The “regular” shift would be: ·7:30 a.m. - 12:00 noon ·1:30 p.m. – 6:30 p.m.   In June, 1999 workers in the sole section reported working 11 to 12 hours a day, sometimes seven days a week. Their shift was:  ·7:30 a.m. – 12:00 noon ·1:30 p.m. – 6:30 p.m. ·7:00 p.m. to 8:30 or 9:30 p.m. Working this shift the women would be at the factory 14½ hours a day, after which they would be locked in the dorms.	Lizhan Footwear is a Taiwanese-owned sneaker and shoe manufacturer with three plants in Dongguan City in the south of China. Lizhan Factory II produces for New Balance, while Factory I produces K-Swiss. Factory III makes various brands, including ones for local consumption. There are approximately 3,500 workers in Lizhan Factory II assembling New Balance sneakers. The vast majority of the workers are young women, 18 to 25 years of age, who have migrated to Dongguan City from rural agrarian provinces. There appear to be several 15 year old minors illegally employed at the factory. The workers report that the company does not accept married women.
	Hours: At the Factory 11 to 14 Hours a Day, Six and Seven Days a Week The “regular” shift is from 7:30 a.m. to 6:30 p.m., six days a week, though in June of 1999 workers in the sole department reported working from 7:30 a.m. to 8:30 or 9:30 p.m.In these giant factories hours can vary from section to section, as do wages. There is an hour and a half break for lunch though most of the workers must rush to finish their lunch in 15 minutes in order to make room for others, as the canteen area is too small to accommodate everyone.
	Lizhan Factory/New Balance Want Ad "Recruitment Notice: In order to fulfill production demands, our factory must now recruit a large number of workers and supervisors in the cutting, stitching and shaping sections. Requirements: 1) Female only 2) Age 18-25 3) Healthy Skilled ones will be preferable. Please bring necessary documents to enroll and join the interviews!

Lizhan Factory workers in blue uniforms cue up to enter the factory. 
Note the SA8000 banner,"Fully implement SA8000 Accountability
Management System."

 

So the workers are at the factory 11 or 11½ hours a day, six days a week, or for 69 hours while being paid for only 9½ hours a day, or a 57 hour work week. However, if an assembly line fails to reach its daily production quota in the 9½ hour shift, the workers are required to remain – without receiving any overtime bonus – for however many hours it may take to reach the goal the company sets.Not only are they not paid any overtime premium, but failure to reach the production goal may also be punished through wage deductions. In the cutting and sole section of the factory there are two shifts with a second grueling 11½ hour night shift from 7:30 p.m. to 7:00 a.m., which has recently been cut back by management for fear of exposure and the reaction of North American consumers. The workers receive one day off a week.However when there are large rush orders, Sunday work is mandatory. Wages: 18 cents an hour base wage.  With overtime and incentives added, wages range from 24 to 34 cents an hour or $13.90 to $19.46 for a 6 day, 57 hour workweek. The basic wage is 18 cents an hour. However the majority of workers are paid by piece rate, according to how many operations they complete.In the sole section of the Lizhan Factory the workers report earning on average between 500 rmb to 600 rmb per month, or $60.24 to $72.29.This would amount to weekly wages of $13.90 to $16.68, or 24 cents to 29 cents an hour, for a six day, 57 hour workweek. In the molding section wages are a little higher, where skilled workers earn from 600 rmb to 700 rmb per month, or $72.29 to $84.34.For a six day, 57 hour workweek, a molder’s pay would amount to between $16.68 and $19.46, or 29 cents to 34 cents an hour. Mandatory overtime work on Sundays is compensated at 36 cents an hour, or twice the base wage of 18 cents.

Low piece rate(all incentives included) ·24 cents an hour ·$2.28 a day (for a 9½ hour shift) ·$13.90 a week (for a 57 hour, 6 day week) ·$60.24 month ·$722.87 a year High piece rate (all incentives included) ·34 cents an hour ·$3.23 a day (for a 9½hour shift) ·$19.46 week (for a 6 day, 57 hour week) ·$84.34 a month ·<>    $1,012.50 year

In a practice which appears to be fairly standard in the shoe industry in China, as an incentive to keep the workers at the factory, after the first three months their wages are raised $1.20 each month, or 30 cents a week.For the 57-hour workweek at Lizhan, this would amount to ½ cent an hour increase in pay each month for the workers making New Balance. The workers are charged a small fee each month for the use of toilet paper.Also anyone late for her shift will be fined approximately three hours wages.Those who lose their factory I.D. cards will be fined $2.20, or two days wages. Another constant complaint is that the workers have no idea how their salary is calculated by the company since they do not understand the specific rates for the various categories of work.Nor can they understand all the deductions or how their incentives are set.In fact, it appears that the line supervisors have the control to arbitrarily distribute each worker’s incentive.Also, the workers cannot understand why their wages vary so much from month to month.For example, in just a two month period one worker’s wages fell from $19.46 a week, or 34 cents an hour, to $11.12 a week or 20 cents an hour, for the exact same 57 hours of work. Assistant supervisors earn about 1000 rmb per month, or $120.48, which is about twice what the production workers earn.

K-Swiss at Lizhan Factory. Also note the SA8000 banner.

Working Conditions: New Balance/Lizhan Footwear Factory Illegal Deposits and Wage Deductions: To get a job at the Lizhan Footwear factory making New Balance sneakers, workers are charged various deposits and wage deductions totaling a full five-weeks of wages. First, as migrant workers they are charged more than 200 rmb—over $24.00 U.S., or nearly a week and a half’s wages – for temporary residency and work permits.(The Chinese people are not free to move around their country.The government controls population movement by requiring temporary residency and work permits for anyone leaving their home to find work in another province.)

To keep new employees from leaving to find work in another factory which may have better conditions or pay more, Lizhan Footwear management illegally requires the workers to pay a deposit of 100 rmb, ($12.05 U.S.) before they can begin working at the factory.Next, the company withholds the worker’s first month wages, which would amount to about $60.Only at the end of the second month will a worker receive their first paycheck.If anyone leaves the factory before their first year is out, their deposit will not be returned.The withheld wages will not be returned if a worker leaves the factory without providing sufficient advance notice.

 

No Legal Work Contract None of the workers at the Lizhan Footwear Factory were provided with a written work contract, which is legally required, and must clearly spell out wages, hours, and working conditions. No Paid Vacations Also illegally, the workers are not provided an annual paid holiday, but can only take an unpaid leave.

Twenty-eight People to Dorm Room Twenty-eight workers are crowded into each dorm room, sleeping in triple level bunk beds, which are stacked up against the walls. Workers Told to Lie to Inspectors Lizhan management threatens and coaches the workers to lie about factory conditions and the hours they work should any New Balance auditors approach them.The workers are instructed to say they are working just eight hours a day, and not the 9½ to 12 hours they actually work.

No Social Security Insurance Once again, in violation of China’s labor law (Article 72: “The employing unit and laborers must participate in social insurance and pay social insurance premiums in accordance with the law.”), the workers at the Lizhan Factory were not inscribed in any social security health insurance or pension plan, which is mandatory for the company to participate in.

New Balance Sneakers Made in China Retail Price: $84.99

Fired For Raising a Grievance – Busting a Strike In February 1999, frustration in the polishing section of the factory spilled over.The workers went on a spontaneous strike to protest piece rates so low that even after 10 hours of work, six and seven days a week, they earned almost nothing.The strike was immediately broken and the factory fired 30 of the most active workers who participated.

Denial of Freedom of Movement During the one and a half hour lunch break, no one is permitted outside the factory compound without prior permission from their supervisors.Also the factory/dorm compound is locked down at 9:00 p.m. each night and no one is allowed in or out after that.Workers who cannot report back by 9:00 p.m. will be locked out for the night. The workers complain that even their freedom of movement is strictly constrained, and it is sad for them since it makes it difficult to visit with their friends in other factories who are from the same province and hometown as they are.

There was a second strike in the molding section, which was also crushed. After firing the workers, management let it be known: “that the workers should behave, otherwise they too would be fired.Strikes are not permitted in the factory, and anyone who tries will be fired.”The manager went on to explain to the workers how easy it is to recruit new staff to replace those fired. No independent union is allowed in this, or any other factory in China.Workers daring to raise a grievance will be fired. One of the fired strike leaders was asked why they did not run to the local government’s labor bureau for help in protecting the worker’s legal rights. He responded: “It’s useless to approach the Labor Bureau even if there are deaths in the factory.”

 

With an estimated 250 million redundant agricultural workers in China's rural provinces, many seek factory work in the south.

No Chance for Advancement The workers told the researchers: “Once your are employed as a worker you will always be a worker.”There is no possibility to advance.It is very frustrating and the workers feel in a trap, going nowhere. Most of the male workers said it was impossible on their little wages to save money or send money home, explaining that their wages just barely met their own living expenses, which included food to supplement their modest dorm meals, cigarettes and entertainment. Some of the young women however, through great personal sacrifice tried to send home as much as $40 a month. Locked in the factory and dorm, working at least six days a week, they had little time or opportunity to spend money.

The women try to save money so their young brothers back home can go to school. SA 8000 Corporate Monitors Show up – The Workers Have No Idea What It Is Representatives from the Council on Economic Priorities Accreditation Agency (CEPAA) SA 8000 monitoring program showed up at the Lizhan Factory and were introduced at a morning assembly. Afterwards the workers told our researchers that they had no idea what SA 8000 was. Some other workers said the SA 8000 people organized a few talks on Chinese labor laws, but no one paid much attention. SA 8000 is sponsored by the Council on Economic Priorities and various auditing and manufacturing corporations.

    In China the top 20% control 52.3% of total income,while the bottom 20% control just 5.5%