Hightech Misery China Web

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    HIGH TECHMISERYIN CHINAThe Dehumanization of Young WorkersProducing Our Computer Keyboards

    FEB 2009

    I f e e

    l l i k e I a m

    s e r v

    i n g a p r i s o n s e n

    t e n c e .

    - M E I T A I F A C T O R Y W O R K E R

    Hewlett PackardLenovo

    MicrosoftDelIBM

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    February 2009

    National Labor Committee

    [email protected]

    www.nlcnet.org

    New York O ce

    (212) 242-3002

    Pittsburgh O ce

    5 Gateway Center, 6 th Floor

    60 Boulevard o the Allies

    Pittsburgh, PA 15222

    Research:

    Charles Kernaghan, Jonathann Giammarco,

    Barbara Briggs

    Design:

    Toms Donoso

    - Labor Donated -

    HigH TecHMiseryin cHina

    T D a izatio ofYo Wo kP od ci O

    Co p t K y oa d

    Dongguan MeitaiPlastics & Electronics Factory

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    HigHTecH in cHina

    The Research

    The research or the Meitai actory report wascarried out between June and September o2008 and updated through mid-January 2009.During this period there were no signi cant

    changes in the actory.

    Our research was based on interviews carriedout over months in sa e locations along withphotographs o primitive actory, dorm and ca -eteria conditions which were smuggled out othe actory. Moreover, internal company doc-

    InTrODuCTIOn: The neW AssemblY lIne 3

    DOngguAn meITAI PlAsTICs & eleCTrOnICs FACTOrY 9

    brAInWAshIng 12

    All emPlOYees shOulD regArD The FACTOrY As hOmebuT 13

    bIg brOTher Is WATChIng 14

    exPOrT subsIDIes In ChInA helPeD DuTY-Free enTrY TO The u.s. 16

    hOursexCessIve FOrCeD OverTIme 18

    lenOvO AnD The OlYmPICs 24

    WAges: WOrKers CheATeD OF uP TO 19 PerCenT 26

    COmPAnY DOrmsPrImITIve COnDITIOns 36

    IllegAllYWOrKers nOT InsCrIbeD InnATIOnAl sOCIAl seCurITY heAlTh InsurAnCe

    51

    heAlTh & sAFeTY vIOlATIOns 53

    Table ofconTenTs

    uments were also smuggled out o the plant,detailing a long list o draconian disciplinarymeasures and nes which were used to controlevery movement and almost every second o

    the workers lives.

    Unlike toy, garment, urniture and auto partsplants, the Meitai actory in Dongguan City hasnot, to date, been hit hard by the worldwide re-cession and it continues to operate at near ullcapacity with ew layo s.

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    eXecUTiVe sUMMary

    HigH TecHMiseryin cHina

    Meitai Plastics &

    ElectronicsDongguan City,Guangdong CHINA

    Two thousand workers, mostly youngwomen, produce computer equipment

    including keyboards and printer casesor Hewlett-Packard, Dell, Lenovo, Mi-

    croso t and IBM.

    Management instructs the workers tolove the company like your home, continuously strive or per ection andto spy on and actively monitor eachother.

    Workers are prohibited rom talking, lis-tening to music, raising their heads, put-ting their hands in their pockets. Work-ers are ned or being one minute late,

    or not trimming their ngernailswhichcould impede the workand or steppingon the grass. Workers are searched onthe way in and out o the actory. Work-ers who hand out fyers or discuss ac-

    tory conditions with outsiders are red.

    The young workers sit on hard woodenstools twelve hours a day, seven days aweek as 500 computer keyboards anhour move down the assembly line orone every 7.2 seconds. Workers are al-

    lowed just 1.1 seconds to snap each keyinto place, repeating the same operation

    3,250 times an hour, 35,750 times a day,250,250 times a week and over one mil-lion times a month.

    The workers are paid 1/50 th o a cent oreach operation.

    The assembly line never stops, and work-ers needing to use the bathroom mustlearn to hold it until there is a break.

    All overtime is mandatory, with 12-hourshi ts seven days a week and an averageo two days o a month. A worker daringto take a Sunday o which is suppos-edly their weekly holidaywill be docked2 days wages. Including unpaid over-time, workers are at the actory up to 87hours a week. On average, they are at the

    actory 81 hours a week, while toiling 74hours, including 34 hours o overtime,which exceeds Chinas legal limit by 318

    percent!

    The workers are paid a base wage o 64cents an hour , which does not even come

    1

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    inTroDUcTion

    THe neW asseMbly line

    T he workers sit on wooden stools, with-out backrests, as 500 computer key-boards an hour move down the assemblyline, twelve hours a day, seven days a week,with just two days o a month.

    Every 7.2 seconds a keyboard passes eachworker, who has to snap six or seven keysinto placeone key every 1.1 seconds.

    The assembly line never stops. The work-place is rantic, monotonous, numbing andrelentless. Each worker inserts 3,250 keysan hour; 35,750 keys during the o cial 11-hour shi t; 250,250 a week, per ormingover one million operations a month.

    Workers are paid 1/50 th o a cent or each

    operation they complete.

    O the 2,000 or so workers at the Meitai ac-tory, the majority are young women, rang-ing in age rom 18 to their mid-twenties.While working, the women cannot talk, lis-ten to music, or even li t their heads to look

    CHARLES KERNAGHAN

    maki Co p t K y oa da d ot P ip aFo h w tt-Packa d, D ,l o o, mic o oft a d Ibm

    I think its air to say that personal computers have become the most

    empowering tools weve ever created.Theyre tools o communication, theyre

    tools o creativity, and they can beshaped by their user.

    The Internet is becoming the townsquare or the global village o

    tomorrow.

    - Bill Gates

    I feel likeI am serving a

    prison sentence.

    - Meitai Factory WorkerMaking Microsoft Keyboards

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    HigHTecH in cHina

    around. Workers are ordered to periodi-cally trim their nails to acilitate work, orbe ned. Workers needing to use bathroommust learn to hold it until there is a break.Security guards spy on the workers, whoare prohibited rom putting their hands intheir pockets and are searched when theyenter and leave the actory.

    The actory operates 24 hours a day on two12-hour shi ts, with the workers rotatingbetween day and night shi ts each month.The workers are at the actory or up to 87

    hours a week, and all overtime is strictlymandatory. There are just two hal -hourmeal breaks per shi t, but a ter racing tothe ca eteria and cuing up to get ood, theworkers have only about 15 minutes to eat.

    The base wage is 64 cents an hour, whicha ter deductions or primitive room andboard drops down to a take-home wage o

    just 41 cents an hour.

    There is also mandatory unpaid overtimeto clean the actory and dorm. At the endo a shi t, workers must stand at attentionas the oreman reviews the days work andwhat improvements must be made.

    The workers get up around 6:00 a.m.When they return to their dorm, sometime

    between 9:00 and 9:30 p.m.they batheusing a small plastic bucket. Summer tem-peratures routinely reach into the high 90s.During the winter, workers have to walkdown several fights o stairs to etch hotwater in their buckets. Ten to twelve work-ers share each over-crowded dorm room,

    sleeping on narrow metal bunk beds thatline the walls. Workers drape old sheetsover their cubicle openings or privacy.

    I a worker steps on the grass on the wayto the dorm, she is ned. The workers arelocked in the actory compound our daysa week and are prohibited rom even takinga walk.

    Management tries to brainwash the youngworkers, telling them they must love thecompany like their home... and that to

    serve society, each worker must be de-voted to their dutycontinuously striving

    or per ection and developing good personal work habits. These good work-ers also have to spy on each other or employees should actively monitor eachother. Communism in China has come along way as the young workers at the Meit-ai actory are taught that, economizing oncapitalis the most basic requirement o

    actory enterprise.

    Workers who hand out fyers or discuss ac-tory conditions with outsiders will be red.Many young workers have never heard theword union and have no idea what it is.

    All the workers know is that they all eel likethey are serving a prison sentence.

    God help us i the labor-management re-lations being developed in China becomesthe new low standard to be accepted bythe rest o the world. The $200 personalcomputer and the $22.99 keyboard may beseen as a great bargain, but in the long runthey come at a terrible cost.

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    A good question is: Would you want your daughter to work in this actory? Corpora-tions attempt to dumb down every job sothey can slash wages and bene ts. I work-ers oppose this and try to ght back, the

    work is outsourced. The result is a Raceto the Bottom, where workers are pittedagainst one another to compete over whowill accept the lowest wages, the least ben-e ts and most miserable working and liv-ing conditions. There are no winners in thisbattle.

    The Decent Working Conditions and FairCompetition Act (S.367) , introduced bySenator Byron Dorgan in the last Con-gress, was co-sponsored by then-SenatorsBarack Obama, Joe Biden, Hillary Clintonand others, along with over 180 memberso the House. The bill simply demands thatcorporations respect wage, hour and laborrights laws in the countries in which theyproduce and that they adhere to the Inter-national Labor Organizations core worker

    rights standards, including reedom o as-sociation, the right to organize a union andbargain collectively. Under this bill, corpo-rations that ail to meet these minimum la-bor rights standards will be prohibited romimporting or selling their goods in the U.S.or exporting them.

    Passage o the Decent Working Condi-tions and Fair Competition Act in the newCongress would be a groundbreaking steptoward nally holding corporations legallyaccountable to respect undamental worker

    and human rights standards and ending theRace to the Bottom in the global economy.

    GoodS pRoduCEd uNdER CoNdiTioNS wHiCHdo NoT mEET A RudimENTARy STANdARd To dECENCy

    SHouLd bE REGARdEd AS CoNTRAbANd ANd NoT ALLowEd TopoLLuTE THE CHANNELS o iNTERNATioNAL CommERCE.

    - RANKLiN dELANo RooSEvELT

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    We are noT HUMan

    Working like THis eVery Dayi DonT see HoW We are any

    DifferenT froM MacHines.ManageMenT TreaTs Us so

    HarsHly; iT is like We are noTHUMan. THey DonT see Us as

    people . THey TreaT Us likeTools . THe facTory Has To

    pay Money To pUrcHase THeMacHines, bUT THey DonT HaVe

    To spenD Money on Us.

    We HaVe To begTHe boss for Mercy

    THe facTory rUles arereally like a priVaTe laW.

    We are forceD To obey anDenDUre ManageMenTs HarsH

    TreaTMenT. soMe yoUngWorkers HaVe boyfrienDs

    anD girlfrienDs oUTsiDe THefacTory anD if THey WanT

    To go on a DaTe, We HaVe To

    beg THe boss for Mercy To be able To leaVe THe facTory

    coMpoUnD .

    Me i T ai

    W

    orke r 3

    Me i T ai

    W

    orke r 4

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    HigHTecH in cHina

    C ter electr n cs asse l l ne at theme ta act r .

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    Mulun North Ring Road Industrial AreaChangping Town, Dongguan City

    Guangdong, China

    Taiwanese-owned

    Produces computer equipment andperipherals such as keyboards and print-er cases or Lenovo, IBM, Hewlett-Pack-ard, Dell and Microso t.

    Approximately 2,000 employees, an es-timated 75 percent o whom are youngwomen. In mid-2008, the Meitai actorywas advertising or workers with a hugewant ad posted outside the actory:

    me ta C an seeks large n ers e ale rkers ages 18-35 r 1,200 t 1,500Rmb er nth [$1 2.80 t $216.00 u.S.]

    DonggUanMeiTai

    plasTics &elecTronicsfacTory

    me ta act r

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    HigHTecH in cHina

    St rage area ns e the act r

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    Ke ar asse l l ne. w rkers s t n haren st ls th t ackrests 12 h rs a

    a rac ng t c lete 500 ke ar s anh r. Each rker ll c lete 35, 50 -erat ns a a .

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    HigHTecH in cHina

    All employees in the actory should regard the actory as home, be

    riendly and help each other out .

    All employees must voluntarily ac-cept the arrangements made by asuperior and actively complete all demands and tasks assigned by thecompany.

    I employees do not ollow the com- panys arrangements the companyhas the right to re-assign such em-

    ployees or demote them; to re-adjust the compensation accordingly; or

    even to dismiss such employees.

    All employees shall strictly complywith production discipline

    meITAI

    FACTOrY regulATIOnsAnD DIsCIPlIne,ChAPTer Iv

    alleMployees sHoUlD

    regarD THefacTory

    as HoMe bUT

    Employees shall concentrate on workduring work hours

    Employees must wear work uni ormsand work shoes; employees must wear their actory ID cards

    All employees o the company shall obey the con dentiality rules and shall not disclose company secretsand technological materials. Without authorization o the company, em-

    ployees shall not will ully photographor videotape within the actoryTheemployee who violates this rule will

    be dismissed. (What managementis really a raid o is that in ormationmay leak out regarding abusive con-ditions in the Meitai actory.)

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    HigHTecH in cHina

    In ractions punished with the loss oover two hours wages ( ne o 10 RMB-$1.44), including or

    Being 1 to 5 minutes late to start a

    shi t

    Not periodically trimming ngernails,which will afect product quality.

    Not lining up correctly while punchingtime cards or at the ca eteria.

    Wearing work shoes outside the workroom a ter work.

    Putting hands in pant pockets while in-side the actory or workroom.

    In ractions punished with the loss o4 hours wages (20 RMB ne, $2.88)

    answering a personal telephone call inthe workroom.

    Not diligently working or raising oneshead to look around when guests or cad-res come to visit.

    Putting personal objects on the workdesk.

    listening to the radio while on the job.

    Not parking bicycles according to com- pany regulations; riding bicycles in and

    out o the company in a way not in ac-cordance with company regulations.

    Returning to the dorm a ter regulated hours [cur ew].

    In ractions punished with the losso nearly seven hours wages (30 RMB

    ne--$4.32)

    Switching beds without authorization. (Dorm beds are assigned by manage-ment.)

    In ractions punished with the loss onearly 1 days wages (50 RMB ne--$7.20)

    Workers who arrive over one hour

    late

    Riding the elevator without permis-sion.

    Plugging in electronics [using elec-tricity] in the dorm room or personal use.

    big broTHer EmpLoyEES SHouLd ACTivELy

    moNiToR EACH oTHER .meITAI FACTOrYsregulATIOns AnD DIsCIPlIne,ChAPTer vII

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    Using the company phone to make personal calls.

    Producing products o low quality

    Workers whogo to visit other work-ers during working hours.

    Chatting at the workstation duringwork hours

    Entering or leaving the actory areawithout allowing door personnel [se-curity guards] to inspect [search work-ers].

    Treating supervisors with an arrogant attitude

    In ractions punished with the losso nearly three days wages (100 RMB

    ne--$14.40):

    Leaving ones workstation without per-

    mission

    Putting up personal noticesor hand-ing out yers .

    Revealing con dential company or production-related in ormation.

    In ractions punished with ring:

    Violating labor disciplineand not obeying the companys work arrange-ments.

    Taking part in illegal organizations .[In China, this means independentunions; human, womens and childrensrights organizations and non-state-sanctioned religious organizations.]

    Not ollowing the procedures spelled out by government regulations onstopping work, slowing work down, en-couraging others to stop or slow downwork.

    Missing three days o work.

    Disobeying Chinas one-child policy.

    Not obeying company arrangementsor directions or collectively causing

    trouble as a group

    Any behavior similar to that listed above or helping or colluding in suchbehavior.

    is WaTcHing

    (Meitai factorys Factory Regulations and Discipline is appended on-line at http://www.nlcnet.org/article.php?id=611.)

    biGbRoTHERbiGbRoTHER

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    HigHTecH in cHina

    China is not only manipulating its curren-cy to gain an un air trade advantagear-

    bitrarily devaluing the yuan to lower thecost o its imports to the U.S. China isalso providing its export actories withlarge tax subsidies.

    The standard value-added tax (VAT) inChina or computer hardware and otherelectronic products is set at 17 percent.However, to promote exports to the U.S.,

    actories such as Meitai are granted an ex-port VAT tax rebate o 13 percent, mean-ing the e ective tax rate drops to just ourpercent. For example, i Meitai shipped $1million-worth o computer componentsto the U.S., instead o having to pay thestandard 17 percent tax, amounting to$170,000, Meitai pays just our percent,or $40,000, resulting in a tax saving o$130,000. China has e ectively slashed

    taxes by 76 percent or actories export-ing advanced technology products to theU.S. and other countries.

    U.S. trade policy urther assists Chinas ex-port o advanced technology products to

    the United States by allowing computerkeyboards, other computer componentsand many electronic goods to enter theU.S. duty- ree. While computer com-ponents rom China enter the U.S. duty-

    ree, there is a 35 percent tari or similarproducts made in Cuba.

    The government o China helps its ex-porters in other ways as well: directingstate banks to loan more money, disburs-ing government research unds, providingtens o billions o dollars-worth o letterso credit to exporters and by pressingmunicipal governments to stop raisingwages.

    An estimated 80 percent o computersand consumer electronic goods are now

    imported to the U.S.

    eXporT sUbsiDies

    in cHina HelpeDby DUTy-freeenTry To THe U.s.

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    HigHTecH in cHina

    ro ti 81 1/4- o wo kw k

    Nominal 12-hour shi t, 8:00 a.m. to8:00 p.m., seven days a week.

    All overtime is mandatory .

    Workers allowed just two days o amonth.

    Including unpaid overtimemandato-ry work meetings and preparationsworkers are routinely at the actory 12 hours a day while toiling 11 hours.

    On average, including unpaid over-time, workers are at the actory 81 hours each week while toiling 73 hours, including 34 hours o obliga-tory overtime, which exceeds Chinaslegal limit by 318 percent.

    At the extreme, workers are at the ac-tory 87 hours a week, while working80 hours, which exceeds the legal overtime limit by 388 percent.

    HoUrs exCessIveFOrCeDOverTIme

    5,500 c ter ke ar s lle n the asse l l ne

    each a .

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    Work on the day shi t begins everyday at 8:00 a.m. The shi t ends at

    8:00 p.m. The night shi t begins at 8:00 p.m. and ends at 8:00 a.m.

    There is a mandatory meeting 20minutes be ore each shi t. A ter each shi t is fnished, workers must line up and wait or the oreman to

    sum up the conditions o the days production and discuss ways to pre-vent problems and make improve-ments.

    The production departments dayshi t has a lunch hour between 11:30a.m. and 12:30 p.m. The day shi t hasdinner between 4:30 p.m. and 5:30

    p.m. Break ast is at 7:00 a.m. Thenight shi t has a late-night snack be-tween 11:30 p.m. and 12:30 a.m. The

    night shi t eats break ast at 8:30 a.m. Also, when workers eat they should return to their work shop to workwithin 30 minutes. Violators will be treated as i they were late or work.

    facToryrUles

    hOurs

    In the ten minutes be ore beginningand ending a shi t, preparations or

    changeover must take place.

    Tidiness and cleanliness o thework area must be maintained, and the cleanliness o the surrounding en-vironment protected.

    All workers must fll out an opera-tors orm in ull immediately a ter

    getting o a shi t .

    Every day workers must carry out the7 S duties[straightening, organiza-tion, cleaning, tidying up]around the work area be ore beginning and ending their shi ts.

    Meitai factory mATERiALS oR NEw EmpLoyEE TRAiNiNG

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    HigHTecH in cHina

    HoUrs

    eXcessiVeManDaToryoVerTiMe

    grUeling 12 -HoUr sHifTs, seVen Days a Week.

    T he Meitai actory operates 24 hours aday with two 12-hour shi ts. The dayshi t isnominally rom 8:00 a.m. to 8:00p.m., with hal -hour breaks or lunch andsupper at 11:30 a.m. and 4:30 p.m. Thenight shi t is rom 8:00 p.m. to 8:00 a.m.,with a late night snack, also or hal an hour,at 11:30 p.m., and a short rest period at 4:30a.m. The workers are at the actory at least12 hours a day while toiling 11 hours. It is thesame with the night shi t.

    The workers alternate shi ts every month,with day workers moving to the night shi tand night workers to the day shi t.

    The actory operates seven days a weekand does not guarantee weekends or na-tional holidays o . It all depends on how

    much work the actory has. On average, theworkers receive just two days o a month.Workers needing to take a day o while the

    actory is operating on the weekend mustapply or permission to be absent. Even i

    permission is granted, workers are docked 50 RMB ($7.20)or nearly one-and-a-hal days wages or taking a Saturday or Sun-

    day o which are supposed to be theirweekend holidays.

    At the Meitai actory, there is also aseparate assembly department, whichoperates only on day shi t. The numbero lines and workers varies, and risesor alls according to production needs.Three lines operate on mandatory 12 to14-hour shi ts, also seven days a week.

    Workers roUTinely aT

    THe facTory 78 HoUrs a Week, WHile Toiling71 HoUrs, inclUDing

    31 HoUrs ofobligaTory oVerTiMe.inclUDing UnpaiDoVerTiMe , Workers

    are aT THe facTory UpTo 87 HoUrs.Given that the workers receive just twodays o each month, on average they at the

    actory six-and-a-hal days a week, whileputting in the nominal 12-hour shi ts. (Allworkers are required to remain or at least30 minutes o unpaid overtime per day, so

    the real shi t is a minimum o 12 hours).Workers are allowed two hal -hour breaksor lunch and supper in the day shi t and

    two similar breaks on the night shi t or alate-night snack and a tea break. So work-ers are at the actory 12 hours a day, whileactually toiling 11 hours, including threehours o overtime each weekday.

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    This puts the workers at the actory an av-erage o 78 hours a week (6.5 days x 12hours=78) while they would be toiling 71 hours (6.5 days x 11 hours=71 hours),including 31 hours o mandatory over-time a week (71 - 40 regular hours=31) , which exceeds Chinas legal limit onovertime by 279 percent!

    The legal regular work week in China is 40hours, with eight-hour shi ts, ve days aweek. All overtime must be strictly volun-tary, paid at a premium, and cannot exceed

    36 hours a month. At the Meitai comput-er actory workers are required to work aminimum o 136 hours o overtime eachmonth.

    On the alternating weeks that they are re-quired to work seven days, the workersare at the actory 84 hours, while toilingat least 77 hours, including 37 hours o overtime, which exceed Chinas legal limit by 345 percent. At the low end, when theworkers are toiling six days a week, they areat the actory a minimum o 72 hours, whileworking 66 hours, including 26 hours o mandatory overtime. Even this minimumamount o overtime exceeds Chinas legal limit on overtime hours by 213 percent!

    all oVerTiMeis ManDaTory

    When the company demandsworkers to work overtime, all workers must comply without

    condition.

    -Factory Regulations onEmployee Bene ts, Chapter V

    noMinal Day sHifT(12 hours)

    8:00 a.m.11:30 a.m. (work, 3 hours)

    11:30 a.m.12:00 noon (lunch, 1/2 hours)

    12:00 noon4:30 p.m. (work, 4 hours)

    4:30 p.m.5:00 p.m. (supper, 1/2 hours)

    5:00 p.m.8:00p.m. (overtime, 3 hours)

    As there are so many workers in the ac-tory, and with many departments runningtheir machinery 24 hours a day, the hal -hour lunch and supper breaks or the work-ers are staggered with groups o workersleaving and returning at di erent times be-tween 11:30 a.m. and 12:30 p.m., and again

    rom 4:30 p.m. to 5:30 p.m. In reality, thethirty minute breaks are even shorter thanthey appear since it takes the workers atleast eight minutes to walk to and rom theca eteria, and it is typical to have to cue upand wait at least another ve minutes be-

    ore being served ones ood. This leavesthe workers with just 17 minutes, or less, toeat . They also have to report back early totheir work stations, or they will be ned.

    noMinal nigHT sHifT(12 hours)

    8:00 p.m.11:30 p.m. (work , 3 hours)

    11:30 p.m.12:00 a.m. (snack, 1/2 hour)

    12:00 midnight4:30 a.m. (work, 4 hrs)

    4:30 a.m.5:00 a.m. (tea break, 1/2 hour)

    5:00 a.m.8:00 a.m. (overtime, 3 hours)

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    inclUDing UnpaiD oVerTiMe,Workers are aT THe

    facTory Up To 87 -HoUrs a Week , WHile Toiling 80 -

    HoUrs, inclUDing 40 -HoUrsof ManDaTory oVerTiMe,

    WHicH eXceeDs cHinas legalliMiT by 388 percenT!

    In reality, conditions at the Meitai actoryare even worse than they rst appear, as allworkers are required to remain or at least a

    hal hour o o -the-clock unpaid overtimeeach day. The real shi t is 12 hours andnot 12, with the workers routinely toiling 11 hours a day and not the nominal 11 hoursthey are supposed to be paid or. Factoryregulations spell out very clearly that allworkers must arrive approximately 30 min-utes early to their shi ts or a mandatory20-minute work meeting with managementand to allow ten minutes to clean and pre-pare their workstations. At the end o eachshi t, workers must stand at attention asthe oreman reviews the days production,analyzing problems and explaining correc-tive plans to be implemented the ollowingday. Workers must also ll out report ormsdocumenting the amount o productionthey completed that shi t and then remainto clean their workstations and the immedi-

    ate surrounding area.

    Moreover, workers on each line must taketurns joining other volunteers to stay be-hind approximately once a week to cleanthe entire actory. This way managementdoes not have to hire and pay or janito-rial sta . It is the same with the compa-

    ny dorms. Workers have to take turningsweeping and mopping the dorms and toi-lets and hauling out the garbage.

    Even leaving aside the teams that clean theactory and dormitory, the workers are rou-

    tinely at the actory 12 hours a day whileworking 11 hours, including three-and-a-hal hours o overtime each week day. This

    schedule puts the workers at the actoryan average o 81-hours a week while toiling74 hours [11.5 hours x 6.5 days=74.75], in-cluding 34 hours o overtime each week,

    which exceeds Chinas legal limit o per-missible overtime by 318 percent! Eachweek, the workers are orced to remain orat least an additional 3 hours o manda-tory overtime or which they are not paid.

    Workers on the night shi t also receive justtwo hal -hour breaks or a snack at 11:30p.m. and tea at 4:30 a.m.

    18 HoUr sHifT once a MonTH:

    On the day the workers alternate shi ts eachmonth, moving rom day to night or the re-verse, they are essentially required to put inan 18-hour shi t. On the day shi t or exam-ple, the workers will toil their minimum 12hour shi t rom 8:00 a.m. to 8:00 p.m. andreceive a ew hours sleep be ore reporting

    back at 2:00 a.m. that same night to workthrough to 8:00 a.m. the ollowing morning.The night shi t, in reverse, works the samehours. In the 24-hour period, the workerswill toil 18 hours, while being allowed justsix hours o .

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    long Day for THe Workers(12 -hour shi t with 11 -hours o work)

    6:00-6:15 a.m.: Workers awake and cue up to use the public

    toilet and to wash using a plastic bucket.

    7:00 a.m.: Break ast in the company ca eteria.

    7:30-7:40 a.m.: Workers have to report to their workstations 30minutes be ore their shi t begins or a mandatory meeting withmanagement and to prepare their workstations (unpaid).

    8:00 a.m.11:30 a.m.: Work, 3 -hours.

    11:30 a.m.12:00 p.m.: Lunch, 30 minutes (The workers have just 15 minutes to eat).

    12:00 p.m.4:30 p.m.: Work, 4 -hours.

    4:30 p.m.5:00 p.m.: Supper, 30 minutes (The workers have just 15 minutes to eat).

    5:00 p.m.8:00 p.m.: Work, 3 hours o paid overtime.

    8:00 p.m.8:30 p.m .: Mandatory work meeting with

    management, ll out paperwork and clean work area (unpaid). 8:459:00 p.m.: Return to dorm. Four days a week the workers

    are prohibited rom leaving their dorm a ter working hours.

    11:00 p.m.12:00 a.m.: Lights out no later than midnight, and noone can talk, listen to music or leave their room.

    O ce workers at the Meitai actory mustalso work overtime without pay. Manage-ment explains that o ce workers are onthe responsibility system, meaning theyare responsible to work or as many hoursas it takes to get the job done, with no pay-ment beyond their regular wages.

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    HigHTecH in cHina

    lenoVo &THe olyMpics:

    a call TolenoVo ToHelp enD grossWorker rigHTs

    ViolaTions in cHinas HigHTecH facToriesU.S. Has $68 Billion Trade De cit withChina in Advanced Technology Products

    Lenovo is in a unique and power ul posi-tion to help end the gross and systematicviolation o human and worker rights in

    actories across China producing com-puters and other advanced technologyproducts.

    A ter acquiring IBMs entire personal com-puter operation in 2006, Lenovo has be-come Chinas largest PC maker, control-ling one-third o all PC sales in China.

    Lenovo also played a very prominent

    role in the recent Beijing Olympics. It was the Lenovo company that designed the Olympic torch or the China games.Lenovo was also the only Chinese com-panypaying tens o million o dollarstobe among the select 12 worldwide corpo-rate partners o the International OlympicCommittee. Moreover, Lenovo supplied

    secUriTygUarDs

    spy on THeWorkersWith the long hours and grueling produc-tion goals, seven days a week, it is only to beexpected that some o the younger workerswill become atigued and drowsy. Manage-ment uses security guards to patrol the shop

    oor supplied with digital cameras to take

    pictures o workers resting or brie y closingtheir eyes. Management uses the picturesas evidence to ne the workers at least

    20 RMB ($2.88) or each ofense. Thisamounts to the loss o 4 hours wages.

    There is even a ne or being caught eatinga small bag o potato chips on the actory

    oor. For eating snacks at work, the ne is10 RMB ($1.44), a loss o 2 hours wages.

    There are security guards in the ca eteria aswell. Workers who do not nish their ood are ned 20 RMBa loss o 4 hours wag-es.

    These nes all under the category o breacho work principles. The top ne is 100 RMB($14.40), or nearly three days wages.

    The workers smuggled a list o nes out o the actory rom one department or themonth o October 2007. The list shows 43 workers being ned a total o 12,424 RMB--$1,789.07which amounts to an average o $41.61 per worker per month.

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    computer equipment and technicians tothe Olympic Games.

    continued on p. 25Days be ore the Olympics, Lenovos chieexecutive o cer, William Amelio, put itthis way: The global spotlight is shin-ing on Lenovo, our products and our

    people. Lenovos chairman is Mr. YangYuanqing.

    Lenovo is the worlds ourth largest PC vendor , controlling 7.6 percent o the

    worldwide market, and sells ThinkPadnotebooks and ThinkCentre desktops.Lenovo continues to have a strategic al-liance with IBM , including sharing cus-tomer service and nancing.

    Going into the Olympics, Lenovo was onre, reporting quarterly pro ts up by 65

    percentto $110 million on $4.2 billionin sales ( or the quarter ending June 30,2008). China accounts or approximately41 percent o Lenovos worldwide sales.Even going into the ollowing quarter(ending September 30), Lenovos salescontinued to rise to $4.33 billion with anoperating pro t o $30 million.

    Lenovo is a major player, with operationsspanning both China and the United

    States. Lenovos U.S. headquarters arelocated in Raleigh, North Carolina, whiletheir China o ces are in Beijing.

    Especially given Lenovos recent role inthe Beijing Olympics and the companysstature as the worlds ourth largest PC

    maker, Lenovo has the power to beginimproving undamental worker rightsstandards in its supplier and contract ac-tories across China.

    Speaking o the Olympics, the real Olym-pians are Chinas actory workers. Notmany Olympic athletes could per orm thesame operation every 1.1 seconds, 3,250times an hour and 35,750 times a day,12 hours a day and seven days a week,month a ter month, while being spied

    upon by security guards and prohibitedrom talking, listening to music, using

    the bathroom or even li ting their headsto look around. Imagine Olympic ath-letes returning to primitive, overcrowdeddorms trying to sleep on bunk beds in80 to 90-degree temperatures while be-ing ed ood that is hard to swallow. Itis Chinas actory workerslike those atMeitai manu acturing computer peripher-als or the largest multinationalswho arethe real Olympians, orced to compete ina game in which they have no voice andno exit.

    We urge Lenovos chairman, Mr. YangYuanqing, and CEO, Mr. William J. Amelio,to begin this process by ending the grossand systematic worker rights violations at

    their supplier plant, the Dongguan Meitai Plastics and Electronics actory, where2,000 mostly young women workers aredenied their undamental rights. Thesame demand is being made to Lenovospartner, IBM, as well as o Hewlett-Packard, Dell and Microso t.

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    HigHTecH in cHina

    The legal minimum wage o just 64 centsan hour , $5.10 a day and $25.59 a weekdoes not come close to meeting basicsubsistence-level needs.

    A ter deductions or primitive room andboard and administrative ees, the work-ers take-home wages all to just 41 centsan hour .

    A review o individual paystubs showsworkers being cheated o 14.4 percent o the pay legally due them each month.

    A typical worker earned just $287 or working 319 hours in May 2008, includ-ing 151 hours o mandatory overtime. Bylaw, these workers should have earned at least $328.82 or the month--$289.65a ter deductions or room, board and administrative ees. Instead, the work-ers earned a take-home wage o just $247.83, which was $41.8214.4 per-centless than they were legally owed.

    It gets even worse when one includes theminimum hal -hour o unpaid mandatoryovertime required each day. Includingthe unpaid overtime, the workers are ac-

    tually being cheated o $57.02, or 19 per-cent, o the wages due them. Instead o earning a gross wage o $300.96 or themonth, they were paid just $243.94.

    The workers believe that actory man-agement also ignores Chinas laws on

    weekend overtime, which must be paidat a 200 percent premium, or $1.28 perhour. Instead, management pays just96 cents, which is the rate or weekdayovertime. Given that it is common orworkers to be orced to toil 88 hours oweekend overtime a month, this meansthe workers are being shortchanged o$28.16, since they are being paid $84.48

    per month rather than the $112.64 theyare legally owed. This is just one o theways the Meitai actory cheats its work-ers.

    Management also illegally withholds upto one months back wages owed theworkers.

    By law, success ul actories like Meitaiservicing such clients as Lenovo, Micro-

    so t, Dell, IBM and Hewlett-Packard,whose combined profts exceeded $98billion in fscal year 2008 are requiredto pay above the legal minimum wage.However, the Meitai actory actually

    pays wages below the legal minimum.

    Lenovo, Microso t, IBM, Hewlett-Packard

    and Dell, with a combined market valueo $589 billion in scal year 2007/2008are responsible to see that the Meitaiworkers are nally paid at least the legalminimum wage and that they are paidevery cent o back wages due them.

    Wages WOrKers CheATeD OF uPTO 19 PerCenT OF WAgeslegAllY Due Them

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    THe legal MiniMUM Wage incHinaWorkers geT a

    6 -cenT-an-HoUr increase:

    Through March o 2008, the legal minimumwage in Dongguan City, where the Meitai

    actory is located, was 57 cents an hour.Then, on April 1, 2008, the minimum wagewas increased and the workers received a6 -cent an hour raise to 64 cents ($0.637)an hour.

    Minimum Wage as o March 2008

    (690 RMB per month )

    57 cents an hour$4.57 a day (8 hours)

    $22.93 a week (40 hours)$99.36 a month$1,192.33 a year

    (As o mid-2008, the exchange rate was6.9444 RMB = $1.00 U.S.)

    New Minimum Wage in April 2008(770 RMB per month )

    64 cents an hour$5.10 a day (8 hours)

    $25.59 a week (40 hours)$110.88 a month

    $1,330.57 a year

    In China, all overtime work must be vol-untary and paid at a premium. Weekdayovertime must be paid at a 150 percent pre-mium, or 96 cents an hour ; weekend over-time at a 200 percent premium, or $1.28 ,

    and work on national holidays paid as tripletime, or $1.92 per hour.

    oVerTiMe raTes

    Weekday Overtime $0.96 an hour

    Weekend Overtime $1.28 an hour

    Holiday Overtime $1.92 an hour

    a Take-HoMe Wage of jUsT 41 cenTs an HoUr

    A ter deductions or primitive room andboard and administrative ees (272 RMBper month--$39.17), the workers regulartake-home wage drops 35 percent to just41 cents an hour.

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    HigHTecH in cHina

    a 43-cenT sTipenD To WorkTHe grUeling all-nigHT sHifT

    Included in the workers wages are certainbonuses and stipends. There is a nightshi t subsidy o three RMB, or 43 cents pernight, or working the grueling 8:00 p.m.to 8:00 a.m. shi t. Given that the workersare allowed just two days o a month, theirnight shi t subsidy or the month totals 84RMB, or $12.10. (When we calculate the av-erage wage at the actory, we cut the nightstipend in hal ---to $6.05as the workers

    alternate day and night shi ts every othermonth.)

    I workers do not miss any days or arrivelate or their shi ts, they will earn an atten-dance bonus o 50 RMB ($7.20) per month.There is also an achievement bonus o 135RMB ($19.44) a month. The workers can-

    not explain exactly how the bonus is calcu-lated, but it is de nitely tied to how muchthe workers produce as a way to encour-age them to work aster. Lastly, there is anovertime award bonus o 30 RMB a month($4.32), which is tied to all the orced over-time the workers must toil. The bonusesand stipends account or 12 percent o theworkers total wages.

    bonUses per Week anD per MonTH

    Night Shi t Subsidy $1.40 per week $6.05 per monthAttendance Bonus $1.66 per week $7.20 per monthAchievement Bonus $4.49 per week $19.44 per monthOvertime Award $1.00 per week $4.32 per month

    Total: $8.55 per week $37.01 per month

    (The night shi t subsidy must be cut in hal to calculate the average actory wage, sinceworkers switch rom day to night shi t every other month.)

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    sWeaTsHopWages

    Along with the other violations character-izing the Meitai actory, there also appearto be serious wage problems.

    A review o individual pay stubs rom theMeitai actory also reveals a pattern o sys-tematic and illegal underpayment o wag-es.

    One paystub rom May 2008 was typi-cal. This person worked on the night shi t,

    rom 8:00 p.m. to 8:00 a.m., actually toil-ing 11 hours, including 3 hours o obligatoryovertime, a ter deducting the two hal -hoursnack breaks. (Again, we are not includ-ing the minimum hal -hour o mandatoryunpaid overtime which is required eachshi t.)

    In the month o May, the workers had onepaid legal holiday o , which was May Day.Other than that, our worker took just oneSunday o . So he actually worked 29 days,including 21 weekdays and eight weekenddays. Moreover, he would have been paid

    at least the legal minimum wage or eighthours on May 1, the legal holiday.

    This person worked 319 hours in the montho May 2008, including 151 hours o man-datory overtime, which exceeds Chinaslegal limit on permissible overtime by 319

    percent. This person worked 168 regularhours [21 weekdays x 8 hours = 168], butshould also be paid another eight hours

    or the May Day holiday, bringing the total paid regular hours to 176. Like everyoneelse, this worker was required to toil threeobligatory hours o overtime per weekdayand 63 hours o overtime or the 21 week-days. Toiling eight weekend nights, thisworker put in another 88 hours o obliga-tory weekend overtime.

    Given the precise in ormation on days andhours worked, we can calculate the legalminimum wages due this worker.

    reVieW of inDiViDUal pay sTUbs reVeals Workers

    being sHorTcHangeD ofoVer 14 percenT of THeWages legally DUe THeM

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    HigHTecH in cHina

    The $328.82 legally due this worker or the month o May is hardly a staggering sum, as itaverages just $1.01 an hour , including the 151 hours o mandatory overtime. This worker alsotoiled the grueling 12-hour night shi t, rom 8:00 p.m. to 8:00 a.m., with just one Sunday o ,thereby earning the night shi t di erential.

    A ter deductions or room and board and administrative ees o $39.17, the worker shouldhave taken home $289.65 or the month.

    But this is not what the worker got paid. His regular wage or May 2008 was 770 RMB($110.88) , while he was paid just 924 RMB ($133.06) or overtime , or a total wage o$243.94 or the month. His bonuses and stipends added another 299 RMB ($43.06) , bring-ing his wages up to $287 or the month. A ter deductions o $39.17 or room and board andadministrative ees, his take-home wage dropped to $247.83.

    * 176 regular weekday hours x the legal minimum wage o 64 cents an hour = $ 112.64 (168 regular hours worked + 8 hours paid holiday on May 1)

    * 63 hours o weekday overtime x 150% overtime premium o $0.96/hour = $ 60.48 (3 OT hours/day x 21 days = 63 hours)

    * 88 hours o weekend overtime x the 200% overtime premium o $1.28/hour = $ 112.64 (11 OT hours x 8 days = 88 hours)

    Subtotal-Wages: $ 285.76 (Regular, overtime & holiday wages)

    * Night Shi t Subsidy $ 12.10 (90 RMB per month 2 days of = 84 RMB)

    * Attendance Bonus $ 7.20 (50 RMB per month)

    * Achievement Bonus $ 19.44 (135 RMB per month)

    * Overtime Award $ 4.32 (30 RMB per month)

    Subtotal-Bonuses $ 43.06

    Total Wages & Bonuses $ 328.82

    for Working 319 Hrs in May

    -inclUDing 151 HoUrs of

    ManDaTory oVerTiMe-

    THis Worker sHoUlDHaVe receiVeD aTleasT $328.82

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    As documented, this typical worker should

    have earned $328.82 or the month o May2008, including one paid holiday and 151hours o mandatory overtime. Instead heearned just $287, which is $41.82 short o what he was legally owed. A ter de-ductions, his take-home wage dropped to$247.83, again, $41.82 short o the $289.65he was legally owed. This means he was

    shortchanged o 14.4 percent o the wageslegally due him. For these poor workers inChina, this represents a staggering amounto money to lose. It is the equivalent o be-ing robbed o more than 1 weeks wageseach month.

    It gets even worse: Including unpaid over-time, the workers are shortchanged o $57.02or 19 percent o the wages legallydue them each month.

    As has been documented, even by themost conservative estimate, the Meitai ac-tory workers are obligated to work at leasta hal -hour o unpaid overtime each day.The obligatory but o -the-clock work in-cludes attending work meetings with man-

    agement as well as preparing and clearing

    ones work station. This does not includethe extra hours volunteers have to put incleaning the actory and dorms.

    So instead o working 63 hours o weekdayovertime as calculated above, this typicalworker actually toiled 11 hours o overtimeeach day and 73 hours or the 21 week-days. Instead o being paid $60.48 or theweekday overtime, he should have earned$70.56. [3 hours o weekday overtime x21 days = 73 hours; 73.5 x $0.96 = $70.56]It is the same with the weekend overtime.Instead o having worked 88 hours, thisworker actually toiled 92 hours o weekendovertime and should have been paid $117.76and not the $112.64 used in the calculation.On overtime pay alone, this worker wasshortchanged o $57.02 , or 19 percent o

    the wages legally due him or the month oMay 2008. He should have earned $300.96or the month and not $243.94.

    cHeaTeD of 14 percenT of

    THe WageslegallyDUe HiM

    Ke ar a e at the me ta act r .

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    HigHTecH in cHina

    lenoVo, Dell anD THe oTHer

    coMpUTer coMpanies

    sHoUlD Make THe Workers

    WHole again .

    Microso t, Hewlett-Packard, Lenovo, IBMand Dell should work with Meitai actorymanagement to guarantee that the workersare nally paid their legal wages. Moreover,these power ul and antastically wealthycompanies should make these computerworkers whole again, by seeing that they

    are paid every cent in back wages that islegally due them.

    More Wage ViolaTions:

    Management illegally withholds work-ers wages:

    This is blatantly illegal. Under Chinaslabor laws, workers must be paid theirprevious months wages no later thanthe seventh o the ollowing month. Atthe Meitai actory, management illegal-ly withholds twenty to thirty days backwages rom the workers. This tactic is

    just another way to pressure the work-ers, who know that i they dare upsetmanagement, they could not only be

    red, but also docked a whole monthsback wages.

    By law, paying the minimum wageshould be the exception, not the rule.According to the Ministry o LaborsNotice on Improving the MinimumWage System:

    When production and business opera-tions are normal and economic pro-ductivity continues to rise, employers

    should, on principle, pay above thelegal minimum wage or work doneduring regular hours. I the employ-er must pay their entire work orce or

    a portion o their work orce minimumwage due to operational or productionreasons, they must rst consult with all o the workers or with the employeerepresentatives and receive permission.Next, they must le a report with thelocal Ministry o Labor and Social Secu-rity.

    On the 20 th , the companynance department will hand

    workers their wage stubs [ or the previous months wages]

    and have the money trans erred into the workers individual

    accounts at a commercial bank.

    -- Meitai Factory Regulationsand Discipline , Chapter V

    On Employee Bene ts

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    Surely, i any actory would be in aposition to pay its employees abovethe minimum wage o just 64 centsan hourwhich itsel comes nowherenear being a subsistence-level wageitwould be the Meitai actory.

    First, we are not talking about low-end workers assembling cheap $4 or$5 pairs o sneakers or Wal-Mart. AtMeitai, the workers are manu acturingcomputer keyboards, printer cases andother computer components. Second-

    ly, Meitai clientsLenovo, Dell, Hewlett-Packard, IBM and Microso thad acombined pro t o more than $98 bil-lion in scal year 2007/2008! So thereis certainly money enough here to atleast comply with Chinas minimum la-bor laws.

    Workers at the Meitai actory makingcomputer components or Microso t,IBM, Hewlett-Packard, Dell and Lenovoare paid so little and are so poor, theydo not have to pay any income tax.In China, a worker would have to earnover $1.66 an houror $66.46 a weekin order to pay taxes. For example, aworker earning $2.08 an hour--$83.08a week, $360 a monthwould pay anincome tax rate o $3.60 per month.

    Due to their extreme poverty, Meitaiscomputer workers are not required to

    pay any income tax.

    recession reVeals THeinaDeqUacy of cHinasMiniMUM Wage

    In response to the economic recession,export assembly actories across thesouth o China have stopped hiring newworkers, with many actories resortingto mass layo s. A common tactic usedby actory management wanting to shedworkers is to send them on an extendedholiday, during which period the workers

    will receive only the legal minimum wage.However, as the minimum wage does notcome close to meeting their subsistenceneeds, the workers have no choice but toquit voluntarily, which then absolves the

    actory o any responsibility to pay sever-ance or other bene ts. This speaks vol-umes regarding how inadequate Chinasminimum wage really is. The export as-sembly plant workers survive or go underdepending on how much overtime theywork.

    Ke ar a e at the me ta act r .

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    HigHTecH in cHina

    THe UrgencyTo iMproVe

    U.s.-cHinaTraDe policy

    w ithin a matter o years, China willemerge as the worlds secondlargest economy, making it more criticalthan ever be ore to begin improving U.S.-

    China Trade Policy.

    In 2007, China surpassed Germany as theworlds third largest economy, behind theUnited States and Japan. In our years orless, China is expected to bypass Japan,leaving the U.S. and China as the worldstwo largest economies.

    In 2008, China also passed Mexico as thesecond largest trading partner in goodswith the U.S., right behind Canada. As oNovember 2008, China is trailing Canadaby just $3.2 billion in goods exported tothe U.S. For now, Canada is the leadingexporter o goods to the U.S., China issecond, Mexico third, ollowed by Japan,Germany, United Kingdom, South Korea,France, Saudi Arabia, and Venezuela.

    As o November 2008, the overall U.S.trade de cit is running at an annual rateo $688.2 billion, down less than two per-cent rom the $700.3 billion trade de -cit in 2007. In November, the U.S. tradedefcit in goods with China was $23.1 bil-

    lion, amounting to an astonishing 45.4 percent o the total U.S. defcit in goodso $50.1 billion or the month .

    Between 2001, when China joined theWorld Trade Organization, and 2007, theU.S. had a $1.2 trillion dollar trade defcit with China.

    2001 $83.1 billion2002 $103.1 billion2003 $124.1 billion2004 $161.9 billion

    2005 $201.5 billion2006 $232.6 billion2007 $256.3 billion

    $1,162,600,000 de cit

    Despite assurance by government o -cials that the U.S. could let go o many oits manu acturing jobs in order to ocus

    job growth on the advanced technologyproduct sector, this has not been the case.In 2007, the United States had a $68 bil-lion trade defcit with China in Advanced Technology Products . The largest de -cits were in in ormation and communica-tions products, opto-electronic goods,

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    and general electronics. Data throughNovember 2008 shows our trade de -cit with China on advanced technologyproducts growing by nine percent to anannual de cit o $74 billion.

    The Economic Policy Institute estimatesthat between 2001 and 2007, 561,000U.S. jobs in computers and electronic

    products were lost due to the trade def-cit with China in advanced Technology

    products .

    Between January 2001 and December2008 (preliminary gures) the UnitedStates has lost 4.2 million manu ac-turing jobs, or 24 percent o all man-u acturing jobs over the last eightyears, alling rom 17,114,000 jobs in

    January 2001 to just 12,981,000 jobsin December 2008. In December, U.S.manu acturing output ell to its low-est level in 28 years. Manu acturingnow accounts or just 13 percent oour economic output.

    In 2007, the U.S. imported $2.4 trillionworth o goods and services, $6.43billion a day with each man, womanand child spending $8,000 a year onimports.

    As o 2005, China had 110 millionmanu acturing jobs, adding six mil-lion new jobs between 2004 and2005 alone. Manu acturing accounts

    or 43 percent o Chinas economy.

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    10 t 12 rkers share each r rslee ng n narr etal nk e s.w rkers ra e l sheets er the r c -

    cle en ng r r ac .

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    HigHTecH in cHina

    w rkers ha e j st 15 n tes t eatthe r e re ret rn ng t rk.

    A ater s .

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    The room and bed will be assignedby the dorm management personneland cannot be changed at will in the

    uture.

    It is prohibited touse electrical ap-pliances without permission

    All residents must take turns clean-ing the dorm and keeping the dormneat.

    I it is necessary or the worker toleave the actory [compound] a ter their shi t is over, they must frst havean exit pass signed by a person withauthority. [Other than Wednesday,Saturdays and Sundays, the workersare not ree to leave the actory com-

    pound.]

    Employees who return to the dorm[on the three nights they are allowedout] a ter 12:00 a.m. will be reportedto the security team.

    There is a warning to turn lights o at11:00 p.m. every night. Lights shouldbe turned o at 12:00 midnight, whenall residents should be asleep in theirown designated bed and room. It isprohibited to use other lighting de-vices, chat, play music or wander inthe actory/dorm zone a ter the lightsare turned o .

    No employee shall return to the dormduring work time. I they have specialreasons or returning to the dorm,workers must produce a temporaryabsence rom work orm signed bythe department manager and give itto the dorm management.

    All employees must ollow ca eteria

    rules strictly. It is prohibited to bringood outside the ca eteria to con-sume.

    All employees shall not bring rela-tives or children into the company or working areas.

    lockeD in THecoMpoUnD

    resTricTionson freeDoMof MoVeMenT

    DorM anDcafeTeria

    From Meitai Factory Regulations and Discipline and Materials or New Employee Training

    The ull Chapter IV o Factory Regulations & Disciplines and Materials or new Employee Training can

    be ound online at http://www.nlcnet.org/article.php?id=611.

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    40

    HigHTecH in cHina

    d r alc n .

    d r athr sq at t let.

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    w rkers se s g t t sh er s-ng a s all last c cket t take

    a s nge ath. There s a eter tn t r ater se. w rkers are

    charge the excee the ater al-l ance set anage ent.

    The eter tracks electr c t sage neach r an charges rkers ac-c r ngl .

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    rom the workers wages. So, despite the scorching heat, the workers do not dareuse the air conditioners. But they are im-

    pressive to look at.

    Management deducts 272 RMB ($39.17)rom the workers wages each month or

    room, board, and administrative ees. Thisactually lowers the workers take-homewage rom 64 cents an hour to just 41 centsan houra 35 percent drop.

    Management also restricts the ree move-

    ment o the workers. A ter completingtheir 12 hour shi ts, workers are not reeto leave the locked actory compound onMondays, Tuesdays, Thursdays or Fridays.

    This means they cannot even take a walkoutside the actory or go shopping to pur-chase essential goods. The workers aretrapped. In cases o emergency, workersmust apply or an exit pass, which mustbe approved and signed by management inorder to leave the actory grounds. Eventhose with an exit pass must return to the

    actory by 11:00 or 11:30 p.m. or ace nesand other disciplinary actions. It is only onWednesdays, Saturdays and Sundays thatworkers are ree to leave the compoundwithout permission. On those days, the

    workers have an 11:30 p.m. to midnight cur-ew. Anyone staying out later than that will

    be punished.continued on p. 47

    The a rc n t ners n the

    rkers r sare r sh ,

    as the rkerscant a r the

    electr c t ll.

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    y ng en c e n theact r ca eter a.

    break ast.Th n ater r ce gr el.

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    4

    Workers also need special permission tostay out overnight. All employees whoneed to stay outside the dorm overnight must fll out the temporary o -campusresidence orm at the actory gate.

    Given the restrictions on the workers ree-dom o movement, management has set upwhat they call a Bene ts Society, whichis really just a company store by anothername. The store sells ood and other es-sentials, though the workers say its pricesare the same or even higher than outside

    stores, so they do not see the bene t.

    The workers have to take turns each daycleaning their dorm room, which is just an-other part o the unpaid overtime demand-ed o them. The worker whose turn it is mustwear a badge which instructs the worker

    to sweep and mop the foor, dust the ans,wash the toilet, empty the garbage, turn othe lights and ans, close the windows andlock the dorm room when he or she leaves.The badge warns: Those who are not onduty or who show poor per ormance whileon duty will be fned 10 RMB in each in-

    stance. For each instance, the o end-ing worker would be ned $1.44, losing theequivalent o 2 hours wages.

    The dorm regulations also make clear thatworkers cannot use electrical outlets in

    their room to plug in any personal items.Lights must be out at 12:00 midnight, a terwhich time the workers are prohibited romtalking, listening to music or walking about.O enders will ace more disciplinary ac-tions, including nes. Even switching dormbeds results in nes.

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    HigHTecH in cHina

    coMpany fooD:

    on friDays as a specialTreaT, eacH Worker is

    alloWeD a sMall cHickenleg anD fooT To syMbolize

    THeir iMproVing liVes.

    Like everything else at the Meitai computeractory, the company ca eteria is also gov-

    erned by strict rules, demanding that work-ers cue up properly and so on. Photos o

    the ca eteria show it to be crowded withyoung women. For break ast, the workersreceive a thin watery rice gruel and bread.Lunch and dinner consist o our servingsamounting to a scoop o rice, two vegeta-bles and one meat dish. The workers re-

    port that the meat serving has very littlemeat in it. Meat is never served alone, butrather in a mixed dish, or instance withgreen beans. The problem the workershave with the meat dish is that more o tenthan not, it is really just green beans. Theworkers say that, the quality o the ood is poor and that the ood tastes bad and is hard to swallow.

    Also, the ca eteria utensilsthe small metaltrays and chopsticksare o ten dirty, so theworkers have to search or utensils, which

    appear at least partially clean.

    Friday is the special day when each work-er receives a small chicken leg and oot tosymbolize their improving li e.

    r a nner s s ec al.w rkers rece e h ter ce, s t t . an n-

    n an ra sh x tha ash gr n rk,

    an a s all ch cken legan t th st r- r es eans. The ng

    rkers are t l thatthe ch cken leg s a s -

    l the r r ngl e.

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    According to Meitais Factory Regulationsand Discipline s Chapter V on employeebene ts: The company provides workerswith work injury insurance, pensions and other social insurances. Indeed, Chinaslabor law demands that actories inscribetheir workers in the state Social Securitysystem, which covers work injury and healthinsurance, maternity leave, unemploymentinsurance and a small pension. However,what actory regulations state and the ac-tual reality aced by the workers on theground are two di erent things. The vast majority o workers at the actory are not covered by health insurance or any o the

    other Social Security provisions. This isblatantly illegal.

    There is a medical station at the actory,where the workers can see a doctor whenthey are sick. But the bene ts end there,since the workers have to pay or their own

    medicines and other items including evenbandages.

    Workers applying or sick leave must docu-ment that they were sick. When returning

    rom sick leave, workers must bring a noterom the doctor to prove that they were

    sick. Moreover, any worker who is absentrom the actory or three days without per-

    mission will be considered to have resignedrom the actory. One months back wages

    can also be deducted rom the worker.

    It would only cost the Meitai company be-tween $2.81 and $4.57 per worker per weekto inscribe them in the national Social Se-curity work injury and health insuranceprograms. Work injury insurance wouldcost management ve percent o the em-ployees salary, while basic health insur-ance would cost another six percent o theworkers salary. At the base wage o $25.59a week, management would have to pay$2.81 in order to cover each employee orwork injury and health insurance. Includ-ing overtime, the average wage is $41.54,which would increase managements costto $4.57 (This amounts to just $146 to $238a year to provide work injury and healthinsurances, which is certainly not a lot omoney. However, in cheating their 2,000workers o health insurance, the company

    can save $9,140 a week, which adds up tonearly hal a million dollars a year).

    illegally ,Workers are

    noT inscribeDin THeManDaTory

    naTional social

    secUriTy sysTeM

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    HigHTecH in cHina

    Work injury insurance is 5% o totalemployee salaries in the companypaid by the employer;

    Unemployment insurance is 2% o to-tal employee salaries in the company

    paid by the employer (migrant work-ers to not need to pay a share);

    Migrant workers whose employer haspaid unemployment insurance up toone year can enjoy a one-time livingstipend upon dissolving the employ-ment contract (there is di erent reg-ulation or short-term contract em-ployees too)

    social insUranceregUlaTions in

    THe gUangDongproVince

    Basic medical insurance is 6% o to-tal employee salaries in the compa-ny paid by the employer and 2% oindividual salary paid by employee(adjustable); i workers salary is be-low 60% o average salary, the salary

    basis is calculated at 60% o averagesalary;

    Pension is Shenzhen is 10% o month-ly salary paid by employer and 8%paid by employee (the lower end is60% o average salary and the upperend is 300% o average salary).

    me cal Cl n c.w rkers ha e ta r the r n

    e cat ns.

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    In the Plastic Molding Department , thereare more than 30 large molding machineswhich operate around the clock, constantlythrowing o a great deal o heat. Despitethe extreme temperatures, there is no air

    conditioning. Workers in this departmentare soaked in their own sweat, which resultsin rashes breaking out on their arms and

    aces. The rashes can become so itchy thatback in the dormdespite their exhaus-tionsome workers have trouble sleeping.These workers are also being cheated, asthey should be receiving a high tempera-ture subsidywhich they are not.

    Workers routinely come into contact withpotentially toxic liquids in the Spray PaintDepartment but are not allowed to knoweven the names o the solvents and clean-ers they work with. The workers report thatthe paint also has a strong irritating smelland must in some way be corrosive, sincecontact with it can cause blisters and peel-ing skin. Only occasionally are workers in

    the spray paint department even providedwith cheap, disposable respiratory masks.By law, workers must be in ormed o thenames o any hazardous materials theywill come in contact with, and they are toundergo proper sa ety training on how tohandle these materials and what to do incase o an emergency.

    Many work areas in the actory have a strongsickening odor o burning plastic, leadingthe workers to ear that they may be inhal-ing harm ul materials. Management hasnever provided the workers with any expla-

    nation or assurances that the materials aresa e.

    [Note: Spray painting without proper pro-tective gear does expose workers to healthhazards rom paint coming into contactwith the skin and inhalation o spray mate-rials. Short term harm includes burns to theskin and eyes; vomiting and diarrhea; irrita-tion to the nose, throat and lungs, dizzinessand atigue. Long-term potential damagecan lead to lung cancer, kidney and liver

    ailure and damage to the reproductive sys-tem. Solvents such as benzene can also beabsorbed through the skin or by breathingthem in. Short-term e ects can be nausea,headaches, and tiredness, while seriouslong-term exposure can result in anemiaand leukemia.]

    HealTH anD safeTy ViolaTions

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    HigHTecH in cHina

    foreign aUDiTs

    Auditors representing oreign companiesdo visit and tour the actory. According tothe workers, the oreigners appear to bemainly interested in product quality andother technical issues. Though it couldhave happened, the workers our research-ers spoke with knew o no cases where theauditors had attempted to interview work-ers regarding actory conditions.

    HeWleTT-packarD HasfaileD in THe pasT

    A 2007 audit showed that a ull hal oHewlett-Packards supplier plants, em-ploying upwards o 400,000 people,

    ailed to comply with the Electronic In-dustry Code o Conduct Guidelines re-garding working hours. Another one-quarter o Hewlett-Packards suppliers

    ailed to meet acceptable wage, bene ts,and health and sa ety standards.

    (Business Green , April 7, 2008)

    Ke ar a e at the me ta act r .

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    In order to apply or a job at Meitai, work-ers must rst schedule a physical examat an appointed hospital, which will costthe workers 35 RMB ($5.04) or nearly theequivalent o a ull days wages. Along withthe physical exam, the workers receive achest x-ray and a blood test or hepatitis

    B. (Even though Chinas laws orbid dis-crimination against those with hepatitis Bthe workers believe the tests are meant toweed out workers with hepatitis B.)

    I they pass their physical, the workersare hired on a trial period o one to threemonths, which management can extend atwill. During the rst week, workers can belet go or whatever reason without receiv-ing any wages. The companys Notice orNew Workers reads: Workers who areless than seven days into their trial periodsbut are let go due to poor per ormance will not be paid their wages. This is illegal ontwo ronts. Chinas laws demand that thoseworking under trial periods must be paidwithout exception. Further, the legal pro-bation period or the one-year contract the

    company provides cannot be longer thanone month and cannot be extended.

    New workers must become amiliar withall 26 letters o the English alphabet. Thisis essential, as the workers will be makingkeyboards and other computer compo-

    nents destined or the U.S. and the UnitedKingdom.

    Another violation is that when manage-ment and the worker sign a one-year la-bor contract, management keeps the onlycopy. Chinas law clearly states that, The

    employer and employee should each takeaway a copy o the labor contract. This isessential i a worker is to know and be ableto protect his or her rights.

    Once a worker signs their one-year con-tract, it becomes very di cult i not im-possible to leave the actory. According tocompany regulations, a worker wishing toleave must hand in a written application,which must be approved by the boss and management be ore it is made efective. The operative words here are approved bythe boss. I a workers quitting is inconve-nient or management, they simply will notapprove it. They will drag their heels untilthe worker either gives up and keeps work-ing or quits on their own. This is illegal, butit is a win-win situation or management

    since, Workers who have not been give permission to resign and who leave the ac-tory o their own volition, ending their re-lationship with the company, will have onemonths total wages deducted rom their

    pay. By law, the worker need only applythirty days in advance in order to leave the

    actory with ull pay.

    applyingfor a job aT MeiTai

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    HigHTecH in cHina

    MicrosofTfiercely proTecTs iTs

    TraDeMarksbUT sHoWs less concern

    for Workers rigHTs abUses in cHina

    Over the last three years, Microso ts 75-member antipiracy team joined orces

    with agents rom the U.S. Federal Bureauo Investigation and the Chinese Ministryo Public Security to crack down on a so-phisticated counter eiting ring in Shen-zhen that manu actured and sold piratedMicroso t so tware. To date, 11 peoplehave been convicted and sentenced toprison terms o one-and-a-hal to six-and-a-hal years or violating nationalcopyright laws. Microso t applauded thelong prison sentences, saying they are thesti est punishments ever handed down inChina or intellectual property crimes.

    This case is an important and positivestep orward in Microso ts ongoing e -

    orts to increase protection or its prod-ucts and trademarks under Chinas intel-

    lectual property and copyright laws.

    When will there be similar concern andprosecutions or the gross and system-atic violation o labor rightsincluding atthe Meitai actory where Microso t prod-ucts are manu acturedboth under Chi-nas law and internationally recognizedworker rights standards?

    (Source: New York Times , January 1, 2007.Chinese Court Convicts 11 in Microso tPiracy Case, by David Barbosa)

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    HigHTecH in cHina

    For at least a yearAugust 2002 throughAugust 2003Dell used prison labor, paid20 cents to $1.26 an hour, supplied by theFederal Bureau o Prisons to recycle itscomputers and components, includingprinters. The Silicon Valley Toxics Coali-tion was able to stop Dells use o pris-

    on labor, pointing out that the prisonerscould be handling potentially toxic chem-icals such as lead, mercury, cadmium,and brominated fame retardants. Also,prison labor undercuts the creation o apro table recycling industry. ( New YorkTimes , July 4, 2003)

    In mid-1995, Microso t also used prisonlabor rom Washington States Twin Riv-ers Correction Center to assemble Micro-so t mice and to shrink wrap and packagegoods or shipment. A ter state prison

    Dell anD MicrosofTeXperiMenT WiTH

    prison labor

    deductions, the prisoners were earningaround 98 cents an hour. Mr. Mark Mur-ray, Microso ts public relations spokes-man at the time, commented on the useo prison labor: This seems to be a good

    program that bene ts the prison workers,the broader community, and our compa-

    ny as well . (Newsweek Business In orma-tion Inc., Newsbytes , January 17, 1997)

    Prison laborers in Texas repaired Konica copiers or 50 cents an hour, while oth-ers manu actured circuit boards, car win-dows and air conditioning parts or $4.00an hour, which was less than hal the pre-vailing wage in Texas. In 2005, prison la-borers helped build a Wal-Mart distribu-tion center in Wisconsin. (A Sweatshopbehind Bars, Wiretap , September 13,2006)

    Ke ar a e at theme ta act r .

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    Lenovo / U.S. Ofce1009 Think PlaceMorrisville, North Carolina 27560

    Phone: 866-968-4465 (Lenovos North Caro-lina corporate o ce number and ax is virtually

    unobtainable. This number directs callers to anIndian call center.)

    Revenues ( or the quarter ending September30, 2008) o $4.3 billion with a gross pro to $545 million, and a net pro t o $23.4 mil-lion.

    President and CEO: Mr. William J. AmelioDirector o the Board: Yang Yuanqing

    Hewlett-Packard Company3000 Hanover StreetPalo Alto, CA 94304-1112

    Phone: 650-857-1501 Fax: 650-857-5518

    321,000 Employees

    Revenues (year ending October 31, 2008) o$118.364 billion with a gross pro t o $28.8billion and a net income o $8.3 billion .

    CEO Mr. Mark Hurd paid himsel $35.5 millionin compensation and stock options.

    coMpanyconTacT

    inforMaTion

    International Business Machines Corp.1 New Orchard RoadArmonk, NY 10504-1722

    Phone: 914-499-1900 Fax: 914-765-7382E-mail: [email protected] (CEO Samuel Palmi-sanos e-mail address)

    Revenues (ending December 31, 2007) o$98.8 billion with gross pro ts o $42 billionand a net income o $10.42 billion .

    CEO Mr. Samuel Palmisano paid himsel $17million dollars in wages and stock options.

    Dell Inc.One Dell WayRound Rock, TX 78682

    Phone: 512-728-4100 Fax: 512-238-2773

    82,700 ull-time employees Revenues (year ending February 1, 2008) o

    $61.133 billion with a gross pro t o $11.7 bil-lion and a net income o $2.95 billion .

    CEO Mr. Michael Dell paid himsel over $150million dollars , including wages and stockoptions.

    Microso t CorporationOne Microso t Way

    Redmund, WA 98052-6399

    Phone: 425-882-8080 Fax: 425-936-7329

    91,000 Full-time employees Revenues (year ending June 30, 2008) o

    $60.4 billion with a gross pro t o $49 bil-lion and a net income o $17.7 billion .

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    The factory is forever pressing down onour heads, and will not tolerate even the ti-niest mistake. When working, we workcontinuously. When we eat, we have to eatwith lightning speed. When I need to go tothe bathroom, I have to try my hardest tocontrol myself, to hold it in and not go. The

    security guards are like policemen watch-ing over prisoners. Were really livestockand shouldnt be called workers.

    I FEEL LIKEI AM SERVINGA PRISON SENTENCE.