Unprotected polishing

published 03-10-2013 14:16, last modified 10-10-2013 14:11
The Dynamic Casting factory in Guangzhou produced golf clubs for Adidas. Due to appalling working conditions, more than 100 workers, most of them polishers, contracted occupational diseases. These included lung disease, damaged hearing, benzene poisoning and Hand/Arm Vibration Syndrome (HAV). Dynamic Casting has failed to adequately protect or compensate the workers concerned, while production is being transferred to Taiwan.

Hand-Arm Vibration leads to serious health problems
The Clean Clothes Campaign has filed reports with TailorMade-Adidas Golf about the case.

Adidas has responded to these, and met with the affected workers and their representatives. Adidas discussed the issues of social insurance, compensation and rehiring workers with Dynamic Casting. Some workers who had been illegally dismissed have been rehired.

However, Dynamic Casting failed to ensure that a trust fund for medical treatment and compensation was established. In addition, unresolved issues remain as to the provision of medical treatment and diagnosis to workers, and the reinstatement of other workers who were also illegally dismissed.

With regard to the expected closure of the factory in Guangzhou, Adidas reported that it has shared its expectations relating to severance payments for the workers with its supplier. Adidas also said that it will monitor whether the workers receive proper legal rights training.

Currently, the workers of Dynamic Casting are struggling to get a just settlement according to Chinese law because of the closure. Issues include health diagnosis, medical treatment, average wage payment during hospitalization and diagnosis, follow-up treatment and job security.

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What do companies and Multi Stakeholder Initiaves think of the CCC? *

“CCC has been one of the defining influences on code of conduct over the last 10 years. Codes of conduct have moved from being a fringe idea to a central plank of single CSR policy in the industry. A large part of that is because CCC internationally have been a champion for the role of brands taking action... and have placed and kept the issue in the public domain.”

“CCC have had impact by raising our awareness, triggering the development of our code of conduct and our subsequent mechanisms on monitoring, disclosure practises, decision to join MSI, training and follow-up.”

“If there is a critical situation in a factory that we have not become aware of ourselves, we do of course react immediately, if this is brought to our attention by CCC.”

“All activities raise awareness but do not change policies, urgent appeals have most impact to improve or change the way of working with a supplier or improve a situation if needed.”

* Quotes from internal report that assesses how Clean Clothes Campaign's labour rights corporate accountability work, including the Urgent Appeal system, has impacted corporate behavior between 1994 and 2010.

Pins Brown, 2010. Impact Assessment of Corporate Accountability Activities of Clean Clothes Campaign. Unpublished report on file.