WEBVTT 00:00:05.546 --> 00:00:07.745 How many days a week do you work? 00:00:07.745 --> 00:00:10.013 Seven days. 00:00:10.013 --> 00:00:14.283 We start half past six in the morning and work till midnight. 00:00:14.283 --> 00:00:18.658 Then we do overtime work until two or four am. 00:00:18.658 --> 00:00:21.762 What toys are produced at the factory? 00:00:21.762 --> 00:00:40.445 Dolls and dogs for Disney. 00:00:40.445 --> 00:00:51.513 TITLE: Santa's workshop 00:00:51.513 --> 00:00:54.159 When you buy a toy, what do you think about? 00:00:54.159 --> 00:00:59.261 It should be funny… and nice. 00:00:59.261 --> 00:01:03.333 Where do you think the toys are produced? 00:01:03.333 --> 00:01:05.802 In other countries… 00:01:05.802 --> 00:01:08.164 In Santa's workshop. 00:01:08.164 --> 00:01:14.966 In some Asian country, by far too young… children perhaps, I don't know. 00:01:14.966 --> 00:01:21.250 Halloween has, as you know, come from the USA and it's here to stay. 00:01:21.250 --> 00:01:23.795 It's more popular than anything else. 00:01:23.795 --> 00:01:26.192 Masks are one item. 00:01:26.192 --> 00:01:30.498 Here the Chinese have given it som extra thought 00:01:30.498 --> 00:01:32.467 and put some LED lights in it to light it up. 00:01:32.467 --> 00:01:36.603 What wages do those working in the production get? 00:01:36.603 --> 00:01:38.436 TEXT: Stefan Risberg. Managing Director, Toyman 00:01:38.436 --> 00:01:41.386 In China it is… The labour is cheap 00:01:41.386 --> 00:01:45.050 otherwise the production would never be located there. 00:01:45.050 --> 00:01:46.917 So of course it's like that. 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. 00:01:50.508 --> 00:01:53.089 How much of these toys are produced in China? 00:01:53.089 --> 00:02:00.297 In the autumn range 95% comes from China. 00:02:00.297 --> 00:02:06.831 In Europe we spend more than 20,000 billion dollars on toys and games every year. 00:02:06.831 --> 00:02:10.464 A large part of these toys are bought at christmas time. 00:02:10.464 --> 00:02:13.287 But who makes these toys? 00:02:13.287 --> 00:02:18.910 When I was younger I found out that McDonald's toys where made by children. 00:02:18.910 --> 00:02:22.716 After that I didn't want them any more, since other children made them. 00:02:22.716 --> 00:02:25.570 I thought it was adults, or a machine, that made them. 00:02:25.570 --> 00:02:30.971 So I don't want McDonalds toys. Otherwise I'd keep buying them. 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. 00:02:39.179 --> 00:02:43.194 The factory was situated in China, where most of the worlds toys are made. 00:02:43.194 --> 00:02:52.300 We decided to go there and investigate the current conditions in the toy factories. 00:02:52.300 --> 00:02:55.134 Here in Hong Kong we met one of those who exposed 00:02:55.134 --> 00:02:59.471 the poor working conditions at the McDonalds supplier. 00:02:59.471 --> 00:03:06.806 His name is Perry, and he has studied conditions in the toy industry for several years. 00:03:06.806 --> 00:03:12.049 This is Hong Kong, and what you can see here is the Victoria Harbor. 00:03:12.049 --> 00:03:18.030 And opposite side of here is the central business district of Hong Kong. 00:03:18.030 --> 00:03:22.973 All the big toy companies all have their offices here. 00:03:22.973 --> 00:03:29.176 Formerly a British colony, Hong Kong was reunited with China in 1997. 00:03:29.176 --> 00:03:32.140 Hong Kong still retains a degree of autonomy, 00:03:32.140 --> 00:03:36.079 enjoying more freedom and democracy than the rest of China. 00:03:36.079 --> 00:03:40.058 Here toys are sold to buyers from all over the world. 00:03:40.058 --> 00:03:43.799 The pirate ship is very popular in Sweden. 00:03:43.799 --> 00:03:45.654 In what shops can you find it? 00:03:45.654 --> 00:03:48.093 Is there any BR shop in Sweden? 00:03:48.093 --> 00:03:49.391 Yes 00:03:49.391 --> 00:03:53.464 Or ICA? I C A, yeah? 00:03:53.464 --> 00:03:55.173 TEXT: Charles Cheng. Sales Manager. 00:03:55.173 --> 00:03:56.501 And Åhléns as well. 00:03:56.501 --> 00:03:58.668 What sort of things are the buyers interested in? 00:03:58.668 --> 00:04:00.871 Buyers are interested in pricing. 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 00:04:08.240 --> 00:04:12.017 We have to understand what is the impact for the worker 00:04:12.017 --> 00:04:15.853 The first impressions may be that the workers can get a job 00:04:15.853 --> 00:04:18.191 It's is better than to be unemployed 00:04:18.191 --> 00:04:23.216 But we have to ask what kind of job they can have 00:04:23.216 --> 00:04:29.666 Is it a decent one? Will it help their life or help their family? 00:04:29.666 --> 00:04:38.173 Or the kind of job that can make their life even worse? 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 00:04:44.306 --> 00:04:47.306 We are traveling as tourists because the Chinese authorities would never 00:04:47.306 --> 00:04:51.724 give us permission to film as we intend to 00:04:51.724 --> 00:04:54.722 Development has progressed very quickly here 00:04:54.722 --> 00:05:00.220 25 years ago there were only fields and small villages in this region 00:05:00.220 --> 00:05:03.303 This is where most of what we buy is manufactured 00:05:03.303 --> 00:05:09.873 From clothes and shoes to games, computers and toys 00:05:09.873 --> 00:05:12.303 We took good time in preparing our visit here 00:05:12.303 --> 00:05:14.222 and we were able to obtain permission 00:05:14.222 --> 00:05:19.158 from some Scandinavian toy companies to film in some factories NOTE Paragraph 00:05:19.158 --> 00:05:21.419 The companies themselves chose the factories 00:05:21.419 --> 00:05:26.405 in which we were permitted to film 00:05:26.405 --> 00:05:30.168 In this factory, they make plastic toys and toy vehicles for many companies 00:05:30.168 --> 00:05:33.431 across Europe including the Scandivanian companies 00:05:33.431 --> 00:05:43.765 Inca, Top-Toy and Orleans 00:05:43.765 --> 00:05:45.469 How hot is the material? 00:05:45.469 --> 00:05:50.559 The plastic material is around 200 degrees Celsius 00:05:50.559 --> 00:05:53.126 So that's why it's so hot in here? 00:05:53.126 --> 00:05:55.853 The environment is very hot. 00:05:55.853 --> 00:06:02.675 But in the summertime the temperature of this workshop is higher 00:06:02.675 --> 00:06:05.635 It becomes even hotter when we enter the departments 00:06:05.635 --> 00:06:07.642 where the toy vehicle parts are cast. 00:06:07.642 --> 00:06:14.207 The air is stifling and it is difficult to breathe. 00:06:14.207 --> 00:06:16.339 A note posted on a wall warns of our visit 00:06:16.339 --> 00:06:18.687 and workers are told to remove any scrap 00:06:18.687 --> 00:06:23.056 that may block the walkways before our arrival 00:06:23.056 --> 00:06:25.526 It's mostly women workers. How many percent? 00:06:25.526 --> 00:06:30.922 Women workers - more than 90% in our factory. NOTE Paragraph 00:06:30.922 --> 00:06:39.391 - Why? - Because they are easy to manage. 00:06:39.391 --> 00:06:44.708 Mostly the workers come from far away provinces of China. 00:06:44.708 --> 00:06:47.585 - Why? - Because in these provinces 00:06:47.585 --> 00:06:50.950 people are poor. 00:06:50.950 --> 00:06:55.090 Therefore they have no choice but to come here to get better wages. 00:06:55.090 --> 00:07:01.026 How many of your 2000 workers are migrant workers from the North? 00:07:01.026 --> 00:07:05.300 Mostly they come from the far away provinces. 00:07:05.300 --> 00:07:13.163 No local residents. 00:07:13.163 --> 00:07:15.198 We cannot interview workers 00:07:15.198 --> 00:07:17.275 because it may cause problems for them. 00:07:17.275 --> 00:07:21.605 Instead, the Hong Kong Christian Industrial Committee which exposed Mcdonald's 00:07:21.605 --> 00:07:25.677 conducts covert interviews with anonymous workers 00:07:25.677 --> 00:07:31.639 from a number of factories 00:07:31.639 --> 00:07:33.658 Are you gauranteed minimum wages? 00:07:33.658 --> 00:07:38.722 No, we get paid for how fact we work - no minimum wage. 00:07:38.722 --> 00:07:44.639 Those who work the slowest earn about 300 yuan. 00:07:44.639 --> 00:07:49.042 If you work fast you can earn 400-500 yuan. 00:07:49.042 --> 00:07:53.578 What do you earn per month when you do a lot of overtime work? 00:07:53.578 --> 00:07:57.969 Most often 700-800 yuan if you work a lot of overtime. 00:07:57.969 --> 00:08:07.218 - Do you work late? - Often till 10 or 11 pm. 00:08:07.218 --> 00:08:10.719 What this worker describes violates both Chinese law 00:08:10.719 --> 00:08:13.774 and the ethical codes of the Scandinavian companies. 00:08:13.774 --> 00:08:16.829 TEXT: AKE NATT OCH DAG, Quality Control Manager, Coop 00:08:16.829 --> 00:08:19.886 We have written in our policy 00:08:19.886 --> 00:08:21.472 that one should be entitled to one free day a week. 00:08:21.472 --> 00:08:24.973 And one cannot exceed local... 00:08:24.973 --> 00:08:31.558 ... local regulations on maximum working hours. 00:08:31.558 --> 00:08:37.023 It will become more obvious that these rules are not applied. 00:08:37.023 --> 00:08:38.475 Here, the Swedish and Chinese flags 00:08:38.475 --> 00:08:41.523 are flown side by side as the Swedish company Brio 00:08:41.523 --> 00:08:47.472 is one of the factory's biggest customers. 00:08:47.472 --> 00:08:48.964 TEXT: TOMAS PERSON - Managing Director, Brio 00:08:48.964 --> 00:08:50.591 Now that we are trading with China 00:08:50.591 --> 00:08:52.801 we must activate vigorous control systems. 00:08:52.801 --> 00:08:54.877 Otherwise it may damage the image. 00:08:54.877 --> 00:08:56.953 We question how Brio check 00:08:56.953 --> 00:09:00.339 the working conditions here. 00:09:00.339 --> 00:09:03.725 Have Brio been here? 00:09:03.725 --> 00:09:07.111 Yeah, they have been here quite a few times. 00:09:07.111 --> 00:09:11.853 What are they interested in when they come to the factory? 00:09:11.853 --> 00:09:15.862 Well, basically they are looking for new products and making some new sets. 00:09:15.862 --> 00:09:21.800 Just telling what's the market situation. 00:09:21.800 --> 00:09:25.439 Through covert interviews we learn that they are often forced to work 00:09:25.439 --> 00:09:29.267 14 hours a day 7 days a week. 00:09:29.267 --> 00:09:39.443 This is illegal and in breach of Brio's rules. 00:09:39.443 --> 00:09:42.886 Just like in the garment industries or in the footware industries sometimes 00:09:42.886 --> 00:09:46.220 during the peak season workers have to work overtime. 00:09:46.220 --> 00:09:48.527 We check in some factories in the peak season when 00:09:48.527 --> 00:09:51.909 demand in the United States or in Europe is bad. 00:09:51.909 --> 00:09:55.719 And then they suddenly place an order to the factories with a short lead time. 00:09:55.719 --> 00:10:04.634 In this case the workers are asked to do overtime continuously for several days. 00:10:04.634 --> 00:10:10.750 And sometimes they even cannot sleep at night. 00:10:10.750 --> 00:10:11.845 - Do you ever work all night? 00:10:11.845 --> 00:10:16.079 Yes, sometimes. We have no choice. We work till dawn. 00:10:16.079 --> 00:10:24.197 When you work all night you become dizzy and your eyes hurt - 00:10:24.197 --> 00:10:36.164 - because you cannot take any breaks. 00:10:36.164 --> 00:10:39.335 During the lunch break at Mr. Li's factory 00:10:39.335 --> 00:10:42.078 two women support another woman who has just fainted. 00:10:42.078 --> 00:10:47.076 Some of the workers want to save money so they don't eat breakfast. 00:10:47.076 --> 00:10:50.802 After a long at work they get very tired and then feel uncon... 00:10:50.802 --> 00:10:53.223 ... some sickness only. 00:10:53.223 --> 00:10:58.221 No big deal. They recover very quickly. 00:10:58.221 --> 00:11:00.385 So they want to save. 00:11:00.385 --> 00:11:02.890 You said that breakfast was 1 yuan. 00:11:02.890 --> 00:11:07.217 Not expensive. But some of them want to save more money. 00:11:07.217 --> 00:11:12.057 They prefer no holiday. They prefer to continue working. 00:11:12.057 --> 00:11:15.838 Maybe actually they prefer better wages. They don't prefer to work all the time. 00:11:15.838 --> 00:11:19.855 Oh, this is not a reasonable request. 00:11:19.855 --> 00:11:29.142 This is not good thinking to work less get more money. 00:11:29.142 --> 00:11:31.379 Through an underground organization in China 00:11:31.379 --> 00:11:34.890 we at last get the chance to interview some workers. 00:11:34.890 --> 00:11:38.650 We meet them one evening in a windowless room. 00:11:38.650 --> 00:11:42.333 We may film them but we cannot show their faces fully. 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. 00:11:50.599 --> 00:11:52.856 How much overtime do you work per month? 00:11:52.856 --> 00:11:55.221 130-140 hours. 00:11:55.221 --> 00:11:57.083 We must also rest. 00:11:57.083 --> 00:12:00.852 We cannot work overtime every day. 00:12:00.852 --> 00:12:03.996 Not even those who want to can do that. 00:12:03.996 --> 00:12:12.090 If you got higher wages, would you still want to work overtime? 00:12:12.090 --> 00:12:14.614 No, I wouldn't! 00:12:14.614 --> 00:12:17.138 TEXT: LARS GJOERUP, Managing Director, Top Toy Hong Kong 00:12:17.138 --> 00:12:19.662 To be very honest, the general complaint we get is 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 00:12:24.141 --> 00:12:25.751 the limit on overtime during the peak season. 00:12:25.751 --> 00:12:30.512 Top Toy, a Danish company that runs BR-Legetøj and Toys R Us in Scandinavia 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 00:12:37.818 --> 00:12:40.166 So, why do you think they want to work overtime? 00:12:40.166 --> 00:12:43.390 Because they can earn more money. 00:12:43.390 --> 00:12:44.930 So do you think they make a living wage 00:12:44.930 --> 00:12:47.377 on their normal 8-hours day? 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. 00:12:51.392 --> 00:12:57.108 So if a worker really want, they can probably stay in the factory and feel safe. 00:12:57.108 --> 00:12:59.845 In the factories there are dormatories and the canteens 00:12:59.845 --> 00:13:03.183 where almost all migrant workers sleep and eat. 00:13:03.183 --> 00:13:07.390 The low wages render other options impossible. 00:13:07.390 --> 00:13:12.553 Workers have a choice to stay inside the factories or outside the factories. 00:13:12.553 --> 00:13:17.723 ??? This should be their choice. 00:13:17.723 --> 00:13:21.549 The workers live in cramped quarters 00:13:21.549 --> 00:13:24.181 often twelve to twenty in a room. 00:13:24.181 --> 00:13:30.108 The only storage for private possessions is in their beds. 00:13:30.108 --> 00:13:33.974 Wages have, in principle, remained unchanged for several years 00:13:33.974 --> 00:13:38.861 while prices in this region have gone up by several hundred per cent. 00:13:38.861 --> 00:13:43.418 As a result, workers are forced to live their lives inside the factories. 00:13:43.418 --> 00:13:50.938 Their wages wouldn't last long outside the factory walls. 00:13:50.938 --> 00:13:54.862 In some of the factories we visited the working environment is very poor. 00:13:54.862 --> 00:13:56.163 00:13:56.163 --> 00:13:58.199 Often the noise level is very high 00:13:58.199 --> 00:14:00.142 and only a few workers have ear muffs. 00:14:00.142 --> 00:14:03.910 Protective equipment is inadequate or even nonexistent. 00:14:03.910 --> 00:14:06.407 Workers tell us that they burn and cut themselves 00:14:06.407 --> 00:14:09.473 and their arms are marked with scars 00:14:09.473 --> 00:14:12.581 The more serious problem is that they damage their health very much. 00:14:12.581 --> 00:14:15.286 Sometimes it's not about a problem with the machine 00:14:15.286 --> 00:14:18.162 but it's because workers have to work for long hours 00:14:18.162 --> 00:14:20.467 and they cannot concentrate on their work and they make mistakes 00:14:20.467 --> 00:14:24.302 and they hurt themselves. 00:14:24.302 --> 00:14:26.771 What accidents can happen? 00:14:26.771 --> 00:14:30.909 Sometimes the workers get very tired and forgetful - 00:14:30.909 --> 00:14:35.006 - and when there is a manual operation they may neglect to 00:14:35.006 --> 00:14:42.390 pull away the arm and then the door closes suddenly 00:14:42.390 --> 00:14:44.050 This is the problem. 00:14:44.050 --> 00:14:47.133 - What injuries does that cause? 00:14:47.133 --> 00:14:50.163 Hurting the fingers or something similar 00:14:50.163 --> 00:14:57.857 Sometimes they burn their skin also due to the very hot plastic materials. 00:14:57.857 --> 00:15:01.136 Amongst the most serious accidents that occur are fires. 00:15:01.136 --> 00:15:19.595 The worst factory fire to date occurred in a toy factory in Thailand. 00:15:19.595 --> 00:15:25.423 On the 10th of May 1993 hundreds of young workers were trapped in a fire 00:15:25.423 --> 00:15:28.967 because emergency exits were blocked. 00:15:28.967 --> 00:15:33.671 Although the factory was several stories high there were no fire escapes. 00:15:33.671 --> 00:15:39.944 188 people died and 469 were injured, most of them young women. 00:15:39.944 --> 00:15:45.141 The fire broke out at night when everyone was leaving. 00:15:45.141 --> 00:15:49.717 When the smoke started everyone ran and trampled one another 00:15:49.717 --> 00:15:53.469 because they could not get out through the doors. 00:15:53.469 --> 00:15:55.892 I could not see the ground 00:15:55.892 --> 00:16:03.261 - but I thought I have to jump if I'm going to survive. 00:16:03.261 --> 00:16:06.890 One of my friends was pregnant. 00:16:06.890 --> 00:16:10.268 She could not get out and she was buried in the flames. 00:16:10.268 --> 00:16:17.474 If the factory had escape ladders and good fire alarms - 00:16:17.474 --> 00:16:24.516 - a tragedy like this would not have happened. 00:16:24.516 --> 00:16:29.514 In November that year a similar accident occurred in Scenzhen in China. 00:16:29.514 --> 00:16:31.878 The fires attracted worldwide attention 00:16:31.878 --> 00:16:40.307 and the pressure on companies to show their responsibility for health, safety and working conditions mounted. 00:16:40.307 --> 00:16:46.500 The companies must think of the employee's life and their rights. 00:16:46.500 --> 00:16:52.918 Not just make big profits and then leave 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. 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. 00:17:07.466 --> 00:17:11.301 But what about working hours and wages? 00:17:11.301 --> 00:17:14.467 This is a leading supplier to the Swedish toy market. 00:17:14.467 --> 00:17:18.970 We ask if it is difficult to follow the codes of the Swedish companies. 00:17:18.970 --> 00:17:21.018 TEXT: GINNY MOK, Sales Manager 00:17:21.018 --> 00:17:25.218 We have passed different kinds of controls like quality control on ethical issues. 00:17:25.218 --> 00:17:28.520 We have different audits. 00:17:28.520 --> 00:17:30.308 So, you have no problems of following them. 00:17:30.308 --> 00:17:34.284 Yeah, no problems. No problem. 00:17:34.284 --> 00:17:36.587 Do you always know when they will come? 00:17:36.587 --> 00:17:40.935 Normally they will set up a certain date. 00:17:40.935 --> 00:17:45.764 Not a particular time but the day they are coming... 00:17:45.764 --> 00:17:48.031 - Working 8 hours a day... 00:17:48.031 --> 00:17:52.045 We are shown contracts setting out factory regulations 00:17:52.045 --> 00:17:59.012 and we see wage lists and time cards. 00:17:59.012 --> 00:18:00.802 - Overtime work cannot be over 36 hours 00:18:00.802 --> 00:18:04.555 All seems to be well and in accordance with Chinese law 00:18:04.555 --> 00:18:07.382 and the companies codes of conduct. 00:18:07.382 --> 00:18:14.250 Where is the overtime? No overtime? 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. NOTE Paragraph 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. 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. 00:18:38.306 --> 00:18:43.161 Workers are paid to give appropriate answers to the controllers. 00:18:43.161 --> 00:18:45.892 Do a lot of customers check the factory? 00:18:45.892 --> 00:18:47.219 Yes, pretty often. 00:18:47.219 --> 00:18:50.768 But they don't discover anything. 00:18:50.768 --> 00:18:52.225 Why not? 00:18:52.225 --> 00:18:55.058 Because we have prepared ourselves. 00:18:55.058 --> 00:19:01.837 They know what the buyers are looking for and have prepared for it. 00:19:01.837 --> 00:19:05.306 - so it is pointless to inspect 00:19:05.306 --> 00:19:07.805 Does the factory tell you what to answer? 00:19:07.805 --> 00:19:09.121 Yes, always. 00:19:09.121 --> 00:19:10.350 Do you get paid if you answer as you have been told to? 00:19:10.350 --> 00:19:11.806 Yes, if we give the correct answers we get 50 yuan. 00:19:11.806 --> 00:19:18.140 If it is like that, it is very disturbing. 00:19:18.140 --> 00:19:23.925 But I have not received any reports and never seen anything like that. 00:19:23.925 --> 00:19:28.309 But again, I have not asked if there are any false reports - 00:19:28.309 --> 00:19:32.180 - so it isn't very strange that I have not seen any. 00:19:32.180 --> 00:19:35.635 It shouldn't be like that. 00:19:35.635 --> 00:19:40.637 Now you are saying it is so, and all I can just say is that 00:19:40.637 --> 00:19:42.374 - it shouldn't be like that. 00:19:42.374 --> 00:19:47.960 Tell me what factories they are and we will deal with them. 00:19:47.960 --> 00:19:51.955 An investigation by the Hong Kong Christian Industrial Committee 00:19:51.955 --> 00:19:57.885 shows that 7 out of 9 suppliers cheat in this way. 00:19:57.885 --> 00:20:00.531 What do you think it is like? 00:20:00.531 --> 00:20:02.302 I think it is because they want to make money. 00:20:02.302 --> 00:20:05.347 It takes money to follow the buyers codes of conduct. 00:20:05.347 --> 00:20:08.301 But the suppliers say the buyers will not pay these extra costs. 00:20:08.301 --> 00:20:13.676 If the selling price is too low, the profit of the factory will also be low 00:20:13.676 --> 00:20:19.914 in which case the factory cannot afford to pay the workers their wages 00:20:19.914 --> 00:20:24.465 It is the very worst situation. 00:20:24.465 --> 00:20:29.719 This soft toy manufacturer who is a supplier to the Swedish market agrees. 00:20:29.719 --> 00:20:32.669 Sometimes I joke with our customers... 00:20:32.669 --> 00:20:36.711 "Okay, I agree to everything you want, if you raise the price to 20 percent." 00:20:36.711 --> 00:20:42.038 You know, they are not going to do that. They don't care. 00:20:42.038 --> 00:20:46.731 "You give me a lead time of 90 days instead of 30 days" 00:20:46.731 --> 00:20:49.807 -"then I don't want to do the overtime." 00:20:49.807 --> 00:20:51.859 Nobody wants to do the overtime, right? 00:20:51.859 --> 00:20:56.630 But if you have to ship this order within 30 days - 00:20:56.630 --> 00:21:03.326 - then overtime is obviously necessary 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 00:21:07.332 --> 00:21:11.884 You cannot go and increase the price by 30 percent 00:21:11.884 --> 00:21:16.175 You need time to make sure the customers actually understand that there is a link 00:21:16.175 --> 00:21:18.019 between the price you pay and what you get 00:21:18.019 --> 00:21:23.245 With an increasingly tough global competition 00:21:23.245 --> 00:21:27.428 prices are kept low at the expense of the workers 00:21:27.428 --> 00:21:41.720 Why then don't the workers complain, why don't they protest? 00:21:41.720 --> 00:21:47.200 Han Dongfang was one of the leaders of the student protests in Tiananmen Square in 1989 00:21:47.200 --> 00:21:53.186 where he and thousands of other students demonstrated for democracy in China 00:21:53.186 --> 00:21:57.925 The army crushed the protests which ended in a bloodbath. 00:21:57.925 --> 00:22:03.598 Han Dongfang was imprisoned and eventually deported to Hong Kong. 00:22:03.598 --> 00:22:09.393 According to the trade union law in China only one union is allowed 00:22:09.393 --> 00:22:14.005 which is the official Communist Party controlled union 00:22:14.005 --> 00:22:19.142 and this organization is basically a Communist party branch 00:22:19.142 --> 00:22:22.800 in charge of controlling workers to make sure that 00:22:22.800 --> 00:22:27.973 workers don't know anything about the union. 00:22:27.973 --> 00:22:32.694 Han Dongfang is now working for the cause of Chinese workers 00:22:32.694 --> 00:22:36.217 in his radio program on Radio Free Asia 00:22:36.217 --> 00:22:39.628 and by writing for the China Labour Bulletin 00:22:39.628 --> 00:22:42.879 As it is impossible to organize free trade unions in China 00:22:42.879 --> 00:22:45.308 he gives workers advice by telephone 00:22:45.308 --> 00:22:49.342 on how to organize their grievences within the framework of the law 00:22:49.342 --> 00:22:54.056 and bring their cases to court. 00:22:54.056 --> 00:22:58.873 One day it is hoped that Chinese workers 00:22:58.873 --> 00:23:04.635 will be allowed to form trade unions 00:23:04.635 --> 00:23:08.356 A trade union is a prominent way of protecting workers' rights 00:23:08.356 --> 00:23:12.266 not only in this country but anywhere else 00:23:12.266 --> 00:23:16.860 If you are a few people fighting for this you're scared 00:23:16.860 --> 00:23:27.557 but if you are 300 people or 700 people then you are not scared anymore. 00:23:27.557 --> 00:23:33.754 In Hong Kong, there is an independent trade federation - The Hong Kong Confederation of Workers. 00:23:33.754 --> 00:23:39.804 They claim to be the only free trade union in China. 00:23:39.804 --> 00:23:41.360 TEXT: ELIZABETH TANG, Chief Executive, HKCTU 00:23:41.360 --> 00:23:45.384 Since the 80's when everbody in the world was thinking that China had changed 00:23:45.384 --> 00:23:50.391 and that China was becoming more and more open 00:23:50.391 --> 00:23:54.142 and connecting with the West more and more 00:23:54.142 --> 00:23:59.806 but almost all the workers who have tried to organize 00:23:59.806 --> 00:24:07.965 independent organizations have been arrested. 00:24:07.965 --> 00:24:15.805 They have a union and they can join if they want. 00:24:15.805 --> 00:24:21.960 What are the complaints? 00:24:21.960 --> 00:24:25.053 They have the channel but so far they didn't use it. 00:24:25.053 --> 00:24:27.138 What did the union do then? 00:24:27.138 --> 00:24:30.575 Isn't the union without a purpose then? 00:24:30.575 --> 00:24:35.538 Yes, but the state demands that we have one. 00:24:35.538 --> 00:24:46.224 Actually the workers can complain through these unions 00:24:46.224 --> 00:24:53.722 but so far they are not quite used to voicing their complaints through these unions. 00:24:53.722 --> 00:25:01.303 We are able to meet a union representative from one of the factories. 00:25:01.303 --> 00:25:02.722 TEXT: SAU SANA, Trade Union Representative 00:25:02.722 --> 00:25:10.536 The workers think that they are treated fairly. 00:25:10.536 --> 00:25:13.299 They haven't raised any issues. 00:25:13.299 --> 00:25:20.125 These are the prizes that we have received for our efforts 00:25:20.125 --> 00:25:21.971 on behalf of the workers. 00:25:21.971 --> 00:25:24.393 I believe they think we have done a good job. 00:25:24.393 --> 00:25:28.020 If you formed an independent union at the factory 00:25:28.020 --> 00:25:33.508 what do you think would happen? 00:25:33.508 --> 00:25:37.385 If we did that we would be fired. 00:25:37.385 --> 00:25:42.672 They would never allow an independent union at the factory. 00:25:42.672 --> 00:25:49.013 Well, the worker's demand is even greater than that of the buyer. 00:25:49.013 --> 00:25:54.977 They always have endless demands. 00:25:54.977 --> 00:25:56.363 Are we going to fight? 00:25:56.363 --> 00:26:01.150 Fight! 00:26:01.150 --> 00:26:03.971 In Thailand, workers are able to organize unions 00:26:03.971 --> 00:26:07.595 and this has led to certain improvements. 00:26:07.595 --> 00:26:12.378 When our union was formed, we started demanding improvements. 00:26:12.378 --> 00:26:14.726 The union has had meetings and negotiations. 00:26:14.726 --> 00:26:17.976 So all improvements... everything we have received 00:26:17.976 --> 00:26:22.890 is thanks to our union. 00:26:22.890 --> 00:26:25.953 We meet .. and his workmates who work in a factory 00:26:25.953 --> 00:26:29.292 making toys for export to Europe. 00:26:29.292 --> 00:26:32.203 Conditions are better thanks to the union. 00:26:32.203 --> 00:26:35.969 But it is difficult to live on their wages. 00:26:35.969 --> 00:26:42.468 They live in a poor area. Three of them share one small room. 00:26:42.468 --> 00:26:48.445 They show us a packet of toy motorcycles from their factory. 00:26:48.445 --> 00:26:53.444 As soon as the union demands anything the company says it will be bankrupt 00:26:53.444 --> 00:26:57.012 and they threaten with relocation. 00:26:57.012 --> 00:27:00.892 If they move to China we lose our jobs. 00:27:00.892 --> 00:27:07.426 They threaten us so that we won't demand anything more. 00:27:07.426 --> 00:27:12.337 All Asiatic countries feel the tough competition from China. 00:27:12.337 --> 00:27:17.435 Many Asian manufacturers have already relocated their production there. 00:27:17.435 --> 00:27:20.980 Because of its enormous population and repressive trade union laws 00:27:20.980 --> 00:27:26.675 China can offer companies unbeatable low production costs. 00:27:26.675 --> 00:27:30.146 Employees in Thailand use the threat of Chinese competition 00:27:30.146 --> 00:27:33.752 when negotiating wages and working conditions. 00:27:33.752 --> 00:27:38.097 Thai workers are afraid to demand better wages because of the threat 00:27:38.097 --> 00:27:46.996 and in China employees cannot voice their demands. 00:27:46.996 --> 00:27:54.141 The environment is another victim of the huge expansion of the export industry in Southern China 00:27:54.141 --> 00:27:57.915 There are thousands of factories located along the Dongjiang river. 00:27:57.915 --> 00:28:01.189 Some of them are toy factories which we have visited. 00:28:01.189 --> 00:28:04.611 Most of them release waste untreated. 00:28:04.611 --> 00:28:06.347 TEXT: APPLE CHAN, Greenpeace, Hong Kong 00:28:06.347 --> 00:28:10.766 Testing on Chromium, Lead, Mercury, Phosphorus, Ammonium... 00:28:10.766 --> 00:28:15.226 Mercury is the one we find most problematic because 00:28:15.226 --> 00:28:24.893 it tests 280 times higher than the national state requirements or regulations. 00:28:24.893 --> 00:28:28.113 We are worried because people are drinking the polluted water 00:28:28.113 --> 00:28:30.471 and also eating contaminated fish. 00:28:30.471 --> 00:28:40.891 Research on mercury shows it brings damage to the brain. 00:28:40.891 --> 00:28:46.063 We use water from the factories. 00:28:46.063 --> 00:28:47.724 From the factory over there. 00:28:47.724 --> 00:28:49.662 You use it for irrigation? 00:28:49.662 --> 00:28:50.930 Yes. 00:28:50.930 --> 00:28:52.639 Where else can we get water? 00:28:52.639 --> 00:28:54.932 There is no fresh, clean water. 00:28:54.932 --> 00:29:00.975 There is nothing else. We have to use the water from the factory. 00:29:00.975 --> 00:29:06.307 The pollution is a disaster for the poor who used to live by fishing this river. 00:29:06.307 --> 00:29:11.906 You cannot drink or use the water and we can't fish. 00:29:11.906 --> 00:29:18.647 It comes from upstream from all the factories in Shenzhen. 00:29:18.647 --> 00:29:23.367 It is their waste that comes here. 00:29:23.367 --> 00:29:27.768 You used to be able to see all the way to the bottom. 00:29:27.768 --> 00:29:31.143 Now you cannot see anything because of all the waste. 00:29:31.143 --> 00:29:35.064 We used to bathe here. The water was very clean. 00:29:35.064 --> 00:29:40.415 But now you cannot do that. See for yourself how dirty it is. 00:29:40.415 --> 00:29:42.857 It stinks of death. 00:29:42.857 --> 00:29:45.480 Who is responsible for the environmental devastation 00:29:45.480 --> 00:29:47.814 and the poor working conditions that make possible 00:29:47.814 --> 00:29:51.085 the cheap production of the things we buy? 00:29:51.085 --> 00:29:56.368 We are having more and more industries in the developing countries where there is cheap labour 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 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. 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. 00:30:21.726 --> 00:30:31.301 Many people are ready to take responsibility for the environment 00:30:31.301 --> 00:30:35.009 and that toys are not produced by child workers. 00:30:35.009 --> 00:30:39.727 But our customers and we noticed this when we were manufacturing in Sweden - 00:30:39.727 --> 00:30:46.562 - the customers are not willing to pay the extra cost. 00:30:46.562 --> 00:30:56.647 If we sell the products in our shops, we are responsible for those products. 00:30:56.647 --> 00:31:03.258 I want the consumers to be aware 00:31:03.258 --> 00:31:09.596 that the workers have a hard time. 00:31:09.596 --> 00:31:13.902 We pay for this with blood and sweat. 00:31:13.902 --> 00:31:18.452 We toil and we sweat. 00:31:18.452 --> 00:31:22.900 And at the same time the companies never make a loss. 00:31:22.900 --> 00:31:25.780 I do not want you to stop buying 00:31:25.780 --> 00:31:30.763 but you should know about our difficult situation. 00:31:30.763 --> 00:31:34.386 Do you have any suggestion for the factory? 00:31:34.386 --> 00:31:42.149 We would like the management to be a bit more humane. 00:31:42.149 --> 00:31:45.399 We would like better wages and shorter working hours. 00:31:45.399 --> 00:32:07.812 And when we work at night, we should not have to work so late.