issued by the Hospital of Guangzhou Developing Zone.[1] It is absolutely unreasonable for the company to accept the diagnosis of this local hospital while rejecting the diagnosis of a qualified Occupational Hospital. Furthermore, according to clause 34 of the law on the Prevention and Treatment of Occupational Diseases,

“when the workers are harmed or there is the possibility of them being harmed by acute occupational hazards, employers must arrange timely treatment, medical checks and observation for the workers. The medical cost incurred should be borne by the employers”.

So MCID’s refusal to send Mo to the Occupational Hospital at the end of May, when Mo presented to MCID the Occupational Hospital’s diagnosis and complained about the suspected occupational diseases, was a violation of clause 34 of the law.

The company’s management then wanted to dismiss Mo quickly so as not to be held legally responsible for his treatment, and to avoid being discredited for causing the occupational disease. Since his contract was going to expire (his contract was from June 12, 2008 to June 11, 2009) manager Cai told Mo that they would not renew his contract and that he must quit. They sent him to the Hospital of Guangzhou Developing Zone for the exit medical check (not for an occupational disease diagnosis or treatment, as the company later claimed) which the law required.

Meanwhile Mo kept on pressing the management to respond to his request. He succeeded in applying for an occupational disease diagnosis on July 2, 2009. On July 9, 2009 the hospital asked MCID to send twelve kinds of necessary documents to the Occupational Hospital before July 24. According to Mr. Mo, MCID delayed in responding to the hospital’s request, and when the MCID did send the Hospital some documents they were only a part of the full list that the Hospital requested. His statement was confirmed by the Occupational Hospital’s notice to MCID on August 24, six weeks after the deadline set by the Occupational Hospital, which only acknowledged the receiving of six kinds of documents. Those were not listed, and therefore probably not sent, includes the following:

1. The Occupational Hospital requested the MCID on July 9 for its “consecutive annual assessment reports of occupational disease hazards”, but on August 24 it only acknowledged the receipt of “2008 workplace testing report”. Even if “workplace testing report” is identical with “assessment reports of occupational disease hazards”, the previous years of these reports had not been sent as requested.

2. Mo’s “Occupational Health Monitoring File”.

3. The full name list of all Mo’s colleagues who work on the same post, their “Occupational Health Monitoring Files”, especially their blood tests.

4. A statement by MCID that whether there were workers who suffered similar illness as Mo.

5. To provide all materials concerning Mo’s hospitalization in all hospitals, including test results, all medical records, and testing results etc.

The withholding of these important documents was in violation of clause 48 of the law on the Prevention and Treatment of Occupational Diseases, which requires employers to send to the hospitals all the necessary documents when asked.

The August 24 notice from the Occupational Hospital also told MCID that the hospital considered that Mo was suspected of having occupational diseases and that the company should send him “as soon as possible” to their hospital for further medical diagnosis. It took two more weeks for MCID to do this simple act. When Mo was sent to the hospital on September 7, by this time he was already very sick. Even then MCID had still not cooperated with the hospital in providing necessary information about the working environment, which contained benzene particles in the air. When Mo was admitted to the hospital on September 7, the admission diagnosis stated that “benzene in the working environment needs further testing”; 20 days later, on September 27, when he was discharged, his discharge certificate bore the same sentence, with the additional remark “diagnosis still pending”. He was then admitted to Nanfang Hospital, which is not qualified to diagnose and treat occupational diseases. On 30 October 2009 he passed away, survived by his wife and his nine year old daughter. According to Mrs Mo, MCID did not fully cooperate with the hospital in providing necessary documents even after Mo died. To sum up, at every step Mr. Mo was obstructed by the management in getting a proper medical check and treatment for his occupational disease.

Two weeks after his death the Guangdong hospital finally issued an official diagnosis confirming he had been suffering from chronic and mild occupational benzene poisoning.

Mo’s work injury certificate

On November 25, 2009, the Dongguan Municipal Social Security Bureau issued Mr. Mo’s ‘Certificate of Confirmed Occupational Injury’ to Mrs. Mo, confirming that his occupational disease was work related. On December 7, in accordance to clause 30 of the Guangdong’s Work Injury Insurance Ordinance which stipulates the compensation for work related death, Mrs Mo applied to the Bureau for compensation of 66 months of Mo’s wages for his death, as stipulated by law, and on December 22, Mo family was granted 375,487.2 RMB of pensions, subsidy and compensation for Mo’s parents, his daughter, and for his own death. There was no compensation for Mrs Mo. She is now considering legal action.

Mo’s death certificate

We have a copy of his death certificate which reported the cause of his death as follows:

I A: Illnesses which directly caused his death: multiple organ failure

Interval between coming down with the illness and his death: eight days

B: Illnesses which led to A: xxxx(unrecognisable), serious lung infection,

dermatomyositis.

Interval between coming down with the illness and his death: nineteen days

C: Illnesses which led to B: renal failure, liver dysfunction, upper gastrointestinal bleeding

Interval between coming down with the illness and his death: four months

II Other illnesses (which might lead to, but did not cause his death):

DIC (Disseminated intravascularcoagulation), Hypoproteinemia, anemia

It must be noted that benzene poisoning often leads to internal bleeding, and may cause renal diseases.

Mr. Mo’s death might have been avoidable if MCID had not:

1. Exposed Mr. Mo to an unsafe working environment which led to his being poisoned by benzene

2. Obstructed the processing of Mo’s May 2009 request for occupational disease diagnosis and treatment of his illnesses, which resulted in the missing of the opportunity to treat him during the five month period, until his death in October, in which Mo’s illnesses grew more and more serious.

Any attempt to defend MCID by saying that it had not used chemicals which contained benzene is futile. MCID used a lot of paint and thinner, and they contain benzene. In fact, one of the OSH notices posted by MCID clearly states and highlights in red that “the paint and thinner we use contains benzene and toluene…..” (See picture below).

According to the workers we interviewed, the notice was removed only after suspected cases of benzene poisoning and work related lekpoenia were reported. Then in September 2009 another OSH notice was posted, this time saying that “the product HEMMPLE we use does not contain benzene.”

The director of MCID, Mr. Hultengren, in its reply to GM on February 3, 2010, defended itself by saying that Mr. Mo might have contacted benzene earlier in another plants. Mr. Hultengren forgot that it is the employer’s legal responsibility to make entry medical check for all employees to make sure they are healthy prior their contracts become effective, and that if Mo was sick with benzene poisoning prior his employment at MCID Mr. Hultengren would not have hired Mr. Mo in the first place.

We condemn MCID for its violation of the legal rights of Mr. Mo, which caused his poisoning and might have caused his death. Hence the company management should, on top of the amount of compensation paid to Mr. Mo’s family as stipulated by law, pay additional compensation for having delayed Mr. Mo’s hospitalization.

Mr. Mo’s case is not an isolated incident; it was the result of institutionalised negligence and denial of labor rights and occupational health by MCID. Besides Mr. Mo’s case, there have been many more suspected cases, as well as four confirmed cases of occupational diseases: Hu Changqing (asthma), Li Xin (benzene poisoning) and Li Jiming (hearing damage). These diseases were the result of the continuous violation of the Law on the Prevention and Treatment of Occupational Diseases by MCID management. For instance, MCID’s management failed to inform workers about the existence of health hazards in the factory and failed to provide adequate personal protection equipment. It has also been the company’s policy to make things difficult for any worker who complains about suspected occupational diseases; in many instances it has unlawfully dismissed them. We demand that MCID stop harassing workers with suspected or confirmed occupational diseases and to act in full accordance with the law.

With the connivance of A. P. Moller- Maersk, MCID continues to violate basic labor rights and might have caused the death of Mo. Therefore it too must also be held responsible. We have pointed out repeatedly that MCID’s management is corrupt and that by not doing anything to punish it — while workers who suffer from occupational diseases are punished with dismissal and neglect — only encourages this company to further continue its malpractice and even to break more laws. 

For more information please contact info@globbalmon.org.hk

This research aims to analyse, shortly before the fifth anniversary of the Post-MFA era, what have been “accomplished” and how many of the speculations have become reality. It would look into the following aspects: 1) the reality of outputs, trade and productivity growth, as well as the number of enterprises of China’s textile and garment industry; 2) the employment trend and the Post-MFA era’s influence on the livelihood of the millions Chinese workers who are employed in the textile and garment industry, if any measures, have been taken by the government, factory owners, foreign buyers or workers themselves, to ensure them a decent work environment and living, or if the appalling labour conditions, which is commonly found in the textile and garment industry continue to prevail; 3) how the textile and garment industry in China weathers the stormy global financial crisis and its priorities.

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YIWU, China (AP) — For China’s low-cost jewelry makers, it was an open trade secret: The metal cadmium is shiny, strong and malleable at low temperatures, regardless of its health hazards. And it’s cheap.

Despite the risks, manufacturers in factories ringing this city on China’s east coast say their top priority is profit. So offering cut-rate goods often means using lower quality materials, including cadmium, which is known to cause cancer.

“Business is business, and it’s all up to our client,” said He Huihua, manager of the Suiyuan Jewelry Shop at International Trade City in Yiwu, a sprawling wholesale mecca where sellers pitch their wares in hopes of landing a lucrative export contract.

He spoke from a small cubicle with rows of dangling metal earrings and key chains hanging on the wall. Elsewhere, brooches, necklaces, charms and other baubles shone under the market’s lights.

“We just make what our clients order. If they pay more, we use the better raw material, and vice-versa. From a few cents to a few dollars, we can make the same style of jewelry product with a different raw material.”

Asked what he thought about the health risks associated with cadmium and other toxic metals, He said: “I can’t be overly concerned about that.”

Long-standing concerns about the safety of Chinese exports flared anew this week after an investigation by The Associated Press found that 12 of 103 pieces of mainly Chinese-made children’s jewelry bought in the Unites States contained at least 10 percent cadmium, some in the 80-90 percent range. Two had less than 10 percent and the rest had none.

The findings prompted retail giant Wal-Mart Stores Inc. to remove the products cited by AP from its stores in the United States. On Tuesday, the jewelry and accessories chain Claire’s, with nearly 3,000 locations in North America and Europe, announced that it, too, would stop selling any item cited in the AP investigation.

Charms on a “Best Friends” bracelet sold at Claire’s contained 89 and 91 percent cadmium, according to testing organized by AP, and shed alarming amounts in a procedure that examined how much cadmium children might be exposed to.

The U.S. Consumer Product Safety Commission announced it was opening an investigation into the AP’s findings, and China’s government also took notice of the trouble brewing in its largest export market.

“We just heard about this, and we will investigate,” said Wang Xin, director of supervision in the General Administration of Quality Supervision, Inspection and Quarantine.

He spoke to an AP reporter at a toy safety conference in Hong Kong. His agency and the Ministry of Commerce did not immediately respond to written questions submitted by fax in Beijing.

The tainted jewelry was reminiscent of the product-safety scandals of 2007 in which dangerous levels of lead caused Mattel Inc. and other toy makers to recall large numbers of Chinese-made toys. Following that, the U.S. government enacted tougher limits on lead in toys.

Beijing also promised greater vigilance in enforcing safety standards for exports and the domestic market.

China has regulations limiting cadmium to tiny amounts in fashion jewelry and children’s toys. Fashion jewelry should not contain more than 0.1 percent cadmium. In materials for toys, cadmium should not exceed 75 parts per million, or 50 parts per million for clay and paint.

The limits are comparable with international standards. But enforcement is still lax, as it was in 2007.

A metals expert in a Yiwu jewelry factory said some raw-material suppliers sell an alloy containing up to 90 percent cadmium.

Interviews with more than a dozen manufacturers and sellers in Yiwu confirm that cadmium is a common ingredient in the earrings, bracelets, charms and other baubles being churned out by local factories and piled high in that city’s wholesale markets.

Yiwu, once a small county town five hours south of Shanghai, has boomed in the past 20 years. It now dominates China’s low- to mid-range jewelry market, while premium products using gold and real gems tend to be made down south in the Pearl River Delta, near Hong Kong.

In all, China shipped about 1.3 million pounds (595,000 kilograms) of jewelry abroad in 2008 — a 15 percent decrease from the previous year, according to the Hong Kong-based consulting firm Global Sources.

Tao Xinyao, a metals expert who works in the Yiwu factory for jewelry maker Neoglory, said she noticed an uptick in the use of cadmium around 2003, when prices of the metal hit a low. Jewelry makers discovered they could work with cadmium at much lower temperatures than they could zinc, the most common nontoxic material, she said.

The lower melting point for cadmium — around 300 degrees Celsius compared to 400 degrees for zinc — means factories use less energy and do not need to change their silicon rubber molds as often, Tao said. Because cadmium is lighter than zinc, buyers also get more per ton when they buy an alloy.

“In the Yiwu market, some material suppliers sell so-called ‘zinc alloys,’” Tao said. “However, this may contain just a very small amount of zinc, and 80 to 90 percent cadmium. It actually should be called cadmium alloy.”

Lead and cadmium are commonly found in metal jewelry sold in China simply because it’s cheaper. A ton of high-quality zinc costs about 28,000 yuan ($4,100) while zinc with lead, cadmium or both in it sells for about 16,000 yuan ($2,350), said Frank Zhang, an executive with a jewelry factory in Yiwu that specializes in high-end exports but who did not want his Chinese or company names used.

Industry executives said most of the low-end goods with high amounts of cadmium are sold in China and increasingly sent to Dubai and other markets in the Middle East with less stringent import controls than the U.S. or Europe.

Cutting corners and trimming costs have become even more critical to Chinese manufacturers since the financial crisis sent purchase orders plummeting. Global Sources said about 10 percent of China’s jewelry plants were forced to shut down in 2008 due to the financial crisis.

Sales representative Toby Zhu said his company, a jewelry factory in Yiwu that turns out faux diamonds and jade strung on gold-plated chains, is among those feeling the pinch.

Over the last year, Zhu’s factory closed its showroom at the trade mall, laid off seven of its 100 workers and gave deep discounts to loyal customers in an attempt to weather the financial crisis. They are also using a cheaper grade of zinc than before, but Zhu denied switching to a cadmium alloy. He said their zinc alloys were mid-range in price and contained safe metals such as copper, magnesium or steel.

Zhu, who did not want his Chinese or company’s name used, said lead was even better than cadmium or zinc for tiny charms. Since the U.S. adopted more restrictions on lead, he said, many overseas clients have come to demand lead-free products, probably prompting many manufacturers to turn to cadmium.

Making sure Chinese-made goods are safe requires constant vigilance — something many foreign companies fail to do, said Christopher Devereux, managing director of the Guangzhou-based consulting firm Chinasavvy HK Ltd. China traders like Devereux call it “quality fade” — a phenomenon in China in which suppliers constantly try to produce goods more cheaply with lower-quality materials.

“In any other country in the West, your quality curve goes upwards, but it’s the opposite in China. We just have learned our lesson. We need to check every single batch,” said Devereux who helps Western companies buy and produce a variety of goods in China, from toys and plumbing fixtures to shoes and lunch boxes.

“Cadmium is one of the nastiest of the heavy metals, worse than lead. I was absolutely amazed that people were using it,” he said.

Chen Zaiying, manager of the Yiwu SK Jewelry shop in the International Trade City, echoed Devereux’s comment, saying many Chinese manufacturers combine hazardous batches with others that comply with regulations in the destination market.

“The buyer should not rely only on the inspection report offered by the producer,” Chen said. “They should have the sense to do their own inspection as well if they really want the product to meet the export standard.”

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Olesen reported from Beijing. Associated Press writers William Foreman in Guangzhou and Jeremiah Marquez in Hong Kong, and AP researchers Xi Yue in Beijing and Ji Chen in Yiwu contributed to this report.