Report release: Chain of Consequences–How Chinese workers pay for supply chain de-risking

On 26 June 2024, SOMO (Centre for Research on Multinational Corporations) and China Labour Bulletin published a report about Chinese workers’ struggles amid global supply chain shifts and the need for responsible business practices. As major brands relocate production from China due to economic and geopolitical factors, Chinese workers in the apparel and electronics sectors are experiencing significant hardships, including payment struggles and job losses. The relocation of factories has led to reduced orders, wage delays, and inadequate compensation for the affected workers. The report emphasises the need for global brands to consider the human rights impact of their sourcing decisions and prioritise the well-being of low-wage workers in their supply chains.

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Dongguan factory Nordd Leather closes, workers owed social insurance and wages

As Nordd Leather factory closed down suddenly, workers gathered to demand their overdue wages and social insurance fees. Unions at various levels failed to intervene, even when workers had made complaints months ago. Ultimately, the landlord and the Tax Bureau took care of the payment. Leather brands’ cost-cutting strategies possibly suppressed workers’ conditions. Recent Milan court rulings highlight that leather brands should monitor suppliers’ labour conditions; otherwise, they may face legal penalties.

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Automobile equipment company Shenzhen Qiao Feng Technology halts relocation after strike with suspected retaliatory dismissals

A strike broke out at Qiao Feng Technology Industrial Co., Ltd. in Shenzhen, Guangdong on 17 March, 2024. Workers gathered in front of the factory gates to protest relocation, demanding legal compensation and unpaid social insurance payments. Videos and pictures on Douyin showed workers blocking a large truck. Workers sat in front of the factory and the protest extended into the next day. On the afternoon of 18 March, some workers posted on Douyin reporting that due to the government’s intervention, the factory temporarily halted the relocation. The factory management stated that they would move the machinery and equipment back, allowing workers to return to their normal work.

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