Tianyu and Yonglida Toys are Disney suppliers owned by the same factory boss in Dongguan, China

Would we ever associate lovable Disney toys with sweatshop Chinese workers? 

Disney has long said it has a practice of hiring auditors to investigate allegations of labor abuse in its global supply chain. It has also stated that an end-of-project report for Project Kaleidoscope – an in-factory capacity building program jointly initiated by Disney and McDonald’s at their 10 suppliers in southern China – will soon be issued for comments. SACOM will continue to monitor these corporate activities and search for signs of Mickey Mouse’s conscience.

Now, for November 2007, SACOM adds the tenth Disney sweatshop, Yonglida Industrial Co., Ltd., to our survey list compiled since the opening of the Hong Kong Disneyland in 2005. Dongguan-based Yonglida Toys has the same owner as Tianyu Toys (see the Tianyu Report published by SACOM last month at www.sacom.hk). Both companies violate the Chinese labor law, the Disney Code, and the International Council of Toy Industries (ICTI) Code of Business Practices.

Yonglida Toys, founded in 1997, is a Disney supplier that manufactures plush toys, stuffed toys, plastic toys, and similar items in Dongguan City in southern China. Most of the toys are exported to the United States, Europe, and Korea. 

Basic Wages Held Back for 45 Days; Overtime Wages Unpaid 

Yonglida workers’ paychecks were delayed by as many as 45 days in the autumn of 2007. When the workers were finally paid in mid-November, they received on average only RMB 700 to 900. The factory management applies the standard piece rates for overtime work even if workers work on the weekend or holidays, when workers should receive at least RMB 8.24 (RMB 4.12 x 2) or RMB 12.36 per hour. Worse still, “we have to meet targets or lose pay,” said three female piece-rate workers in a group interview.

Working Hours – 13 Hours a “Standard” Work day, 30 Days a “Regular” Work Month

“Can you imagine working every Sunday as we do?” asked one Yonglida worker in an interview. Yonglida imposes 13-hour “standard” work days, and a 30-day “regular” work month. Starting from 7:30 A.M. to the time the workers punch out of work at 11:00 P.M. or midnight, they all suffer serious lack of sleep. There is not even one day off in a week.

Worker Dormitories – “How do I get rid of these rats?”  

The living conditions in the dormitories that Yonglida provides to its workers are very poor. In male dormitories, 15 to 16 adults are often placed in one small room. The smell in the communal toilets is disgusting. Moreover, there are many rats, animals known to carry serious diseases. “But I still have to pay RMB 110 for the basic lodging and food every month,” said a worker.

Disney Fans and the Concerned Public – Shopping with Conscience

Amidst the holiday shopping season, SACOM and concerned consumers worldwide are signing a petition to Disney to end sweatshops in China today (http://www.PetitionOnline.com/wlchan/petition.html).

Disney should disclose its full list of outsourced Chinese manufacturers for public scrutiny and ensure that its suppliers comply with local labor laws. It should also give every Chinese worker at every Disney supplier a copy of Disney’s Code of Conduct translated into Chinese. Furthermore, it should promote workplace democracy by respecting workers’ right to create mechanisms of worker representation at all Disney suppliers.