Flawed Management, Questionable Quality, Runaway Orders! All The Truth Investors Have to Know About WINTEK!

Translated by laches

8:30 am on Tuesday June 10, 2009

At WINTEK Corporation Headquarter Taiwan

10, Chien-Kuo Road, TEPZ Tantzu, Taichung, Taiwan, R.O.C

We will announce our operation investigation of Wintek, containing relevant information to institutional and individual investors

Contact：Secretary General of NAFITU, Chu Wei-Li 0981-238732；wei-li-1210@yahoo.com.tw

English Contact：Torrent, torrent.org@gmail.com

Do you invest in Wintek? Do you have shares of Wintek? Did you lend money to Wintek? Did you place orders with Wintek? Are you one of Wintek’s suppliers? Wintek will assemble a shareholders’ meeting on June 10, 2009. Wintek claimed it’s having an operation loss, thus no dividends this year. In the shareholders’ meeting, to raise local and oversea funds, Wintek will propose to issue new common shares participating in global depositary receipt and also a new private placement of common shares. But, with its significantly flawed management, the new fund sources imply worse investments and greater loss! National Federation of Independent Trade Unions, WINTEK bargaining team and other labor organizations will come to the Wintek shareholders meeting to announce the truth that investors need to know. Shareholders, institutional investors, suppliers, be aware of those inconvenient truth highly relevant with Wintek’s stock price!

Truth 1: Wintek cut salaries and laid off employees, but the operation cost still soars

Wintek claimed a loss and declared no dividends this year. According to its 2008 statement of operations, compared with 2007, the sales have increased $6.87 billion TWD. Nonetheless, because of the high operation cost ($28.85 billion TWD more than 2007), the gross profit has declined sharply ($21.97 billion TWD lower than 2007.) Wintek cut salaries, laid off workers, forced employees to take unpaid leaves, stopped paying overtime compensation since December 2007; but the operation costs still soared in 2008. Investors need to examine this unusual cost increase. Why did operation costs still sky rocketed after cutting labor costs? Where has the money gone? Did Wintek’s flawed management raise the defective rate and end up in high indemnities?

Truth 2: The labor disputes in Wintek attracted global attention and became a concern to Wintek’s customers!

Wintek has been involved in labor disputes since the extensive layoff occurred in December 2008 and the large-scale 7,000-worker strike took place at MASSTOP in Dongguan in April 2009. The labor disputes attracted global attention. All Wintek’s global brand manufactures and Chinese suppliers received workers’ joint statement of protest. In the shareholders’ meeting on June 10 2009, the labor organizations in China and Taiwan will announce the most updated “Wintek Labor Investigation Report.” According to the report, Wintek continues to exploit labor. The illegal labor measures include forcing workers to work overtime, illegally extending overtime working hours, cutting compensations and salaries, canceling holidays, providing unsanitary food which caused on-site food poisoning. The Wintek executives haven’t faced up to these labor disputes. These labor disputes have already damaged Wintek’s corporate image and they have become a concern to the foreign customers, lowering their incentive to place orders to Wintek. Did president Huang know that the labor disputes already damaged Wintek’s image and sales? Did president Huang know that the illegal labor measures already lowered the product quality and boosted indemnities?

Truth 3: The executives enjoy high salaries, while the workers and shareholders pay the price!

According to the operation costs in 2008, the salary expense was only 6% of total operation cost but the outsourced processing costs amounted to 46%. Wintek paid a huge amount to the outsourced companies but spent little on its own on-site labor. Since the on-site labor was only a small portion of operation costs, there is no need to cut the on-site salary at the price of damaging corporate image.

The majority of workers who got laid off were factory laborers. However, compared to the executives’ compensation, the average salary of factory workers is very low. The average salary of the executives at Wintek is more than $100,000 TWD per month and the additional monthly manager bonus range from $5000 to $40,000 TWD. Some managers even get $500,000 TWD a month. Is it fair for the workers and shareholders? The executives enjoy high salaries, but the workers and shareholders have to pay the price. The executives have to take responsibility for labor disputes and operation losses. We shareholders and workers demand the executives to take full responsibly and cut their own high salaries!

 The salary
gap between basic workers and executives

Basic workers	2A	3D
2A~3D	$14,880~$22,400 TWD per month	$ 25,000~$55,000 TWD per month
Executives	6	12
6~12	$40,000~$120,000 TWD Per month	$90,000~$500,000 TWD Per month

*The additional monthly
manager bonus range from NT$5000 to NT $40,000.

The salary gap between basic workers and executives

From the statistics above we can see that the executives at Wintek enjoy high salaries but don’t pay the price of their own bad management. The executives and managers do not take responsibility and the price of flawed management should not be paid by shareholders and basic workers.

To protect the shareholders’ rights, we demand that the executives at Wintek face up to the labor disputes immediately. Wintek should negotiate with the labor representatives selected both by employees and laid-off workers, improve labor conditions at once and replace the unqualified manager Cheng-Hwei Chen.


1. WINTEK must restore the jobs taken from the workers who were laid off in Taiwan and China, withdraw the demonstration lawsuit, and promise no retaliation on workers.

2. WINTEK must improve its working conditions immediately, pay the overtime compensation, provide sanitary food and abandon the fine system in the China manufacturing sites.

3. Present Huang and Vice President Hsu must hold direct talks with the labor representatives, negotiate a practical solution to the labor disputes, and examine the working environment and labor rights.

4. The executives at Wintek must apologize to all the employees and promise to protect all workers’ rights.

5. The executives at Wintek must provide its workers with the labor rights trainings. The training should be held by the officials or labor organizations.

Initiating Organizations:

Taiwan: National Federation of Independent Trade Unions, WINTEK bargaining team, Solidarity Union, Youth labor union 95, Taiwan Labor Information & Education Association, Confederation of Trade Union in Taipei City, Taoyuan County, Hsinchu County, Miaoli County, Tainan County and Kaohsiung County, Workers' Democracy Association (WDA), Taiwan International Workers' Association, Taiwan Association for Victims of Occupational Injuries (TAVOI), Raging Citizens Act Now (RCAN), Taiwan Corporate Watch, Taiwan Labor Front, The Green Party Taiwan, Taiwan Environmental Action Network, Green Citizens' Action Alliance (GCAA)

Hong Kong: Globalization Monitor, SACOM, HKCTU, Labour Action China

Mainland China: China Worker Studies

Japan: Asian Pacific Workers Solidarity Links

Technology without Humanity?! Protest against Exploitation of Workers in Taiwan and China

Translated by Timo

Time: 2009 June 2 (Tue.) 9:30 am

Place: Taipei World Trade Center Nangang Exhibition Hall

Contact:

Secretary General of NAFITU, Chu Wei-Li 0981-238732；E-mail：wei-li-1210@yahoo.com.tw

English Contact：Torrent torrent.org@gmail.com

As a famous commercial slogan goes, “technology always comes from humanity.” But what we know now is, in stark contrast, the fact that workers are exploited in high-tech corporations. Why makes technology more and more inhuman?

COMPUTEX TAIPEI takes place from June 2, 2009 at Taipei World Trade Center Nangang Exhibition Hall. This is the largest professional computer exhibition in Asia and attracts as much as $1 billion USD from global corporations, making COMPUTEX an excellent place for Taiwanese computer suppliers to do business. However, behind these trendy tech commodities are bloody exploitation of labors in Taiwan and China. NAFITU, WINTEK labor bargaining team and other labor rights organizations will go to the opening of COMPUTEX Exhibition to expose the reality to the public, and request APPLE Inc. to execute its Code of Conduct, to end the exploitation of labors in Taiwan and China.

WINTEK does business with leading international corporations, including Apple Inc. , NOKIA, Motorola, Samsung, HTC, and HUAWEI. WINTEK is a famous supplier from Taiwan, and enjoys the largest market share in Taiwan in small size mobile phone panels and touch panels, and ranks No. 3 in the world. However, it has recently gained global notoriety for labor issues in Taiwan and China. (Owner: Huang Hsien-Hsiung, Address: No.10, Jianguo Rd., Tanzih Township, Taichung County, Taiwan).

In Dec. 2008, WINTEK laid off over 600 workers in Taiwan without any notice in advance and kept cutting workers’ salary, forcing unpaid leaves on employees, and paying no overtime wages. Recently, WINTEK received big and urgent orders and tried to force workers to do more work without any vacation or overtime pay. Many employees had to work during national holidays, or mandatory unpaid leaves without due salary. The company also exploits contract workers harshly ($110 TWD, equivalent of $3 USD per hour, with a contract lasting for three months).

Besides, MASSTOP in Dongguan, a subsidiary factory of WINTEK, cut workers’ salary, overtime pay and subsidies, and night-shift workers are forced to eat leftover food since morning, resulting in an incident of food poisoning on April 3, in which hundreds of workers fell ill. WINTEK even illegally laid off 19 workers who joined the strike against the foul working condition. (Please see June 2 News Release for more details).

NAFITU, WINTEK bargaining team, and other labor organizations will protest against WINTEK at the opening of COMPUTEX on June 2, 2009 at 9:30 am in Taipei World Trade Center Nangang Exhibition Hall. We strongly appeal to the major clients of WINTEK, such as Apple Inc. , NOKIA, Motorola, Samsung, HTC, and Quanta to take their corporate social responsibilities and follow the Supplier Code of Conduct to request WINTEK to resolve the labor issues.

Appeals / Demands

1. WINTEK must follow the international Supplier Code of Conduct and give jobs back to workers who were laid off in Taiwan and Mainland China, withdraw the lawsuit of defamation, and promise no retaliation on workers.

2. WINTEK must improve its working condition immediately, including overtime pay and appropriate meals provided in the factories in China.

3. We request to have third-party labour unions or organization to enter WINTEK’s factories to inspect its working condition, and let the public know the situation. Besides, these clients should review its order to WINTEK based on the results of the inspection and WINTEK’s improvement.

4. WINTEK must respect the will of the representatives of labours and make direct talks with them. These representatives should be chosen by WINTEK workers in Taiwan and Mainland China.

Organizations:

WINTEK bargaining team, National Federation of Independent Trade Unions, Taiwan Labor Information & Education Association…..the list is growing….

Condemn Apple and Wintek Corporation for Disregarding Corporate Social Responsibility and Workers’ Appeals

23/5/2009

Contact：Secretary General of NAFITU, Chu Wei-Li 0981-238732；E-mail：wei-li-1210@yahoo.com.tw

English Contact：Torrent torrent.org@gmail.com

Fax：02-22721473

The Wintek Corporation’s violation of laws and exploitation of workers in Taiwan and mainland China have aroused anger among workers, environmental and social movement organizations around the world. Because of Wintek’s refusal to restore all the jobs to the employees in Taiwan and mainland China and improve the working conditions, around one hundred people, including the Wintek Workers Self-help Group and local labor movement organizations in Taiwan, gathered in front of Apple — of whom Wintek is a major supplier — on 21 May 2009, revealing all the relevant information, asking Apple to comply with its own Supplier Code of Conduct and demand Wintek to negotiate with its employees.

We had informed the management of Apple about this action several days beforehand, but Apple showed arrogance and sent no representatives to receive our public letter and relevant information. It even lied through the police’s teeth that there were nobody working that day. It is hard to believe that such a giant transnational corporation would lie and shirk responsibility in the face of labor organizations.

Apple, a leading brand in technology application, reports 15% profit growth in its first quarter of 2009. It is indisputable that Apple has to take its corporate social responsibility seriously. Therefore we ask Apple to respond publicly to our appeal by 31 May, to demand that Wintek stop exploiting workers in Taiwan and mainland China. Otherwise we will appeal to global workers and consumers to condemn corporations and stop buying sweatshop products.

Besides, as a member of Electronics Industry Citizenship Coalition (EICC), Apple has been retreating from its promised social responsibility. Therefore we also ask the EICC to investigate into the conduct of Apple.

Wintek issued a press release on 21 May, stating that “it has dealt with this labor issue in accordance with the law, having agreed to restore jobs to those laid-off workers under certain conditions (e.g. pregnant women and veteran workers). It accuses labor organizations of violating the agreement and instigating some laid-off workers to demand unlawful benefits.” But paying the 6,000 NT dollars fine does not make Wintek’s measures legal. In fact, at the conciliation meeting with workers in the Taichung factory, Wintek only agreed to restore jobs to some 20 workers, who were asked to repay the redundancy payment and were denied their salary during unemployment. The workers could not but accept. Except for the Taichung factory, Wintek has not responded to the factories in Yangmei and mainland China. More importantly, the working conditions have continued to deteriorate, with overtime unpaid, wage cuts, and statutory holidays cancelled. We are further informed on 20th May that subsidies and awards are not paid, and food problems are getting serious in mainland China factories. Wintek’s refusal to take seriously workers’ rights and appeals will surely lead to more intense resistance, and the labor organizations have taken legal actions and gained wide support.

Where there is oppression, there is resistance. Wintek workers have lost their jobs for six months and have to borrow money to make ends meet. We are grieved and vexed at the abominable conduct of Wintek and Apple, and deeply moved by workers showing solidarity and struggling for justice.

Major clients of Wintek, including NOKIA, Motorola, Samsung and HTC, should also take the responsibility of urging Wintek to resolve this labor rights issue; otherwise they may also become targets of public protest.

Initiating Organizations:

Taiwan: National Federation of Independent Trade Unions, WINTEK bargaining team, Solidarity Union, Youth labor union 95, Taiwan Labor Information & Education Association, Confederation of Trade Union in Taipei City, Taoyuan County, Hsinchu County, Miaoli County, Tainan County and Kaohsiung County.

Hong Kong: Globalization Monitor, SACOM, HKCTU, Labour Action China

Mainland China: China Worker Studies

Japan: Asian Pacific Workers Solidarity Links

WINTEK Co. Offenses of Law & Code of Conduct

Translated by Timo

According to the Supplier's Code of Conduct outlined by Apple Inc., WINTEK, as one of Apple's suppliers, is obliged not only to obey local labour laws, but also to offer working conditions that meet the requirements of international labour rights principles.

However, we were shocked to find much of WINTEK's behaviour at its manufacture lines in Taiwan and China to be blatant violation of local laws, and of Apple’s Supplier’s Code of Conduct.

Apple Inc., as one company that has promoted Corporal Social Responsibility issues, should deal immediately with WINTEK's misbehavior. Apple Inc. is advised to demand WINTEK for prompt improvement, endorse a third party to thoroughly examine the working conditions at WINTEK, and reconsider its partnership with WINTEK. Listed below are WINTEK's offenses:

Table one: WINTEK’s offences of law in Taiwan

Facts	Details
1. Unlawful mass lay-offs.	Laid off nearly 700 employees while there still is a surplus of four billion TWD. (approx. $118 million USD) Taiwanese press also reported that WINTEK had received urgent orders, thus needed to hire a good number of new workers.
2. Demanding employees to work unpaid, meanwhile assigning unpaid leaves. (Confirmed and fined by Taiwanese labour administration)	Since November 2008, WINTEK began to force unpaid leaves on employees, meanwhile asking them to resume the work, unpaid.
3. Changing working hoursunilaterally	Asking the night shifts to work as many hours as the day shifts per month. The discrepancy was counted as a leave of absence, thus deduction of one day’s wages. Some got a monthly wage lower than the basic NT$ 17280/ month.
4. Demanding employees to catch up on working hours, resulting in more than ten consecutive working days. (Confirmed and fined by Taiwanese labour administration)	The 4-2 shifts were demanded to make up on their working hours, thus had to work 10 days in a row. This has constituted an offense of Article 36 of Labour Standards Law.
5. Forcing workers to work overtime	In order to meet deadlines, forcing workers to work 12 hours a day, 5 days a week, and forcing them to give up days off and national holidays. This has constituted an offense of Article 30, 32, 36, 37 and 39 of Labour Standards Law.
6. Forcing workers to sign the agreement, replacing overtime wages with days off.	Forcing workers to sign the agreement, replacing overtime wages with days off. This has constituted an offense of Article 24 of Labour Standards Law.

Table two: Unlawful actions of MASSTOP, WINTEK’s subsidiary in Dongguan, China.

Facts	Details
1. Cancelling full attendance rewards upon the raise of basic wage, without negotiation with employees.	Immediately after the Dongguan government raised the basic wage to $770 RMB (approx. $114 USD), MASSTOP canceled the full attendance rewards promised in the contract.
2. Unilaterally cancelling benefits without negotiation with employees	In October, 2008, MASSTOP posted a notice declaring the cancelling of performance rewards and year-end bonuses.
3. Adopting special working hours without the approval of Dongguan’s labour administration, reducing holiday wages from twice the normal wage to just 1.5 times of it.	On February 27, MASSTOP posted a notice, declaring a special working hours system has been approved by Dongguan City’s labour administration. However, the employees found out in March the administration has never approved such change. MASSTOP claimed it had been approved, while forcing employees to sign the agreement.
4. During the strike, unilaterally claiming that workers who failed to return before three in the afternoon, April 17, would be regarded as voluntarily ending their labour contracts.	Employees of MASSTOP in Dongguan went on strike for labour condition issues such as underpaid overtime. Though the company agreed that overtime wages would be handed out before April, 21, according to the Chinese labour regulations, workers have the right to continue the strike as long as they don’t have their wages. The company’s rules stated that workers who neglect work over 2 days might be sacked.

Table three: WINTEK (and MASSTOP) violations of the Apple Supplier’s Code of Conduct

Codes violated	Facts in Taiwan (WINTEK)	Facts in Dongguan, China (MASSTOP, WINTEK's subsidiary)
The code concerning overtime wages: “workers must be compensated for overtime hours at the premium rate required by applicable laws and regulations.”	forced employees to give up their overtime payment and holiday subsidies, opting for more days off instead.	Adopting special working hours without the approval of Dongguan’s labour administration, reducing holiday wages from twice the normal wage to just 1.5 times of it. (Later proved the administration has never approved such change.)
The code concerning fair treatment to employees according to applicable laws and regulations.	While the company still enjoys orders and surplus, it kept laying off workers illegally, cutting pays and benefits, forcing unpaid leaves, demanding work without pay, resulting in a monthly wage lower than the basic NT$ 17280/ month.	Unilaterally cancelled the full attendance rewards when Dongguan government raised the basic wages. In February, MASSTOP claimed that the adoption of special working hours system had been approved by the administration, to reduce overtime wages to 1.5 times of the normal wages instead of twice. Amidst the strike initiated by angry workers, the company unilaterally claimed that those who failed to return to work before three in the afternoon, April 17, would be regarded as voluntarily ending their labour contracts.
The code concerning dormitory and dining: “Suppliers must provide workers with clean toilet facilities, access to potable water, and sanitary food.”		Cut the expenses for daily meals from 8 RMB to 4.5 RMB. Some say the food is a far cry from edible. This issue directly resulted to the strike, but the company has not solved it yet. There was a mass ptomaine poisoning this April.
The code concerning whistleblower protection and anonymous complaints	While employees made legal attempts to appeal to labour laws and the public, WINTEK has filed a lawsuit against Wei-Li Chu, secretary general of the National Federation of Independent Trade Unions (Taiwan), who continuously helped WINTEK workers who tried to get their jobs back.	There is not yet an program through which employees can file complaints anonymously. After the strike, the company has been taking retaliatory actions, including admonishing strikeparticipants. As a result, other employees are being silenced about emerging problems in the company.
The code concerning a safe working environment	Workers at CG manufacture lines in WINTEK’s Tanzi factory, and those at the yellow light section in Huangchung and Chunggung factories are required to use organic solvent such as halftone detergent or etching solvent, but WINTEK did not provide masks or protective suits.

A Public Letter to Apple Inc.

Everyone knows that Apple Inc. is a leading brand in technology application, and its products have gained great popularity all over the world. In your Corporate Social Responsibility collaborative initiatives, Apple addresses issues of labor rights and claims that its hit products never come from the exploitation of labor.

After our several month-long investigation, however, we found that one of your suppliers, WINTEK Corporation, has seriously violated your Supplier Code of Conduct. Apple has not yet taken any action toward rectifying this. We hope our protests will evoke your conscience and draw your attention to this labor rights violation. Apple Inc. has the obligation to ensure to its first-line workers their inalienable labor rights. We hope your corporation can keep your promise of corporate social responsibility and demand that all your suppliers, including WINTEK, meet international labor standards.

Since last year, WINTEK Corporation has taken all measures to push the labor cost down. In its factories in Mainland China and Taiwan, WINTEK imposed mandatory unpaid leaves, laid off employees, cut overtime pay, and canceled special bonuses and allowance. According to labor regulations in China and in Taiwan, respectively, all labor contract changes have to be approved both by employers and employees. But WINTEX changed contracts and compensation without employee approval. WINTEX forced employees to accept those compensation and contract changes; WINTEK even laid off a large number of workers when the company still earned huge profits. This kind of large-scale layoff violates Taiwanese labor laws.

When the employees in WINTEX strove for their legal rights, WINTEX suppressed them rather than retracted its illegal orders. WINTEX sued both these employees and Wei-Li Chu, the Secretary General of National Federation of Independent Trade Unions, who supported the strikes in WINTEK. These lawsuits violated the whistleblower protection rules in the Apple Supplier Code of Conduct.

As for employee basic benefit and health issues, WINTEK also has shown very bad performance. MASSTOP in Donguan, a subsidiary factory of WINTEK, failed to provide sanitary food to its workers. MASSTOP cut the employee food budget from 8 RMB to 4.5 RMB per person per day. According to the employees in MASSTOP, the food provided by the company was stinky and sour, and the steel plates were rusty. Moreover, on April 3, hundreds of the workers in MASSTOP were sent to the hospital because of on-site food poisoning. This is a serious violation of the dining rules in the Apple Supplier Code of Conduct. But Apple hasn’t reacted to this significant violation. Apple has the obligation to demand WINTEK to improve the health and dining situations in MASSTOP.

The labor measures taken by WINTEK, including the cut in overtime pay, were deemed illegal by the Taiwan government after an official labor inspection. MASSTOP in Donguan has ignored labor rights for a long time. MASSTOP does not provide an anonymous complaint mechanism for workers to report workplace grievances; a forum for such anonymous complaints is recognized as basic employee right in the Apple Supplier Code of Conduct. Many grievances remain unsolved; hence, 7,000 workers in MASSTOP went on a three-day large-scale strike on April 15, 2009. We have not yet seen Apple take any measures to remedy these serious conflicts and violations.

This is not the first time that Apple has been involved with violations of labor rights standards. In 2006, there was a controversy over an “iPod sweatshop” in Foxconn, and we believe that Apple understand the inside story better than us. In 2008, Scholars Against Corporate Misbehavior (SACOM) addressed issues about underpaid overtime, work injuries, and insufficient labor insurance in the Primax factory in Dongguan, where iPhone cameras and accessories are made. Now in 2009, there is another violation case, this time involving WINTEX.

Apple may have demonstrated excellent achievements in technology innovation and application, but it has significant flaws in supplier monitoring and management. Hence, we make four-part appeal to Apple to improve the labor conditions in your suppliers’ factories, and we hope Apple will give the public a clear promise by May 31.

1. Apple must follow the international Supplier’s Code of Conduct and demand that WINTEK restore the jobs taken from the workers who were laid off in Taiwan and China, withdraw the demonstration lawsuit, and promise no retaliation on workers.

2. Apple must follow the international Supplier’s Code of Conduct by demanding that WINTEK improve its working conditions immediately.

3. Apple must demand WINTEK to allow third-party labor unions or organizations to enter the factories to conduct labor inspections, reveal the inspection results to the public, and look into the responsibility. Further, Apple should review its orders with WINTEK, evaluating the supplier contract based on the inspection results and WINTEK’s improvement.

4. Apple must respect the will of the labor representatives and hold direct talks with them. The labor representatives should be chosen by WINTEK workers in Taiwan and China.

STOP EXPLOITING LABOURS, SAY NO TO BLOODY APPLE

Translated by Brandon

20090521 Protest against Apple Computer Taiwan

STOP EXPLOITING LABOURS, SAY NO TO BLOODY APPLE.

Time: 21 May 2009 (Thursday) AM10: 00 (about 60 people)

Place: Apple Computer Taiwan
(No.333, Sec. 2, Dunhua S. Rd., Da-an Dist., Taipei City, Taiwan)

Contact: Chu Wei-Li (0981-238-732)
English Contact: Torrent Pien(torrent.org@gmail.com)

Global financial crisis remains serious all over the world but Apple Computer made an extremely big profit increase by 15% at Q1 ’09 compared to the last quarter. However, the truth is that the big profit Apple made has been proved to be the result of exploiting the workers not only in Taiwan but also in mainland China.

WINTEK (Owner: Huang Hsien-Hsiung, Address: No.10, Jianguo Rd., Tanzih Township, Taichung County, Taiwan) is one of the major suppliers of Apple Computer. The ranking of market share in small size mobile phone panels and touch panels is No.1 in Taiwan and No.3 worldwide. In the last couple months, WINTEK not only laid off but also exploited lots of workers in Taiwan and mainland China.

In Dec. 2008, WINTEK laid off over 600 workers in Taiwan without any notice in advance and kept cutting workers’ salary, forcing unpaid leaves on employees. Recently, WINTEK received big and urgent orders and tried to force workers to do more job without any vacation or overtime salary. The labour department of Taiwan government has already found proofs of offenses during the inspection process on WINTEK. Besides, WINTEK’s factories in Dongguan also cut workers’ salary without any negotiation with them. Last but not the least, the food there is too bad for people and WINTEK has illegally laid off 19 workers who joined the strike against the foul working condition.

Apple Computer and WINTEK made their profit by sacrificing labours’ basic rights and exploiting labours illegally. Labour organizations worldwide can’t stand aside for it and has started a campaign to condemn WINTEK.

Labour organizations in Taiwan and WINTEK workers union will protest on May 21st, 2009 at Apple Computer Taiwan and ask Apple / WINTEK to promise to improve the working conditions before May 31st, 2009, “Stop exploiting the labours across the Taiwan Strait.”

Appeals / Demands

1. Apple must follow the international Supplier’s Code of Conduct and demand WINTEK to give the jobs back to the workers who were laid off in Taiwan and mainland China, withdraw the lawsuit of defamation, and promise no retaliation on workers.

2. Apple must follow the international Supplier’s Code of Conduct to demand WINTEK to improve its working condition immediately.

3. Apple must demand WINTEK to allow third-party labour unions or organization to enter the factories to conduct inspections on its working condition, explain the fact of the event in public and look into the responsibility. Besides, Apple should review its order to WINTEK based on the results of the inspection and WINTEK’s improvement.

4. Apple must respect the will of the representatives of labours and make direct talks with them. These representatives should be chosen by WINTEK workers in Taiwan and mainland China.

Organizations:

Taiwan: National Federation of Independent Trade Unions, WINTEK bargaining team, Solidarity Union, Youth labor union 95, Taiwan Labor Information & Education Association, Confederation of Trade Union in Taipei City, Taoyuan County, Hsinchu County, Miaoli County, Tainan County and Kaohsiung County.

HongKong: Globalization Monitor, SACOM, HKCTU, Labour Action China

Mainland China: China Worker Studies

Japan: Asian Pacific Workers Solidarty Links

After Striked in MASSTOP

I had heard about MASSTOP before I entered it. It was quite big around Sangyuan. People talked about how well they paid and how good the working conditions were. At that time the entry requirements were very high.

In 2007 I finally became part of MASSTOP, only to regret afterwards. The so called high pay was earned by overworking day after day. It was hard-earned, blood-and-sweat money! And the only piece of lawn was soon used to construct new factories. What was in front of us everyday were concrete walls.

What made things worse was the dawning of financial crisis. It changed our quiet and boring life. There were fewer orders, less overwork, and naturally less pay (what we got was a few hundred for basic wage) To make things worse, the factory replaced our overtime pay with days off!!

At the end of the year we were expecting a good year, only to know that there would be no more year-end bonus. In a fit of rage, some colleagues tried to fight for their rights by going on strike, yet they were pacified by a 10-Yuan red envelope. How pathetic.

The world has to go round, and we have to go to work to live on! In year 2009, the factory got many new orders, and everyone worked overtime, as if last year's discontent didn't exist. We thought we would make more than a few hundreds this year, but who knows that a notice once again disturbed our peaceful life. On February 28th the factory announced that there would be a special working hour system. The overtime pay on weekends is 1.5 times of normal wage (at that time we work overtime every day, consecutive shifts, more than 12 hours a day. Some refused to overwork, and got penalty.) The angry workers asked the labor administration what was going on, and were told that MASSTOP has filed an application to adopt the special working hour system, but it had not been approved yet, (the company said it had long been approved, thus urging us to sign) We were all frustrated.

As early as October 2008, the food expense per person per day was lowered to 4.5 dollars from the original 8.5 dollars. The utensils are not washed properly (because they want to save water, electricity, detergent and human labor). This resulted in the food poisoning of over 100 people in early April.

On the 15th of April, 2009, the company finally paid us. When we found out that the weekend overtime should be only 1.5 times of our normal wage, we chose to go on strike again to protect our rights. (We had incredibly many orders in the past month, some of us had more than 200 hours of overtime) The night shift of the 15th refused to work. During the daytime of the 16th, angry day-shift employees pushed the door open, blocked the Sangyuan road and marched to the highway one kilometer away. We kept on strike on the 17th, and at noon MASSTOP finally posted an announcement, agreeing to give us the overtime for March. However, we were asked to get back to work before 3 pm, otherwise we would be seen as voluntarily ending our contracts. At that time we did not know the announcement was unlawful. Most people were forced to get off duty at 3 p.m. sharp. 19 employees insisted on strike and were laid off.

The factory said we could have half a day's off on the 4th of May only if we have an invitation letter from the government. (the 4th of May is a national holiday in China) If not, we would have to work. God knows whether the Chinese government really has such an article.

Until now, the rights that have been deprived from us and the food problem has not been solved, and we eat even worse now. The food of day-shift is barely edible, let along that of the night-shift.

As a Chinese saying goes: "Beggars can't be choosers" Forget about it. We still have to go to work tomorrow. We still have to make our hard-earned money. But we all sensed our serious discontent and complaint. We don't know how much longer we can endure.

2009.5.7

Apple, you again?

Translated by chong

Back from Dongguan. There is something not convenient to talk in Mainland China. Now I want to grumble about it.

I really don't know what Apple is messing up. On April 20, I went to the factory of Masstop in Sangyuen Industrial District (Dongguan) and interviewed workers outside the factory. It was already three days after the strike. The owner usually takes repressive measure to control the workers. Masstop is no exception. The workers were most probably afraid of being retaliation and did not talk much. But if you really want to ask something, you would get it. If Apple had sent a delegate to hang around outside the factory for a whole day, he/she could have know what bad things the Masstop is doing.

In fact, Apple is a big brandname holding some many orders. It is even more powerful than the local officials if it really wanted to enter the factory for checkup. It could even ask the senior management to stand aside to let the examiner to check everywhere within the factory. But since Apple placed the order on Masstop, it has let it go and do whaterever Masstop, Wintek's subsidary in Dongguan, wants.

Wintek is already not the first case. The most famous one is the Foxconn in 2006. The Mail on Sunday in Britain and the First Financial in Shanghai covered the story of the Foxconn's sweatshop which manufacturing Apple's iPod in June. It was revealed that the dormitory, meal, wage and overtime fees are far below the standard. Everybody knows that Foxconn is arrogant. But do you know what happened? Foxconn immediately held a press conference in its headquarter in Tucheng, Taipei. The spokeperson Ding Qian said that this was the first time to meet the reporters there. At the beginning I thought I was new to the big building of Foxconn. But in fact it was the first time all reporters to come. In other words, Foxconn was so afraid of losing orders, it explained to the public immediately and held its first conference in its headquarter. At the same time, it was also the first time for Foxconn to invite Taiwanese correspondent in the Pearl River Delta to visit its factories in Longhua, Shenzhen.

The incident of Foxconn has some impact on Apple. Apple said that it would examine the factory and ask the suppliers to improve. In August 2006, Apple released an investigative report to confirm that Foxconn needs improvement. However, Apple does not learn its lesson from it to control its suppliers.

Absolutely not. in 2008, SACOM dug out another case. The Taiwanese company Primax, which manufactures the lens of iPhone and other components, was found not paying labor insurance, extremely long working hours and industrial danger.

Now one more case of Masstop. Is it too much for Apple?

The situation of Masstop is easily to be found only if you are a normal person. Take the example of meal. It is cooked like a mess. It even smells stingy in rustled plates. On April 3, the meal is so bad that about one hundred of people was hospitalized for food poisoning. Apple even pretends not to know this serious incident. It is really outrageous.

The illegal layoff in the Taiwanese company and the illegal cutting overtime fees in Masstop could be found very easily. When the discontented workers protested and struggled, Wintek just brought it to the court and Masstop fired for retaliation. These violate the regulation for protecting "whistle blower" in the codes of practice for suppliers. The Taiwanese government refuses to take responsibility for these violations while the China government collaborates with the factory owners. And Apple just pretends to be innocent? Apple would only choose the supplier who would sue anyone challenging them. In 2006, Foxconn sued the reporter of the First Financial. Now Wintek sued the workers of the self-help group and the executive officer of the Independent Workers' Union (Both are in Taiwan).

Apple is a brand name who is afraid of being tarnished by sweatshop resulting in consumer boycott. It requires its suppliers to sign the code of practices of the electronic industry. Now the situation is like this. While Apple's products are selling good and it expands its production, it does not take the so-called "corporate social responsibility". You may say it is just an accident if it only happened once or twice. But not it happened again and it is a big strike. Now it is already confirmed that Apple is not able to keep its words to control its suppliers when it extends its supply chains.

Last week, Apple announced its most recent financial report that its profit rapidly increased by 15% until March 28. It make a net profit of US$1.2 billion. Why didn't it use a small part of its profit to conduct a full examination of the labor condition in its suppliers, not to mention allocating a little bit profit to the lowest rank of workers on assembly? Is it difficult?

Signature Campaign: Reform WINTEK working conditions

Reform WINTEK working conditions

Petition page is here

Petition launched by National Federation of Independent Trade Unions (NAFITU), WINTEK bargaining team, Solidarity Union, Youth Labor Union 95, Taiwan Labor Information & Education Association.

WINTEK Corporation (Chairman & President: Hyley H. Huang. Headquarter: 10, Jianguo RD, Tanzih Township, Taichung County 427, Taiwan) was established in 1990. Its majors products include flat monitors such as LCD, LCM and touch panels, occupying the largest market share of touch panels and small-sized mobile phone panels in Taiwan, ranking among top 3 worldwide. WINTEK allocates 12 of its manufacture lines in Taiwan (Taoyuan, Taichung and Kaohsiung), employing as many as 3,550 workers; for its two factories in Dongguan and Soochow, China, 18,150 workers are employed, while its Chennai (India) factory employs 1,450 workers. It spreads its worldwide sales network across the US, Korea and Germany. WINTEK’s major clients include Apple (iPhone), Nokia and HTC.

As the financial crisis strikes home, many employees reported exploited or laid off unjustified by WINTEK, therefore we seek worldwide support for labours in Taiwan and China. We make appeals to labour groups and workers in every nation to unite as one, and to sign the petition condemning the WINTEK for mass exploitation of labours! We make appeals to the governments in China, Taiwan, India and Korea, to examine the working condition at WINTEK! We also appeal that acclaimed brands such as Apple (iPhone), Nokia and HTC would follow the international Supplier Code of Conduct and demand WINTEK to refrain from exploitation!

Case 1: Unexpectedly laying off more than 600 factory workers in Taiwan

Since November 2008, WINTEK had cut salaries and stopped offering benefits, and resorted to forcing unpaid leaves on employees. Within two weeks, more than 600 employees were laid off unexpectedly; the number can rise to near 1000 if contract and migrant workers are to be counted. WINTEK did not file a report to the government or embark on a negotiation process with its employees 60 days beforehand. Pregnant women and veteran workers were among those who got laid-off; this was an ostensibly discriminative action. After protest, the would-be mothers went back to work, but the others are still fighting their jobs back.

The company claimed that this measure was taken because the orders dropped during November 2008, and that it was experiencing a bad loss. However, according to the financial papers, WINTEK still has a surplus of four billion TWD. (approx. $118 million USD) Taiwanese press also reported that WINTEK had received urgent orders, thus needed to hire a good number of new workers. This has proved the company failed to do what it could to prevent mass lay-offs.

For those who appeared lucky to keep their jobs, their pay was cut, (no awards and no subsidies for early shifts) their overtime became unpaid, and the night shifts were asked to work longer hours. The workers would have to work nonstop in order to make enough to survive. Moreover, the company has filed a lawsuit of defamation against, Wei-li Chu, Secretary General of National Federation of Independent Trade Unions, who has been assisting the unemployed workers..

Case 2：7,000 workers went on strike for pay cuts and unpaid overtime labour

Masstop Liquid Crystal Display in Donguan, a subsidiary of WINTEK, saw more than 7,000 broke in outrage when the workers went on strike on April 16th.

The strike was the result of third-rate food offered in the factories, and that the overtime pay and subsidies were held back. According to Chinese labour laws, those who work overtime should be paid twice of their normal wages; which means if they get less than that, the company is breaching the laws. However, Masstop demanded in February the workers to sign an agreement indicating their acceptance of an overtime wage of only 1.5 times of the normal wage. Meanwhile, the company told the workforce that this agreement was approved by the labour administration, which later proved to be a lie.

Albeit the recession, the company’s manufacture lines were working around the clock, while overtime wages and subsidies were being deducted.

The company offered to pay twice the normal wage for overtime, and demanded the workers to get back to work. Because the issues with food and subsidies were left unresolved, 19 of them continued the strike and were eventually laid off.

WINTEK violations of the Apple Supplier Code of Conduct

1. WINTEK has violated the code concerning overtime wages: “workers must be compensated for overtime hours at the premium rate required by applicable laws and regulations.”

Underpaid overtime wages：WINTEK forced its Taiwanese employees to give up their overtime pay and holiday subsidies, opting for more days off instead. Masstop , WINTEK’s subsidiary in Dongguan, claimed on February 26th that the labour administration on Dongguan has approved that its 25% cut in holiday overtime wages. In fact, the administration has never approved such change.

2. WINTEK has violated the code concerning fair treatment to employees according to applicable laws and regulations.

Illegally laying off workers：Masstop , WINTEK’s subsidiary in Dongguan faced strike because of working condition issues. Though the company agreed to adhere to labour laws and pay overtime wages twice as much as the normal ones, the company made a conditional offer, stating that all workers should be back at work before three in the afternoon. 19 of the workers were laid off because they continued the strike. The fact is, the company agreed to pay the overtime wages only a few days later. According to Chinese labour laws, workers have the rights not to work before they get paid. The company breached the laws by laying them off.

3. WINTEK has violated the code concerning dormitory and dining: “Suppliers must provide workers with clean toilet facilities, access to potable water, and sanitary food.”

Food problems: Masstop , WINTEK’s subsidiary in Dongguan, has cut the expenses for daily meals from 8 RMB to 4.5 RMB. Some say the food is a far cry from satisfactory. This issue directly resulted to the strike, but the company has not solved it yet.
Petition:
1. Give back the jobs taken from the WINTEK employees in Taiwan, and withdraw the lawsuit of defamation.

2. Embark on a negotiation process with workers in Dongguan, and pay overtime wages according to applicable regulations. Any retaliation tactics must not be used against workers who participated in the strike.

3. Governments in China, Taiwan, India and Korea must examine the working condition at WINTEK, and bid them to improve the standards immediately. Otherwise, all subsidies or tax-cuts shall be suspended.

4. We appeal that acclaimed brands such as Apple (iPhone), Nokia and HTC would follow the international Supplier Code of Conduct and demand WINTEK to improve its labour conditions, refrain from exploitation and treat labour unions fairly. If WINTEK shall refuse to do so, the aforementioned brands shall reconsider their partnership with WINTEK, on the premise of basic international labour rights.

5. The brands shall demand WINTEK to allow external labour unions or organisations to conduct inspections of labour conditions in its factories across Dongguan, Taiwan and Soochow.