Icti Care Break: Chinese Employment Law Violated?

ICTI Care is a program that works with global toy brands to ensure ethical supply chains, including factory audits, training sessions, and a worker helpline. However, investigations by China Labor Watch (CLW) have revealed that factories certified by ICTI Care continue to violate labor laws and infringe workers' rights. For instance, CLW found that workers in ICTI-certified factories were subject to extremely low wages, excessive overtime, insufficient labor protection measures, and poor living conditions. In light of these findings, it is evident that the effectiveness of ICTI Care in upholding Chinese employment law is questionable.

Excessive overtime and low wages

China's working hours are regulated by the Regulations of the State Council on the Working Hours of Employees, which stipulates a standard working week of 40 hours, or eight hours per day. However, overtime is prevalent in China, with workers in some industries reporting working weeks of over 70 hours. This overtime culture is widely accepted and has become an important part of corporate life in China.

In 2014, the China Labor Bulletin recorded nearly 1,400 strikes, with the number of protests rising in the first two months of 2015 to an average of 200 incidents per month. The majority of these protests were workers demanding higher wages, back pay, and greater benefits and pensions.

In 2017, China Labor Watch (CLW) investigated four ICTI-certified factories in Guangdong Province, including Shaoguan Early Light, Dongguan Changan Mattel, Dongguan Qualidux, and Shenzhen Winson. They found that workers were working excessive overtime, with an average of 80 hours every month, and sometimes clocking in more than 140 overtime hours. This is in blatant violation of the statutory maximum of 36 hours of overtime per month set by Chinese law.

At these factories, workers were forced to work overtime, and without it, the average basic wage was only around $250 per month. This is significantly lower than wages in advanced capitalist countries and is not enough to meet basic expenses. In addition, two out of the four factories did not provide social insurance for their workers as required by law.

The CLW report also noted that the audits conducted by the ICTI CARE Foundation were ineffective and did not lead to improvements in labor standards. The audits are voluntary, and it was found that even if a factory did comply with Chinese law or ICTI's code, they would still often receive ICTI's certification.

China's labor laws grant workers the right to a wage, rest periods, no excessive overtime, and the right to carry out group negotiations. However, these rights are often not respected in practice, and workers are subjected to excessive overtime and low wages. This has led to a growing number of labor protests and strikes as workers demand better working conditions and higher pay.

Lack of protective equipment

In 2014, China Labor Watch (CLW) published a report on the working conditions of four toy factories in southern China's Guangdong Province, which make toys for major brands such as Mattel, Fischer-Price, Disney, and Crayola. The report found that workers in these factories were not provided with sufficient protective equipment, despite regularly coming into contact with harmful chemicals.

In 2017, CLW conducted further investigations into four ICTI-certified factories in Guangdong province, including Shaoguan Early Light, Dongguan Changan Mattel, Dongguan Qualidux (Guangda), and Shenzhen Winson (Taiqiang). The investigation found that workers exposed to toxic chemicals were not provided with adequate protective equipment. At Early Light, workers were only provided with a mask and received no information about protective measures. At Qualidux, only work hats were provided.

Under PRC Labour Law, employers must establish a sound labour safety and hygiene system and strictly implement state rules and standards of labour safety and hygiene. Employers must also provide their employees with labour safety and hygiene conditions and necessary articles for labour protection in conformity with state regulations. Additionally, employers must arrange for employees who work with hazardous substances to undergo regular occupational health checks.

The Administration Norms of Employers' Notification and Warning of Occupational Hazards ("the Norms") address issues such as standardising the administration of employer notifications and warnings of occupational hazards, prevention and control of occupational hazards, and measures for protecting employees' health. The Norms require employers to sign employment contracts with employees, release announcements, and offer training to employees to enable them to understand the occupational hazards in the workplace, the prevention measures, the influence on health, and the results of health checks.

If an employer violates the Norms, they will be punished according to the Law on Prevention and Control of Occupational Disease of the PRC, Regulations on the Supervision and Administration of Occupational Hygiene in Workplaces, and other relevant laws and regulations.

Poor living conditions

In rural areas, living conditions vary widely. While some farm families have spacious homes with electricity, others, particularly in poorer regions, still live in traditional dwellings such as mud-brick and thatch houses or, in some regions, cave houses. Additionally, there is a significant disparity in living conditions between urban and rural areas. Urbanization has led to a rapid increase in the construction of modern high-rise apartment blocks in cities, while rural areas often lack access to basic amenities and infrastructure.

For migrant workers, who make up a significant portion of the workforce in China, living conditions can be especially challenging. They often endure long working days, excessive overtime, and low wages, leaving them with limited options for adequate housing. It is common for multiple migrant workers to share living spaces, with up to six people sharing a single room.

Health and safety hazards further compound the issue of poor living conditions. Inadequate ventilation and lighting, unsafe machinery, and exposure to harmful chemicals are prevalent in many factories. These hazardous working conditions can lead to serious health issues, including respiratory illnesses and injuries.

Furthermore, the lack of freedom to form trade unions and the close monitoring of non-governmental labour organisations by the government make it difficult for workers to collectively advocate for improved living conditions.

Despite recent efforts by the Chinese government to improve working conditions and protect workers' rights, the implementation and enforcement of these reforms remain a concern. The complex interplay of economic forces, regulatory changes, and global attention shapes the landscape of labour conditions in China, highlighting the need for continued scrutiny and sustainable solutions.

Discrimination in hiring

One prevalent form of discrimination in hiring is gender discrimination. Despite legal prohibitions, recruitment advertisements often specify jobs for men or women, with certain positions deemed more suitable for each gender. For example, men are typically preferred for physically demanding jobs, white-collar managerial roles, and positions in engineering and technology, while women are directed towards service industries, sales, and clerical work. This gender-based segregation is also evident in educational enrolment policies, with women often required to achieve higher marks than men for certain majors.

Age discrimination is another concern, particularly when combined with gender discrimination. While age discrimination has decreased slightly due to China's aging workforce, it remains prevalent in the service industry and sought-after professional positions. Older workers often face limited job opportunities, with many available jobs offering low pay, insecure contracts, and hazardous working conditions.

Discrimination based on the household registration system, or Hukou, is also common. This system categorises individuals as "rural" or "urban", impacting their access to social welfare services. Migrant workers, who are predominantly from rural areas, face significant barriers to housing, healthcare, and education for their children, especially in major cities. Urban professionals from other cities may also encounter Hukou-related discrimination, as some employers set specific Hukou requirements for prospective employees.

Ethnic and religious minorities also face discrimination in hiring, particularly in the service sector and manufacturing. They are often restricted to working within their own communities or in ethnically-themed restaurants. Additionally, ethnic tensions between local Han Chinese and minority workers have sometimes led to violent incidents.

Lastly, discrimination against individuals with disabilities is widespread. Employers often refuse to create accessible and open work environments, making it challenging for people with disabilities to find employment. While regulations exist, such as the Regulations on the Employment of People with Disabilities, which mandate that enterprises reserve a certain percentage of positions for disabled workers, these are often ignored. As a result, people with disabilities face high unemployment rates and poverty.

To address these issues, China has implemented measures such as increasing fines for violations and encouraging civil society organisations to push for greater equality. However, more comprehensive reforms are needed to effectively combat discrimination in hiring and promote equal employment opportunities for all.

Lack of annual leave

In China, employees are entitled to annual leave, but there are eligibility criteria that they must meet. To be eligible for annual leave, an employee must have completed one year of continuous service with the same employer. This means that if an employee resigns before completing one year of service, they will not be entitled to any annual leave.

In China, the length of annual leave varies depending on the length of the employee's service with the employer. According to China's Labor Law, employees who have worked for a company for one to ten years are entitled to five days of annual leave per year. For every additional year of service, the employee is entitled to an extra day of annual leave, up to a maximum of 15 days per year.

Employees in China have several rights and benefits under annual leave. Firstly, they are entitled to take time off from work and receive their usual salary during this period. This allows employees to rest and recharge, promoting better physical and mental health. Additionally, employers cannot require employees to work during their annual leave. If an employer does require an employee to work, they must provide compensation or reschedule the leave.

China Labor Watch (CLW) conducted an investigation in 2015 that revealed most workers in the factories do not have annual leave. In 2017, CLW investigated four ICTI-certified factories in Guangdong province and found that workers were forced to work overtime, with an average of 80 hours every month, and sometimes clocking in more than 140 hours.

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