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Nov 2000 paper: "Taiwan"
shoes' makers: Thai Workers
This paper produced for Press for change. For more information
please contacts Jeffrey D. Ballinger at email: jeffreyd@mindspring.com.
Junya Yimprasert can be reached at email: jyimprasert@access.inet.co.th
Junya Yimprasert
Thai Labour Campaign
OVERVIEW
The Isarn (Northeast region) Village today is much difference
from the Isarn villages I first visited over ten years ago. I
remembered that when I first visited Isarn, the village is full
of people. The dirt road was full of dust from footsteps of cows
and waterbuffalo. I remembered seeing many children mostly young
boy and girls pushed trolleys full of buckets of water or carry
water on their shoulders heading to their small houses that made
from bamboo and glass' roofs. Not many houses in the village have
zinc roof at that time.
Ten years after, the Isarn today is much difference. Along the
both side of the concrete road are full of big and beautiful wooden
houses. However, many houses are closing. The villages were quieter
today then before. And In the corner of villages' shops, there were
several elder women chatting together. Not many animals left in
the village.
This is due to younger generations are running around looking for
job opportunity in the city or overseas. They explore almost every
country that is opened for job opportunity. The results, many of
the Isarn people live their life on income of their families' members
who work in the big city like Bangkok or in many countries around
Asia. These workers were moving around from one country to another
country according to politics and job demands. Starting from the
Middle East countries in the early 1970s, moving closer, i.e. to
Singapore, Brunei, Hong Kong, Malaysia, Japan, South Korea and especially
Taiwan, which has become the most popular destination for Thai workers
since the early '90s.
" I came from Udon to meet my cousin who has just returned
from Taiwan, to learn more on how to go to Taiwan and how much
is the recruitment fee." Said a middle-aged woman; one of
her sons returned from Singapore several months ago because of
being paralyzed and could no longer can work. Now she is looking
for job opportunity in Taiwan for another son. Although the son
who was injured in Singapore has received no compensation and
she is undergoing the process to claim compensation for his condition.
In return with the income between 40 - 50 billion baht each year
since 1995 sent home from 210,000 workers ,(1)
28 billion baht alone (the highest) was from Taiwan (2).
The question is: What is the cost that the country has to pay in
return? Does the income compensate for the damages to the family
life of these migrant workers? Are they being exploited in the host
countries in return for the so-called "huge income" from
the labour cost?
TAIWAN, THE #1 DESTINATION OF THAI WORKERS.
Taiwan opened the country for migrant workers from Thailand, Philippines,
Malaysia and Indonesia on 19 October 1989. It quickly became one
of the most popular spots for Thai workers since 1993, which was
after the Iraq and Kuwait war; Saudi Arabia stopped issuing visas
for Thai workers in 1991. Many of those migrant workers who had
returned from Middle East were heading for job opportunities in
the East and Southeast Asian countries, in particular, Singapore,
Brunei, Malaysia and Taiwan.
The number of Thai workers in Taiwan increased rapidly from 9,319
persons in 1992 to 64,143 in 1993 .(3) In 1999,
the number of Thai workers entering Taiwan increased to over 100,000
workers. Taiwan thus became the highest overseas employment place
for Thai workers or 56% in 1999. (4)The numbers
of Thai workers entering Taiwan from 1997 to 1999 are 100,910, 106,828
and 115,096 respectively.
The job opportunities in Taiwan are: 40% in construction work,
and 60% in production manufacture (textile and garment, electronics
parts, mechanic, steel and metal work, car auto part, plastic and
rubbers, and others like chemical, wood work, cement, and food).
(5)
Construction workers are mostly male; Women workers are mostly
in textile and garment, electronics parts and plastic. In 1999,
the number of women workers in Taiwan was 16,002 or 13.9% . (6)
According to the Taiwan Council of Labour Affairs, the local company
can employ migrant workers 30% of local workers in production manufacturers
and 50% in construction sector.
POU CHEN, ONE OF THE WORLD BIGGEST FOOTWEAR PRODUCERS.
Pou Chen Corp., a Taiwanese-owned major shoes' producing corporation,
has been monitored by many labour groups because it produces for
many leading brand name, especially Nike. The Pou Chen Corp mainly
sources from factories in China, Vietnam and Indonesia where there
are frequent reports of labour violations.
" Pou Chen Corp was founded in 1969. The company is principally
engaged in the production of rubber shoes. It has developed into
a diversified shoe maker in Taiwan. The company has fourteen factories.
It also produces shoe-related materials. Most of its products
are distributed to North America, Europe, Southeast Asia, and
domestic market as well . (7)
In 1999, earnings before extraordinary items at Pou Chen Corp
were 3.56 billion Taiwanese Dollars, or 26.7% of sales. This profit
margin is an improvement over the level the company achieved in
1998, when the profit margin was 24.2% of sales. Earnings before
extraordinary items have grown for each of the past 5 years (and
since 1995, earnings before extraordinary items have grown a total
of 635%). Pou Chen Corp.htm
Tsai Chi Jen, the oldest of four brothers, began building the
family shoe business more than 30 years ago . (8)
Tsai Chi Jen's drawings led to today's high-tech teams that design
shoes in Taiwan under the name of Pou Chen. Manufacturing plants
-- populated by armies of mostly female workers in China, Indonesia
and Vietnam -- then transform the designs into products under
the name of Yue Yuen." (9)
HOW DID THEY GO THERE?
" There were 230 of us travel together in the plane on 7
July 1997 to work for Pou Chen footwear factory in Chang Hua.
Each of us paid 85,000 Baht to Fa-ez Service Recruitment agency
in Thailand." Phan (10), the first Pou Chen
worker we contacted told us.
It took only one and a half-months for Fa-ez to process application
forms to work in Taiwan. However, Phan told us that if anyone processes
the application forms by himself or herself or through the Department
of Employment/Ministry of Labour, it would take over six months
or longer period.
Phan is lucky that his family has a piece of land, so he mortgaged
the land with the bank, therefore, he could pay off the debt within
eight months.
Fa-ez Service Recruitment Co. Ltd, is located at 279/1-2 Moo 2,
Udon-Sakon Road, Tumbol Nong Bua, Muang District, Udonthani province.
HOW IS THE WORKING CONDITION?
Phan who has just returned from Pou Chen early July this year after
finishing his contact, helped to link us with many of his friends
who returned to Thailand during the same period.
"There are nine factories in the same area in Chang Hua, which
produces almost every shoes' brand name like Nike, Adidas, Timberlands,
Converse, Reebok, Polo, Champion, Lockport, Columbia, and Winson.
I was in the factory number 9 called AA2 which produces sample shoes.
From what I can recall the first factory produced Timberlands,
NDC factory produces Nike. BB1 produces Adidas, The sixth factory
produces Converse, Champion and Reebok, the AA1 produces Nike, EE1
produces Columbia and Lockport, EE2 and factory number eight produces
Nike again."
All of the overseas workers which mostly 700 out of 2,000 workers
in Pou Chen, Chang Hua are Thais and there were only 100 migrant
workers from Filipinos and Indonesian. The rest are local workers,
which according to Phan, they were among 30-40 years old and very
slow in working. The Thai workers earn monthly wages, according
to the contract of 15,840 Baht per month (excluding overtime payment).
" There are managing differences in each factory, depending
on the management. Some factory likes to deduct money to compensate
for the price of the shoe if we damage it. One poor worker had lots
of deductions and had only 500 baht to spend the whole month."
Anand.
HOW ARE THEIR LIVING CONDITION?
Dormitory
The factory provides dormitory for every migrant worker. Twelve
workers were arranged to stay in a 2.5 by 8 meters room, which the
company provided six bunk beds in this small piece of space. However,
the workers have to follow several rules, such as, they must return
to the dormitory by 10.30 PM, they were not allowed to stay outside
the dormitory, the guards will check whether they are in the room
every night (some time twice), they were not allowed to cook in
the dormitory, they was no electricity outlets in any room, and
their clothes will be taken by guard if it was hanging in their
room. "It is like a military camp", Phanthep told us.
The dormitory opens at 6 AM and close at 10.30 PM. If anyone enters
the dormitory late or was caught for not staying in the dormitory,
that person will be fined 3,000 baht, which will be deducted from
their salary.
Food
The company provided three meals a day. However, most of the workers
told us that they have to eat outside because the food was very
poor quality and very bland test.
" The breakfast usually rice and one dish. Lunch and dinner
will be served with three dishes, but mainly the component of bean
curd, vegetable and salted grill peanut. We were so sick of eating
salted peanut every day." Anand
Phan emphasis that "The food was terribly bland, therefore,
we have made many complains for the company to employ Thai cook,
but the company simply said that if you cannot eat, it is your business
and refuse to improve the condition of food."
Culture difference on food and drink has caused a problem. Phan
told us:
"We have many problems with drinking water as it Taiwan
they like to drink hot tea, but as a Thai people we used to drink
cold drink. Therefore we constantly asked the factories to provide
cold drinking water. After many complaints, the companies simply
just connected the tap with the water supply pipe for the workers
to drink. Later when few workers including myself have to undergo
appendix operation, the company was afraid that drinking water
directly from the tap may cause the appendicitis, they simply
removed the pipes, but still refused to provide us with cold drinking
water. Therefore, many of Thai workers did not drink much water
in Taiwan because we don't like hot tea."
Some people may question on why it is troublesome to Thai people
when referring to bland food and hot tea. For those who know Thailand,
they would have no question at all about this complains because
they must have realized how spicy Thai foods are, especially Northeast
foods. However, the company refused to acknowledge the culture differences
and ignored the request of Thai workers.
Salary
According to the contract, these workers received 15,840 baht a
month. Every month, the factory deducts 20 percent for tax .(11)
It also opens a bank account for all Thai workers and deposits 3,000
baht a month (deducted from the salary) as escape insurance. Workers
who leave before the contract is due will not receive this amount
back. The factory gives only 3,000 from the monthly salary for each
worker's personal expenses in Taiwan. Another 400 baht per month
is also deducted from the salary to contribute to medical care.
The rest of the monthly salary will be sent back to their family
in Thailand to service the worker's debt and to support his or her
family.
Apart from salary the company provides every worker would Birthday
a '7-Eleven' coupon gift equivalent to 500 baht, and a Chinese New
Year gift for 3,600 Baht.
PROBLEMS FACED BY THAI WORKERS.
Phan told us that after he arrived to Pou Chen, he has to sign
a new contract which stated that, "we will follow the company's
rules and regulations such as we were not allowed to cook in the
dormitory. We have to respect the supervisor, and that there were
three steps of warning from verbal warning, deducting money or compensate
for the damage 10 times higher the price."
According to many workers, the working condition in Pou Chen is
very bad compared to many factories in Taiwan.
"I was working in Taiwan at Nan Kang factory for two years
before working in Pou Chen. The situation in Nan Kang was far better
than Pou Chen. But I finished my term with Nan Kang, therefore,
I had to take a job at Pou Chen in my second contract." Anand.
Harassment
Taiwan supervisors are famous for their harsh behavior toward workers,
in factories throughout the developing world. Working in Taiwan,
nearly all the Thai workers interviewed claimed of being verbally
assaulted by the Taiwan supervisors.
"The supervisor in PU is the cruelest, like to yell and
scold and threaten to send us back home." Anand who needed
to return to Thailand before finishing his contact because of
serious back pain from lifting a too-heavy mold, told us.
" It was normal for us to be yelled at or scolded by supervisor."
Thipa told us in an angry voice.
" Supervisors really like to give us a threat of deducting
our salary or sending us back home. We were all scared to be sent
back home, especially in the early period because we have not
paid back all the debt yet." Apple emphasizes.
Almost every worker interviewed complained of how supervisors often
yelled or threatened to send them back home.
" We can tolerate the hardship, but we cannot stand the
behavior of supervisors that are very cruel and like to yell and
scold at us unreasonably.
We can go to toilet only if there is someone to replace us. We
were not allowed to use the toilet more than 5 minutes and only
twice a day." Apple
Sompong also shared with us his experience of seeing Thai workers
who responded to the unfair practices of the supervisor being sent
home before the contract ended. Therefore, he said that "many
of Thai workers were scared to respond or argue with supervisors
and had to do whatever the supervisors said, because they were afraid
that they would be sent home."
Hazardous working condition
Even though there are many workers in the Pou Chen factories, but
there is no first aid room. If any workers are sick they have to
wait until there are more sick workers joining the car before going
to the hospital.
The workers will be allowed to go to the toilet for 5 minutes if
there are someone can come to replace in their position. Their toilets'
uses have been recorded, and if they have a record of leaving to
the toilet, they will be warned by the supervisor. As a result,
many workers try not to go to toilet by not drinking much water
or suppression of their urination.
"We have to work hard and can only go to toilet if we can
get someone to replace us, we generally have to run to the toilet.
We were not allowed to use the toilet more than 5 minutes'"
Thipa
"I was so much in pain and suffered from kidney infection
because I always suppress my urination. I requested the supervisor
to send me to the hospital, but I have to wait for nearly one
hour until there were two more sick workers to fill the car before
it can take off to the hospital. I have to stay in the hospital
for six days without any visit from the company management. During
my sick leave, the company paid only 50% of my wages. As soon
as I returned to work the company forced me to work over-time
until 11 PM or midnight every night, although I tried explaining
to the supervisor that I need to rest but, however, the supervisor
forced me to work and I had to work."
Although Apple told us in a normal tone of voice, but I was enraged
by her story. I endured a similar infection 8 years ago and had
to stay in hospital for only two days, but I am still remembering
the pain so well. Therefore, listening to her story I know that
she must have felt so much pain during that period that I begin
to wonder myself of how the company was so negligent and cruel to
her painful condition and she had to wait for an hour before being
sent to the hospital.
Anand who was producing molds for Pou Chen, told us that, "It
is a very heavy task. This was not the task stated in my contract.
I was supposed to be a truck driver but ended up working in the
factory. After two and a half years, I was faced with serious spinal
pain which is still painful even after I returned to Thailand."
Thipa suffered from heart disease during her time in Taiwan and
had to be under medical treatment. "I was sick with heart disease
and had to take medication in Taiwan and now I am under medication
in Thailand. I don't know whether it was caused by the working environment
in the factory." Thipa still has to see doctor regularly after
returning to Thailand.
Many workers suffered from glue fumes and put up with vomiting
and nausea. "I was working in the glue section. It was very
odorous, and it makes me feel dizzy and gave me headaches. It took
me a while to get use to it. I had to buy protective cloth masks,
apron, and gloves myself because it was difficult to ask from the
factory." Once again that Apple reaffirm to us about her experience
in Pou Chen factories.
Many of these workers have to buy their own Personal Protective
Equipment (PPEs), such as, gloves, cloth masks, or even apron. There
is also no uniform, everyone wears whatever they like. But they
were not allowed to wear the same brand name shoes that the company
produced this is to prevent being accused of stealing the company's
shoes.
Sompong was working in NDC production line that making the outsole.
He said that lifting heavy molds has caused him backaches until
now. Also, the mold hit his hands twice and damaged his right hand
forefinger permanently. "I have not received any compensation
from the company. The company only transfers me to work in the rubber
section, which is very bad-smelling and I have only a cloth mask."
Payment - Under paid
Phanthep told us that he and all of his friends have to take only
half an hour lunch break and start working right away without a
calculation as over-time. Therefore, he claimed that he and his
friends have been underpaid for 30 minutes every day.
Apple, Sompong and Anand also reaffirmed that their salaries have
been deducted during their sick leave. For Sompong, besides not
getting his salary -- which was deducted 100% during sick leave
after his forefinger has been damaged by the mold -- he has not
received any injury compensation from the company.
For the first time, we heard male workers complain of receiving
less than female workers. " Women workers are usually earning
higher than men. But male workers were working in the sections that
were mostly dealing with heat, heavy and hard work. But we earn
the same salary. Therefore, women workers who were in the assembly
line -- with much over-time work -- were earning more than male
workers." Sompong complained in despair.
Forced Overtime
Male workers complain of working difficult tasks that deal with
heat and heavy lifting, with no additional compensation and not
much over time payment. On the other hand, those workers in the
assembly line that are mainly women workers were working excessive
over-time hours, until 10 to 11 PM almost every night.
The normal practice is for garment and shoe production is to pay
the lowest wage and pressure workers to work over-time to earn enough
to meet with their basic needs. Pou Chen is no different. Some of
the workers interviewed told us that, since they were going to work
in Taiwan for a short period, they tried to work as hard as possible
so that they can earn more money to send back home. However, to
work until 10 to 11 PM every night -- sometimes even until the morning
-- is very trying. Some workers complained about not having enough
rest and requested the company to allow them to take some rest.
Language and culture differences
One of a biggest problem for Thai migrant workers in almost every
receiving country is their language and the resulting inability
to communicate with their supervisors and local people of the countries
they work in. Not knowing the language is one of root causes of
the other problem that leads them to exploitation: They cannot join
with the local people to gain better conditions. Nor can they read
information or otherwise learn their rights according by law. Most
importantly, they cannot protect themselves or fight for their rights
of fear of being sent back home.
Recruitment Agencies
When Phan went to Taiwan, the recruitment fee was around 85,000
- 95, 000 baht. But at the moment the recruitment fee is over 180,000
baht, which is higher than the limit of Ministry of Labour (not
to be more than 56, 000 baht). The workers have to work for one
or two years just to pay off the debt they borrow, in order to pay
the recruitment agencies. For those who have land or property and
can mortgage the bank, the interest rate would not be so high, but
for those who do not have property to mortgage to the bank, they
get loans from informal sector that the interest can be from 5 -
10% every month.
Recruitment agencies have played a very important role in overseas
employment. They took 65% of the market share. At the moment there
are approximately 260 recruitment agencies published in the Employment
Department web site.
Most recruitment agency over-charged the recruitment fee set by
the Ministry of Labour. The Ministry of Labour and Social Welfare
has long known about this problem. Last year alone, there were 9,665
cases reported to the Ministry of Labour and there are over 200
recruiters have been charged.
The present Minister of Labour, Pracha Promnok, is taking serious
attention on the issue of illegal recruitment agencies and over-charging
of recruitment fees.
Voice of the voiceless
" I was crying almost every day in my beginning period of
working because my supervisor yelled at me that I was not good
at the work and threatened to send me back home. I cannot return
home because I was not be able to pay off the debt.
I was a very cheerful person before I went to Taiwan, but during
my work in Taiwan, I forgot how to smile" Apple.
All the male workers interviewed felt the they were not allowed
to give comment or suggestion regarding any problem. During the
company meeting if they raise their hand to speak they will be yelled
at by a supervisor. Only when the problem has turned out to be serious
would the company some time listen to them.
"The factories apply much power over the Thai workers. They
were not open for any requests or suggestion from us. The company
also took all contract documents and our passports." Sompong.
CONCLUSION
Most of the shoe's leading brand name, especially Nike, Adidas,
Reebok or Timberlands have codes of conduct to ensure basic rights
of workers. Pou Chen main customer is Nike and under Nike codes
of conduct, there should be no discrimination against race, sex,
nationality or color. The workers will not be underpaid or forced
to work excessive over-time. Nike also guarantees the right to freedom
of association and collective bargaining.
However, Thai workers in Pou Chen have many of their rights violated
and face discrimination and harassment. The Pou Chen workers were
underpaid, working over the 60 hour limit of Nike's code of conduct.
They have been forced to work over time. The PPEs are not regularly
provided to the workers. In addition, there is no first aid room
and doctor or nurse in the factory.
When the difference of culture and way of living are concerned,
the company should open for suggestion and request from Thai migrant
workers working in their factories. Especially since clean and safe
drinking water is a minimal expense and essential for good health.
It is still the practice among footwear factories, to apply double
standards between the production workers and with the customers.
Anand told us that "If a buyer from America visited the factory,
every thing with be perfect, workers will be ordered to clean the
factory, the food cooked for us will be excellent that day, for
example."
Just because these migrant workers in Taiwan factories can earn
higher than minimum wages in Thailand factories that these Thai
migrant workers have no other rights to live as a human being or
have their rights to freedom of expression suppressed. These workers
should have their rights protected from all form of exploitation,
violations and harassment.
This paper produced for Press for change. For more
information please contacts Jeffrey D. Ballinger at email: jeffreyd@mindspring.com.
Junya Yimprasert can be reached at email: jyimprasert@access.inet.co.th
Notes
- Over 69% of Thai migrant workers are male workers, and 80%
finished only six years in school, statistic from Employment Department,
Ministry of Labour and Social Welfare.
- The promotion of migrant workers overseas, Employment Department,
Ministry of Labour and Social Welfare, December 1999, page 132.
- Overseas Employment Administration Office, Ministry of Labour,
1996.
- In 1999, the number of Thai workers in Taiwan is 115,096 out
of 202,416 people, Department of employment, Ministry of Labour
and Social Welfare.
- Situation of Thai Workers in Taiwan, Hong Kong Labour Attaches
(second branch) Taipei, February 1997, page 8.
- Year Book of Employment Statistics, Department of Employment,
Ministry of Labour and Social Welfare, 1999, page 59.
- http://www.corporateinformation.com/,
Pou Chen Corp.htm, 31 July 2000
- http://www.suratkabar.com/,
Indonesia news online, Tuesday, March 7, 2000, retrieve 31 July
2000.
- Ibid.
- All the real names of the interviewees is kept anonymous for
their security.
- Generally every worker will be deducted 20% of his or her income
for tax. Although, according by law, after 183 working days the
tax will be reduced to 6%, however, the company still comfortably
deducts 20%. This over-deducting tax can be claimed back by each
workers after finishing their term and returning to Thailand.
However, it took 6-10 months to get back their money.
Apart from tax, the workers have to contribute in health fund,
4.25% of their salary, and 20% contribution to the occupational
health accident (employer contribute 70% and government 10%).
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