Mr. Victor Lo Chung Wing,
Chairman & CEO
Gold Peak Industries (Holdings) Limited
From December 8 to 10, 2009, one thousand workers from Power Pack, your company in Huizhou, took strike action.
On December 9, frustration at the lack of response from management led to an escalation and hundreds of angry workers first blocked the gate of the factory, and then blocked the main road in front of the factory. Local police were called in to restore order, and the striking workers were forced to return to the factory, although the strike continued until the next day.
The grievances of the workers centre on continuously low wages and the cutting of benefits over the past years, long before the recent economic downturn, and despite the fact that your company has been making large profits from the manufacture of batteries for a long time. According to workers, “we have been working here for many years, but still only earn 33 Yuan per day, and food and lodging are charged.” They also complained that in previous years, food and lodging are provided, along with year-end awards, travel and other benefits.
Over the past years, all these benefits have been cut. The strike demonstrates your employees’ anger and the lack of response to their complaints from Power Pack’s management. They believe their loyalty to your company deserves recognition. It has been reported that under pressure from the workers, management has agreed to increase the daily wage by one Yuan. Although they have gone back to work, the prevailing mood among your workers is that this offer is far too low.
As the chairperson of a listed company, you bear the social responsibility to both your employees and the public to facilitate proper negotiations with the workers on an equal basis in line with Chinese labour laws.
Many of your employees have also complained that the Power Pack management adopt a high-handed and rude attitude towards employees. According to workers, an employee at the plant gate was dragged along by the security, causing injury to his arms and legs during the strike. Yet your company, when interviewed by the media, denied that the incident happened at all. Another employee was injured during a scuffle between workers and police and had to go to hospital.
In light of these events we demand that Gold Peak Industrial Holding Ltd:
Issue a public statement explaining its position on the incident;
Immediately initiate negotiation with all employees or their representatives in good faith to resolve the disputes over wages and benefits.
Review Power Pack’s policy of paying workers just 33 Yuan per day and issue guarantees on benefits.
Launch an open, transparent inquiry as to why your security guards injured one of the workers; pending the result of this investigation, disciplinary action should be taken against the perpetrators of violence and an apology issued to the worker;
Meet your moral responsibility to cover the medical costs of hospitalisation of the injured worker which is a direct result of management practices at your factory in Huizhou.
We demand that your company response to this letter within a week.
Globalization Monitor Ltd.
Asia Monitor Resource Centre
Justice and Peace Commission of the Hong Kong Catholic Diocese