Anti-Globalist Opportunity

Expect loud cries of forced labor, sweatshops and corporate abuse from left-wing nut cases on this one.

Wal-Mart has warned two of its Chinese suppliers that purchasing contracts could be canceled in response to alleged labor violations in factories, the Wall Street Journal reported. Hong Kong-listed Mainland Headwear Holdings and Shenzhen-based Yue Wing Cheong were two of four companies mentioned in a report published in June by Playfair, an international alliance of trade unions and nongovernmental organizations. The Playfair report said that manufacturers of official Olympic merchandise were underpaying and overworking employees as well as using child labor. It prompted the Beijing Olympic Organizing Committee to launch an investigation, the results of which are due to be released in coming days. A Wal-Mart spokesman said that an audit of Yue Wing Cheong had delivered evidence of overworking but no "hard evidence" of underpayment.

Wal-Mart has single-handedly done more for workers in China than any other manufacturer, individual or country. It performs regular audits on its suppliers and they take those very seriously. Those failing to pay social insurance, minimum wage or violating working conditions risk losing their contracts with Wal-Mart.

In most cases, Chinese would rather work for a foreign manufacturer because the working conditions are much better than Chinese factories. The lighting, air quality, emergency systems and pay schedules are often better and most western companies are diligent in paying social insurance (medical, housing etc.)