Exposing UNIQLO's abuse of Chinese garment workers - War on Want
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Exposing UNIQLO’s abuse of Chinese garment workers
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SACOM
Student and Scholars against Corporate Misbehaviour (SACOM) is a nonprofit
organisation founded in Hong Kong in 2005. It originated as a students’ movement
and now aims to bring front line workers, concerned students, scholars, labour
activists and consumers together to fight for a workplace in which workers
can work with dignity, receive fair wages for their labour, and be leaders in the
workplace. SACOM is especially devoted to the investigation and advocacy of labour
rights in the garment, electronics and toys industries, and has campaigned against
global brands including Disney, Apple, American Eagle and UNIQLO.
Preface
01
China is the biggest exporter of ready harassment. Worse of all has been the
made clothes monopolising nearly 40% strategic crackdown on workers who
of the global garment industry. Driving fight back.
China’s $187 billion garment trade are
over 10 million garment workers who Global initiatives that try to get garment
toil under oppressive and exploitative corporations to take responsibility for their
working conditions, mostly for high factory workers are voluntary, weak and
street brands. toothless mechanisms. Garment corporations,
like UNIQLO, have never been called to
On paper, China has some of the most account by national governments or
progressive labour laws in the region, international bodies for their abuse of
providing job security, limiting overtime, garment factory workers. While concerned
setting minimum wages, providing social stakeholders work to gently nudge garment
security and insurance and protection of corporations to consider taking responsibility
dismissed workers. Unlike most other for their factory workers, SACOM have taken
garment producing countries, China’s a more direct approach in exposing the
minimum wage has been rising by 13% insidious reality of these voluntary initiatives
each year. that whitewash corporate rhetoric,
highlighting the real impact that the culture of
However, while business from foreign brands impunity has on the daily lives of workers.
is booming, the fundamental human right of
workers to form and join independent trade SACOM’s undercover investigations led to
unions is banned in China. Driving a race to significant improvements in factory conditions
the bottom on wages and working conditions, for UNIQLO’s workers, but for the pending
brands expect low production prices and a cases of hundreds of dismissed workers in
compliant workforce and this is guaranteed supplier factories in China and Cambodia,
by governments and upheld by factory justice is still out of reach. Together with
owners out of fear of losing foreign business. SACOM, War on Want is demanding supply
Exploiting this arrangement is Asian retail chain transparency in the garment industry.
giant, UNIQLO. Fighting back against this is a Knowing which factories brands produce in
growing force of labour organisations, like allows workers to directly target the
War on Want’s partner, Students and Scholars companies they are producing for providing a
against Corporate Misbehaviour (SACOM). long overdue shift in the balance of power in
the garment industry. War on Want is also
This report presents the findings of supporting the call for binding international
undercover investigations undertaken by legislation to hold corporations to account
SACOM into four of the 70 factories and end the impunity with which
producing for UNIQLO. These factories are corporations operate.
kept secret by UNIQLO allowing it to abuse
and exploit workers with impunity. In this
report the disconnection between the utopia
that UNIQLO presents to the public and the
lived experiences of garment workers in
their supplier factories is highlighted: working
days of up to 20 hours, seven days a week in Steve Preston
dangerous working conditions facing severe Chairperson
Contents
02
1. Labour rights and working conditions in China 03
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
1.1 China’s garment industry 03
1.2 The rise of workers’ power and China’s labour
law reform 03
1.3 The reality of working conditions in Chinese
factories 05
2. SACOM’s investigations in UNIQLO factories 07
2.1 SACOM 07
2.2 UNIQLO’s 'utopia' 08
2.3 SACOM’s methodology 10
3. Key findings: UNIQLO's factory dystopia 12
3.1 Excessive working hours and unpaid overtime 12
3.2 Unsafe working environments 13
3.3 Punitive measures 15
3.4 No unions allowed 16
4. Demands and Responses 17
5. UNIQLO’s culture of abuse 19
5.1 The case of Artigas Clothing 19
5.2 Beyond China: the case of Zhing Yin factory,
Cambodia 20
6. Conclusion: Take Action! 22
1 Labour rights and working conditions in China
03
1.1 China’s garment industry producing for them. They have done this by
hiding behind complex supply chains and
keeping factory workers at arms’ length by
China is the leader of the global
not directly employing them. The garment
garment export industry with an
industry moves across the globe searching
annual value of $187 billion, cornering
for the lowest possible production costs,
38.6% of the global market.1 In 2012,
driving a race to the bottom in wages and
China made 43.6 billion garments with
working conditions.
an export value of $153.2 billion. By
2013, the export value had increased
China’s garment industry has historically
to $164.13 billion. In the first half of
been located in the established southern
2016, China had already clocked up
coastal areas close to Hong Kong. Recently,
$47 billion in global garment exports.2
many factories have been relocating inland in
Driving the industry are over 100,000
pursuit of cheaper labour costs.
garment manufacturers employing
over 10 million garment workers.3
Its garment exports to the UK amount to
1.2 The rise of workers’ power
$12 billion representing 24% of Chinese and China’s labour law reform
exports to the UK.4 UK high street brands
such as Primark, H&M, GAP, Mango, Zara, China has long led the race to the bottom
Lululemon, and online stores such as Boden on workers’ wages and working conditions
and Matalan all produce garments in China.5 to create the requisite financial incentives
China is part of a global garment industry for international brands. However, its labour
where fashion brands have evaded laws attempt to secure rights of workers by
responsibility for the rights of workers improving job security, limiting overtime, setting
UNIQLO's store front in London
04
the minimum wage and providing compensation China. Independent trade unions and labour
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
for dismissed workers. As such, the minimum rights groups can openly function in mainland
wage in China has been increasing by around China, with the support of civil society. These
13% each year until 2016.6 For garment workers groups play a strategic role in connecting the
in China, this means that they are legally entitled international arena with worker struggles in
to receive one of the highest minimum wages in mainland China. This has created the space for
the region, second only to Malaysia.7 greater awareness of workers in China among
Western consumers as well as for solidarity
The shift in legislation and policy has largely between Chinese workers and garment
been driven by the rise of activism from workers in other countries.
China’s labour movement, supported by civil
society groups. Strike and protest action has SACOM has been central in exposing the link
been on the rise for some time as Chinese between poor working conditions and
workers push back against Chinese producers corporate impunity of international fashion
and the international brands they produce for. and electronics brands. By implementing its
Workers have been demanding better wages, methodology of evidence-based advocacy,
working hours and conditions by engaging in SACOM has campaigned to secure improved
strikes and forcing employers and brands to labour rights for workers in factories that
the negotiating table.8 produce for global brands Apple and Disney.
However, as much as workers have been
Hong Kong-based groups play a significant role pushing back, the situation for workers
in supporting the factory workers in mainland is worsening.
Monthly minimum wages of garment workers in the region (US$)
275
ighest relevant rate applicable to
H
unskilled garment workers
L owest relevant rate applicable to
unskilled garment workers 266
219
237 244
128
131
95
156
Source: www.ilo.org
100 90
85 74
66 68 70
© Tom Lebert
Sri Lanka Bangladesh Pakistan Cambodia* Viet Nam India Indonesia Thailand China Malaysia
05
1.3 The reality of working to new, inland production hubs. Often
factories are closed overnight, without
conditions in Chinese factories warning to workers who arrive at work to
find the gates locked, factories gutted of
While the Chinese government has initiated machinery and the factory owners nowhere
labour law reforms, it has omitted crucial rights to be found. Workers are left without
that would result in real change for workers. compensation, with unpaid wages and unpaid
The Chinese government still denies workers pensions. The increase of strikes and protest
the right to form and join trade unions of their actions in the last few years has corresponded
choice. Only those independent trade unions with the increase of coastal factory closures.
that are affiliated to the All-China Federation Coastal provinces like Guangdong reported
of Trade Unions (ACFTU), the state-run 361 strike actions in an 18-month period from
trade union federation, are recognised – January 2015 to July 2016.10
any independent unions are forbidden and
repressed. Workers are also denied the right Workers in the garment industry in China are
to collectively bargain and the right to strike is also treated differently depending on whether
severely (and often violently) limited, both in they are city born, rural migrant or women
law and in practice. workers.
Despite China having the second highest Rural migrant workers, through the ‘hukou’
minimum wage in the region, this basic wage system, are denied the equivalent access to
does not come close to covering living costs
forcing workers to make ends meet through
long hours and overtime payments.
The isolated life of internal
Wage setting takes place in a decentralised
way – city and provincial governments have the migrant garment workers
authority to set the minimum wage, resulting
Most garment workers are internal migrants
in substantial differences in minimum wage
from rural parts of China who have moved
levels across China. Workers in established
to industrial cities in search of work. Their
coastal hubs like Shenzhen can earn up to
first languages are often not Mandarin
$299 per month while workers in remote
and cultural backgrounds vary vastly. With
and inland cities like Yichuan can earn up to
measures taken in factories to pit workers
$127 per month. Cities in the interior are
against each other the opportunity to build
also luring manufacturers inland by promising
social bonds is limited. Cramped dormitories
tax breaks, better transport links and higher
are shared between workers on night and
productivity from a large labour pool.9 Another
day shifts. A quiet space for workers to rest
factor driving the move inland is that it makes
must be maintained at all time thus limiting
the organising of workers by Hong Kong-
conversations and socialising between
based labour groups more difficult, making
workers. With dormitories and factories in
an understanding of labour rights difficult to
the same gated complex, workers’ lives are
access for these workers.
confined to a small radius. There have been
wide reports of severe loneliness,
To ensure China remains competitive,
depression and suicide.
factories in the established coastal production
areas are facing mass closures with relocations
Strike action in manufacturing industry, China (2015-2016)
06
11
Mongolia
19
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
North
30 Korea
Japan
6 14
15
South
15 113
Korea
4 4
17
China 61
34
134
34
48 89
Nepal 34 17
19
20 38
Bhutan
9
Source: www.clb.org.hk
India
Taiwan
Bangladesh 9 12
361
Myanmar Hong Kong
Laos
state benefits and protection granted to their very common for survival – do not continue
urban-born counterparts. The 'hukou' system to receive employer contributions to their
ensures that welfare entitlements such as pensions. Similarly, employers are at liberty
pensions, housing and education are tied to to keep women on temporary contracts with
a person’s place of birth. Moving from the little stability and low wages.
village to a city or from a rural town to the
coast means that migrants lose their welfare Ageing migrant workers are a growing group
entitlements. However, with extreme poverty in China. The reason behind many industrial
in rural parts of China, people have no option disputes is that pension contributions are
but to move in search of an income – forcing not being paid by employers. Factory closures
them to forfeit the welfare benefits. are leaving middle-aged workers unemployed
As the garment industry is in constant flux, and unable to find permanent jobs. Receiving
rural migrant garment workers remain in a a pension is crucial for the survival of ageing
state of precariousness. workers, and mandated by law.
Women workers also suffer serious gender For workers who have spent their lives
discrimination though Chinese labour law. The working in factories, earning poverty wages
retirement age for women is set at 50 years without the capacity to save, receiving their
(with men being able to retire at 60). This pensions and being entitled to welfare
means that women workers who continue benefits is crucial for their basic survival
to work beyond the age of 50 – which is in old age.
2 SACOM's investigations in UNIQLO factories
07
In neighbouring Hong Kong, where been written in Chinese labour laws, the
a free media and independent trade commitment to conditions made by fashion
unions are allowed, a vibrant network brands and the reality of working conditions
of labour organisations are committed in factories. Working with a close network
to educating their fellow workers of researchers willing to pose as factory
in mainland China, exposing their workers for weeks at a time, SACOM
exploitation and raising awareness has been able to document the reality
of their resistance. Central to this for workers in factories. The undercover
activism and advocacy is SACOM. investigations are undertaken with great
risk yet they remain committed supporters
of factory workers and continue putting
2.1 SACOM themselves forward for this work.
SACOM is a labour-rights NGO based in SACOM has campaigned against supply chain
Hong Kong. It emerged in response to the exploitation of recognisable corporations like
injustice of corporations benefiting from the Apple and Disney that produce in mainland
exploitation of cheap labour and the culture China for sale internationally. Their work has
of corporate impunity fuelling labour abuses led to significant improvements in the factory
in mainland China. conditions for workers in the supply chain of
these companies. In the process of holding
SACOM has made rigorous research the high profile, targeted campaigns, SACOM has
cornerstone of their work. They have also educated consumers of the social costs of
exposed the disconnect between what has purchasing popular products made in China.
SACOM protest outside UNIQLO store in Japan
© Damon Coulter
08
SACOM also works closely with workers 4-storey flagship store in Oxford Street,
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
on the factory floor providing in-factory London. The brand is determined to grow
training to workers on how to organise. as a mainstay of the British high street with
This is done with the aim of supporting a focus on well-made basics. UNIQLO is
democratic elections for worker-led committed to presenting itself as an ethical
committees in factories. Supporting the call brand with a commitment to ‘making the
from the global garment workers sector, world a better place’.12
SACOM sees the best way to ensure
workers’ rights is by securing the right to UNIQLO and its parent company Fast
collectively organise in factories. Retailing appear to take their social
responsibility seriously. They see their
2.2 UNIQLO’s 'utopia' relationship with the 70 factories as more
than just business dealings and closer to
UNIQLO is a Japanese casual wear brand and long-term partnerships. This
a wholly owned subsidiary of Fast Retailing manufacturing structure is unique to
Co Ltd. UNIQLO is the fourth largest UNIQLO, with most other fashion brands
fashion brand in the world with 1,797 stores having a far larger and fragmented supply
worldwide.11 Fast Retailing also owns other chain, for example, H&M has well over
fashion brands Theory, Helmut Lang, J Brand 400 factories in China, the same number
and Princesse tam. tam. in Bangladesh, with manufacturing taking
place across over 35 different countries.
UNIQLO has 36 stores in Europe with 10 In contrast, 90% of UNIQLO products are
of them located in the UK, including its manufactured in China.13
UNIQLO's global flagship stores 'Made for All'09
Much of their focus is on securing high
quality, mass produced garments.14 Stringent
quality control of the clothes, allowing for
UNIQLO's billionaire CEO
only a 0.2mm margin of error, is closely CEO of UNIQLO and parent
monitored by the brand which has invested company Fast Retailing is
in 400 expert engineers to ‘help improve Tadashi Yanai, the richest man
product quality and production processes’ on in Japan, worth $16.3 billion
site in their contract factories.15 and one of the 50 richest
people on the planet.
In addition, as part of its Corporate Social
Responsibility (CSR), Fast Retailing has Gaining inspiration from the CEO of GAP,
a policy governing its responsibility to whom he calls ‘Professor’ out of respect,Yanai
its employees. It has produced a Code is determined to dominate the fashion world
of Conduct for its partner factories aiming to lead the biggest brand by 2020.
manufacturing for their brands.16 Projecting an ethical approach to production
is important to Yanai, though cracks in the
The Code of Conduct contains key guidelines veneer of ethical practice threaten to shatter
such as the prohibition of child labour, sets UNIQLO’s reputation.
limits on overtime work and promotes freedom
of association. All Fast Retailing suppliers have In 2011, the ‘extremely harsh, slave-like
to submit a written pledge to uphold the Code labour conditions’ in UNIQLO’s factories
of Conduct. The CSR monitoring reports are were made public.Yanai moved swiftly to
made public. Fast Retailing has also set out silence this dissenting view by instigating a
its monitoring of workplace conditions in its legal challenge. He lost both the initial case
CSR reports. In it Fast Retailing states that as well as the appeal in the Supreme Court.18
‘the monitoring of working environments In the same year,Yanai transferred $5.3
by Fast Retailing and its partner factories is million of his Fast Retailing shares to an asset
essential to ensuring that safe and appropriate management company he set up himself in
working conditions are maintained and to the Netherlands, in what appears to be an
creating a mutually beneficial cycle of raising attempt at tax evasion.19 In 2015, the total
productivity, quality and employee satisfaction.’17 dividends from Yanai’s shares exceeded $17.7
This monitoring is done through a network of million. If he had paid tax, this would have
on-site factory management teams and in-house contributed to almost $7 million in taxes for
auditing systems. Japan’s public purse.
Displays of ethical commitment are not
confined to conduct within UNIQLO's own Clothes for Smiles Programme worth $10
supply chain. Parent company Fast Retailing million. It includes the following projects: 20
engages in various unrelated charitable
ventures. For UNIQLO, its CSR is important • The Shopping Experience Project gives
to portray itself as a positive, responsible disadvantaged children the chance to
company and to attract a particular kind of choose clothing they want at selected
consumer for whom this is key. UNIQLO stores so they can discover the
experience of shopping. Children are given
Together with United Nation's Children's shopping vouchers to shop at a UNIQLO
Fund (UNICEF), UNIQLO has undertaken the store to help them build interpersonal skills10
and manage a limited budget.21 The project Project in partnership with Business for
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
also provides space for refugee children to Social Responsibility.23 Implemented in
freely express their feelings about choosing Bangladesh and Indonesia, the project
their own clothes provides educational support for women
• The Girls Soccer Project has been set up garment workers. It focuses on helping
in Bangladesh, Zimbabwe and Ghana. The workers acquire knowledge and skills on
aim of the project is to ‘help girls develop basic nutrition, hygiene, healthcare and
a sense of social discipline, so they can household management.
succeed at school and become valued
members of their communities.’22
2.3 SACOM’s methodology
UNIQLO has also tried to set itself apart In 2014, SACOM decided to investigate
from those garment manufacturers named UNIQLO to assess whether its outward
in Greenpeace’s campaign exposing big commitment to making the world a better
brands implicated in the use of toxic place and ensuring the human rights of its
chemicals and environmental degradation workers was the reality for workers on the
in their manufacturing processes. factory floor. SACOM investigated Pacific
UNIQLO signed up to the Greenpeace Textile Ltd and Dongguang Tomwell
Detox Challenge as a corporate leader Garment Co Ltd, two factories supplying
in environmentally friendly UNIQLO in China. In 2016, SACOM
manufacturing processes. reinvestigated Pacific and Tomwell and
included two new factories, Jintan
For its factory workers, UNIQLO has set Chenfeng Clothing Co Ltd and
up the Factory Worker Empowerment Dongguang Crystal Knitting and Garment
UNIQLO signs up to Greenpeace Detox Campaign11
00
Co Ltd to provide the most representative
data on factory conditions. TIMELINE OF SACOM
INVESTIGATION
These factories were chosen based on
UNIQLO’s own public classification of them September 2014
as best-performing factories with ethical
SACOM conducts factory
practices.24 The investigations of these
investigations
factories were conducted with the
expectation that of the 70 factories producing January 2015
for UNIQLO, working conditions in these
SACOM releases findings in report
factories were likely to be among the best.
Fast Retailing issues response
SACOM investigators posed as general
workers in the factories, collecting January 2015
primary data regarding the working Fast Retailing issues corrective plan
conditions. Documents such as workers’
contracts, salary slips, working hour records, March 2015
rules and regulations and disciplinary fines Email exchange between SACOM
were collected during the investigation and Fast Retailing
period. Researchers also conducted
interviews in the immediate vicinity of April 2015
factories such as dormitories, restaurants SACOM conducts investigation into
and food stands. Some interviews were two more UNIQLO factories
followed by online interviews with workers
that the undercover investigators were July 2015
familiar with so that the most up to date Fast Retailing issues corrective plan
information about conditions in the factories progress report
could be collected.
August 2015
Interviewees came from different SACOM responds to progress report
departments of the factories including
dyeing, quality control, knitting, cutting October 2015
and sewing, ironing and finishing SACOM conducts follow up
departments. Pacific Textiles and Tomwell investigations into both factories
Garment factories were investigated twice to make independent assessment
to verify the findings and to follow up to of improvements
see if Fast Retailing and UNIQLO had made
any improvements. November 2015
SACOM releases second
SACOM released two reports of their investigative report including both
findings, accompanied by broad media original factories, and an additional
coverage and a high profile campaign in China, two UNIQLO factories
Japan and Taiwan. This advocacy was aimed
at educating consumers as well as pushing January 2016
UNIQLO to respond to the findings and SACOM releases revised version
improve working conditions. of report3 Key findings: UNIQLO's factory dystopia
12
SACOM’s undercover investigators to take a rest with workers working these
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
witnessed and experienced shocking excessive hours for two months straight.
human rights abuses. From long,
excessive and unpaid overtime to During the peak season, workers had to soak
chemically hazardous workplace their feet in hot water to relieve pain and
environments, it became clear that fatigue, after long hours of standing. Workers
UNIQLO was far from the ethical can apply to not work overtime but many
brand it was trying to portray to don’t because of fear of losing their jobs or
the public. creating a hostile work environment. A young
female worker who works in quality control
3.1 Excessive working hours in Dongguang Crystal Knitting and Garment
Company said:
and unpaid overtime
‘I don’t want to work overtime. My feet went
Fast Retailing’s policy states that overtime swollen after standing for work for so long. I
is the exception and that working hours are often tell the line leader that I don’t want to
closely monitored across all departments work overtime. He has a bad impression of
to ensure that workers are not working me now.’
excessively long hours. SACOM’s
investigations found this not to be the case Another male worker who had been working
in the first two factory investigations, nor for two years in the printing department of
did they find this in Chenfeng and Crystal the same factory said:
factories after UNIQLO’s corrective plan was
‘Sometimes I work for
rolled out.
The Chinese standard for working hours
per month is 174 hours. Workers in all 1-2 months, till 11pm or
four factories were found to be working in
excess of the statutory provision. In addition
even midnight! I start at
to the standard 174 hours workers in all
four factories were working the following
7:30am.’
overtime hours:
It was also found that workers were forced
• In Pacific, workers were working 134 hours to work overtime because their wages fell
of overtime per month well below the minimum wage for the region.
• Tomwell’s workers were required to work The basic wage they were receiving barely
112 hours of overtime covered their subsistence let alone being
• In Chenfeng, workers were working 80 a living wage. The wages in the factories
hours overtime per month ranged from $196 to $231 per month. Taking
• Crystal’s workers were working 150 hours overtime work was a way of earning enough
overtime — nearly the equivalent of two to survive.
full time jobs for less than a living wage.
However, many workers in the factories
In some cases this required workers to work found that they were not being properly paid
a 17-hour day from 7:30am to midnight, seven for their overtime. Statutory provisions on
days a week. Often they were not given leave overtime stipulate that workers are to be13
paid double their wages for working overtime its employees, in compliance with national
on weekends, but wages for the workers in laws… [and it] takes special care to create
these factories were being calculated at one safe workplaces and prevent employee
and a half times the basic wage. The law also accidents on the job and while commuting.’26
provides that if the worker, whose wages are SACOM found that workers in Pacific and
calculated by piece rate, is required to work Tomwell were subject to working conditions
overtime, the employer has to pay the worker which included extremely high shop floor
for his/her overtime or extra shift wages temperatures, unsafe facilities, no protective
not less than 150 to 300% of the normal gear, poor ventilation with high cotton dust
piece rate wage. However, it was found that levels in the air, the use of toxic chemicals
workers working overtime were being paid and high risk of electricity leakages.
the standard piece rate.
It was found that the temperature on the
knitting floor of one of the factories was 38
3.2 Unsafe working degrees Celsius. Workers had no protective
environments gear and some male workers were observed
working topless, whilst women workers were
Fast Retailing states that it takes the ‘utmost seen working in sweat-drenched clothes.
care to protect the health and safety of Workers in the dyeing department were
Garment worker working in high temperatures, Pacific14
expected to work with fabric loads of up to rushing to meet productivity targets under
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
600kg in high temperatures with no protective high pressure.
gear, risking burns or chemical exposure.
In each of its CSR reports Fast Retailing
Investigators found that some of the factories does acknowledge that sewing machine
had poor ventilation and in one case the accidents and falling from stepladders in
ventilation was switched off for the entire stores still occur.
duration of the investigation. They found that
there was a high density of cotton fibre in Investigators also found that Pacific and
the air with a risk of causing byssinosis – a Tomwell factories were using harmful
serious occupational asthma and respiratory chemicals in their production processes.
irritation. Furthermore, cotton dust is As a result harmful, toxic waste water
combustible and has been the cause of dust was regularly seen flooding the factories’
explosions in textile plants in China. floors. Unregulated exposure to chemicals
was widespread and many workers were
During the undercover investigations it exposed to high risks of electrocution due
was also observed that workers had to to ‘electric leakages’.
stand on 2-metre high stepladders while
working with rolls of yarn. Falls from this This is in direct contradiction to UNIQLO’s
height are common in the factories as public statements of being a corporate leader
workers try to load the machines with yarn. in environmentally friendly manufacturing
They become more common as workers are processes. It is no wonder that in 2015, the
Chemical waste flowing on the factory floor, PacificPolice inside the Artigas factory
15
Newsweek Green Ranking – one of the world’s Workers’ wages were being deducted if the
most recognised and respected assessments of quality of their work was not up to standard
corporate environmental performance – ranked or if they were found resting outside of their
UNIQLO very poorly, giving only a 29% rating 30-minute lunch and dinner breaks. Fines were
which put them behind most large companies, also used as a way to control product quality
scoring 362 out of 500 companies.27 and manage minor mistakes.
At Tomwell factory a worker had his entire
3.3 Punitive measures wage for the day deducted when he was
caught attempting to iron two sleeves at the
UNIQLO and Fast Retailing purportedly same time instead of one sleeve at a time. In
prioritises the physical and emotional wellbeing Crystal factory, workers were encouraged by
of its retail employees over the employees on management to report the mistakes made by
the factory floor. As part of its CSR initiatives colleagues. Money was deducted from the salary
for retail employees, Fast Retailing has invested of the worker who made the mistake, and
in wellness centres as well as having in-house transferred to the salary of the worker who had
mental health counsellors. It has put in place reported the mistake – thus turning workers
mechanisms for reporting workplace stress against each other and creating a culture of
and a system for rectifying any stressful mistrust.This was found after UNIQLO had set
situations. There is also a prohibition on out its corrective action plan.
corporal punishment, physical, sexual, mental
and verbal harassment including withholding or Managers regularly used the factory
deducting money as a form of disciplinary broadcasting system to name and shame
action. However SACOM found that these workers who weren’t hitting their production
measures to ensure physical and emotional targets. Chenfeng regularly set the daily
wellbeing were not implemented in factories productivity target at 8am and 3pm. If workers
producing for UNIQLO. In Pacific Textiles could not reach the target, other workers
there were 58 types of regulations set for would have to take on the extra work, adding
punishing workers – 41 of them included fines. to the stress of being bullied over the16
broadcasting system, for example, ‘[Worker voice their concerns. There is no collective,
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
name], what happened to you! What has democratic body representing workers in
happened, can’t you even concentrate at work! negotiations with management. In the Pacific
Your productivity today is lower than factory the chairperson of the ‘union’ is also a
yesterday!’ All of these punitive measures have manager at the factory, violating China’s own
contributed to a hostile work environment that labour laws. The union in Pacific is completely
workers have broadly cited as very stressful. ineffective in dealing with labour disputes
or advocating for workers’ rights, choosing
to organise leisure activities and distribute
3.4 No unions allowed welfare benefits instead.
Fast Retailing publicly states that its production Investigators also heard that when workers
partners ‘shall respect the right of workers to organised a strike against the low wages
associate, organize and bargain collectively in at the Pacific factory in 2009, the
a legal and peaceful manner without penalty, management hired gangsters to physically
interference, or coercion, and in accordance to assault the workers’ leaders and suppress the
the Laws.’ This is in keeping with its promise to strike. In other incidents, police were called
uphold human rights at all levels of its operations. into factories to squash strike action and, in
the case of workers leading a strike against
However, through SACOM’s investigations it high temperatures on the shop floor, they
was found that workers have no platform to were dismissed.
SACOM’s press conference, Japan4 Demands and responses
17
SACOM published the results of the received training when they hadn’t
investigations in Pacific and Tomwell • Not being given pay slips and instead being
factories in January 2015. The report told to sign salary sheets where it stated
received widespread media coverage that they were paid a basic wage when
internationally. The response from they were only paid a piece rate
UNIQLO was swift, with parent • Not being allowed to mention that they did
company Fast Retailing immediately not receive protective equipment
issuing a statement on its website. In • Protective equipment was only issued to
the statement, Fast Retailing admitted workers before audits and removed once
to SACOM’s findings of rights violation, auditors left.
after conducting its own independent
inspection of both factories: ‘We UNIQLO has made public, through its CSR
confirm that, regrettably, the inspection reports, that there are significant labour
found several problems including long violations within their partner factories.
working hours.’ 28 These were picked up in their own factory
audits which were undertaken specifically to
Fast Retailing, however, disputed SACOM’s monitor working conditions.
other findings stating that these were
'differences of opinion'. They did not offer After the release of the initial Pacific and
to explain the different views that were held Tomwell factory findings by SACOM and
on the issues. The fact that Fast Retailing felt UNIQLO’s response, the company continued
that the conditions were somehow open to to monitor both factories to ensure that the
interpretation was of concern to SACOM. corrective measures they had put in place
were being implemented. However, when
However, SACOM was not surprised that SACOM returned to the two factories for
Fast Retailing was sweeping the serious rights their follow up investigation, they found that
violations under the carpet. In investigations while some violations had been rectified, the
conducted in Chenfeng and Crystal Group, serious violations had been left to persist.
SACOM found that monitoring working
conditions through factory audits was deeply UNIQLO's factory audit results show that
flawed. Investigators found that workers were between 2010 and 2015, 55% of factories
bribed and coached by factory managers into had at least one major or serious violation
giving responses the factory wanted them to of the Code of Conduct. This included
give. For example, workers were given a cash 42 factories which were found to have
reward by factory management if they lied to ‘highly unethical, serious offenses subject
auditors. In some cases, workers were asked to immediate review of contract.’29 With
by auditors if they worked on weekends. If factories hiding their failings from auditors,
they lied and said no, factory management it is quite likely that the true figures are
would give the compliant worker a cash much worse. It is impossible to have a full
reward amounting to a quarter of the total picture of working conditions without
monthly wage. brands like UNIQLO publishing the details
of their manufacturing supply chain. Hiding
Other instances where workers were made these details demonstrates a lack of
to cover up their own rights abuses included: transparency, inconsistent with claims of
• Being forced to sign papers to say they had corporate responsibility.18
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
What the factories fixed What wasn’t fixed
Overtime hours had been reduced Pacific still polluting with hazardous waste
Overtime premium was paid Pacific still exposing workers to harmful chemicals
Ventilation was improved by building windows Pacific not providing workers masks unless requested
Temperature was reduced, air-conditioning No health and safety training in both factories despite
installed workers reporting being injured by heavy machinery
Waste water draining had been improved in Both failed to give workers the results of their medical
Pacific check-ups
Unpaid housing provident fund in Tomwell. In Pacific,
workers denied access to housing provident fund
Basic wage in both factories the minimum wage, less
than half the living wage
Illegally high overtime hours, between 80 and 100
hours in both factories
Tomwell wages calculated by piece rate, rather than
legally required overtime wages
Worker representation unfulfilled in both factories –
no democratic election of worker representative5 UNIQLO’s culture of abuse
19
With UNIQLO’s 400 quality control their demands unmet. In June 2015, around
and monitoring staff having a regular 500 workers slept in the factory for weeks,
presence in partner factories, the in an attempt to ensure the factory would
idea that the company was not not be closed without receiving their unpaid
aware of labour abuses in factories is severance and pension payments and in the
questionable. After SACOM’s release hope that factory owners would speak to
of the 2016 report UNIQLO ceased them collectively.
responding to investigations. The lack
of response to the serious labour Management rejected the call for collective
violations is not confined to the four bargaining and said they would only agree
factories investigated by SACOM. to meet with workers individually. This is
The two cases below demonstrate a common union-busting tactic used to
that any corrective measures taken diminish the power of striking workers. With
in response to SACOM’s initial report collective bargaining rejected,half of the
were confined to the two investigated workers petitioned the Guangdong Provincial
factories. Both cases below remain Government to resolve the dispute while
unresolved at the time of publication the other half remained at the factory. This
and UNIQLO has been unresponsive to resulted in violent police repression and
pleas for help from workers. detention of 150 workers who attempted
to peacefully engage authorities in order to
resolve the dispute.
5.1 The case of Artigas
Clothing
In June 2015, the Artigas Clothing and Leather The National Social Security Fund is
factory in Shenzhen, China, shut down without a system that includes five elements
notice and refused more than 500 workers including a pension fund for workers
severance and social insurance payments. The who jointly contribute to the fund with
factory was a major contract manufacturer for their employers. In order to qualify for
UNIQLO and one of the 70 factories which this pension upon retirement there is
the company had a close relationship with. a minimum threshold for the number
of years which contributions have been
Most of the workers were women close to made, usually around 15 years. This
retirement age who had been working in the becomes a problem for workers who
same factory for over 10 years. The factory have worked in a single factory for
had not been contributing to their pension many years where the employer has
and workers reported that factory conditions not contributed to their pension at all.
and hours had long been intolerable. Employers are only obliged to back-
pay just two years’ worth of pension
In December 2014, when workers first heard – the rest is simply denied to workers.
of the possibility of factory closure, 1,000 With the support of this law, which
workers went on strike demanding that the guarantees a win in the courts, brands
company pay their pension and overtime and their factory suppliers are enabled
payments. The police and factory management to deny workers their rights to retire
worked together to shut down the strike and in dignity.
workers were forced to return to work withStrike action outside Artigas factory
20
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
Some workers were arrested in night raids of compensation. The case received significant
carried out by police while they slept. One of media attention and has triggered a formal
the workers arrested was a female leader who complaint being submitted about UNIQLO to
was detained for a total of four months. The the Organisation for Economic Co-operation
female worker's indefinite detention was used and Development (OECD) for flouting the
as a way to coerce workers to sign a ‘voluntary Guidelines for Multinational Enterprises.
resignation’ if they wanted her to be released. Despite UNIQLO being aware of the
situation, it has done nothing to support the
The factory management visited the homes workers who have been denied their basic
of 359 workers who were coerced into rights in contravention of the law.
signing, going to extraordinary lengths to
deny workers their rights.
5.2 Beyond China: the case of
Fast Retailing issued three statements in
response to the dispute to assert that
Zhong Yin factory, Cambodia
respect for human rights of workers was Labour rights abuses in factories producing
most important for them. However, this was for UNIQLO are not limited to their Chinese
not backed up by action. Instead, workers manufacturers. An ongoing case in the Zhong
were forcibly removed to work in another Yin factory in Phnom Penh, Cambodia points
factory − Lever Style − and workers who to an entrenched culture within UNIQLO
joined the collective action were dismissed. and Fast Retailing of ignoring the serious
violation of workers’ rights. The factory
The workers filed a lawsuit for illegal currently employs over 1,000 workers and
dismissal and not paying the correct amount they produce mainly for UNIQLO.21
According to the Coalition of Cambodian a contravention of Cambodian labour laws.
Apparel Workers’ Democratic Union The worker also claimed that many workers
(CCAWDU), 6,715 people were dismissed frequently fainted because the temperature
due to their active participation in labour in the factory was very high and there is no
unions in 2014. 60% were female workers. air conditioning.
In late 2015, 50 workers were dismissed for
being union members. The dismissals followed Although workers were provided with masks
the union-led negotiation with the factory. to protect against the chemicals used in the
In December 2015, the Arbitration Council factory, they did not use the masks because of
ordered the reinstatement of all 50 CCAWDU high temperatures. Wearing the masks in high
members. However, Zhong Yin factory refused temperatures makes it difficult to breathe.
to respect the Council’s award.
In April 2015, UNIQLO stated that it was
As is their right under the Cambodian Labour undertaking an investigation in the factory
Law, CCAWDU commenced a strike in after workers reached out to the brand. In
February 2016 calling for the implementation August of the same year, it issued a statement
of the award. The factory’s response was to stating that ‘the investigation found no
terminate another 55 workers. Contract evidence of long working hours, such as 24
renewals are carried out every three months, consecutive hours of work, nor unpaid wages,
and workers who were members of a union as mentioned in the report.’
were refused contract renewals.
No mention was made in this statement of
Other labour violations in Zhong Yin mirrored the concerns with union busting, difficult
those found in the other four Chinese factories working conditions, precarious contracts,
that SACOM investigated. They include and non-payment of overtime wages. In
excessively long working hours, no overtime pay, March 2016, the factory issued court
precarious work contracts and unsafe working proceedings against CCAWDU union leaders
environments. Precarious work contracts are for inciting workers to conduct a strike.
temporary and provide little stability. This criminal charge was instituted despite
the Cambodian Constitution and Labour
Law guaranteeing workers’ right to strike.
The worker said, ‘I must A second complaint to the OECD about
UNIQLO will be submitted based on the
work overtime, otherwise flagrant abuse of labour rights in the Zhong
Yin factory in contravention of the Guidelines
my contract would not be for Multinational Enterprises.
renewed. I must obey’ Workers in the Artigas factory in China, as
well as the Zhong Yin factory in Cambodia,
A male worker at Zhong Yin reported that he are still fighting for UNIQLO to support
was forced to work overtime almost every them. The mostly female workers who have
day. Sometimes he was forced to work for 24 been unfairly dismissed continue to fight for
consecutive hours. reparations and are in an increasingly
difficult position as they are unemployed
He reported that workers were not paid any and unable to support themselves and
overtime wages for hours after 6pm. This is their families.6 Conclusion
22
This report has exposed the disconnect Workers Empowerment Project declares that
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
between the laws that are passed to UNIQLO cares about its workers.Yet if one
protect workers and the violation of digs deeper, the UNIQLO project provides
those rights by factories that produce charity with one hand, while UNIQLO denies
for brands like UNIQLO. It also their own workers’ rights with the other.
demonstrates the disparity between
what UNIQLO puts forward as its UNIQLO is just one brand within a global
public image and what it actually does system where fashion brands have evaded
in reality. responsibility for workers making their
clothes and get away with talking about
On the one hand UNIQLO says that it will their commitment to working conditions
not conduct business with factories that while their factory workers suffer. UNIQLO
fail to adhere to its code of conduct which is part of the global garment industry that
protects workers’ rights.Yet the four supplier has collectively succeeded in mystifying
factories investigated showed that there were the entrenched labour rights abuses of
widespread labour rights abuses that flouted millions when it is clear that it is the brands
Chinese labour law, as well as UNIQLO’s who disproportionately benefit from the
code of conduct. UNIQLO says that there are exploitation. Fashion brands actively drive
strict controls in place to prevent excessive and sustain human rights abuses through a
working hours, yet this report has shown system where countries and factories are at
that workers were working the equivalent the mercy of the orders from brands who
of two full time jobs or 350 hours a month. can specify their requirements down to the
Whilst it guarantees the rights of workers to last stitch yet cannot guarantee basic labour
organise and bargain collectively, UNIQLO standards are met. Workers are clear that
has continued to support the factories as they this is due to a lack of trying. The factory
physically assaulted workers to suppress strike audit system used by UNIQLO — whose
action and rejected collective negotiations and own investigations show poor conditions
worse still, taken no action when made aware which are not improving - is the norm for
of these abuses. UNIQLO guarantees that no the industry even though this method of
monetary deductions will be made as a means "due diligence" has failed in securing workers'
of disciplinary action. This report exposes the rights for decades.
falsehood of this guarantee as a worker caught
ironing two sleeves at a time had an entire Voluntary commitments and standards exist
day's wage deducted as punishment. to obscure the lack of accountability brands
have for their factory workers and further
UNIQLO's public image of portraying itself as enable the absolute impunity enjoyed by the
a manufacturer that uses sound environmental industry. National and international laws that
practices in its production processes is also exist to protect workers have no traction
false. While Greenpeace has given UNIQLO with fashion brands and the factories that
awards for this, SACOM found evidence that produce for them. This is because there is
factories producing for UNIQLO were using nothing to hold the companies accountable.
toxic chemicals with toxic waste flowing There is no international law, or industry
openly in the factories. regulation that holds fashion companies
to account for what happens in their
UNIQLO has consistently used its CSR to supply chains. However, there is a move
portray an image of a caring, ethical brand. Its to introduce a legally binding instrument23
to regulate the human rights impacts of the competition fostered by the garment
transnational corporations at the United industry. Workers understand the part that
Nations through the UN Treaty process. they play in the garment supply chain. Labour
The countries which are holding back the rights abuses are no longer seen in isolation,
process are unsurprisingly the states that host but as an entrenched part of a global system
the headquarters of the large multinational where millions of workers are getting the
companies such as the UK, the USA and short end of the stick while profits of fashion
countries in Europe. But there are other brands skyrocket. Workers are not asking for
countries including South Africa, Indonesia, the boycott of brands. They are demanding
China, India and Ecuador, together with more their fundamental right to freely organise in
than 800 organisations,that support the move factories without repression or repurcussion.
towards legally-binding accountability.
Public pressure can create change: just
One gain made in the garment industry has weeks after the Rana Plaza factory collapse in
been the commitment of some fashion brands Bangladesh, brands were forced - for the first
to transparency by publishing the details of time - to acknowledge direct responsibility
their supply chain. This is critical for workers for workers in their supply chain. This case of
and unions as this gives them information to responding to UNIQLO’s abuse of rights is
hold fashion brands accountable for labour demonstrative of the power of international
rights abuses. It also provides them with the solidarity among garment workers and
power to lead targeted global campaigns. campaign groups – together a force to be
Fashion brands like H&M, GAP and Marks reckoned with.
& Spencer have released this information.
Yet there are others that proclaim having
commitments to workers' rights, like UNIQLO,
which have refused to make their supply
chains public. Many have cited a commercial
Take Action!
imperative for keeping these private – again
putting profit before workers’ rights.
Visit www.waronwant.org to:
• Join War on Want’s campaign to
The most tangible improvements in factory
push UNIQLO to publish its supply
conditions have been fought and won by
chain information
workers themselves with the support of
unions and labour groups. Rhetoric in support
• Demand that UNIQLO commit to
of garment worker rights must be followed up
paying a living wage to workers and
by ensuring that workers gain access to the
ensure they have the right to organise
tools to fight for their rights.
• Ask UNIQLO #whomademyclothes
Knowing the factories producing for global
fashion brands provides organised garment
• Demand that UNIQLO provide
workers with an unprecedented capacity
justice for the illegally dismissed
to directly target brands and demand
workers at Artigas and Zhong
accountability. In the context of increasing
Yin factories
access to communication, international
solidarity among garment workers from
different parts of the world is subverting24
Notes
This Way to Dystopia: Exposing UNIQLO’s abuse of Chinese garment workers
1
http://www.ibisworld.com/industry/china/apparel- 15
http://www.uniqlo.com/uk/corp/model/
manufacturing.html
16
http://www.fastretailing.com/eng/csr/report/pdf/
2
http://info.hktdc.com/hktdc_offices/mi/ccs/index_static_ csr2016_e_08.pdf#page=1&pagemode=thumbs&zoom=80
type/20MajorProductsnTop5Countriesexeng.htm
17
http://www.fastretailing.com/eng/csr/report/pdf/csr2014_e.
3
www.cnga.org.cn/engl/about/Overview.asp pdf
4
http://www.eulerhermes.com/mediacenter/Lists/mediacenter- 18
‘The glory and disgrace of UNIQLO’ was written in 2011 by
documents/Infographic-Chinese-exports-Feb15.pdf journalist Masuo Yokota
5
ww.greenpeace.org – several investigations were done
w 19
In the Netherlands, if a company fulfils requirements such as
on fashion brands producing in China with reference to the holding shares of other companies, its stock dividends will
use of hazardous chemicals in the production process that be tax free
were affecting the health of Chinese workers and causing
environmental devastation 20
http://clothesforsmiles.uniqlo.com/en/
6
http://www.economist.com/news/briefing/21646180- 21
http://www.fastretailing.com/eng/csr/report/pdf/csr2015_e.
rising-chinese-wages-will-only-strengthen-asias-hold- pdf
manufacturing-tightening-grip; http://www.bloomberg.com/
news/articles/2016-03-22/china-s-great-wage-boom-seen- 22
http://clothesforsmiles.uniqlo.com/en/project/detail3.html
subsiding-with-unemployment-rising
23
http://www.uniqlo.com/en/csr/businesspartners/fwep/
7
http://www.ilo.org/wcmsp5/groups/public/---asia/---
ro-bangkok/---sro-bangkok/documents/ publication/ 24
http://www.fastretailing.com/eng/csr/report/pdf/csr2014_e.
wcms_325219.pdf pdf#page=001
8
http://www.aflcio.org/Issues/Trade/China/Labor-Rights-in- 25
http://www.fastretailing.com/eng/csr/report/pdf/
China csr2016_e_08.pdf#page=1&pagemode=thumbs&zoom=80
9
http://www.economist.com/news/briefing/21646180-rising- 26
http://www.fastretailing.com/eng/csr/report/pdf/
chinese-wages-will-only-strengthen-asias-hold-manufacturing- csr2016_e_08.pdf#page=1&pagemode=thumbs&zoom=80
tightening-grip
27
http://www.newsweek.com/green-2015/top-green-
10
http://maps.clb.org.hk/strikes/en companies-world-2015
11
http://www.fastretailing.com/eng/group/strategy/tactics.html 28
http://www.fastretailing.com/eng/csr/news/1501112030.html
12
http://www.fastretailing.com/eng/csr/ 29
https://www.fastretailing.com/eng/csr/report/pdf/csr2015_e.
pdf
13
http://www.uniqlo.com/uk/corp/model/
14
http://www.uniqlo.com/uk/corp/model/You can also read
