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McDonald's chastises sweatshop toy-maker

Martin Wong

McDonald's has warned a mainland contractor that produces the fast-food chain's toys to clean up its act after the Sunday Morning Post uncovered labour abuses at factory.

And McDonald's bosses say they are investigating eight other factories that may be in breach of either mainland employment laws or the company's code of practice.

The company has outlined a 'corrective action plan' with its contract toy-making factories in Shenzhen after a Post report last week revealed that workers were being paid well below the minimum wage and were required to work 17 hours a day, seven days a week.

After the report revealed that labour abuses were taking place at Chit Tat - a plant in Shenzhen that makes giveaway toys - McDonald's conducted face-to-face interviews with workers and bosses at the factory and confirmed there were 'some serious issues' that needed fixing.

The fast-food chain's corporate spokesman, Walt Riker, said a McDonald's team from the Oak Brook, Illinois, international headquarters had met its external monitors and officials from Simon Marketing - the sourcing agency that contracts business with this mainland factory - to fully review the findings.

A letter was also received by the company from Chit Tat's owner who pledged to remedy the problems.

'From this comprehensive, no-holds-barred session we quickly began outlining a corrective action plan,' Mr Riker said.

He said it was not appropriate to disclose the plan but it made it clear to the owner and management of Chit Tat what they needed to remedy in order to continue doing business with the burger giant.

'The burden is now on them to satisfy our explicit expectations,' he said.

Mr Riker said that in the wake of a report by the Hong Kong Christian Industrial Committee, McDonald's also conducted investigations into 10 other contract toy-making plants. The corporation found 'issues' it was concerned about at eight of the plants.

Corrective action plans are being formulated to address these issues, he said.

Mr Riker said McDonald's approach to the challenges facing it was to drive for improvement and to continually raise the bar on conditions and compliance.

He said its remedial approach was designed to protect the workers and correct the problems.

'McDonald's does not want workers to be thrown out on the street, nor will we turn a blind eye to issues at Chit Tat or anywhere else,' Mr Riker said.

Three months ago, the burger giant terminated its contract with another toy-making firm in Shenzhen - City Toys - after a Sunday Morning Post report uncovered extensive labour abuse, including underpaid and underage workers, and long working hours.

The burger chain cut its ties with City Toys on the grounds of bad working practice and incomplete employee records. The move resulted in thousands of workers losing their jobs.

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