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2007-7-25 01:27:00 p.m. HKT, XFNA
Wal-Mart warns 2 China suppliers over labor practices
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BEIJING (XFN-ASIA) - Wal-Mart Stores Inc has cautioned two Chinese
suppliers in the wake of allegations of improper labor practices at firms
supplying Olympics-licensed goods, a company executive told XFN-Asia.
Jonathan Dong, Wal-Mart China's director of public relations, said
Shenzhen-based Yue Wing Cheong Light Products and Hong Kong-listed Mainland
Headwear Holdings Ltd were classified as ""orange alert"" vendors, part of an
internal color code system used by Wal-Mart for suppliers whose labor
practices raise concerns.
""At Yue Wing, there was a mismatch between the paper version of the work
attendance by the employees and the computerized records, as well as possible
overtime violations. At Mainland Headwear, we did find... basically the same
problems as at Yue Wing. But we didn' t find underage labor violations at
either factory,"" he said.
The two firms have 120 days to respond to Wal-Mart's concerns and make
any necessary changes.
""Yue Wing is a direct Wal-Mart supplier, meaning we source directly from
them. Mainland Headwear is not a direct Wal-Mart supplier. They go through
importers. Theoretically, we don't have a lot of control over indirect
suppliers,"" Dong added.
A report earlier this year by international labor advocacy group Playfair
raised concerns over labor conditions in China, including the alleged use of
child labor, with Olympic goods suppliers in particular put in the spotlight .
andrew.pasek@xinhuafinance.com xfnap/xfnap/xfntm
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