[asia-apec 1010] Open Statement to Disney

[ALARM (APEC Labour Rights Monitor)]

February 10, 1999

To: All Concerned People
From: CHAN Ka Wai
	Associate Director of Hong Kong Christian Industrial Committee

An open statement

Recently we have found out that a letter (copy below) addressed to the
Management of the Walt Disney Company has been circulated in the name of
the Hong Kong Christian Industrial Committee (HKCIC). We would like to make
it clear that the HKCIC, nor any of our staff, did not draft, make and send
this letter. We, therefore, repudiate any responsibility borne by the
statement. 

In principle, however, we agree to what is being proposed in the letter.
Based on our recent field study of Disney's suppliers in South China, the
code of conduct of Disney is just a piece of paper. The code is not
seriously respected in many factories which produce Disney's products. Most
of Disney's suppliers that were covered in the study are brutally violating
workers' basic rights and the Chinese Labour Law. Some workers are even
forced to work for more than 14 hours a day and 7 days a week. Some workers
do not even enjoy the minimum wage. Their wages are deducted by different
kinds of charges  or fines. They can only get part of wages eventually.
Worse still, their wages are always in arrears. They are not protected by
any insurance. Regarding the Code of Conduct, seldom of them know about it.
 

We strongly demand that

1. 	the Walt Disney Company should take immediate action to make sure that
its suppliers will fully respect its code of conduct;
2. 	an independent monitoring team should be set up which must involve
trade unions and NGOs;
3. 	Regular reports on the progress about implementation of the code of
conduct by Disney's partners should be prepared to shareholders of the Walt
Disney Company and the reports should also be open to the public.

Hong Kong Christian Industrial Committee
Address: 704-5, 57 Peking Road, 
	    Kowloon, Hong Kong
Tel:	    (852) 2366 5860
Fax:	    (852) 2724 5098
E-mail:     hkcic at hknet.com				  			


Copy of letter sent bearing the name of HKCIC --

> > °e¥óªÌ: hkcic at hknet.com
> > ¦¬¥óªÌ: chuck_champlin at studio.disney.com
> > ¥D¦®: Stop sweatshop labor!
> > ¤é´Á: 1999¦~2¤ë5¤é PM 12:01
> > 
> > To:  The Management of the Walt Disney Company:
> > 
> > I am disturbed by the recent reports about poor working conditions and
low
> > wages in some of the thousands of factories making Disney products.
> > 
> > While I commend the Walt Disney Company for its Code of Conduct and its
> decision to not do business in Burma, I would like to see the company
uphold
> its positive image by taking much stronger action to ensure that it does
not
> and will not make contracts with manufacturers who cannot guarantee fair
> wages and safe working conditions.  Specifically, I would like to see:
> > 
> > 1. Periodic wage adjustments, based on local cost-of-living studies,
for 
> > employees making Disney-licensed products to ensure an adequate wage
that
> > provides sufficent food, clothing and shelter.
> > 
> > 2. Independent monitoring of suppliers by local religious, human rights
or
> labor groups.  Private auditors are viewed by workers as outsiders who
cannot
> necessarily be trusted.  Workers cannot be expected to talk candidly with
> company-paid auditors on factory property when they don't know if the
> information may be later used against them by contractor management.
> > 
> > 3. A means of verifying that problems identified in audits have been
> addressed, such as public disclosure of supplier audits or disclosure to
an
acceptable third party.
> > 
> > 4. An annual report to shareholders and/or customers on the progress
Disney has made toward complying with the Code of Conduct and ensuring a
sustainable
> wage.
> > 
> > 5. Incentives to encourage suppliers to comply with company standards
> rather than terminating suppliers.
> > 
> > Please let me know what actions you are taking.  My future purchases of
> Disney products depend on evidence of a proactive response by the
company.
> > 
> > Thank you.
> > 
> > Hong Kong Christian Industrial Committee
> > hkcic at hknet.com