1 00:00:05,546 --> 00:00:07,745 How many days a week do you work? 2 00:00:07,745 --> 00:00:10,013 Seven days. 3 00:00:10,013 --> 00:00:14,283 We start half past six in the morning and work till midnight. 4 00:00:14,283 --> 00:00:18,658 Then we do overtime work until two or four am. 5 00:00:18,658 --> 00:00:21,762 What toys are produced at the factory? 6 00:00:21,762 --> 00:00:40,445 Dolls and dogs for Disney. 7 00:00:40,445 --> 00:00:51,513 TITLE: Santa's workshop 8 00:00:51,513 --> 00:00:54,159 When you buy a toy, what do you think about? 9 00:00:54,159 --> 00:00:59,261 It should be funny… and nice. 10 00:00:59,261 --> 00:01:03,333 Where do you think the toys are produced? 11 00:01:03,333 --> 00:01:05,802 In other countries… 12 00:01:05,802 --> 00:01:08,164 In Santa's workshop. 13 00:01:08,164 --> 00:01:14,966 In some Asian country, by far too young… children perhaps, I don't know. 14 00:01:14,966 --> 00:01:21,250 Halloween has, as you know, come from the USA and it's here to stay. 15 00:01:21,250 --> 00:01:23,795 It's more popular than anything else. 16 00:01:23,795 --> 00:01:26,192 Masks are one item. 17 00:01:26,192 --> 00:01:30,498 Here the Chinese have given it som extra thought 18 00:01:30,498 --> 00:01:32,467 and put some LED lights in it to light it up. 19 00:01:32,467 --> 00:01:36,603 What wages do those working in the production get? 20 00:01:36,603 --> 00:01:38,436 TEXT: Stefan Risberg. Managing Director, Toyman 21 00:01:38,436 --> 00:01:41,386 In China it is… The labour is cheap 22 00:01:41,386 --> 00:01:45,050 otherwise the production would never be located there. 23 00:01:45,050 --> 00:01:46,917 So of course it's like that. 24 00:01:46,917 --> 00:01:50,508 If it is something to save and live from when you get old? I don't think so. 25 00:01:50,508 --> 00:01:53,089 How much of these toys are produced in China? 26 00:01:53,089 --> 00:02:00,297 In the autumn range 95% comes from China. 27 00:02:00,297 --> 00:02:06,831 In Europe we spend more than 20,000 billion dollars on toys and games every year. 28 00:02:06,831 --> 00:02:10,464 A large part of these toys are bought at christmas time. 29 00:02:10,464 --> 00:02:13,287 But who makes these toys? 30 00:02:13,287 --> 00:02:18,910 When I was younger I found out that McDonald's toys where made by children. 31 00:02:18,910 --> 00:02:22,716 After that I didn't want them any more, since other children made them. 32 00:02:22,716 --> 00:02:25,570 I thought it was adults, or a machine, that made them. 33 00:02:25,570 --> 00:02:30,971 So I don't want McDonalds toys. Otherwise I'd keep buying them. 34 00:02:30,971 --> 00:02:39,179 In August 2000 it was revealed that one of the factories making toys for McDonalds employed child labour. 35 00:02:39,179 --> 00:02:43,194 The factory was situated in China, where most of the worlds toys are made. 36 00:02:43,194 --> 00:02:52,300 We decided to go there and investigate the current conditions in the toy factories. 37 00:02:52,300 --> 00:02:55,134 Here in Hong Kong we met one of those who exposed 38 00:02:55,134 --> 00:02:59,471 the poor working conditions at the McDonalds supplier. 39 00:02:59,471 --> 00:03:06,806 His name is Perry, and he has studied conditions in the toy industry for several years. 40 00:03:06,806 --> 00:03:12,049 This is Hong Kong, and what you can see here is the Victoria Harbor. 41 00:03:12,049 --> 00:03:18,030 And opposite side of here is the central business district of Hong Kong. 42 00:03:18,030 --> 00:03:22,973 All the big toy companies all have their offices here. 43 00:03:22,973 --> 00:03:29,176 Formerly a British colony, Hong Kong was reunited with China in 1997. 44 00:03:29,176 --> 00:03:32,140 Hong Kong still retains a degree of autonomy, 45 00:03:32,140 --> 00:03:36,079 enjoying more freedom and democracy than the rest of China. 46 00:03:36,079 --> 00:03:40,058 Here toys are sold to buyers from all over the world. 47 00:03:40,058 --> 00:03:43,799 The pirate ship is very popular in Sweden. 48 00:03:43,799 --> 00:03:45,654 In what shops can you find it? 49 00:03:45,654 --> 00:03:48,093 Is there any BR shop in Sweden? 50 00:03:48,093 --> 00:03:49,391 Yes 51 00:03:49,391 --> 00:03:53,464 Or ICA? I C A, yeah? 52 00:03:53,464 --> 00:03:55,173 TEXT: Charles Cheng. Sales Manager. 53 00:03:55,173 --> 00:03:56,501 And Åhléns as well. 54 00:03:56,501 --> 00:03:58,668 What sort of things are the buyers interested in? 55 00:03:58,668 --> 00:04:00,871 Buyers are interested in pricing. 56 00:04:00,871 --> 00:04:08,240 The deals are done in Hong Kong but production is contracted out to factories employing millions of people on mainland China 57 00:04:08,240 --> 00:04:12,017 We have to understand what is the impact for the worker 58 00:04:12,017 --> 00:04:15,853 The first impressions may be that the workers can get a job 59 00:04:15,853 --> 00:04:18,191 It's is better than to be unemployed 60 00:04:18,191 --> 00:04:23,216 But we have to ask what kind of job they can have 61 00:04:23,216 --> 00:04:29,666 Is it a decent one? Will it help their life or help their family? 62 00:04:29,666 --> 00:04:38,173 Or the kind of job that can make their life even worse? 63 00:04:38,173 --> 00:04:44,306 An hour's drive from Hong Kong takes us to Shenzhen, the nearest town on mainland China 64 00:04:44,306 --> 00:04:47,306 We are traveling as tourists because the Chinese authorities would never 65 00:04:47,306 --> 00:04:51,724 give us permission to film as we intend to 66 00:04:51,724 --> 00:04:54,722 Development has progressed very quickly here 67 00:04:54,722 --> 00:05:00,220 25 years ago there were only fields and small villages in this region 68 00:05:00,220 --> 00:05:03,303 This is where most of what we buy is manufactured 69 00:05:03,303 --> 00:05:09,873 From clothes and shoes to games, computers and toys 70 00:05:09,873 --> 00:05:12,303 We took good time in preparing our visit here 71 00:05:12,303 --> 00:05:14,222 and we were able to obtain permission 72 00:05:14,222 --> 00:05:19,158 from some Scandinavian toy companies to film in some factories 73 00:05:19,158 --> 00:05:21,419 The companies themselves chose the factories 74 00:05:21,419 --> 00:05:26,405 in which we were permitted to film 75 00:05:26,405 --> 00:05:30,168 In this factory, they make plastic toys and toy vehicles for many companies 76 00:05:30,168 --> 00:05:33,431 across Europe including the Scandivanian companies 77 00:05:33,431 --> 00:05:43,765 Inca, Top-Toy and Orleans 78 00:05:43,765 --> 00:05:45,469 How hot is the material? 79 00:05:45,469 --> 00:05:50,559 The plastic material is around 200 degrees Celsius 80 00:05:50,559 --> 00:05:53,126 So that's why it's so hot in here? 81 00:05:53,126 --> 00:05:55,853 The environment is very hot. 82 00:05:55,853 --> 00:06:02,675 But in the summertime the temperature of this workshop is higher 83 00:06:02,675 --> 00:06:05,635 It becomes even hotter when we enter the departments 84 00:06:05,635 --> 00:06:07,642 where the toy vehicle parts are cast. 85 00:06:07,642 --> 00:06:14,207 The air is stifling and it is difficult to breathe. 86 00:06:14,207 --> 00:06:16,339 A note posted on a wall warns of our visit 87 00:06:16,339 --> 00:06:18,687 and workers are told to remove any scrap 88 00:06:18,687 --> 00:06:23,056 that may block the walkways before our arrival 89 00:06:23,056 --> 00:06:25,526 It's mostly women workers. How many percent? 90 00:06:25,526 --> 00:06:30,922 Women workers - more than 90% in our factory. 91 00:06:30,922 --> 00:06:39,391 - Why? - Because they are easy to manage. 92 00:06:39,391 --> 00:06:44,708 Mostly the workers come from far away provinces of China. 93 00:06:44,708 --> 00:06:47,585 - Why? - Because in these provinces 94 00:06:47,585 --> 00:06:50,950 people are poor. 95 00:06:50,950 --> 00:06:55,090 Therefore they have no choice but to come here to get better wages. 96 00:06:55,090 --> 00:07:01,026 How many of your 2000 workers are migrant workers from the North? 97 00:07:01,026 --> 00:07:05,300 Mostly they come from the far away provinces. 98 00:07:05,300 --> 00:07:13,163 No local residents. 99 00:07:13,163 --> 00:07:15,198 We cannot interview workers 100 00:07:15,198 --> 00:07:17,275 because it may cause problems for them. 101 00:07:17,275 --> 00:07:21,605 Instead, the Hong Kong Christian Industrial Committee which exposed Mcdonald's 102 00:07:21,605 --> 00:07:25,677 conducts covert interviews with anonymous workers 103 00:07:25,677 --> 00:07:31,639 from a number of factories 104 00:07:31,639 --> 00:07:33,658 Are you gauranteed minimum wages? 105 00:07:33,658 --> 00:07:38,722 No, we get paid for how fact we work - no minimum wage. 106 00:07:38,722 --> 00:07:44,639 Those who work the slowest earn about 300 yuan. 107 00:07:44,639 --> 00:07:49,042 If you work fast you can earn 400-500 yuan. 108 00:07:49,042 --> 00:07:53,578 What do you earn per month when you do a lot of overtime work? 109 00:07:53,578 --> 00:07:57,969 Most often 700-800 yuan if you work a lot of overtime. 110 00:07:57,969 --> 00:08:07,218 - Do you work late? - Often till 10 or 11 pm. 111 00:08:07,218 --> 00:08:10,719 What this worker describes violates both Chinese law 112 00:08:10,719 --> 00:08:13,774 and the ethical codes of the Scandinavian companies. 113 00:08:13,774 --> 00:08:16,829 TEXT: AKE NATT OCH DAG, Quality Control Manager, Coop 114 00:08:16,829 --> 00:08:19,886 We have written in our policy 115 00:08:19,886 --> 00:08:21,472 that one should be entitled to one free day a week. 116 00:08:21,472 --> 00:08:24,973 And one cannot exceed local... 117 00:08:24,973 --> 00:08:31,558 ... local regulations on maximum working hours. 118 00:08:31,558 --> 00:08:37,023 It will become more obvious that these rules are not applied. 119 00:08:37,023 --> 00:08:38,475 Here, the Swedish and Chinese flags 120 00:08:38,475 --> 00:08:41,523 are flown side by side as the Swedish company Brio 121 00:08:41,523 --> 00:08:47,472 is one of the factory's biggest customers. 122 00:08:47,472 --> 00:08:48,964 TEXT: TOMAS PERSON - Managing Director, Brio 123 00:08:48,964 --> 00:08:50,591 Now that we are trading with China 124 00:08:50,591 --> 00:08:52,801 we must activate vigorous control systems. 125 00:08:52,801 --> 00:08:54,877 Otherwise it may damage the image. 126 00:08:54,877 --> 00:08:56,953 We question how Brio check 127 00:08:56,953 --> 00:09:00,339 the working conditions here. 128 00:09:00,339 --> 00:09:03,725 Have Brio been here? 129 00:09:03,725 --> 00:09:07,111 Yeah, they have been here quite a few times. 130 00:09:07,111 --> 00:09:11,853 What are they interested in when they come to the factory? 131 00:09:11,853 --> 00:09:15,862 Well, basically they are looking for new products and making some new sets. 132 00:09:15,862 --> 00:09:21,800 Just telling what's the market situation. 133 00:09:21,800 --> 00:09:25,439 Through covert interviews we learn that they are often forced to work 134 00:09:25,439 --> 00:09:29,267 14 hours a day 7 days a week. 135 00:09:29,267 --> 00:09:39,443 This is illegal and in breach of Brio's rules. 136 00:09:39,443 --> 00:09:42,886 Just like in the garment industries or in the footware industries sometimes 137 00:09:42,886 --> 00:09:46,220 during the peak season workers have to work overtime. 138 00:09:46,220 --> 00:09:48,527 We check in some factories in the peak season when 139 00:09:48,527 --> 00:09:51,909 demand in the United States or in Europe is bad. 140 00:09:51,909 --> 00:09:55,719 And then they suddenly place an order to the factories with a short lead time. 141 00:09:55,719 --> 00:10:04,634 In this case the workers are asked to do overtime continuously for several days. 142 00:10:04,634 --> 00:10:10,750 And sometimes they even cannot sleep at night. 143 00:10:10,750 --> 00:10:11,845 - Do you ever work all night? 144 00:10:11,845 --> 00:10:16,079 Yes, sometimes. We have no choice. We work till dawn. 145 00:10:16,079 --> 00:10:24,197 When you work all night you become dizzy and your eyes hurt - 146 00:10:24,197 --> 00:10:36,164 - because you cannot take any breaks. 147 00:10:36,164 --> 00:10:39,335 During the lunch break at Mr. Li's factory 148 00:10:39,335 --> 00:10:42,078 two women support another woman who has just fainted. 149 00:10:42,078 --> 00:10:47,076 Some of the workers want to save money so they don't eat breakfast. 150 00:10:47,076 --> 00:10:50,802 After a long at work they get very tired and then feel uncon... 151 00:10:50,802 --> 00:10:53,223 ... some sickness only. 152 00:10:53,223 --> 00:10:58,221 No big deal. They recover very quickly. 153 00:10:58,221 --> 00:11:00,385 So they want to save. 154 00:11:00,385 --> 00:11:02,890 You said that breakfast was 1 yuan. 155 00:11:02,890 --> 00:11:07,217 Not expensive. But some of them want to save more money. 156 00:11:07,217 --> 00:11:12,057 They prefer no holiday. They prefer to continue working. 157 00:11:12,057 --> 00:11:15,838 Maybe actually they prefer better wages. They don't prefer to work all the time. 158 00:11:15,838 --> 00:11:19,855 Oh, this is not a reasonable request. 159 00:11:19,855 --> 00:11:29,142 This is not good thinking to work less get more money. 160 00:11:29,142 --> 00:11:31,379 Through an underground organization in China 161 00:11:31,379 --> 00:11:34,890 we at last get the chance to interview some workers. 162 00:11:34,890 --> 00:11:38,650 We meet them one evening in a windowless room. 163 00:11:38,650 --> 00:11:42,333 We may film them but we cannot show their faces fully. 164 00:11:42,333 --> 00:11:50,599 They work in the electronics industry where working conditions are similar to those in the toy industry. 165 00:11:50,599 --> 00:11:52,856 How much overtime do you work per month? 166 00:11:52,856 --> 00:11:55,221 130-140 hours. 167 00:11:55,221 --> 00:11:57,083 We must also rest. 168 00:11:57,083 --> 00:12:00,852 We cannot work overtime every day. 169 00:12:00,852 --> 00:12:03,996 Not even those who want to can do that. 170 00:12:03,996 --> 00:12:12,090 If you got higher wages, would you still want to work overtime? 171 00:12:12,090 --> 00:12:14,614 No, I wouldn't! 172 00:12:14,614 --> 00:12:17,138 TEXT: LARS GJOERUP, Managing Director, Top Toy Hong Kong 173 00:12:17,138 --> 00:12:19,662 To be very honest, the general complaint we get is 174 00:12:19,662 --> 00:12:24,141 when we talk of the makeup of some workers is that they are not very happy about 175 00:12:24,141 --> 00:12:25,751 the limit on overtime during the peak season. 176 00:12:25,751 --> 00:12:30,512 Top Toy, a Danish company that runs BR-Legetøj and Toys R Us in Scandinavia 177 00:12:30,512 --> 00:12:37,818 they seem to be unable to see any connection between the low wages and the workers' willingness to work overtime 178 00:12:37,818 --> 00:12:40,166 So, why do you think they want to work overtime? 179 00:12:40,166 --> 00:12:43,390 Because they can earn more money. 180 00:12:43,390 --> 00:12:44,930 So do you think they make a living wage 181 00:12:44,930 --> 00:12:47,377 on their normal 8-hours day? 182 00:12:47,377 --> 00:12:51,392 You know the living cost in the factories are covered by dormitories, by food, by health care. 183 00:12:51,392 --> 00:12:57,108 So if a worker really want, they can probably stay in the factory and feel safe. 184 00:12:57,108 --> 00:12:59,845 In the factories there are dormatories and the canteens 185 00:12:59,845 --> 00:13:03,183 where almost all migrant workers sleep and eat. 186 00:13:03,183 --> 00:13:07,390 The low wages render other options impossible. 187 00:13:07,390 --> 00:13:12,553 Workers have a choice to stay inside the factories or outside the factories. 188 00:13:12,553 --> 00:13:17,723 ??? This should be their choice. 189 00:13:17,723 --> 00:13:21,549 The workers live in cramped quarters 190 00:13:21,549 --> 00:13:24,181 often twelve to twenty in a room. 191 00:13:24,181 --> 00:13:30,108 The only storage for private possessions is in their beds. 192 00:13:30,108 --> 00:13:33,974 Wages have, in principle, remained unchanged for several years 193 00:13:33,974 --> 00:13:38,861 while prices in this region have gone up by several hundred per cent. 194 00:13:38,861 --> 00:13:43,418 As a result, workers are forced to live their lives inside the factories. 195 00:13:43,418 --> 00:13:50,938 Their wages wouldn't last long outside the factory walls. 196 00:13:50,938 --> 00:13:54,862 In some of the factories we visited the working environment is very poor. 197 00:13:54,862 --> 00:13:56,163 198 00:13:56,163 --> 00:13:58,199 Often the noise level is very high 199 00:13:58,199 --> 00:14:00,142 and only a few workers have ear muffs. 200 00:14:00,142 --> 00:14:03,910 Protective equipment is inadequate or even nonexistent. 201 00:14:03,910 --> 00:14:06,407 Workers tell us that they burn and cut themselves 202 00:14:06,407 --> 00:14:09,473 and their arms are marked with scars 203 00:14:09,473 --> 00:14:12,581 The more serious problem is that they damage their health very much. 204 00:14:12,581 --> 00:14:15,286 Sometimes it's not about a problem with the machine 205 00:14:15,286 --> 00:14:18,162 but it's because workers have to work for long hours 206 00:14:18,162 --> 00:14:20,467 and they cannot concentrate on their work and they make mistakes 207 00:14:20,467 --> 00:14:24,302 and they hurt themselves. 208 00:14:24,302 --> 00:14:26,771 What accidents can happen? 209 00:14:26,771 --> 00:14:30,909 Sometimes the workers get very tired and forgetful - 210 00:14:30,909 --> 00:14:35,006 - and when there is a manual operation they may neglect to 211 00:14:35,006 --> 00:14:42,390 pull away the arm and then the door closes suddenly 212 00:14:42,390 --> 00:14:44,050 This is the problem. 213 00:14:44,050 --> 00:14:47,133 - What injuries does that cause? 214 00:14:47,133 --> 00:14:50,163 Hurting the fingers or something similar 215 00:14:50,163 --> 00:14:57,857 Sometimes they burn their skin also due to the very hot plastic materials. 216 00:14:57,857 --> 00:15:01,136 Amongst the most serious accidents that occur are fires. 217 00:15:01,136 --> 00:15:19,595 The worst factory fire to date occurred in a toy factory in Thailand. 218 00:15:19,595 --> 00:15:25,423 On the 10th of May 1993 hundreds of young workers were trapped in a fire 219 00:15:25,423 --> 00:15:28,967 because emergency exits were blocked. 220 00:15:28,967 --> 00:15:33,671 Although the factory was several stories high there were no fire escapes. 221 00:15:33,671 --> 00:15:39,944 188 people died and 469 were injured, most of them young women. 222 00:15:39,944 --> 00:15:45,141 The fire broke out at night when everyone was leaving. 223 00:15:45,141 --> 00:15:49,717 When the smoke started everyone ran and trampled one another 224 00:15:49,717 --> 00:15:53,469 because they could not get out through the doors. 225 00:15:53,469 --> 00:15:55,892 I could not see the ground 226 00:15:55,892 --> 00:16:03,261 - but I thought I have to jump if I'm going to survive. 227 00:16:03,261 --> 00:16:06,890 One of my friends was pregnant. 228 00:16:06,890 --> 00:16:10,268 She could not get out and she was buried in the flames. 229 00:16:10,268 --> 00:16:17,474 If the factory had escape ladders and good fire alarms - 230 00:16:17,474 --> 00:16:24,516 - a tragedy like this would not have happened. 231 00:16:24,516 --> 00:16:29,514 In November that year a similar accident occurred in Scenzhen in China. 232 00:16:29,514 --> 00:16:31,878 The fires attracted worldwide attention 233 00:16:31,878 --> 00:16:40,307 and the pressure on companies to show their responsibility for health, safety and working conditions mounted. 234 00:16:40,307 --> 00:16:46,500 The companies must think of the employee's life and their rights. 235 00:16:46,500 --> 00:16:52,918 Not just make big profits and then leave 236 00:16:52,918 --> 00:17:01,525 As a consequence of these incidents the toy companies began to impose ethical demands on their suppliers: so-called codes of conduct. 237 00:17:01,525 --> 00:17:07,466 The introduction of codes of conduct has led to improvements in the working environment in many factories. 238 00:17:07,466 --> 00:17:11,301 But what about working hours and wages? 239 00:17:11,301 --> 00:17:14,467 This is a leading supplier to the Swedish toy market. 240 00:17:14,467 --> 00:17:18,970 We ask if it is difficult to follow the codes of the Swedish companies. 241 00:17:18,970 --> 00:17:21,018 TEXT: GINNY MOK, Sales Manager 242 00:17:21,018 --> 00:17:25,218 We have passed different kinds of controls like quality control on ethical issues. 243 00:17:25,218 --> 00:17:28,520 We have different audits. 244 00:17:28,520 --> 00:17:30,308 So, you have no problems of following them. 245 00:17:30,308 --> 00:17:34,284 Yeah, no problems. No problem. 246 00:17:34,284 --> 00:17:36,587 Do you always know when they will come? 247 00:17:36,587 --> 00:17:40,935 Normally they will set up a certain date. 248 00:17:40,935 --> 00:17:45,764 Not a particular time but the day they are coming... 249 00:17:45,764 --> 00:17:48,031 - Working 8 hours a day... 250 00:17:48,031 --> 00:17:52,045 We are shown contracts setting out factory regulations 251 00:17:52,045 --> 00:17:59,012 and we see wage lists and time cards. 252 00:17:59,012 --> 00:18:00,802 - Overtime work cannot be over 36 hours 253 00:18:00,802 --> 00:18:04,555 All seems to be well and in accordance with Chinese law 254 00:18:04,555 --> 00:18:07,382 and the companies codes of conduct. 255 00:18:07,382 --> 00:18:14,250 Where is the overtime? No overtime? 256 00:18:14,250 --> 00:18:23,167 However, workers from the factory tell us that there is a system of false wage lists and time cards. 257 00:18:23,167 --> 00:18:30,917 The false lists that are shown when code controllers from the buyers call show much higher wages than are paid out. 258 00:18:30,917 --> 00:18:38,306 Prior to visits from the controllers, management warns workers not to talk about real wages and working hours. 259 00:18:38,306 --> 00:18:43,161 Workers are paid to give appropriate answers to the controllers. 260 00:18:43,161 --> 00:18:45,892 Do a lot of customers check the factory? 261 00:18:45,892 --> 00:18:47,219 Yes, pretty often. 262 00:18:47,219 --> 00:18:50,768 But they don't discover anything. 263 00:18:50,768 --> 00:18:52,225 Why not? 264 00:18:52,225 --> 00:18:55,058 Because we have prepared ourselves. 265 00:18:55,058 --> 00:19:01,837 They know what the buyers are looking for and have prepared for it. 266 00:19:01,837 --> 00:19:05,306 - so it is pointless to inspect 267 00:19:05,306 --> 00:19:07,805 Does the factory tell you what to answer? 268 00:19:07,805 --> 00:19:09,121 Yes, always. 269 00:19:09,121 --> 00:19:10,350 Do you get paid if you answer as you have been told to? 270 00:19:10,350 --> 00:19:11,806 Yes, if we give the correct answers we get 50 yuan. 271 00:19:11,806 --> 00:19:18,140 If it is like that, it is very disturbing. 272 00:19:18,140 --> 00:19:23,925 But I have not received any reports and never seen anything like that. 273 00:19:23,925 --> 00:19:28,309 But again, I have not asked if there are any false reports - 274 00:19:28,309 --> 00:19:32,180 - so it isn't very strange that I have not seen any. 275 00:19:32,180 --> 00:19:35,635 It shouldn't be like that. 276 00:19:35,635 --> 00:19:40,637 Now you are saying it is so, and all I can just say is that 277 00:19:40,637 --> 00:19:42,374 - it shouldn't be like that. 278 00:19:42,374 --> 00:19:47,960 Tell me what factories they are and we will deal with them. 279 00:19:47,960 --> 00:19:51,955 An investigation by the Hong Kong Christian Industrial Committee 280 00:19:51,955 --> 00:19:57,885 shows that 7 out of 9 suppliers cheat in this way. 281 00:19:57,885 --> 00:20:00,531 What do you think it is like? 282 00:20:00,531 --> 00:20:02,302 I think it is because they want to make money. 283 00:20:02,302 --> 00:20:05,347 It takes money to follow the buyers codes of conduct. 284 00:20:05,347 --> 00:20:08,301 But the suppliers say the buyers will not pay these extra costs. 285 00:20:08,301 --> 00:20:13,676 If the selling price is too low, the profit of the factory will also be low 286 00:20:13,676 --> 00:20:19,914 in which case the factory cannot afford to pay the workers their wages 287 00:20:19,914 --> 00:20:24,465 It is the very worst situation. 288 00:20:24,465 --> 00:20:29,719 This soft toy manufacturer who is a supplier to the Swedish market agrees. 289 00:20:29,719 --> 00:20:32,669 Sometimes I joke with our customers... 290 00:20:32,669 --> 00:20:36,711 "Okay, I agree to everything you want, if you raise the price to 20 percent." 291 00:20:36,711 --> 00:20:42,038 You know, they are not going to do that. They don't care. 292 00:20:42,038 --> 00:20:46,731 "You give me a lead time of 90 days instead of 30 days" 293 00:20:46,731 --> 00:20:49,807 -"then I don't want to do the overtime." 294 00:20:49,807 --> 00:20:51,859 Nobody wants to do the overtime, right? 295 00:20:51,859 --> 00:20:56,630 But if you have to ship this order within 30 days - 296 00:20:56,630 --> 00:21:03,326 - then overtime is obviously necessary 297 00:21:03,326 --> 00:21:07,332 We also have to look at the consumers, how much are they willing to pay for the product 298 00:21:07,332 --> 00:21:11,884 You cannot go and increase the price by 30 percent 299 00:21:11,884 --> 00:21:16,175 You need time to make sure the customers actually understand that there is a link 300 00:21:16,175 --> 00:21:18,019 between the price you pay and what you get 301 00:21:18,019 --> 00:21:23,245 With an increasingly tough global competition 302 00:21:23,245 --> 00:21:27,428 prices are kept low at the expense of the workers 303 00:21:27,428 --> 00:21:41,720 Why then don't the workers complain, why don't they protest? 304 00:21:41,720 --> 00:21:47,200 Han Dongfang was one of the leaders of the student protests in Tiananmen Square in 1989 305 00:21:47,200 --> 00:21:53,186 where he and thousands of other students demonstrated for democracy in China 306 00:21:53,186 --> 00:21:57,925 The army crushed the protests which ended in a bloodbath. 307 00:21:57,925 --> 00:22:03,598 Han Dongfang was imprisoned and eventually deported to Hong Kong. 308 00:22:03,598 --> 00:22:09,393 According to the trade union law in China only one union is allowed 309 00:22:09,393 --> 00:22:14,005 which is the official Communist Party controlled union 310 00:22:14,005 --> 00:22:19,142 and this organization is basically a Communist party branch 311 00:22:19,142 --> 00:22:22,800 in charge of controlling workers to make sure that 312 00:22:22,800 --> 00:22:27,973 workers don't know anything about the union. 313 00:22:27,973 --> 00:22:32,694 Han Dongfang is now working for the cause of Chinese workers 314 00:22:32,694 --> 00:22:36,217 in his radio program on Radio Free Asia 315 00:22:36,217 --> 00:22:39,628 and by writing for the China Labour Bulletin 316 00:22:39,628 --> 00:22:42,879 As it is impossible to organize free trade unions in China 317 00:22:42,879 --> 00:22:45,308 he gives workers advice by telephone 318 00:22:45,308 --> 00:22:49,342 on how to organize their grievences within the framework of the law 319 00:22:49,342 --> 00:22:54,056 and bring their cases to court. 320 00:22:54,056 --> 00:22:58,873 One day it is hoped that Chinese workers 321 00:22:58,873 --> 00:23:04,635 will be allowed to form trade unions 322 00:23:04,635 --> 00:23:08,356 A trade union is a prominent way of protecting workers' rights 323 00:23:08,356 --> 00:23:12,266 not only in this country but anywhere else 324 00:23:12,266 --> 00:23:16,860 If you are a few people fighting for this you're scared 325 00:23:16,860 --> 00:23:27,557 but if you are 300 people or 700 people then you are not scared anymore. 326 00:23:27,557 --> 00:23:33,754 In Hong Kong, there is an independent trade federation - The Hong Kong Confederation of Workers. 327 00:23:33,754 --> 00:23:39,804 They claim to be the only free trade union in China. 328 00:23:39,804 --> 00:23:41,360 TEXT: ELIZABETH TANG, Chief Executive, HKCTU 329 00:23:41,360 --> 00:23:45,384 Since the 80's when everbody in the world was thinking that China had changed 330 00:23:45,384 --> 00:23:50,391 and that China was becoming more and more open 331 00:23:50,391 --> 00:23:54,142 and connecting with the West more and more 332 00:23:54,142 --> 00:23:59,806 but almost all the workers who have tried to organize 333 00:23:59,806 --> 00:24:07,965 independent organizations have been arrested. 334 00:24:07,965 --> 00:24:15,805 They have a union and they can join if they want. 335 00:24:15,805 --> 00:24:21,960 What are the complaints? 336 00:24:21,960 --> 00:24:25,053 They have the channel but so far they didn't use it. 337 00:24:25,053 --> 00:24:27,138 What did the union do then? 338 00:24:27,138 --> 00:24:30,575 Isn't the union without a purpose then? 339 00:24:30,575 --> 00:24:35,538 Yes, but the state demands that we have one. 340 00:24:35,538 --> 00:24:46,224 Actually the workers can complain through these unions 341 00:24:46,224 --> 00:24:53,722 but so far they are not quite used to voicing their complaints through these unions. 342 00:24:53,722 --> 00:25:01,303 We are able to meet a union representative from one of the factories. 343 00:25:01,303 --> 00:25:02,722 TEXT: SAU SANA, Trade Union Representative 344 00:25:02,722 --> 00:25:10,536 The workers think that they are treated fairly. 345 00:25:10,536 --> 00:25:13,299 They haven't raised any issues. 346 00:25:13,299 --> 00:25:20,125 These are the prizes that we have received for our efforts 347 00:25:20,125 --> 00:25:21,971 on behalf of the workers. 348 00:25:21,971 --> 00:25:24,393 I believe they think we have done a good job. 349 00:25:24,393 --> 00:25:28,020 If you formed an independent union at the factory 350 00:25:28,020 --> 00:25:33,508 what do you think would happen? 351 00:25:33,508 --> 00:25:37,385 If we did that we would be fired. 352 00:25:37,385 --> 00:25:42,672 They would never allow an independent union at the factory. 353 00:25:42,672 --> 00:25:49,013 Well, the worker's demand is even greater than that of the buyer. 354 00:25:49,013 --> 00:25:54,977 They always have endless demands. 355 00:25:54,977 --> 00:25:56,363 Are we going to fight? 356 00:25:56,363 --> 00:26:01,150 Fight! 357 00:26:01,150 --> 00:26:03,971 In Thailand, workers are able to organize unions 358 00:26:03,971 --> 00:26:07,595 and this has led to certain improvements. 359 00:26:07,595 --> 00:26:12,378 When our union was formed, we started demanding improvements. 360 00:26:12,378 --> 00:26:14,726 The union has had meetings and negotiations. 361 00:26:14,726 --> 00:26:17,976 So all improvements... everything we have received 362 00:26:17,976 --> 00:26:22,890 is thanks to our union. 363 00:26:22,890 --> 00:26:25,953 We meet .. and his workmates who work in a factory 364 00:26:25,953 --> 00:26:29,292 making toys for export to Europe. 365 00:26:29,292 --> 00:26:32,203 Conditions are better thanks to the union. 366 00:26:32,203 --> 00:26:35,969 But it is difficult to live on their wages. 367 00:26:35,969 --> 00:26:42,468 They live in a poor area. Three of them share one small room. 368 00:26:42,468 --> 00:26:48,445 They show us a packet of toy motorcycles from their factory. 369 00:26:48,445 --> 00:26:53,444 As soon as the union demands anything the company says it will be bankrupt 370 00:26:53,444 --> 00:26:57,012 and they threaten with relocation. 371 00:26:57,012 --> 00:27:00,892 If they move to China we lose our jobs. 372 00:27:00,892 --> 00:27:07,426 They threaten us so that we won't demand anything more. 373 00:27:07,426 --> 00:27:12,337 All Asiatic countries feel the tough competition from China. 374 00:27:12,337 --> 00:27:17,435 Many Asian manufacturers have already relocated their production there. 375 00:27:17,435 --> 00:27:20,980 Because of its enormous population and repressive trade union laws 376 00:27:20,980 --> 00:27:26,675 China can offer companies unbeatable low production costs. 377 00:27:26,675 --> 00:27:30,146 Employees in Thailand use the threat of Chinese competition 378 00:27:30,146 --> 00:27:33,752 when negotiating wages and working conditions. 379 00:27:33,752 --> 00:27:38,097 Thai workers are afraid to demand better wages because of the threat 380 00:27:38,097 --> 00:27:46,996 and in China employees cannot voice their demands. 381 00:27:46,996 --> 00:27:54,141 The environment is another victim of the huge expansion of the export industry in Southern China 382 00:27:54,141 --> 00:27:57,915 There are thousands of factories located along the Dongjiang river. 383 00:27:57,915 --> 00:28:01,189 Some of them are toy factories which we have visited. 384 00:28:01,189 --> 00:28:04,611 Most of them release waste untreated. 385 00:28:04,611 --> 00:28:06,347 TEXT: APPLE CHAN, Greenpeace, Hong Kong 386 00:28:06,347 --> 00:28:10,766 Testing on Chromium, Lead, Mercury, Phosphorus, Ammonium... 387 00:28:10,766 --> 00:28:15,226 Mercury is the one we find most problematic because 388 00:28:15,226 --> 00:28:24,893 it tests 280 times higher than the national state requirements or regulations. 389 00:28:24,893 --> 00:28:28,113 We are worried because people are drinking the polluted water 390 00:28:28,113 --> 00:28:30,471 and also eating contaminated fish. 391 00:28:30,471 --> 00:28:40,891 Research on mercury shows it brings damage to the brain. 392 00:28:40,891 --> 00:28:46,063 We use water from the factories. 393 00:28:46,063 --> 00:28:47,724 From the factory over there. 394 00:28:47,724 --> 00:28:49,662 You use it for irrigation? 395 00:28:49,662 --> 00:28:50,930 Yes. 396 00:28:50,930 --> 00:28:52,639 Where else can we get water? 397 00:28:52,639 --> 00:28:54,932 There is no fresh, clean water. 398 00:28:54,932 --> 00:29:00,975 There is nothing else. We have to use the water from the factory. 399 00:29:00,975 --> 00:29:06,307 The pollution is a disaster for the poor who used to live by fishing this river. 400 00:29:06,307 --> 00:29:11,906 You cannot drink or use the water and we can't fish. 401 00:29:11,906 --> 00:29:18,647 It comes from upstream from all the factories in Shenzhen. 402 00:29:18,647 --> 00:29:23,367 It is their waste that comes here. 403 00:29:23,367 --> 00:29:27,768 You used to be able to see all the way to the bottom. 404 00:29:27,768 --> 00:29:31,143 Now you cannot see anything because of all the waste. 405 00:29:31,143 --> 00:29:35,064 We used to bathe here. The water was very clean. 406 00:29:35,064 --> 00:29:40,415 But now you cannot do that. See for yourself how dirty it is. 407 00:29:40,415 --> 00:29:42,857 It stinks of death. 408 00:29:42,857 --> 00:29:45,480 Who is responsible for the environmental devastation 409 00:29:45,480 --> 00:29:47,814 and the poor working conditions that make possible 410 00:29:47,814 --> 00:29:51,085 the cheap production of the things we buy? 411 00:29:51,085 --> 00:29:56,368 We are having more and more industries in the developing countries where there is cheap labour 412 00:29:56,368 --> 00:30:04,978 and environmental rules are not that strict in the big companies who are trying to take advantage of that 413 00:30:04,978 --> 00:30:14,782 and they are not trying to take full responsibility to ensure that they don't pollute the area. 414 00:30:14,782 --> 00:30:21,726 The main solution is that the companies think of their corporate responsibility to make sure that they don't pollute. 415 00:30:21,726 --> 00:30:31,301 Many people are ready to take responsibility for the environment 416 00:30:31,301 --> 00:30:35,009 and that toys are not produced by child workers. 417 00:30:35,009 --> 00:30:39,727 But our customers and we noticed this when we were manufacturing in Sweden - 418 00:30:39,727 --> 00:30:46,562 - the customers are not willing to pay the extra cost. 419 00:30:46,562 --> 00:30:56,647 If we sell the products in our shops, we are responsible for those products. 420 00:30:56,647 --> 00:31:03,258 I want the consumers to be aware 421 00:31:03,258 --> 00:31:09,596 that the workers have a hard time. 422 00:31:09,596 --> 00:31:13,902 We pay for this with blood and sweat. 423 00:31:13,902 --> 00:31:18,452 We toil and we sweat. 424 00:31:18,452 --> 00:31:22,900 And at the same time the companies never make a loss. 425 00:31:22,900 --> 00:31:25,780 I do not want you to stop buying 426 00:31:25,780 --> 00:31:30,763 but you should know about our difficult situation. 427 00:31:30,763 --> 00:31:34,386 Do you have any suggestion for the factory? 428 00:31:34,386 --> 00:31:42,149 We would like the management to be a bit more humane. 429 00:31:42,149 --> 00:31:45,399 We would like better wages and shorter working hours. 430 00:31:45,399 --> 00:32:07,812 And when we work at night, we should not have to work so late.