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October 14, 2011

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Workplace abuses come to light

GUCCI China fired several managers from their posts and promised a review of its practices on Tuesday in a response to allegations of employee abuse that have spawned public fury over rights of employees of foreign companies.

Five former employees from Gucci's Shenzhen-based flagship store posted an open letter online, accusing Gucci of subjecting them to "overtime work without payment and inhumane regulations."

Gucci announced the following day it would replace several of store managers.

One of Gucci's accusers called the statement a "crisis-management tactic."

Gucci's statement demonstrates that it does not doubt the claims made in the open letter, although sacking particular managers may be a way to shift responsibility that it should have shouldered itself, according to lawyer Yang Qianwu, who has followed the case.

The case has generated considerable public anger and Internet users are assailing the world-renowned brand.

"What is eclipsed by the glittery side of luxury is the blood and sweat of a cheap labor force," wrote an Internet user.

Employees of other foreign companies in China have stated that they too have been forced to deal with rigid regulations and improper workplace conduct. One employee, who did not identify his employer, said his company sets high monthly and weekly targets that require frequent overtime work.

"Otherwise, our salaries will be cut," said the employee, a man surnamed Huo.

Incidents like these demonstrate the tension between employees and foreign companies, said Wang Hongli, deputy director of the Shenzhen-based Labor Union Rights and Interests Protection Department.

Wang said it is not uncommon for foreign firms to refuse to set up labor unions in China.

Analysts also blame the government's lax supervision over foreign companies, saying they are often reluctant to enforce regulations because they do not want to discourage foreign investment.

A 2011 survey showed that the appeal of working for foreign companies has decreased in comparison to that of state-owned enterprises.







 

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