China's economy has transformed in recent years by embarking on improved labor conditions. But apparently, not all Chinese are enjoying the benefits of greater progress and development for the national economy. Many migrant workers, those who come from rural villages and move to urban areas in China, often must endure harsh working conditions at low pay to survive.
Yet one would expect that foreign corporations operating in China would offer higher salaries along with a more accommodating job environment even for low-level employees at least from the standpoint of a public relations' image. However, Gucci, a luxury Italian brand, is dealing with scrutiny after five former employees at its flagship store in Shenzhen publicly released an open letter alleging that the company was a "sweatshop."
According to China Daily, "in the letter, which was addressed to Gucci senior executives, the five former workers said they had been maltreated at Gucci's Shenzhen outlets in the previous months. They contended that they had to work overtime without fair compensation and had to obtain permission before they could drink water or go to the washroom."
Some migrants in China say that working overtime without extra pay is a commonpractice. International companies also engage in these activities. Migrants say they must work overtime or risk immediate termination from their jobs. They worry about taking legal actions against employers on the grounds that they have fewer rights than urban residents.
This represents a travesty of justice even though migrants stand as the backbone of the nation. They perform difficult tasks for long hours and abysmal pay. Many migrants work 60-80 hours per week and earn just about 2,000-3,000 yuan/month, which is less than $500 a month.
Unfortunately, the alleged unethical business practices of the Italian luxury brand appear to be a common custom rather than an isolated incident.
Let's take a closer look at the "sweatshop" claims in regards to Gucci. One pregnant saleswoman, compelled to work late-night shifts and overtime at an outlet store, suffered a miscarriage.
Most employees remained standing for 12 hours a day and never received extra compensation. Although Gucci outlets normally close at 10 p.m., workers were required to stay until 2-3 a.m. to conduct inventory checks. Meanwhile most shops in China open daily at 9-10 a.m. This would mean that employees can't get eight hours of rest each day, especially since they were expected to arrive at the shop an hour or two beforehand.
To make matters worse, Gucci held a worker responsible for stolen items as disclosed by one of the letters, written by a man who only identified his surname. They had to pay the company compensation for stolen goods.
As China Daily reports, "staff members at Gucci's Shenzhen stores lost more than 70,000 yuan ($11,111) from their salaries when 16 items in their charge were found to have disappeared from 2009 to the end of August. He said that happened even though Gucci had had its products insured."
Here, Gucci seems to be involved in a 'double outrage.' It's bad enough that employees must pay for stolen wares, but the items were insured as well, meaning Gucci earned a profit from the robberies. This may lead to speculation of possible insurance fraud.
Most Gucci products are expensive and some deem them to be over-rated, which gives them an excuse to charge exorbitant prices. Gucci workers must work long hours at low pay, while thieves exploit their exhaustion by catching them off guard.
However, Gucci is refusing to comment on the allegations other than to claim they are investigating. Additionally, the company issued an internal memo to staff members to decline talking to the media.
As reported by China Daily, "insiders said the accusations will impede Gucci's expansion in the Chinese mainland. 'Chinese people should no longer purchase Gucci products,' said a netizen who used the name, 'an angry bird.'"
A nationwide boycott appears in the works and China's labor unions are stepping in to protect exploited workers.
Wang Hongli, deputy director of the Shenzhen Trade Unions' rights and interest protections' department explained that global multinational corporations never permitted their employees to establish unions in Shenzhen, which makes it difficult for union officials to collect evidence in labor disputes.
Wang is urging Gucci employees to report mistreatment to the Shenzhen Trade Union. His comments represent a major step forward for improving the rights of workers in China.
Ill-treated Gucci employees deserve to voice their complaints. Whether these employees are migrants or not; they must be treated fairly regardless of circumstances. The Chinese government, domestic labor unions and the public at large should fight against abuse in the workplace. Foreign companies should be held accountable as well. If these allegations are proven true, a public outcry against Gucci is fully warranted.
