Nike, Adidas and Jansport 

Nike, Adidas and Jansport Backpacks are produced at:
Keng Tau Handbag Company
Keng Tau Industrial Zone
Panyu Village
Guangdong Province, China

Summary - Nike, Adidas and Jansport Backpacks	·<>         Failure to work overtime is punished with fines and a warning letter is posted in the factory. ·<>         Sixteen workers to a dorm room; two poor quality meals a day. ·<>         Workers instructed not to punch their time cards for night or Sunday work. ·<>         No union.
·<>         During peak season workers are at the factory 14 hours a day, seven days a week, from 8:00 a.m. to 10:00 p.m.; one day off per month; some women report working until 3:00 a.m. ·<>         Average wages range from 25 to 36 cents an hour, or $19.46 to $22.80 for a 7-day, 77 ˝-hour workweek; some wages are as low as 8 cents to 11 cents an hour. ·<>         No overtime premium is paid.

 

Adidas bag made in China Retail price: $39.99

The Keng Tau Handbag Company is owned by the Taiwanese firm Glorieux Industrial Ltd.  Keng Tau has three factories located in the Ken Tau Industrial Zone, two of which are functioning while the third factory is under renovation.  One Keng Tau factory was built in 1988 and employs 300 to 400 workers while the second, newer and larger plant was built in 1998 and employs approximately 700 to 800 workers.  These factories produce bags, especially backpacks for Nike, Adidas and Jansport, which are exported to the United States and the United Kingdom.  The workers are mostly women between 18 and 30 years of age, migrant workers from Hunan, Hubei and Sichuan provinces who have come south looking for job opportunities. Hours During the peak season workers are at the factory 14 hours a day, seven days a week, from 8:00 a.m. to 10:00 p.m.  Some report working to midnight or even 3:00 a.m.  The workers receive one day off per month. During peak season the schedule at the new factory is: Monday through Friday and Sunday: ·<>         8:00 a.m. – 12:00 noon        (12:00 noon – 1:30 p.m. lunch break) ·<>         1:30 p.m. – 6:00 p.m.        (6:00 p.m. – 7:00 p.m. supper break) ·<>         7:00 p.m. – 10:00 p.m. Saturday:                   ·<>         8:00 a.m. – 12:00 noon        (12:00 noon – 1:30 p.m. lunch break)| ·<>         1:30 p.m. – 6:00 p.m. So the workers are at the factory 94 hours a week, seven days a week, from 8:00 a.m. to 10:00 p.m. while being paid for 77˝ hours. However, at the older, smaller factory workers report working sometimes until 12:00 midnight or even until 3:00 a.m., which would mean that they could be at the factory for up to 19 hours a day.  If they worked to midnight each night they would be at the factory 106 hours a week, while being paid for 89.5 hours. Workers receive one day off per month.

Failure to work overtime is punished with a fine of 9 rmb, the equivalent of 3 ˝ hours’ wages, and loss of the monthly attendance bonus of 40 rmb ($4.82 US), which the workers only receive if they are never late, never miss a day, and work all the extraordinarily long overtime hours.  The worker who misses overtime also receives a warning letter, which is publicly posted in the factory, and the workers name is announced over the loud speaker. Workers are instructed not to punch their time cards for evening or Sunday work.  So any company records shown to Nike, Adidas or Jansport are fabrications, seriously underreporting the actual number of hours worked. Workers receive no overtime premium.  No matter how many hours they work, they always receive the same standard piece rate or hourly wage. Wages In the new factory wages range from 25 to 36 cents an hour, $19.46 to $27.80 for a 7- day, 77 ˝- hour workweek; wages as low as 8 cents an hour have been reported in the old factory, where wages range between 11 and 18 cents an hour.  Workers’ wages in the new factory range from $19.46 to $27.80 for a seven day, 77 ˝-hour workweek, or from 25 to 36 cents an hour.  These wages include all overtime hours, bonuses and production incentives. However, in the old factory, where the exact same work is done, workers report earning just $8.34 to $13.90 for the same 77 ˝-hour, seven day workweek, or 11 cents to 18 cents an hour.  One woman reported working until midnight or 3:00 a.m. every night of the week – working 89 ˝  hours – and receiving only $8.34 for the entire week, or just 8 cents an hour. Average wage in the old factory: (Including all overtime hours, bonuses and production incentives)    ·<>         14 cents an hour ·<>         $1.59 a day (for an 11-hour day) ·<>         $11.12 a week (for a 7-day, 77 ˝-hour workweek) ·<>         $48.19 a month ·<>         $578.31 a year

   

 

Workers receive no overtime premium.  No matter how many hours they work,  they always receive the same standard piece rate or hourly wage.

Workers are housed 16 to a room; given two poor quality meals a day Ninety-eight rmb a month, or $11.81 U.S. (which for low wage workers comes to one week’s wages) is deducted by the factory from the workers’ wages each month in return for dorm accommodations and food.  Workers are housed 16 to a crowded room and fed two poor quality meals a day.  The workers must take care of and pay for their own breakfasts. Illegal deductions Upon entering the Keng Tau factories the workers are illegally charged a 60 rmb job deposit and their first month’s wages are withheld by the company.  This is done to prevent the workers from looking for better or higher paying jobs, for if they leave before their first year is out, they forfeit both their wages and deposit. Workers’ Chief Grievance Many of the workers interviewed complained about the long and exhausting forced overtime hours for such low wages.  Especially in the old factory, the turnover rate with workers leaving is quite high.  There is no union at the Keng Tau Handbag factories.

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