UNIQLO, Japanese Fast Fashion Label, Accused of Labor Violations

A sewing worker confirmed that the Japanese company is very strict about their products to SACOM. "Once they find any defect, they scold the director of the workshop," the worker said. "And then the director immediately scold the workers."

But this is mostly a show, the activists say. Luen Thai workers told SACOM that whenever Fast Retailing representatives arrive to conduct inspections, the workers are "all required to wear a complete set of protection equipment, and also have to clean the factory workshops." When the inspection team leaves, the factory managers resume their old ways.

In addition, SACOM reported that factory managers rely heavily on a system of fines to control product quality and to manage workers. Pacific management list 58 different punishments that can be meted out to workers for violating rules - of which 41 are fines. Any fabric defects produced in the knitting department or even a stain on the knitting machine is punishable with a 50-100 RMB ($7.98-15.96) fine, which is equal to a whole day's bonus. Workers caught napping also forfeit their daily bonus.

This fine punishment system is not included in the workers' manual thus making it illegal under China's Labor Law which requires that all rules regarding payment and welfare be discussed with workers' representatives. Indeed Guangdong local labor inspection rules requires that the local Department of Human Resources and Social Security must investigate and ban illegal fines.

Lack of Proper Representation

SACOM says that the root of the problem is that Pacific and Luen Thai workers do not have proper representation and thus cannot bargain with the factory managers. At Pacific, the workers' union is led by the factory administrative director, which is illegal under China's workers' union law. At Luen Thai, there is no workers' union at all, just a workers' committee that supplies "entertainment and welfare."

When over a dozen workers went on strike several years ago to protest the high temperatures in the workshops, the factory fired the organizers. And when workers in the manufacturing workshop went on strike in 2009 to demand higher salaries, the factory hired thugs to beat up the leaders of the strike, according to the report.

UNIQLO's Response

After the report was published this past January, Fast Retailing claims that it "moved quickly" to conduct its own inspections of the factories. The company confirmed the long working hours but said it was not able to verify other issues stated in the report.

"Fast Retailing has urged swift action against the factories on the issues identified in the SACOM report, and we will cooperate fully with them to ensure that improvements are made," Yukihiro Nitta, CEO of Fast Retailing group said in a statement.

"We demand Fast Retailing to facilitate the suppliers on the improvement in the working conditions by providing adequate resources, and to support the set up of fully worker-represented trade union in their suppliers by direct and democratic election," SACOM said in a response to the company statement. "We want Fast Retailing to comply strictly to their corporate social responsibilities policies."