4. Case study: Top Toy, Brio and Coop in China - Swedwatch

Summary
In the past year SwedWatch has carried out research on the Nordic companies' purchase of
toys in China. We have found that violations of the workers' rights are recurrent phenomena
in the manufacturing of toys that we give to our children. In May 2004 SwedWatch carried
out an inquiry on the ground in Guangdong, China. Currently, more than 75 percent of the
total toy production takes place in China, a country where the workers risk long imprisonment
if they follow their basic human rights. The toys are foremost produced by young female
guest workers from the north of China.
SwedWatch has chosen to focus our research on some of the largest toy selling companies in
Sweden, Top Toy (BR-toys and Toys R Us), Brio and Coop. Other international companies
that are mentioned in the report are Disney, Wal-mart and Mattel. Toys are however also sold
by many companies who purchase their material through importers. These companies do not
only inflict less strict ethical demands but also have less presence in the factories in China
than compared to the companies arranging their own direct import.
SwedWatch did not in any way want to risk the employment or safety of the employees. We
have therefore chosen not to do any interviews with workers on our own, neither inside nor
outside the plant. Instead, the Hong Kong Christian Industrial Committee, HKCIC, which has
long experience of similar work among migrant workers in southern China, carried out these
interviews in which the anonymity of the workers was maintained.
In February 2004 HKCIC carried out an inquiry on nine companies, which are suppliers for
the Swedish toy selling companies. HKCIC interviewed around twelve workers outside every
one of the plants. The inquiry was made on suppliers selected by the Nordic companies. In all
probability the examined plants are thus among the companies owning better conditions.
Despite this, we found breaches against Chinese legislation and the codes of conduct of the
companies.
The results of HKCIC interviews are among other things the following:
- Eight out of nine suppliers violate Chinese legislation regarding working hours. The law
allows an eight hour scheduled working day, plus a maximum of 36 hours overtime per
month. On five of the plants working days reach up to fourteen hours and the workers do
about 150 hours overtime per month during peak season. On six out of the nine plants the
employees state that they do not have one single free day during the weeks of peak season,
which lasts from about May till September.
- Five out of nine suppliers do not have any minimum wage guarantee, which conflicts with
Chinese legislation. The minimum wage in Dongguan is 43 Euro and the minimum wage in
the area of Shenzhen is 45 Euro. On one of the plants the workers state that their wages may
be as low as 19 Euro during the low season. The wages are not sufficient for the workers to
sustain themselves outside the plants, which is why a majority of the employees live in the
dormitories of the plants.
- According to the Chinese legislation all employees are to be covered by both old age
pension insurance and an accident insurance. At eight out of nine suppliers the employees
informed HKCIC that their employers have not provided insurances for their employees.
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