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DISNEY CUTTING & RUNNING

DISNEY Refuses Responsibility for 800 Laid-Off Chinese Workers

Students and labor groups protested outside the DISNEY Hong Kong office

SACOM

February 6, 2007 (Tuesday)

Shenzhen-based Huang Xing Factory used to

receive up to 80% of its orders from DISNEY and manufactured branded merchandise such as Mickey key chains and purses. It however had lost a substantial amount of the orders from DISNEY soon after SACOM drew the attention of mass media to sweatshop labor at Huang Xing in September 2006.

Consumers in mainland China, Hong Kong, and other countries are very concerned about the affected 800 Chinese factory workers, who were laid off suddenly in the evening on January 31, 2007 (last Wednesday). The Walt Disney Company Limited turned a blind eye to workers’ rights violations in their supply chain in southern China, despite its claimed commitment to high international labor standards.  

None of the workers at Huang Xing was fairly compensated according to the standard of the Chinese National Labor Law. Instead, all the workers had been forced to move out from the factory dormitory, where the supply of water and electricity was entirely cut off.

Until February 3 (Saturday), more than 80 aggrieved workers of Huang Xing had signed a letter and petitioned to both B-Planet (International) Co. Limited [Huang Xing’s office based in Hong Kong] and The Walt Disney Company Limited. They made 6 legitimate demands to economic compensation and occupational safety & health as follows:

(1)  unpaid overtime wages on weekdays (1.5 times the regular wage rates);

(2)  unpaid overtime wages on Saturdays and Sundays (double the regular wage rates);

(3)  unpaid old age pensions (from the first day at work to January 31, 2007);

(4)  severance pay depending on length of service (one month’s wages per one year of service);

(5)  one month’s wages in lieu of 30-day prior notice of contract termination;

(6)  health check-up for each and every worker (and the provision of adequate medical treatment for the workers in need).

Illegally, the management at Huang Xing paid merely 2,400 yuan to those workers who have been serving in the factory for 10-some years. It was a pitiful amount. Despite the fact that most workers have contributed their youthful years in making the success of their company and DISNEY, they were left with empty hands just before the Chinese New Year.  

Will the workers’ demands remain unanswered?

On February 6 (Tuesday), many students and labor groups called on DISNEY’s corporate social responsibilities and protested outside the Hong Kong office of the Walt Disney Company (Asia Pacific) Limited. SACOM representatives wished to present the workers’ letter to Mr. Jim Leung, Regional Director of International Labour Standards Department ([email protected]) but were unsuccessful. Security guards, policemen, and some company staff were questioned using excessive force and they apologized under pressure.   

SACOM strongly believes that DISNEY, the biggest client of Huang Xing, should be responsible for the lay off of the more than 800 workers. In supporting workers’ spontaneous and ongoing actions at this critical moment, let us email to DISNEY to urge them to do the right thing:

The Walt Disney Company Mark Spears (Director, International Labour Standards) [email protected] Jim Leung (Regional Director, International Labour Standards, Asia Pacific) [email protected] Gina Lee (Compliance Manager, International Labour Standards, Asia Pacific) [email protected] Alannah Goss (Regional Executive Director, Corporate communications, Asia Pacific) [email protected]

Contact SACOM and an international alliance of “Looking for Mickey Mouse’s Conscience” Campaign:

Jenny Chan 9859 7680 [email protected]

Lung Tai 9663 7507 [email protected]

Vivien Yau 9428 7640 [email protected]

SACOM website: www.sacom.hk