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Article

1 Aug 2007

Author:
Mei Fong, Wall Street Journal

Beijing Olympic Officials Penalize 4 Firms - Overtime Violations, Child Labor Found; Licenses Are Curbed

The Beijing Olympic Organizing Committee said it was taking corrective measures after a monthlong investigation had found four factories making Olympic merchandise guilty of labor violations...[including] the use of child labor at one factory, Le Kit Stationery... The committee's investigation appears to support the findings...by the Playfair Group... Playfair has said it hopes...clients of these factories [will increase] supervision and [demand] compliance. The labor-rights group doesn't want clients to terminate contracts outright, because that would only result in job losses for factory workers... The organizing committee said the three other manufacturers -- Mainland Headwear Holdings Ltd., Yue Wing Cheong...and Eagle Leather Products -- had made employees work excessively long hours... Mainland Headwear co-founder Pauline Ngan said the problem was due to misunderstandings over overtime standards.... Both Mainland Headwear...and...Yue Wing Cheong...are suppliers for...Wal-Mart...which last week issued warnings to them after finding them guilty of overworking staff. Another Mainland Headwear client, the U.S. National Basketball Association [NBA], said it conducted an unannounced audit of the company through their licensee Drew Pearson/Concept One [part of Mainland Headwear] and identified several areas that need correction...