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

Codes of conduct and inspections
According to the workers there is a clear difference between SA8000-certified workplaces
and the other factories. Before the inspectors arrive, the suppliers make sure that the workers
from the non-certified workplaces get time off. Only the workers from the SA8000-certified
workplaces stay. The factory management instruct the remaining workers in giving the
”correct” answers and they are rewarded between 1,9 – 7,8 Euro for this afterwards.
Violation against the codes/legislation:
• Separation between SA8000- certified workplaces and other workplaces
• Cheating at the inspections
• Insufficient insurances
Supplier I
The factory is located outside Shenzhen and has between 600 – 700 employees. Swedish and
Danish purchasers are ICA, Åhléns and Top Toy. The factory also supplies Disney and Wal-
Mart 5 . The workers are between 18 – 25 years of age and mainly guest workers from the
northern provinces of China. SwedWatch visited the factory in May 2004.
Working hours
The working times are eleven hours per day, including three hours of overtime during the
peak season. The sewing department has more overtime, from 06.00 pm to 12.00 pm. In most
cases all workers have one day off per week, but sometimes during the peak seasons they
don't have any day off at all during the week, which is contrary to the Chinese labour law
regulations.
Wages
Workers are paid by time rate. No other subsidy or allowance is given. During the peak
season the workers state that the factory workers may earn 68 – 87 Euro. The minimum wages
in this district are 45 Euro, though some of the less experienced workers in this factory don't
reach the minimum wages according to the employees. The factory pays statutory overtime
compensation, one time and a half the wages at weekdays and twice the wages in the
weekends. At this factory the wages are paid 20 days after the fixed date for payment
according to the workers.
Other working conditions
The factory follows the statutory limitation of overtime work relatively strictly nowadays, yet
the factory management wants to keep the same production level. The factory therefore
establishes daily production quota for each department that must be fulfilled within the
regular working hours. When the workers don't attain the daily production quota, this is
openly criticised. Many employees tell HKCIC that they feel that they are under a lot of stress
due to the increased pressure.
Many of the workers get their job through recruitment companies and have to pay this
company 10 Euro in order to get the job. The workers receive copies of their one-year
contracts. No education is offered to the newly employed.
5
According to I.Y Sim, managing director, during SwedWatch visit in May 2004 and workers interviews outside
the factory.
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