Leisure’s workers too happy to find anything wrong at Chinese factory

MaltaToday saw conditions at Leisure Clothing first hand after paying a surprise visit to the factory over reports of an alleged protest by workers.

But the company's public relations officer explained that the “protest” was an impromptu celebration by workers at the Chinese-owned firm welcoming their managing director, Bin Han, after being released from custody on bail on charges which include human trafficking for labour exploitation and failing to pay wages.

Skeptical at this explanation, we chanced our arm and asked if we could have a look around the factory. A quick telephone consultation with senior management came back in the affirmative. “We have nothing to hide,” was the reply.

One Maltese shop steward showed us around the factory floor. “Welcome to our sweatshop,” she said, with a wry laugh. The slavery accusation is no laughing matter in China, however. She claimed that this week a government delegation was sent from China to Malta to investigate closing the company.

The company's PRO said he was saddened by the way the media covered the story, which he claims is a complete fabrication. “Journalists should a have a conscience... the media has done a great deal of harm to us locally and internationally, even banks are refusing to serve us now.”

“Don’t our jobs, our families count?” asked one Maltese worker. “How can you spread lies and then sleep at night?”

The factory has been operating in Malta for the past 28 years and boasts an annual turnover of €5 million, employing 204 workers, according to company sources.

Sources at the factory attribute the current troubles to the recent employment of Vietnamese workers, who clashed with their Chinese colleagues and superiors. Some hinted that the Vietnamese may have come to Malta solely to gain access to the EU.

In some unsupervised questions to the few English-speaking workers, surprisingly not one had a bad word to say about their conditions. “The boss is good, the factory is good and the country is lovely,” said one Chinese worker in very broken English. “We can go and smoke and have a coffee whenever we want.”

It would be foolish to exclude the possibility that workers may have been briefed to toe the company line if approached by the media, but the relaxed body language, the earnest tones and the generally pleasant atmosphere would seem to indicate otherwise.

The public relations officer claims that the PN wanted to make a sensational story because Leisure Clothing is a Chinese government-owned company and served to tarnish the association of the Labour government with the country. “I guarantee that if the PN had still been in government this would not have happened,” he said.

“In 2014, you would have to be crazy to try and run a factory with human trafficking in Malta. All the directors are employees. Bin Han has been blamed in China – they don’t know he is facing nine years in prison here.”

The company, owned by the Chinese municipality of Chongqing, was introduced to Malta in the last years of the Labour administration in the 1980s but operated for 25 years under a Nationalist administration.

The factory was initially part-owned by the MDC (today Malta Enterprise) on a 50/50 split with the Chinese government, but subsequently the Chinese bought out the Maltese stake, on the condition that it have a minimum 4 to 1 Chinese-Maltese employee ratio.

Asked about the allegations of withheld pay, the PRO said the workers “are on better conditions” than he is, because they are entitled to a life insurance policy and health insurance. “If they need treatment they go straight to a private hospital.”

The accounts given by workers indicate that some of the company HR practices may not be in line with EU regulations, however. Accommodation and food costs are reportedly deducted directly from the employees’ pay-cheques, a practice prohibited by law. Likewise leave entitlement, as explained to us, may not conform with local employment law as it appears employees are “entitled to an entire month’s holiday every two years”.

These irregularities are being dealt with, according to the public relations officer, and the company is engaging a local HR professional to rectify any breaches. The negative publicity will likely ensure this happens soon.

Asked about the allegations of withholding workers’ passports, he explains that they are taken to apply for their residence permit and then returned. Pressed on this, he maintained that the passports are always returned.

One Maltese worker with 10 years’ experience in the textile industry says the conditions he used to work under before do not begin to compare with Leisure Clothing. He cites less pressure, flexible hours and a far less stressful working environment. “Where I used to work before, we were like robots, here this is great.

“I dare you to go to any factory in Malta and see how the workers are treated there,” another employee said, describing another Maltese textile factory she had worked for as “a nightmare”.

“Here you have a quota which you have to reach, but you are free to work as much as you want”.

Whichever way you skin it, this is a far cry from slave labour and human trafficking. Even when not answering questions the Maltese and Chinese workers appeared, surprisingly, to be in genuine good spirits.

Several workers got up from their posts to see what was going on and appeared glad to have an opportunity to have their side of the story heard. This was not forced or coerced – there is an undeniably friendly, familiar atmosphere on the shopfloor. “We are one big family. I leave home and come to another home, here,” one worker said.

One Chinese employee, nicknamed “Lily” by the Maltese (on account of her unpronounceable Chinese name), told MaltaToday she was here on a three-year contract and was “very happy here”, adding that she recently returned from a 42-day holiday in China. Asked if she will be renewing her contract when this expires, she said she probably wouldn’t, since she will be getting married soon.

“Fair enough, don’t believe us, but you have seen with your own eyes the freedom we have here. We hope you get the word out that we are happy here,” said one Maltese employee exasperated at our cynicism.

The Chinese workers spoken to privately appeared pleased with their conditions of work. One worker, asked directly whether she was receiving all her pay, answered: “Of course! Whenever I need money I get it.”

It wasn’t possible to tell if this was an indication that conditions are not entirely in compliance with local employment law, or simply due to unfamiliarity with the intricacies of the English language.

Few of the workers encountered there spoke English with any fluency.

Some showed off their mobile phones, others designer clothes. One worker showed off a – all things being said, rather vulgar – gold watch which she claims she bought for some €300 while on a trip abroad.

She says she has four.

They informed us that every month the company’s clients send technical auditors to inspect the production line. These clients included major international fashion brands, but several are considering withdrawing after the slavery allegations.

One Chinese senior management official summed up the ominous situation that Leisure Clothing seemed to face due to the human trafficking charges against Bin Han. “To build this factory we needed 28 years, but it looks like it will only take 28 days to destroy it…”