PUMA (UMA AG) is one company is produces high-end sportswear. The company is based in Germany. The main productions sites are in china and other developing countries. In financial report in year 2007, PUMA has earned a lot profits excluding taxes. China Labor Watch (CLW) is a New York City, New York based non-government organization. It founded by labor activist Li Qiang in October 2000. The mission is to defense of workers’ rights in China.
This report described living and working conditions at the Taiwan Sports factory, a PUMA supplier located in Dongguan City, China. The plant has about 6,000 employees in the slow season and in peak season the company has about ten thousand employee. This report is come after China Labor Watch preliminary report, PUMA supplier’s unchanged condition in an excellent situation based on Taiwan the exclusive supplier for many years. With the introduction of reports on Taiwan, PUMA and China Labor Watch have started a series of dialogues discussing the situation of Taiwan.
PUMA suppliers will be monitoring by China Labor Watch in last three years. During the investigation, on Taiwan sports China Labor Watch found the deplorable condition. The PUMA supplier approaches in taking the advantages of their employees. As a result, PUMA stated that efforts have been made factory correction action despite most of the finding by China Labor Watch largely exaggerated and baseless. To support the accuracy of the report and emphasize the poorer conditions of work, China Labor Watch contacted a German media group, Del Spiegel and compiled with Taiwan employees. After the interview PUMA responded to China Labor Watch, alleging that they was not sufficiently concerned with PUMA efforts to repair the plant and to reiterate that most of the conditions described in the China Labor Watch report were baseless.
PUMA use its business in a single supplier to describe itself as a social responsibility. The bad situation in Taiwan has lasted for many years, and is not until the release of China Labor Watch report on the factory that the reform began to take place. Through report on Taiwan emphasize that PUMA cannot restrict its reforms to one case. PUMA still fails to see the problem in its other supplier.
? Employees are forced to work overtime, working about 12 hours a day on weekdays, at least 11.5 hours and sometime overnight on Saturday.
? Employees are paid 64 cents per hour for each regular hour.
? Employees can be dismissed and fines of 43.35 USD if they refuse to work overtime up to three times.
? Food condition, insects often mix with food.
? Weak management, employees have been insulted for not fulfilling the contract wrongly, talk to ask about payment detail.
? High risk working conditions, the workshop responds to a mixed chemical odor reaction that makes the employee feel uncomfortable and disgusted and the plant does not enforce the employee to use safety equipment unless the audit takes place. (Appendix 1)
? Bad hostel situation, garbage can see everywhere in the hallway, and at least 80 employees share one bathroom and toilet. (Appendix 2)
? Unethical waste disposal procedures, residues such as paints and glue and other are thrown into sewers. (Appendix 3)
The problem not only in one or two suppliers to PUMA, it is a reflection of the general condition of the PUMA provider. Puma need to refocus its priorities and restructure its defective audit system.
? PUMA need to comply with Chinese labor laws and regulation.
? PUMA and its supplier factories should not impose any form of reaction to employees filling a complaint.
? PUMA should urge its supplier to offer workers working hours, fair paychecks that enable the establishment and abolition of discrimination in the workplace.
? PUMA not only focus on single suppliers, but also committed to fostering repairs at all its suppliers.