BUSINESSWEEK ONLINE : OCTOBER 2, 2000 ISSUE
SOCIAL ISSUES What Are the Auditors Missing? Wal-Mart and other U.S. companies use outside auditing firms to inspect factories abroad. Critics claim company-sponsored audits often miss labor abuses. Here are three factories in China where problems were found following a report by the National Labor Committee: CHUN SI HANDBAG FACTORY, ZHONGSHAN Kathie Lee handbags for Wal-Mart -- Guards beat workers, according to employees' complaints. -- Workers had to pay illegal up-front deposits to cover first month's food, and lodging in factory dorm. -- Many workers still owed the factory money after several months, due to penalties and charges. LIZHAN FOOTWEAR FACTORY, DONGGUAN New Balance shoes -- Payroll violations, such as fining workers late for work, says Social Accountability International. -- Half-dozen safety violations, such as not employing a plant safety official, as required by Chinese law. -- Several wage violations, such as not paying double-time for Saturday work, as required by Chinese law. POU YUEN FACTORY V, ZHONGSHAN Timberland shoes -- After more than a year, the factory had not stopped many serious violations auditors had found in 1998, says Timberland. These include not paying overtime for 14- to 16-hour days and forcing workers to use toxic glues and solvents without gloves. Timberland is now working with the factory to address the problems. DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Inside a Chinese Sweatshop: ``A Life of Fines and Beating'' MAP: China TABLE: What Are the Auditors Missing? INTERACT E-Mail to Business Week Online

Copyright 2000-2008, by The McGraw-Hill Companies Inc. All rights reserved. Terms of Use   Privacy Notice