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HK: Big names fall short in labor quiz

HK: Big names fall short in labor quiz

Write: Cameron [2011-05-20]

Most major garment companies in Hong Kong refuse to disclose what labor standards they are adopting, including those concerning the hiring of child labor, according to the findings of Oxfam, an international fair-trade organization.

Its survey on labor transparency covered 16 major Hong Kong clothing firms which operate in 34 countries, including such household names as Giordano, Esprit, G2000 and Goldlion.

The survey found that 12 of the companies covered failed to score a single point on a scale of 100, while the best score was only 10, ranking them far behind international competitors.

Oxfam director-general John Sayer expressed disappointment, noting that many firms failed to respond to the survey conducted between May and July.

Sayer warned: "By not being transparent, companies risk their reputations and branding. If consumers can't make informed choices, they'll avoid you. People choose clothes on the basis of how they make them feel. People want to know if their clothes are being made through exploitation."

Among the companies which scored zero were Goldlion, Bossini, G2000 and Chickeeduck, while Esprit, founded and controlled by Michael Ying Lee-yuen, and Giordano, founded by Jimmy Lai Chee-ying, had the highest score of 10. Goldlion is the brand-name company of Tsang Hin-chi, a member of the Standing Committee of the National People's Congress.

The study rated companies on the transparency of their supply chain and the availability of such information for consumers and investors. The companies surveyed were chosen because they cover major market segments and are well-known Hong Kong brands with a combined annual turnover of almost HK$30 billion.

Points were awarded for how close the reporting efforts of the company were to international labor standards, including elimination of compulsory labor, freedom of association and collective bargaining, elimination of discrimination and the abolition of employment of children under 15.

Sayer said: "Transparency and corporate social responsibility are a new area for [local garment firms] and the markets where most of these companies operate lack consumer pressure for transparency."

Principal researcher Stephen Frost, who is also assistant professor at City University of Hong Kong, said the need for transparency has become more urgent as consumer trends in Asia are changing. "In 2000, there was almost no consumer interest in social issues about the garment industry. Over the last 18 months to two years, there has been a rising awareness among younger people, especially university students, and in the mainland about where products are made."

None of the 16 companies was available for comment.