The Walt Disney Co said yesterday it has hired an auditor to investigate claims that its Chinese contractors pay workers below minimum wage, demand excessive overtime and cheat labor monitors by faking pay slips.
Disney said it has asked the nonprofit firm Verite to probe allegations by the Hong Kong-based Students and Scholars Against Corporate Misbehavior, a new group aimed at protecting Chinese workers' rights, in its report titled "Recovering Mickey's Conscience."
The operator of one of the factories named in the report, Hong Kong-based Nord Race Paper International Ltd, denied some of the accusations, saying it fully complies with Chinese labor laws.
The allegations come a month before the opening of Hong Kong Disneyland, which Disney hopes will draw throngs of tourists from China.
"Disney and its licensees will work closely with Verite to ensure a thorough investigation of these claims and take the appropriate actions to remediate violations found," a Disney statement said.
It said that it had previously found and addressed international labor standard violations at some factories identified in the Hong Kong group's report, and that those offenses were not as serious as the latest claims.
The report, released on Thursday, said the Nord Race factory in the southern city of Dongguan, which makes Disney stationery, paid workers 2.69 Chinese yuan (US$0.33) an hour until June, when it promised to raise the rate to Dongguan's minimum of 3.43 yuan.
But the factory put off paying workers their June salaries until the end of this month, said the report, which claims to be based on worker interviews.
It said Nord Race workers allegedly put in 383 hours in March, exceeding the 204-hour legal limit.
The factory also failed to triple hourly pay on holidays as required, the report said.
At the Hung Hing printing factory in Shenzhen, run by a Hong Kong company of the same name, workers put in 12-hour days but were only paid for 10, the report said.
It also said industrial accidents are common at the Hung Hing factory. A machine reportedly compressed a worker to death in 2002, and a falling piece of equipment crushed the waist of another worker in a nonfatal mishap this year.
The report also claimed that factories coached workers on how to answer auditors' questions.
The Nord Race factory allegedly issued fake time slips while concealing the real ones showing illegal hours, the report said.
Nord Race said in a statement it abides by Chinese labor laws, paying workers the required minimum hourly wage of 3.43 yuan and capping work hours at 204 a month.
In a response to the allegation that it coaches workers before audits, Nord Race said its workers are poorly educated and the company explains their rights, such as maternity leave, to them. It didn't address the other concerns.
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