Archive for ‘Adidas’

08/05/2020

Coronavirus: Chinese workers in Vietnam cry foul after being fired by Taiwanese firm making shoes for Nike, Adidas

  • Pou Chen makes footwear for the likes of Nike and Adidas, but says it has suffered from a lack of orders as  global value chains strain under the impact from the virus
  • Chinese workers moved to Vietnam to help set-up new factories as the company expand its production, but have now become expendable
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports. Photo: Bloomberg
With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports. Photo: Bloomberg

A group of 150 Chinese workers believe the world’s largest maker of trainers used the coronavirus as an excuse to fire them, having helped Taiwanese firm Pou Chen successfully expand its production into Vietnam for more than a decade.

Pou Chen, which makes footwear for the likes of Nike and Adidas, informed the group in late April that they would no longer be needed as they were unable to return to 

Vietnam

from their hometowns in China due to the coronavirus lockdowns.

“We believe we contributed greatly to the firm’s relocation process, copying the production line management experience and successful model of China’s factories to Vietnamese factories,” said Dave Zhang, who started working for Pou Chen in Vietnam in 2003.
“Now, when the factories over there have matured, and there is a higher automation level in production, our value has faded in the management’s eyes and we got laid off, in the name of the automation level.”
Rush hour chaos returns to Vietnam’s streets as coronavirus lockdown lifted
The group claims the firm began to fire Chinese employees several years ago, with the total number dropping from over 1,000 at its peak to around 400 last year.

“We 150 employees were the first batch of Chinese employees to be laid off this year. We are all pessimistic and expect more will be cut,” added Zhang.

In its email on April 27, Pou Chen said it was forced to terminate the contracts of the Chinese employees across five of its factories due to an unprecedented decline in orders and financial losses.

The Chinese employees, many of whom have been working for the shoemaker for decades, said the compensation offered was unfair and below the levels required by labour law in both Vietnam and China.

In a further statement to the South China Morning Post, Pou Chen stood by the move as the coronavirus pandemic had reduced demand for footwear products and so required an “adjustment of manpower.”

“[The dismissals were] in accordance with the relevant labour laws of the country of employment … and employee labour contracts,” added the statement from Pou Chen, which employs around 350,000 people worldwide.

Company data showed Pou Chen’s first quarter revenues tumbled 22.4 per cent year-on-year to NT$59.46 billion (US$1.99 billion), the weakest in six years.

With the likes of Nike and Adidas closing retail stores around the world to comply with social distancing requirements, analysts also said orders plummeted 50 per cent in the second quarter, although the company declined to comment on the media reports.

Last month, the company was also mulling pay cuts and furloughs that would affect 3,000 employees in Taiwan and officials based in its overseas factories, according to the Taipei Times.

Andy Zeng, who had worked for the firm since 1995, said the group were “very upset” when they received the news last month as the impact of the coronavirus pandemic began to reverberate around the world, disrupting global value chains.

“Most of us joined Pou Chen in the 1990s when we were in our late teens or early 20s, when the Taiwan-invested company started investing and setting up factories in mainland China. Now more than two decades have passed,” he said.

Zeng was among the first generation of skilled workers in China as Pou Chen developed rapidly, enjoying the benefits of cheap labour, although the workers themselves were rewarded with regular pay rises.

The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world – Andy Zeng

“I worked at the Dongguan branch of Pou Chen for 11 years from 1995.” Zeng added “In the 1990s and early 2000s, the company expanded rapidly in Dongguan with a growing number of large orders, and every worker had to work hard around the clock. I remember I earned 300 yuan (US$42) a month in 1995, and my monthly salary rose to 1,000 yuan (US$141) in 1998.”
Zeng’s salary eventually rose to over 3,000 yuan in 2005 as China’s economy boomed, leading Pou Chen to seek alternative production sites in Vietnam and Indonesia where labour and land were even cheaper. However, in the early 2000s, the new locations lacked skilled shoe manufacturing workers like Zeng.
“The company needed a group of skilled Chinese workers to go to its new factories in Vietnam. I said yes because I thought it was a good opportunity to see the outside world and the offer of US$700 per month was not bad.” Zeng said.
“We actively cooperated with their plans. Over the past decade, we have been away from our families and hometowns, and followed the company’s strategy to work hard in Vietnam.
With no deaths and cases limited to the hundreds, Vietnam’s Covid-19 response appears to be working
“In 2005, the company sent me to its newly-built factory in Vietnam. This year was my 14th year in Dong Nai in Vietnam. I have witnessed the company’s production capacity in Vietnam become larger and larger. When I arrived, there were only a few production lines, and now there are at least dozens of them, employing more than 10,000 workers in each factory.”
According to a report in the Taipei Times on April 14, citing both Reuters and Bloomberg, Pou Chen was ordered to temporarily shut down one of its units in Vietnam over coronavirus concerns, according to Vietnamese state media.
The company was forced to suspend production for two days after failing to meet local rules on social distancing, Tuoi Tre newspaper reported.
“We Chinese employees actually were pathfinders for the company’s relocation from China to Vietnam,” said Zhang, who was in charge of a 1,700-worker factory producing 1.7 million shoe soles per month.

What our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult – Dave Zhang

“We were sent to resolve any ‘bottlenecks’ in the production lines that were slowing down the rest of the plant, because during the launch of every new production line, Vietnamese workers would strike and get into disputes. As far as I know, there were over a thousand Chinese employees managing various aspects of the production lines in the company’s Vietnamese factories.
“In fact, what our Chinese employees have done in Vietnam for more than a decade can be said to be very simple but very difficult. That is to teach Vietnamese workers our experience of working on a production line, improve the productivity of the Vietnamese workers, and help the factories become localised.”
Overall, Pou Chen says it produces more than 300 million pairs of shoes per year, accounting for around 20 per cent of the combined wholesale value of the global branded athletic and casual footwear market.
“Because of cultural shock and great pressure to expedite orders, Vietnamese workers were not used to the management style of Taiwan factories,” Zhang added.
“Many of our Chinese employees were beaten by Vietnamese workers [due to cultural differences about work]. During anti-China protests in Vietnam, we were still under great pressure to keep the local production lines operating.”
Source: SCMP
02/05/2020

China plans to send Uygur Muslims from Xinjiang re-education camps to work in other parts of country

  • Inmates who have undergone compulsory re-education programme to be moved to other parts of China under job placement scheme delayed by Covid-19 outbreak
  • Critics have said the camps are a move to eradicate cultural and religious identity but Beijing has defended them as way of boosting job opportunities and combating Islamic radicalisation
Illustration by Perry Tse
Illustration by Perry Tse

The Chinese government has resumed a job placement scheme for tens of thousands of Uygur Muslims who have completed compulsory programmes at the “re-education” camps in the far-western region of Xinjiang, sources said.

The plan, which includes a quota for the numbers provinces must take, was finalised last year but disrupted by the outbreak of Covid-19.

The delay threatens to undermine the Chinese government’s efforts to justify its use of internment camps in Xinjiang.

Critics have said these camps were part of the measures designed to eradicate the ethnic and cultural identity of Uygurs and other Muslim minorities and that participants had no choice but to undertake the re-education programme.

Beijing has repeatedly dismissed these criticisms and said the camps are to give Uygurs the training they need to find better jobs and stay away from the influence of radical fundamentalism.
First Xinjiang, now Tibet passes rules to promote ‘ethnic unity’
17 Feb 2020

Now with the disease under control, the Chinese government has resumed the job placement deal for other provinces to absorb Xinjiang labourers, sources said.

Despite the devastating impact of the disease on its economy and job markets, the Chinese authorities are determined to go ahead with the plan, which they believe would

“demonstrate the success of Xinjiang’s re-education centres policy”

, a source said.

“Excellent graduates were to be taken on as labourers by various inland governments, in particular, 19 provinces and municipalities,” said the source. It is unclear what constitutes “excellent graduates”.

Some sources earlier said that the programme may be scaled back in light of the new economic reality and uncertainties.

But a Beijing-based source said the overall targets would remain unchanged.

“The unemployment problem in Xinjiang must be resolved at all costs, despite the outbreak,” the source said.

The South China Morning Post has learned that at least 19 provinces and cities have been given quotas to hire Muslim minorities, mostly Uygurs, who have “graduated” from re-education camps.

As early as February, when the daily number of infections started to come down outside Hubei province, China already begun to send Uygur workers to their new jobs.

A photo taken in February showed thousands of young Uygurs, all wearing face masks and with huge red silk flowers pinned to their chests, being dispatched to work in factories outside their hometowns.

By the end of February, Xinjiang alone has created jobs for more than 60,000 Uygur graduates from the camps. A few thousand were also sent to work in other provinces.

Many have been employed in factories making toys and clothes.

Xinjiang’s new rules against domestic violence expand China’s ‘extremism’ front to the home

7 Apr 2020

Sources told the Post that the southern city of Shenzhen – China’s hi-tech manufacturing centre – was given a target last year to eventually resettle 50,000 Uygurs. The city is allowed to do this in several batches, with 15,000 to 20,000 planned for the first stage.

Shaoguan, a less developed Guangdong city where a deadly toy factory brawl between Uygurs and Han Chinese broke out in 2009, was also asked to take on another 30,000 to 50,000 Uygur workers.
In Fujian province, a government source also said they had been told to hire “tens of thousands of Xinjiang workers”.
“I heard the first batch of several thousands would arrive soon. We have already received official directives asking us to handle their settlement with care,” said the source.

He said the preparation work includes providing halal food to the workers as well as putting in place stronger security measures to “minimise the risks of mass incidents”. It is not known whether they will be given access to prayer rooms.

There are no official statistics of how many Uygurs will be resettled to other provinces and the matter is rarely reported by the mainland media.

But in March, Anhui Daily, the province’s official newspaper, reported that it had received 1,560 “organised labourers from Xinjiang”.

The Uygur workers on average could earn between 1,200 yuan (US$170) to 4,000 yuan (US$565) a month, with accommodation and meals provided by the local authorities, according to Chinese media reports.

However, they are not allowed to leave their dormitories without permission.

The UN has estimated that up to a million Muslims were being held in the camps. Photo: AP
The UN has estimated that up to a million Muslims were being held in the camps. Photo: AP
Xinjiang’s per capita disposable income in 2018 was 1,791 yuan a month, according to state news agency Xinhua. But the salary level outside the region’s biggest cities such as Urumqi may be much lower.
The official unemployment rate for the region is between 3 and 4 per cent, but the statistics do not include those living in remote rural areas.
Mindful of the potential risks of the resettlement, Beijing has taken painstaking efforts to carefully manage everything – from recruitment to setting contract terms to managing the workers’ day-to-day lives.
Local officials will go to each Uygur workers’ home to personally take them to prearranged flights and trains. On arrival, they will be immediately picked up and sent to their assigned factories.
US bill would bar goods from Xinjiang, classifying them the product of forced labour by Uygurs
12 Mar 2020

Such arrangements are not unique to Uygurs and local governments have made similar arrangements for ethnic Han workers in other parts of China.

After screening them for Covid-19, local governments have arranged for workers to be sent to their workplaces in batches. They are checked again on arrival, before being sent to work.

China is accelerating such placement deals on a massive scale to offset the impact of the economic slowdown after the outbreak.

Sources told the South China Morning Post that the job placement deal was first finalised by governments in Xinjiang and other provinces last year.

The aim is to guarantee jobs for Uygur Muslim who have “completed vocational training” at the re-education camps and meet poverty alleviation deals in the region, one of the poorest parts of China.

The training they receive in the camps includes vocational training for various job types such as factory work, mechanical maintenance and hotel room servicing. They also have to study Mandarin, Chinese law, core party values and patriotic education.

Xinjiang’s massive internment camps have drawn widespread international condemnation.

The United Nations has estimated that up to 1 million Uygur and other Muslim minority citizens are being arbitrarily detained in the camps, which Beijing insists are necessary to combat terrorism and Islamic radicalisation.

Late last year, Xinjiang’s officials announced that all the inmates of these so-called vocational training centres had “graduated” and taken up employment.

Before this labour placement scheme was introduced, it was extremely difficult for Uygurs to find jobs or live and work in inland regions.

The 2009 brawl at the factory in Shaoguan was one of the factors that triggered a deadly riot in Xinjiang’s capital Urumqi, that left 192 people dead and more than 1,000 wounded.

Muslim ethnic minorities, Uygurs in particular, have been subjected to blatant discrimination in China and the situation worsened after the 2009 clashes.

Earlier this month, the Australian Strategic Policy Institute released a report saying more than 80,000 Uygurs had been moved from Xinjiang to work in factories in nine Chinese regions and provinces.

It identified a total of 27 factories that supplied 83 brands, including household names such as Google, Apple, Microsoft, Mitsubishi, Siemens, Sony, Huawei, Samsung, Nike, Abercrombie and Fitch, Uniqlo, Adidas and Lacoste.

‘Psychological torture’: Uygurs abroad face mental health crisis over plight of relatives who remain in Xinjiang

11 Mar 2020

The security think tank concluded that the Chinese government had transferred Uygur workers “under conditions that strongly suggest forced labour” between 2017 and 2019, sometimes drawing labourers directly from re-education camps.

The report also said the work programme represents a “new phase in China’s social re-engineering campaign targeting minority citizens”.

Workers were typically sent to live in segregated dormitories, underwent organised Mandarin lessons and ideological training outside working hours and were subject to constant surveillance, the researcher found.

They were also forbidden from taking part in religious observances, according to the report that is based on open-source documents, satellite pictures, academic research and on-the-ground reporting.

Chinese foreign ministry spokesman Zhao Lijian criticised the report saying it had “no factual basis”.

Source: SCMP

13/11/2019

Xinjiang cotton sparks concern over ‘forced labour’ claims

Farmers pick cotton during the harvest on October 21, 2019 in Shaya County, Xinjiang Uygur Autonomous Region of China.Image copyright GETTY IMAGES

Global retailers are facing scrutiny over cotton supplies sourced from Xinjiang, a Chinese region plagued by allegations of human rights abuses.

China is one of the world’s top cotton producers and most of its crop is grown in Xinjiang.

Rights groups say Xinjiang’s Uighur minority are being persecuted and recruited for forced labour.

Many brands are thought to indirectly source cotton products from the Xinjiang region in China’s far west.

Japanese retailers Muji and Uniqlo attracted attention recently after a report highlighted the brands used the Xinjiang-origin of their cotton as a selling point in advertisements.

H&M, Esprit and Adidas are among the firms said to be at the end of supply chains involving cotton products from Xinjiang, according to a Wall Street Journal investigation.

“You can’t be sure that you don’t have coerced labour in your supply chain if you do cotton business in China,” said Nathan Ruser, researcher at the Australian Strategic Policy Institute.

“Xinjiang labour and what is almost certainly coerced labour is very deeply entrenched into the supply chain that exists in Xinjiang.”

What is happening in Xinjiang?

UN experts and human rights groups say China is holding more than a million Uighurs and other ethnic minorities in vast detention camps.

Rights groups also say people in camps are made to learn Mandarin Chinese, swear loyalty to President Xi Jinping, and criticise or renounce their faith.

China says those people are attending “vocational training centres” which are giving them jobs and helping them integrate into Chinese society, in the name of preventing terrorism.

What is produced in Xinjiang?

The Xinjiang region is a key hub of Chinese cotton production.

China produces about 22% of global cotton supplies, according to a report by the Center for Strategic and International Studies (CSIS).

Last year, 84% of Chinese cotton came from Xinjiang, the report said.

That has raised concerns over whether forced labour has been used in the production of cotton from the region.

This photo taken on September 11, 2019 shows people walking past a mosque in Urumqi, the regional capital of Xinjiang.Image copyright GETTY IMAGES
Image caption The Uighurs are mostly Muslims, and number about 11 million in China’s Xinjiang region

Nury Turkel, chairman of the Uighur Human Rights Project in Washington, said the Uighurs were being “detained and tormented” and “swept into a vast system of forced labor” in Xinjiang.

In testimony to US congress, he said it was becoming “increasingly hard to ignore the fact” that the goods manufactured in the region have “a high likelihood” of being produced with forced labour.

Which brands use Xinjiang cotton?

Amy Lehr, director of CSIS Human Rights Initiative, said in many cases Western companies aren’t buying directly from factories in Xinjiang.

“Rather, the products may go through several stages of transformation after leaving Xinjiang before they are sent to large Western brands,” she said.

Some, like Muji, are very open about sourcing material from Xinjiang.

The Japanese retail chain launched a new Xinjiang Cotton collection earlier this year.

One of its advertisements boasts “soft and breathable” men’s shirts made from organic cotton “delicately and wholly handpicked in Xinjiang”.

Another Japanese fashion brand Uniqlo had also touted the Xinjiang region in an advertisement advertisment for men’s shirts.

In the fine print of the shirt description, the advert said the shirts were made from Xinjiang cotton, “famous for its superb quality”.

That reference was later removed from the advertisement “given the complexity of this issue”, according to a spokesperson for Uniqlo.

“Uniqlo does not have any production partners located in the Xinjiang region. Moreover, Uniqlo production partners must commit to our strict company code of conduct.

“To the best of our knowledge, this means our cotton comes only from ethical sources,” the spokesperson told the BBC.

Pedestrians walk past a Japanese household and consumer goods retailer, Muji store in ShenzhenImage copyright GETTY IMAGES

According to the Wall Street Journal report which focused on workers at a mill operated by Huafu Fashion in Aksu, Xinjiang, yarn made in the region was present in the supply chains of several international retailers including H&M, Esprit and Adidas.

Many of the companies looked into the allegations, including those without clear links to the Huafu mill.

In a statement to the BBC, Adidas said: “While we do not have a contractual relationship with Huafu Fashion Co., or any direct leverage with this business entity or its subsidiary, we are currently investigating these claims.”

“We advised our material suppliers to place no orders with Huafu until we have completed those investigations,” the Adidas spokesperson said.

Esprit, which also does not source cotton directly from Xinjiang, said it had made several inquiries earlier this year.

“We concluded that a very small amount of cotton from a Huafu factory in Xinjiang was used in a limited number of Esprit garments,” the firm said in a statement.

The company has instructed all suppliers to not source Huafu yarn from Aksu, the statement said.

H&M said it does not have “a direct or indirect business relationship” with any garment manufacturer in the Xinjiang region.

“We have an indirect business relationship with Huafu’s spinning unit in Shanyu, which is not located in the Xinjiang region, and according to our data, the vast majority of the yarn used for our garment manufacturing comes from this spinning unit,” a spokesperson for H&M said.

“Since we have an indirect business relationship with the yarn supplier Huafu, we also asked for access to their spinning facilities in Aksu. Our investigations showed no evidence of forced labor.”

Source: The BBC

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