Abuse in the factories

By Diane Wilkinson

LONDON, England (CNN) -- In the race to boost profits, most western retailers now outsource much of their direct production to developing countries, where labour costs are markedly lower.

In industrialised countries, labour costs can be as much as 75% of the total cost of a product, while in developing countries like Bangladesh it is about 5%. However, life is often far from rosy for those who are paid to produce the goods. The U.N. agency, the International Labour Organization, says all workers should be entitled to:
• A living wage
• Minimum employment age of 15
• Maximum working week of 48 hours
• Voluntary overtime of 12 hours maximum
• Adequate health and safety measures
• Freedom of association
• Right to collective bargaining
• No discrimination or forced labour

Yet, despite this, wages are still often below the legal minimum, no trade unions allowed and unhealthy working conditions provided.

Investigations by non-governmental organisations and labour rights campaigners like the U.S. Campaign for Labor Rights or Europe's Clean Clothes Campaign have produced evidence of illegal labour practices, from physical abuse of employees to employing children.

Countries where the worst cases have been highlighted include China, Indonesia, Mexico, Bangladesh, Sri Lanka, Thailand, Vietnam and the Philippines.

In February, an investigation funded by the non-governmental group Worker Rights Consortium, found what it said were illegal practises at a factory in Mexico that makes sportswear for several companies, including sportswear giant Nike.

Managers were found to have physically abused workers. The general manager recalled how one boss hit a worker with a hammer, according to Columbia University law professor Mark Barenberg, who led the investigation.

The factory was also found to be employing children, paying less than the legal minimum wage and refusing to pay maternity benefits.

In 1999, a report by the Hong Kong Christian Industrial Committee Workers said Chinese factory workers making clothes, hats and shoes were regularly forced to work cripplingly long hours for poverty wages.

The report said employees at one plant regularly worked 16-hour days, seven days a week, during peak production times, despite Chinese labour laws stipulating a maximum 49-hour working week.

In one factory, employees could not afford to go home for the Chinese New Year because they had not been paid for three months. Workers at all the investigated plants complained of working mandatory overtime for minuscule wages.

Workers were also forced to pay the management "deposits" and "entrance fees" to be able to work.

In 1998 the German TV programme Monitor revealed serious labour rights violations at an Adidas supplier in El Salvador.

About 1,000 women worked 60-70 hours a week for $100 a month. Women were sacked if they were found to be pregnant and sexual harassment was recorded. Campaigners say the problems are widespread and not confined to a handful of western firms.

Many major brands, from Gap to Reebok, have seen their sub-contractors implicated in illegal labour practises. These well-known firms have been targeted by campaigners because the bigger the brand, the easier it is to mobilise consumers.

International Labour Organization
Worker Rights Consortium
Labor Rights Campaign
Nike
Gap
Reebok
Adidas

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