In a new report, the NGO China Labor Watch reports on labor rights violations in 6 factories that produce toys for the company Mattel. The NGO revealed several legal and ethical violations such as discrimination and pollution. However, labor rights violations are seen as the most critical issue. The factories cut wages and benefits of their workers by not paying for overtime, working hour trickery and voluntary social insurance. In one year, the factories stole 8-11 million USD from their workers. Mattel’s code of conduct actually requires everyone in the supply chain to treat workers with basic fairness and adhere to local laws. The NGO claims that Mattel’s price expectations contributes to the workings conditions. Additionally, China Labor Watch accuses the company of knowing about the situation and not doing anything to improve the situation.
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