Taiwan: Migrant workers reportedly pay up to USD6150 to secure low-wage jobs producing goods for multinationals; incl. comments from L'Oreal, Walmart & others
Summary
Date Reported: 14 Feb 2023
Location: Taiwan
Companies
Visteon - Buyer , Chin Poon Industrial - Supplier , Continental AG - Buyer , General Motors - Buyer , Opel (part of Groupe PSA) - Buyer , HELLA GmbH & Co. KGaA - Buyer , Magna - Buyer , Bosch - Buyer , Amaury Sport Organisation - Other Value Chain Entity , Unipublic (part of Amaury Sport Organisation) - Other Value Chain EntityAffected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Thailand , Manufacturing: General , Gender not reported , Unknown migration status ) , Migrant & immigrant workers: ( Number unknown - Philippines , Manufacturing: General , Gender not reported , Unknown migration status ) , Migrant & immigrant workers: ( Number unknown - Vietnam , Manufacturing: General , Women , Unknown migration status )Issues
Intimidation , Access to Non-Judicial Remedy , Recruitment Fees , Wage TheftResponse
Response sought: Yes, by Journalist
External link to response: (Find out more)
Action taken: Bosch, Continental and Hella committed to addressing the problems while Magna and Visteon reportedly did not. CPI has reportedly started to reimburse migrant workers for paying fees, with the final amount of what CPI promised to reimburse due in March 2023, and stated that no future recruits would pay fees. In a later Diplomat article, Bosch and Opel said that migrant workers were reimbursed in full, contrary to what CPI itself – and every interviewee – told The Diplomat. Hella said that “recruitment fees for which there is written evidence … were reimbursed,” In later reporting, Amaury Group refused to say if it has concerns about forced labour risks regarding sponsors or teams. The reporting also says workers reimbursed over $3m in 2023 following the publication of the original findings.
Source type: News outlet
Summary
Date Reported: 14 Feb 2023
Location: Taiwan
Companies
Continental AG - Buyer , DuPont - Former buyer , DSM - Former buyer , Niagara Bottling LLC - Buyer , Shinkong Synthetic Fibers Corporation - Supplier , Walmart - Buyer , Amaury Sport Organisation , Unipublic (part of Amaury Sport Organisation)Affected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Vietnam , Plastics , Women , Documented migrants )Issues
Recruitment Fees , Intimidation , Retention of identity documents , Restricted mobility , Forced Labour & Modern Slavery , Debt Bondage , Wage TheftResponse
Response sought: Yes, by Journalist
External link to response: (Find out more)
Action taken: SSFC has committed to reimburse migrant workers equivalent to the legal recruitment fee levels in home countries, expected by end of 2023. Continental, DSM, Walmart and Niagara Bottling have said they are investigating the allegations. A later article released in The Diplomat in August 2023 reported workers had been reimbursed but not for the full amount ('around 60% of costs'), going against the zero-recruitment fee policies of some buyers. In later reporting, Amaury Group refused to say if it has concerns about forced labour risks regarding sponsors or teams. The reporting also says workers reimbursed over $3m in 2023 following the publication of the original findings.
Source type: News outlet
Summary
Date Reported: 14 Feb 2023
Location: Taiwan
Companies
Hwa Hsia Glass - Supplier , Veritiv - Buyer , L'Oreal - Former buyerAffected
Total individuals affected: Number unknown
Migrant & immigrant workers: ( Number unknown - Vietnam , Manufacturing: General , Women , Unknown migration status )Issues
Intimidation , Recruitment Fees , Wage Theft , Retention of identity documents , Restricted mobilityResponse
Response sought: Yes, by Journalist
External link to response: (Find out more)
Action taken: HHG denied many of the allegations. L'Oreal cut ties with the supplier and no longer sources products there, reportedly. Veritiv reportedly would not disclose whether they had audited Taiwanese suppliers.
Source type: News outlet
"Migrant workers squeezed in Taiwan," 14 Feb 2023
For decades, it has been publicly known that migrants working in Taiwan have risked — or endured — forced labour. But public attention to specific Western companies profiting from the exploitation at certain Taiwanese suppliers is rare...
Bosch, Continental, Hella, Magna and Visteon are major suppliers to the global automotive industry and buy directly from the car electronics manufacturer Chin Poon Industrial (CPI), where workers told me of exorbitant fees, punitive fines and more. After a few months of dragging its heels, Bosch committed to addressing the problems. Continental and Hella also promised to approach their supplier. Magna, one of Canada’s biggest companies, and Visteon did not...
Throughout 2022, Vietnamese employees of the huge plastics maker Shinkong Synthetic Fibers Corporation (SSFC) told me about recruitment fees up to €6350, fines, deductions, retention of ID papers, tight curfews and other forced labour risks...
Vietnamese workers shared detailed feedback to me about paying recruiters exceedingly high fees for jobs, having passports confiscated for years, unpaid overtime, fines, threats and more… HHG told me that passports had been returned to workers, denied that overtime is unpaid, said ‘fines are minimal, meant to ensure they follow company policy’ and that ‘ethical recruitment is our policy...’...
Walmart, Niagara, Bosch, Continental, Hella, DSM, Magna, Visteon and Veritiv wouldn’t disclose if they had ever audited their Taiwanese suppliers, despite having sourced from them for up to ten years. Since my mid-2022 reporting, a number of audits have been scheduled.