Finger-pointing in China

This time, Disney is under the gun. The advocacy group China Labor Watch today cited the Mouse House as among the companies using toy manufacturers that operate like sweat shops. The working conditions "remain devastatingly brutal, with long hours, unsafe workplaces and restricted freedom of association, and in blatant violation of Chinese and international labor law,” according to the report, citing its survey of eight Guangdong factories. Guangdong's average manufacturing wage was $2,374 last year, so it's obviously a place where companies can get stuff made on the cheap. But as with Mattel, the question for Disney is whether cost-cutting supplants everything else. The company says it's committed to fair and just labor standards and investigates any alleged infringements. And if you read the China Labor Watch report (it's here), you’ll notice that it’s shy on any actual connection between the poor working conditions and the push for low-cost goods. Everybody just assumes there is a connection. (Bloomberg)