Disney criticised over worker conditions in China

Disney has faced more criticism from labour groups in China after conditions at a number of its local suppliers were found to be lacking. Disney, which is set to open a new $5.5bn theme park in China this week, has been hit with concerns of low wages, high injury rates and health risks from Students & Scholars Against Corporate Misbehaviour (SACOM). The Shanghai park is a risk for Disney as heavy competition in the region already exists, but new allegations of lax oversight and ineffective audits from China Labour Watch add to the growing list of grievances against the company.

Labour groups criticise Disney over worker conditions at China suppliers

SHANGHAI, June 14 (Reuters) - China-based labour groups have criticised Walt Disney Co over conditions at a small number of its local suppliers, highlighting issues such as low wages, high rates of injury and health risks from exposure to chemicals and dust.

Disney, set to open a $5.5 billion theme park in mainland China on Thursday, said it took any violation of labour regulations "seriously" and that it would investigate any allegations against its suppliers.

A report from Hong-Kong based advocacy group Students & Scholars Against Corporate Misbehaviour (SACOM) said some workers at eight Disney suppliers it had investigated were forced to work long hours and paid wages below the minimum legally allowed. Injury levels were also high because of old machinery and a lack of training or protective equipment.

In a separate report, China Labour Watch cited issues at two other factories, including low wages, exposure to chemicals and ineffective audits of working conditions by clients.

A Disney spokeswoman said in emailed comments that the firm takes "seriously claims of labour standards violations against the independent facilities producing Disney-branded products".

"It is our practice to thoroughly investigate those allegations and assist facilities in remediation efforts and comply with local regulations."

Disney is not the first global name to come be criticised for worker conditions in China: iPhone maker Apple Inc has been singled out on several occasions over supplier issues in the country.

Both SACOM and China Labour Watch pointed out their investigations, which involved working undercover at the factories, had only covered a fraction of suppliers to Disney, which raked in $52.5 billion last year worldwide, including $4.5 billion from consumer products.

SACOM said it has found that the supplier companies withheld full overtime payments, fined workers for taking leave, and often employed staff without an official contract, which it said was a "breach of law".

The group also criticised Disney for lax oversight of the supplier factories and for third-party inspections being flagged in advance. The factories made products such as branded bags, hair clips and mugs.

"Knowing the time and subject of the audit, the factories were able to hide things in advance, and the genuine labour conditions could not be uncovered," SACOM said.