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"Taiwan" Shoemakers: Thai Workers
by Junya Yimprasert
Thai Labour Campaign
October 2000
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, 28 billion
baht alone (the highest) was from Taiwan. 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?
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Destination Taiwan
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, starting just 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. 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. 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).
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%.
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.
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Pou Chen Corp: One of the World's
Largest 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.
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.
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.”
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Getting to Taiwan
“ 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, 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.
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Working Conditions
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.
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Index
Living Conditions
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. 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.
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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 Conditions
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.”
Underpayment
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
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.
Number of Thai workers working in Taiwan by agencies
then by gender, 1999
|
Self
Arrangement
|
Dept.
of Employment
|
Employers
|
Recruitment
Agencies
|
Total
|
|
|
|
|
|
working
|
training
|
|
|
|
|
Male
|
Female
|
Male
|
Female
|
male
|
female
|
Male
|
female
|
Male
|
Female
|
|
|
36,124
|
2,585
|
492
|
149
|
53
|
86
|
61
|
7
|
62,364
|
13,175
|
115,096
|
|
31.39
|
2.25
|
0.43
|
0.13
|
0.05
|
0.07
|
0.05
|
0.01
|
54.18
|
11.45
|
100.00
|
Source: Year Book of Employment Statistics, Office
of Overseas Employment, Ministry of Labour and Social Welfare,
1999, page 59.
No Grievance Systems
“ 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.
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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: lek@thailabour.org
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