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Microsoft supplier criticized for 'prison-like' factory

Tom Espiner ZDNet UK | April 16, 2010 4:54 AM PDT

Summary

A Chinese firm that supplies keyboards and peripherals for a number of technology companies has been criticized over the working conditions in one of its factories.
A Chinese firm that supplies keyboards and peripherals for a number of technology companies has been criticized over the working conditions in one of its factories.

The Chinese firm, KYE Systems, supplies US companies including Microsoft and HP.

The National Labor Committee (NLC), a human rights group, described working conditions in the KYE factory in Dongguan province as being "like a prison".

"The young people are trapped because of the working hours," NLC director Charles Kernaghan told ZDNet UK on Wednesday. "They get pitiful wages in military conditions with grueling production schedules. This place is like a prison."

Before the recession, 5,000 workers aged as young as 16 years would work 15-hour shifts, seven days per week, Kernaghan said. The 3,000 employees at the factory work an 83-hour, six-day week for the equivalent of 65 cents an hour, of which they take home 52 cents, he added.

Microsoft said it was aware of the NLC report and had launched an investigation."Microsoft is committed to the fair treatment and safety of workers employed by our vendors," the company said in a statement. "Microsoft has invested heavily in a vendor accountability program and robust independent third-party auditing program to ensure conformance to the Microsoft Vendor Code of Conduct."

For more on this story, read from ZDNet UK.

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RE: Microsoft supplier criticized for 'prison-like' factory
jonathan.neal@... 19th Apr 2010
Proverbs 31:8 Open your mouth for the dumb/mute, For the rights of all who are destitute/sons passing away. (9) Open your mouth, judge righteously, defend the rights of the poor and needy. Mattityahu 7:12 "Therefore, however you want people to treat you, so treat them, for this is the Law (Torah, instruction, teaching) and the Prophets. Also Ephesians 6:5-12 http://studylight.org/desk/?l=en&query=Ephesians+6%3A5%2C6%2C7%2C8%2C9%2C10%2C%2C11%2C12§ion=0&translation=nas&oq=&sr=1
What did you expect from the Chicom's?
Microsoft should hardly be surprised at the atrocious
manner in which China treats its workers. Didn't they
know that part of the reason they could buy supplies
so cheaply from China is the low wages and cruel
working conditions? Sending or appointing
investigators is a sham. The factory will have plenty
of time to "clean things up" before the site visit,
and workers will be too intimidated to corroborate the
charges. Microsoft and other corporations need to
consider human rights issues IN ADVANCE, not after
foreseeable problems have developed.
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Certainly no bias here citing MS in the lead line. I'm sure that HP is not the only other company which could be cited as well. Hey, what ever rag you wear on your back could as easily be produced in a Chinese textile plant. That cheap pair of slippers, refridgerator, TV, ...

Just another cheap undeserved shot, imo.
What's a gallon of milk cost there? If its 3 dollars, ok, you have a problem. If is 15 cents, welcome to the 1911 USA.
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Exactly!
kingleo888@... 18th Apr 2010
Granted, they don't drink milk that much, so say how much is a gallon (they don't measure with gallon either, but hey let's not get too technical) of soy milk? 15c are not far off the mark. You think they are working in a "prison like condition"? Have you seen the living conditions of hippies that didn't shower for weeks or months? Don't judge other people with your own standards. You can guarantee they are always wrong. In lunatics' eyes, they are normal and we are the crazy ones.
Chinese work hard so if they are willing to work 80 hours a week, who are we to say they can't? And don't blame communism - everything China must be slain with the C attached. This has nothing to do with the politics. On the opposite, when they were practicing communist economic rules - state owned enterprises, no free market and everything is controlled by the central/local governments - you didn't get reports on bad working conditions, just low wages across the board. With capitalism, people do whatever they want, work smarter if they can or work harder if they can't. If your coworker willingly works 70 hours a week to make a few extra bucks, are you going to blame the "prison like condition" of the company or even the US government? Get real.
Welcome to the real world where people are still willing to work hard for what they get, especially when you are one in 1.3b population.
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I await the cries...
zkiwi 16th Apr 2010
For HP and Microsoft to exit China, or be punished somehow for supporting such corrupt and inhumane practices.
them.

("them", in the propaganda, meaning the workers. In reality, "them" means Microsoft, HP, and the rest at the top.)
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LOL
kingleo888@... 18th Apr 2010
To back your statement up, you must be raising your hand to be willing to pay $2,000 for a PC first. The only place you'll hear those cries would be in your dreams.
Did Google really exit China on moral grounds? Let's get real. It's a financial decision. They suddently realized that by bending their rules, they didn't get expected return from Chinese market, so they took the high road.
Also since Chinese own a lot of foreign companies, forget about "exiting" bluff. Have you heard of Lenovo? Yes, it used to be known as IBM; and yes Lenovo is a Chinese company.
Wake up and smell the green tea.
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Don't let WalMart find out!
DittoHeadStL 16th Apr 2010
nt
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They're blind to the issue.

Besides, reading up on some media articles, who's telling the truth?

http://articles.moneycentral.msn.com/Investing/StockInvestingTrading/ChinaIntro_SeriesHome.aspx
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Wah.... The world needs ditch diggers too, Danny.
dwcfastrice Updated - 16th Apr 2010
This is sensationalism at it's best. Having
lived and worked as a Business Consultant in
China as a business consultant, I've had the
"privelege" to go to many factories. Both in
an official and "unofficial" capacities. Yes,
there are certain factories that are very
austere and people do work long hours. Most
office workers work 6 days a week too. granted
they make more, but to someone who's lived
there, that's not all that surprising.

however, keep in mind that these workers do not
lack for clothing, housing, or food. These are
all provided by the factory. Most of these
folks are from very poor, rural communities and
the $0.50 to $.60 cents they make is 3-4 x more
than what they would make working at home on
the farm. Furthermore, even in factories where
they work less hours, these workers tend to
bank all of this money and send it home.

There are no "unions" there, hence no sense of
entitlement for time off, etc. Some factory
workers get almost 2 months off for Spring
Festival (Chinese New Year) anyway.

Getting fined for infractions? GOOD! I've
witnessed first hand the poor QC in Chinese
factories. In order for many of these
factories to prevent their workers from cutting
corners, the only solution is to fine them. A
fine for losing a finger? If he wasn't
following procedure- which is de riguer in
China- then so be it. You ever see a guy
welding with just his hand as a shield. While
his welding helmet sits 3 feet away? Happens
all the time over there. "Regulations?
Policies? Doesn't apply to me." "Mei gaun
xi..." is something you hear all the time.
translated, it means, "meh... it doesn't
matter". I hope that worker learned his
lesson.

Using $ figures to sensationalize the
"plight" of these workers is something that
I've always frowned upon. If they are truly
working in appalling and dangerous conditions,
like the coal mines, brick makers, etc., then
yes, by all means, raise a stink.

But other than that, this article is pure
sensationalism. You want cheap products? The
hard reality of the situation is this: the cost
savings has to come some where.

If you haven't read the book "A Year without
China". I encourage you to do so. If you
really don't agree with what's going on here,
don't just run your mouth, or your keyboard, as
it were. Put your money where your mouth is
and pay more for products made in the US
and Europe. Don't bother using or buying
anything made in Asia, Africa, or South
America, either.
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Much babble, little content.
ITOdeed 17th Apr 2010
You talk like someone who lets their pet sleep in a doghouse to prevent freezing to death. We are talking about human beings here.
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Well said and balanced opinion!
kingleo888@... 18th Apr 2010
The only thing I'd like to add is referring to your last paragraph. It's a good call. But if someone were to do that, that person would be naked with only a radio produced in USA in 1950s for entertainment.
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Apple did it a LOT WORSE!
Gradius2 Updated - 16th Apr 2010
Well, I saw the photos, I can say is totally sad, I feel sorry for those childrens there, but Apple also did this crap and IS even worse!
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Apple? Microsoft?
khazeem 16th Apr 2010
How does Apple or Microsoft gets blamed for what a Chinese company does? I don't think anyone was actually blaming MS for this so you MS trolls can put up your defense weapons and relax.

However, our large companies that do business with manufactures in China or other "Free Trade Zones" do, in some way, encourage this by seeking only to increase their bottom line at "any cost" to others. But the ultimate responsibility should be the Chinese company in question, not MS or any other business.
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True... however
s_southern 16th Apr 2010
The Chinese company in question is most definitely ultimately responsible, however, we - as the people who purchase these products from China - cannot absolve ourselves of our own responsibility to make educated purchases. In the end, it's our purchases that fund this cruelty. Pretending like it's 100% the fault of some distant corporation only serves to perpetuate the problem.
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I Agree... but
khazeem 16th Apr 2010
I am only a consumer. I buy what is there to buy. I don't manufacture things, etc. Therefore, for me to personally say that "I" am responsible for the activities of MS's (or any other company) business arrangements that may be unethical is something I will not do.

I will, however, place some blame on our Government for encouraging these types of activities by way of so-called "Trade Agreements", tax incentives for out-sourcing and and tariff breaks; I will place blame on American Corporations for encouraging this too by not caring about nothing but their bottom line, as I have previously stated.

But to blame the consumer for what is going a bit too far. After all our country is ran by Monopolies, though sometimes its three or four major companies that control a particular industry, the point is still the same. We only buy what is made available for us to buy.

Think about it...
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Bottom line is M$ employs slave labor
ubiquitous one Updated - 16th Apr 2010
..outsourced directly or indirectly. Either overseas or through H1-B here at home.

Another sleazy cap from Redmond and their apologists.

Look who comes in third...

http://en.wikipedia.org/wiki/H-1B_visa#Top_ten_H-1B_rankings

http://www.businessweek.com/table/0518_h1btable.htm
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I'm not defending MS but....
khazeem 16th Apr 2010
come on! 3,117 jobs! We have millions out out of work and we are jumping on MS for a few thousand jobs? I'm no MS "apologist". In fact, I don't even like the MS brand.

I'm a Linux man, myself. And my intentions are not to absolve MS of any wrongdoing or unethical practices. But come on.... Lets be real. This is not MS's problem alone. IBM, Oracle, Intel and Motorola was also on that list.

With that being said, I stand by my original comment.
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But who's number 3?
ubiquitous one Updated - 16th Apr 2010
Right behind the two biggest Indian outsourcing supply firms.

Just remember that the next time one of the M$ shills comes on here waving the American flag about what a great "American" company Micro$oft is.

Don't let them off the hook. They know better.
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Pure FUD
Pete "athynz" Athens 16th Apr 2010
First of all it was an internal review BY APPLE that exposed the issues with their supplier... and as per Apple's policy the factory in question was put on probation to clean up their act or be dropped as a supplier.

But that is sooo much worse than this... Dude, drop the obvious foaming-at-the-mouth Apple hatred...

And in reality how can Apple OR Microsoft be blamed for issues in a company they have no direct control over? Sure they have business deals with the respective suppliers but it's not like there is an Apple/ Microsoft overseer in the factories doing daily site tours...
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Go figure even MS is a bad guy, MS don't try to tell us you don't know anything about this, cheap labor thing. You new just like the rest. But you do make good toys. MS think about this, the desk top will be like having a TRS-80. The Ipod will be number one.
Same could be said for ANY doing business with Chinese manufacturers as opposed to manning their own factories/production-lines.

If people REALLY were concerned about the conditions over in China, or about product being made over there, they would stop buying said products.... oh wait; how much ISN'T being made either in China or similar 3rd world countries?? And if it isn't, it usually costs 3 times as much or more!

Tom - this was just another example of your cheap-stunt media tactics... enough already
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Ya'akov (Jacob more commonly called James) 5:1 Come now, you rich, weep and howl for the miseries that are coming upon you. 2 Your riches have rotted and your garments are moth-eaten. 3 Your gold and silver have corroded, and their corrosion will be evidence against you and will eat like fire. You have laid up treasure in the last days. 4 Behold, the wages of the laborers who mowed your fields, which you kept back by fraud, are crying out against you, and the cries of the harvesters have reached the ears of the L-rd of hosts. 5 You have lived on the earth in luxury and in self-indulgence. You have fattened your hearts in a day of slaughter.
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another way of looking at this is
stevey_d 18th Apr 2010
When I was 20, I worked in a factory 7 days a week for as many hours as I could, and lived in a crappy shared room.
I was only too happy to do the hours to make the money. It never crossed my mind that this was wrong or bad somehow. It was hard work, but it was great.
Maybe these kids want to be working there to make the money.

The key here is choice. Can they work less hours if they want to? Or go work somewhere else if they want to (and if the opportunity arises).

There have been times when many people (including me) have to work long hours (eg: to be the breadwinner for the family), there is no option.

Is this so different?
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When did ya do that, @stevey_d?
ubiquitous one 18th Apr 2010
1935?

lol... grin

Hell, I used to walk 10 miles to school. In my bare feet. Shoes? What were those?

more lol... grin
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Absolutely no difference.
kingleo888@... 18th Apr 2010
Many people are just a bunch of hypocrites, yelling human rights while trying to take away the basic one - how people live their lives is their own damn business.
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Prison or opportunity?
Rich_F 18th Apr 2010
I have been in many factories in this province of China. This is actually one of the HIGHER paid places in China. And let me tell you people are really happy to have these jobs, because from their prespective these are really high wages. Now things have slowed down significantly since the economy has affected China too. So their problem is that they aren't able to work the 83 hour weeks anymore. And less of them have work. It's all a question of perspective.

These young people live very cheaply, usually housed in company dormitories and they save as much as they can and send it home. After a year or two working in the factories, they have ammassed a virtual fortune and they set up businesses back home. But not everyone can get a job in south China. These are the lucky ones.
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Proverbs 31:8 Open your mouth for the dumb/mute, For the rights of all who are destitute/sons passing away. (9) Open your mouth, judge righteously, defend the rights of the poor and needy. Mattityahu 7:12 "Therefore, however you want people to treat you, so treat them, for this is the Law (Torah, instruction, teaching) and the Prophets. Also Ephesians 6:5-12 http://studylight.org/desk/?l=en&query=Ephesians+6%3A5%2C6%2C7%2C8%2C9%2C10%2C%2C11%2C12§ion=0&translation=nas&oq=&sr=1

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