Suppliers Escaped

Worker EmpowermentHong Kong Confederation of Trade Unions

Disney Abandoned Mizutani Toy Makers Viciously

March 2016

Content

Executive Summary ·········································3

Section I: Overview··········································41. The company, the buyer and the brand 1.1 Mizutani (Shenzhen) Toy Factory Co. Ltd. 1.2 Oriental Land Co. Ltd. and the Walt Disney 1.3 Oriental Land Co. Ltd and its Vendors Code of Conduct 1.4 Labor Standards of The Walt Disney2. The timeline of the collective labor dispute3. Media reports on the collective labor dispute

Section II: The collective labor dispute··················101. The dismissal and the appeal from workers2. Responses from Mizutani3. Responses from Disney

Section III: Key findings and evidences·················161. Violations on laws in mainland China

1.1 Consistently mistreated workers1.2 Unpaid Social Insurance and Housing Fund1.3 No consultation before relocation and Wrongful Dismissal1.4 Disrespecting workers' rights of collective bargaining1.5 Underpaid Dismissal Compensation

2. Disney's violation on code of conduct

Section IV: Suggestion from WE and HKCTU ········35

Appendix 1: Detailed account of unpaid compensations of 196 workers

Executive SummaryThis is an independent case report documenting a series of violations of labor rights in a manufacturer of Disney-branded products in mainland China, namely Mizutani (Shenzhen) Toy Factory Co. Ltd. This case demonstrates how Walt Disney has not been successful in fulfilling its corporate citizenship goals for managing a responsible supply chain. It is important for the public especially the customers to pay attention to the workers’ sufferings behind the Disney-branded products.

The primarily evidence collection and analysis of this report has been prepared by Worker Empowerment (WE) since the second collective dispute broke out in June 2015 and completed jointly with Hong Kong Confederation of Trade Unions (HKCTU). All the information on the labor disputes of Mizutani were compiled from first hand sources from Mizutani workers, official and public record on the company profile, laws and regulations as well as views from experts.

Major Findings1. By underpaying social insurance contribution, severance compensation and unlawfully

dismissing workers, Mizutani has violated China’s Labour Contract Law and Social Insurance Law.

2. The livelihood of 196 Mizutani workers has been severely affected by the sudden factory closure. Most of these middle-aged workers have served in Mizutani between 10 and 20 years and seeking new jobs would be a big challenge for them. Missing social insurance contribution would leave them no pension and this would create serious trouble when they retire.

3. Walt Disney Co.’s International Labour Standards Programme requires all its suppliers to followlocal laws, they are specifically required not to threaten workers and respect freedom of association (including rights to organize and collective bargaining). However, it has ignored Mizutani’s grave violations of the above-mentioned labour rights. Those include:a、 Violations of Chinese labour legislations: Mizutani is moving to the Philippines and is

financially sound. Yet, it deliberately violates Labour Contract Law and Social Insurance law and owes workers some 9 million Yuan.

b、 Rejection of collective negotiation: since the announcement of the closure of the factory, workers had requested to negotiate with Mizutani but it refused.

c、 Denial of workers’ rights to organize: out of desperate, workers launched a strike and roadblockage. They were violently taken away by riot police and 23 workers were detained.

d、 Refusal of paying severance compensation and threatening workers to “voluntarily resign”: when it announced to close its Shenzhen plant in June 2015, it forced workers to sign “voluntary resignation agreements”

4. Walt Disney Co. has been informed of these labour rights violations and the dispute at Mizutani through formal complaint and media exposure, yet it has only reacted to this dispute through emails, phone calls and a non-constructive meeting. Until now, no formal investigation has beenseen and no solution has been provided to these violations.

Key recommendations:1. Disney must investigate the case and fulfil its commitment to workers’ rights across the supply

chain and help the Mizutani workers reclaim their missing compensation in the wake of the company’s abrupt factory closure in June 2015.

2. Mizutani unilaterally terminated workers’ labour contracts. By law, it should pay double severance compensation and Disney should pay the missing part of the compensation, which should be calculated by wages payable.

3. Mizutani must pay the missing premiums of workers’ social insurance and housing provident fund since their dates of commencement.

3

Section IOverview

1. The Company, the buyer and the brand

1.1 Mizutani (Shenzhen) Toy Factory Co. Ltd.

Mizutani (Shenzhen) Toy Factory Co. Ltd. (Co. Registration no: 440307503399760) is originally a Hong Kong based Japanese enterprise. Its major business is to supply toys for Tokyo Disneyland. It set up a factory in Longgang, Shenzhen in 1997. The factory was awarded ISO9001 quality management certificate. The total floor area was 30000m2. At the peak of its business, 1600 workerswere employed. In 2005, a branch factory was set up in nearby area, later renamed as Lebao (Shenzhen) Toy Factory Co. Ltd. According the registration information of the company in Shenzhen, the president is Mr. Yasuhiko Mizutani and the sole shareholder is Tani Company Limited1.

Mizutani has drastically reduced its workforce in China over the last two years and relocated primary production from Shenzhen to the Clark Free Economic Zone in the Philippines.

The registration information of factory from the Philippine Government webpage shows that Mr. Yasuhiko Mizutani is the president as he was in China.

Information of the Filipino factory set up by Mizutani

Name of the factory: TANIKA (PHILIPPINES) CORPORATIONProject description: Manufacturing of plush stuffed toys and souvenirs for exportSub-Classification: Other ManufacturingAddress: Bldg 40 Philexcel Business Park, M. Roxas Highway, Clark Freeport Zone, PhilippinesTel.: +639173429452President: Yasuhiko Mizutani

As a manufacturer of Disneyland branded products for Tokyo Disneyland, Mizutani (Shenzhen) ToyFactory Co. Ltd. has to fulfill both the code of conducts from Walt Disney and OLC Group that apply on their supply chain. In other words, both the brand and the buyer of Mizutani have corporate responsibilities to implement and to monitoring the performance of Mizutani in compliance of their code of conducts.

1.2 Oriental Land Co. Ltd. and the Walt Disney

Tokyo Disneyland is one of the two theme parks of Tokyo Disney Resort which is operated by 'The Oriental Land Company, Limited' (OLC) with a license from The Walt Disney Company.2 OLC has owned the Tokyo Disney Resort in Urayasu and runs Disney brand facilities under license from

1 Enterprise Credit Information Center of Shenzhen City. The business registration information of Mizutani (Shenzhen) Toy Factory Co. Ltd., retrieved from Shenzhen Credit Information website http://www.szcredit.org.cn/web/gspt/newGSPTDetail.aspx?ID=b1c9f9e47f1f42af89d809b19132ca8a&keyword=t_busi_mgj_FTR&tabpro=1112 Oriental Land Co. Ltd. Theme Park Segment. Retrieved from: http://www.olc.co.jp/en/company/group/themepark.html

4

Disney Enterprises, Inc since 1979. OLC pays Disney for royalties and licensee fee to Disney, including 10% of entrance fee and 5% food and souvenir as well as 10% of any corporate sponsorship agreement3. The Tokyo Disney Resort is headed by Toshio Kagami, who is the secretary general (CEO) of the OLC.

1.3 Oriental Land Co. Ltd and its Vendors Code of Conduct

As shown in the official website of OLC Group, it has Vendors Code of Conduct which, according to OLC, is aimed at fulfilling its social responsibility, together with its vendors, not only in terms of quality assurance but also in the manufacturing process of goods and services which form the transactions between OLC and its Vendors.4

According to OLC, it requires all Vendors to conduct their business ethically, to conduct their business in compliance with laws and regulations, social standards and the Code of Conduct and to ensure their subcontractors comply with laws and regulations, social standards and the Code of Conduct.

OLC promises to commit to complying with the same principles described in the Code of Conduct and will regularly monitor Vendor compliance with the Code of Conduct. If any failure of compliance is found as a result, OLC will work with the Vendor towards improving their compliance. The scope of the Code of Conduct includes

1. Compliance with the Law

2. Safety of Merchandise

3. Worker Safety and Respect for Human Rights

4. Fair Trade

5. Information Management

6. Anti-Social Groups

7. Environmental Issues

1.4 Labor Standards of The Walt Disney and its applications on Licensees and Manufacturer

As mentioned above, Tokyo Disneyland is owned and operated by the Oriental Land Company witha license from The Walt Disney Company.

According to Disney, “We comply with employment laws in all markets where we operate”. Especially, Disney mentions that it expects these same commitments to be shared by all manufacturers of Disney merchandise. At a minimum, it requires that all manufacturers of Disney merchandise meet the following standards: no child labor, involuntary labor, no coercion and harassment, nondiscrimination, rights to association and health and safety. Disney’s International

3 Legislative Council Secretariat (2009). Financial arrangements relating to Tokyo Disneyland, Disneyland Paris and Hong Kong Disneyland. Retrieved from: http://www.legco.gov.hk/yr08-09/english/sec/library/0809fs30-e.pdf4 Oriental Land Co., Ltd . OLC Group Vendors Code of Conduct. Retrieved from: http://www.olc.co.jp/en/csr/management/actionagenda.html

5

Labor Standards (ILS) requirements are applied its licensees buying agents and production facilitiesinvolved in the manufacture of Disney-branded products.5

The commitment of Disney on responsible supply is highlighted in its website on corporate citizenship: 'Ethical sourcing of Disney-branded products is an important focus of our (Disney) overall corporate citizenship efforts6'. Disney’s citizenship goals for managing a responsible supply chain are7: • Increase understanding of our extended supply chain in order to promote safe, inclusive, and respectful workplaces wherever Disney-branded products are produced • Support programs and initiatives that address core labor issues within our supply chain • Promote leading policies on product safety and chemicals management in our supply chain • Minimize the environmental footprint of our products.

In the Code of Conduct for Manufacturers8, Disney promise to commit to:• a standard of excellence in every aspect of our business and in every corner of the world;• ethical and responsible conduct in all of our operations;• respect for the rights of all individuals; and• respect for the environment.

Disney claims the requirements are reinforced through regular discussions with licensees and vendors, and benchmark against them through extensive consultations with external stakeholders including NGOs, investors, governments, and multi-lateral institutions. The ILS programme is a first step to achieve fostering safe, inclusive and respectful workplaces wherever Disney-branded products are produced. The further action is detailed corrective action plans (CAPs), requiring and implementing short- and longterm factory improvement plans, and engaging periodically through outside consultants and experts.9

In sum, Walt Disney has responsibility to ensure Mizutani (Shenzhen) Toy Factory Co. Ltd to fulfillits international labor standards.

5 The Walt Disney Company (2012). Standards of Business Conduct. Chapter 6, P. 38. Retrieved from: https://ditm-twdc-us.storage.googleapis.com/2015/10/Standards-of-Business-Conduct.pdf6 The Walt Disney Company. Responsible supply chain. Retrieved from: https://thewaltdisneycompany.com/about/#corporate-citizenship7 The Walt Disney Company (2015). Disney Citizenship 2014 Performance Summary. P.82 Retrieved from: https://ditm-twdc-us.storage.googleapis.com/FY14-Performance-Summary.pdf8 The Walt Disney Company (2007). Code of Conduct for Manufacturers. Retrieved from: https://ditm-twdc-us.storage.googleapis.com/2015/11/Code_of_Conduct_English.pdf9 Ibid 8

6

2. A brief account of the collective labor disputes

Mid 2014, Mizutani began relocating the factory to the Philippines, moving some machinery toits branch in the Clark Free Economic Zone in the Philippines.

Since October 2014, the monthly wages were less than 1808 yuan after deduction of social insurance and other fees to the factory, leaving the workers with a net income that was below the legal minimum wage in Shenzhen 2014 (1808 yuan per month).

From 16- 31 January 2015, workers launched a strike. The negotiations between the workers and the company subsequently failed. The company then demanded that the workers return to their positions or they would be fired without compensation for absenteeism. Workers finally returned to their posts on the 31st of Jan 2015.

On 1 February 2015, the workers' representatives received a notice by fax, informing that their compensation for each year’s services would be 1,000 yuan. This amount is far below the legally prescribed compensation under China Labor Contract Law (see Section III), and additionally this amount did not represent any back pay owed. As a result of this decision, protests at the factory began.

On 2 February 2015, police forced workers to return to the factory and detained 15 people on spot. Later the police detained another 8 people in the factory. A total of 23 workers were arrested.

Mizutani responded by then adjusting the yearly contribution offered to as low as 300 yuan peryear of service, later added up to 500 yuan compensation per year of services but demanded workers to resign and a clear-cut termination of their labor relations. More than 200 workers chose to accept the offer in order to let the detained workers to be free. Other workers agreed to resume working the next day.

In April 2015, the resigned workers wrote a joint-petition to Disney to complain about forced dismissal. The Walt Disney International Labor Standards sent a facilitator to come up with an agreement with the company. Each resigned worker were given an extra 500 yuan per year of service as compensation, while the 4 detained worker were compensated according to their monthly salary in average.

At 5pm, 18 June, the company announced its closure, quoting business difficulties. It demanded workers to sign an agreement to terminate their labor relations by 12 noon the next day. The agreement claimed it was achieved on the basis of “unanimity through consultation”. Workers were also asked to move out from their dormitory before 23 June, otherwise they would be fined by the company.

On 19 June 2015, workers' representatives collected and compiled the workers' demands and labor organization called for Disney's intervention again. Their protest got no response. All workers signed the agreement to terminate their labor relations. They identified some problemsafter receiving the severance payment.

On 17 July 2015, various labor organizations in Hong Kong met with Disney and Mizutani. Mizutani claimed that it did not close the factory and not dismissed the workers as well. According to Mizutani, the factory let workers to choose whether staying in the factory.

7

In August 2015, workers discovered that the Shenzhen government approved the cancellation of registration of Mizutani (Shenzhen) Toy Factory Co. Ltd. on 7 July.

In 5 August 2015, Disney replied that it had found workers' demands groundless after its investigation. 7 August, Mizutani workers wrote to Disney, demanding it to compensate them on behalf of Mizutani, as follows:

1. Mizutani unilaterally terminated workers’ labor contracts. Legally speaking, it should pay a double-severance compensation and Disney should pay for the missing part of the compensation;2. Compensation should be calculated by wages payable (currently, the one month’s wages compensation is calculated by the average wages payable of the past 12 months, between June 2014and May 2015), instead of the actual wages.3. The missing premiums of workers’ social security insurance since their dates of commencement.4. The missing contribution of workers’ housing provident fund since their dates of commencement.

On 10 September 2015, 3 worker representatives of Mizutani went to Hong Kong. They protested against Disney for delaying the compensation according to labor law.

On 10 October 2015, the Social Insurance Fund Management Bureau posted an Instruction on Mizutani (Shenzhen) Toy Factory Co. Ltd. Overdue Payment of Social Insurance on its website to urge Mizutani to pay for 2,352,525.54 yuan for overdue social insurance payments (1,948.484.60 yuan) and punishment (404,040.94)10。

On 24 October 2015, workers sent the application of suspending deregistration of Mizutani to Shenzhen Market Supervisory Authority.

On 4 November 2015, workers received phone call from Shenzhen Market Supervisory Authority, was told the deregistration of Mizutani is suspended.

3. Media report on the collective dispute

In English

South China Morning Post: Protest by mainland Chinese factory workers to put damper on Hong Kong Disneyland's 10-year milestone http://www.scmp.com/news/hong-kong/economy/article/1857418/protest-mainland-chinese-factory-workers-put-damper-hong-kong

South China Morning Post: Wishing upon a star? Chinese factory workers protest at Hong Kong Disneyland over owed wages

http://www.scmp.com/news/hong-kong/article/1857622/wishing-upon-star-chinese-factory-workers-protest-hong-kong

10 Shenzhen Social Insurance Fund Management Bureau (23 September 2015). An Instruction on Mizutani (Shenzhen) Toy Factory Co. Ltd. Overdue Payment of Social Insurance. Retrieved from: http://www.psxq.gov.cn:81/main/a/2015/i28/a35483_63722.shtml

8

Los Angeles Times: Chinese toy factory workers seek missing pension funds from employer and Disneyhttp://www.latimes.com/world/asia/la-fg-china-factory-protest-pension-disney-20151212-story.html

In Chinese only

Ming Pao: 紀念品廠工人迪士尼示威http://news.chilin.hk/hk/?job=body&sec=eJzb8mS3CwAHOgKY&page=1&path=Q29udGVudF9OZXdzLmNmbT9DaGFubmVsPWdiJlBhdGg9MzM2NTIwMjQ3MTEvZ2diMS5jZm0%3D&pic=big&date=20150913

Oriental Daily: 迪士尼 10周年遇示威贈興http://orientaldaily.on.cc/cnt/news/20150913/00176_053.html

Oriental Daily: 玩具生產商倒閉拖補償　工人踩港迪士尼抗議http://hk.on.cc/hk/bkn/cnt/news/20150912/bkn-20150912112545559-0912_00822_001.html

Apple Daily: 製東京迪士尼玩具廠房倒閉 深圳員工來港示威http://hk.apple.nextmedia.com/realtime/news/20150912/54197301

Ming Pao Canada: 紀念品廠拖賠償 員工今樂園示威http://www.mingpaocanada.com/van/htm/News/20150912/HK-ggb2_r.htm

Red Balloon: 迪士尼水谷廠工人低工資欠福利 工廠突擊解散 遷移至菲律賓https://redballoonsolidarity.wordpress.com/2015/09/11/%E8%BF%AA%E5%A3%AB%E5%B0%BC%E6%B0%B4%E8%B0%B7%E5%BB%A0%E5%B7%A5%E4%BA%BA%E4%BD%8E%E5%B7%A5%E8%B3%87%E6%AC%A0%E7%A6%8F%E5%88%A9-%E8%80%81%E9%97%86%E6%87%B6%E7%90%86%E7%BD%B7%E5%B7%A5%E6%90%AC%E5%BB%A0/

WKNews: 全球分工下被犧牲的水谷工廠工人http://wknews.org/node/876

InMedia HK: 米奇米妮背後的內幕──深圳工人來港抗爭記http://www.inmediahk.net/node/1037374

9

Section IIThe Collective Labor Disputes

1. The constructive dismissal and the appeal from workers

On 18 June 2015, Mr. Mizutani announced that the enterprise could not overcome its business difficulties and would be shut down, at 5pm. He requested the workers to start the resignation process at 6pm, by signing an “Agreement to terminate labor contracts”, which had been drafted by him. He also demanded the workers to move out from the dormitory by 22 June. He left immediately and was not seen anymore.

At 9am the next day (19 June), the workers passed a joint petition to Gu Liping of the enterprise's executive department. However, the workers heard nothing from the management by noon. Out of desperation, the workers signed the above-mentioned “Agreement to terminate labor contracts”. The agreement claimed that it had been achieved on the basis of “unanimity through consultation”.

However the workers expressed that this sudden announcement left them no choice to decide “staying” or “going”, let alone negotiation. The workers claimed they were dismissed illegally. They identified problems after receiving the severance payment, which remained unsolved till this report is released:

1. Mizutani under paid their economic compensation base on received wages, instead of average wages payable according to the law.2. Mizutani should have given double pay of the economic compensation because of the unilateral termination of labor contracts.3. Mizutani did not apply Pension Insurance and Housing Fund for the workers according to the agreement.

2. Response from Mizutani

On 27 August, 2015, Mizutani sent a written reply to workers through Disney, disagreed to the dismissal of its workers and the compensation for workers. His reply is as follow:

10

11

12

13

3. Response from Disney

Disney International Labor Standard office in Hong Kong has been contacted by various labor organizations for this dispute since early 2015. On 17 July, Disney arranged meeting with Worker Empowerment and HKCTU and Mizutani in Hong Kong. Mizutani claimed that it did not close the factory and not dismissing the workers as well. According to Mizutani, the factory let workers to choose whether staying at the factory.

In 5 August, Disney replied that it had found workers' demands groundless after its investigation. 7 August, Mizutani workers wrote to Disney, demanding it to compensate them on behalf of Mizutani.

In 11 September, while three worker representatives visited Disney International Labor Standard office in Hong Kong, Director Greg Rumney from Disney promised to pass workers' message to theInternational Labor Standard.

After then, Disney does not respond to workers anymore till this report is released.

14

Section IIIKey Findings and Evidence

1. Violation on laws in mainland China

1.1 Consistently mistreated workers: Deductions of salary and rest day

Among the 196 workers, it is found that at least 77 workers had been worked for Mizutani for more than ten years, including 23 man workers and 54 woman workers. 21 couples together worked in the factory that they lost jobs at same time. However, the factory has been violating many rules from Labor Law (see table 1) since its establishment in Shenzhen.

Table 1: Extract and translation of Labor Law in mainland China which was effective from 1995

Labor Law in mainland China (enacted in 1995)

Chapter 4 Working Hours, Rests, and Leaves

Article 36 The State shall practise a working hour system wherein laborers shall work for no more than eight hours a day and no more than 44 hours a week on the average.

Article 38 The employer shall guarantee that its laborers have at least one day off a week.

Article 44 The employer shall pay laborers more wage remunerations than those for normal work according to the following standards in any one of the following cases:

(1) Wage payments to laborers no less than 150 per cent of their wages if the laborers are asked to work longer hours; (2) Wage payments to laborers no less than 200 per cent of their wages if no rest can be arranged afterwards for the laborers asked to work on days of rest; (3) Wage payments to laborers no less than 300 per cent of their wages if the laborers are asked to work on legal holidays.

Chapter 5 WagesThe employer shall pay laborers wages no lower than local standards on minimum wages.

Article 50 Wages shall be paid to laborers themselves in the form of currency on a monthly basis. The wages payable to laborers shall not be deducted or delayed without reason.

Article 51 The employer shall pay wages to laborers in accordance with law when they have legal holidays, take leaves during periods of marriage or mourning, and participate in social activities in accordance with law.

15

1.1a Evidence: account no. 40: The couple workers, Wenxia and her husband

Wenxia comes from Changde, Hunan. She is now 43 years old. She entered the Mizutani factory twice. In total she worked there for 12 years. Her husband worked even longer. He started working there at 1998, the second year after the establishment of Mizutani factory. When the factory closed, he had been working there for 18 years.

No overtime payment for work on days of rest and no day off per week

In March 1999 when Wenxia entered Mizutani factory for the first time, she only got ￥11 per day. In contrast to the regulation by Labor Law Article 44 she didn’t get double paid at weekends. She only has one or two rest days per month. She worked overtime for at least 4 hours daily. Sometimes she had to work till 2 or 3am of the next day. In such a harsh working condition, she earned ￥500-600, and ￥750 at maximum.

33% salary deducted!

In 1999, the minimum wage level of outskirt of Shenzhen is ￥330/month, so the daily salary shouldbe at least ￥330÷21.75＝￥15.17 /day. If Wenxia worked 28 days per month, 12 hours per day, with 22 days as weekdays and 6 days as weekend, it means that Wenxia had ￥356.86/month deducted by Mizutani. It is equivalent to 33% of her actual salary!

Daily SalaryBasic Salary Weekday OT Weekend OT TotalActual ￥11 ￥11×28

=￥308(11÷8)×1.5×4×28=￥231 ￥539

Legal ￥15.17 ￥330 15.17÷8×1.5×4×22＝￥250.31

15.17÷8×2×6×10＝￥227.55

￥807.86

Wage Difference￥268.86

1.1b Evidence: account no. 75: Huang Yutan: I am generous to the company, but the companyis mean to me

Huang Yutan comes from Guangxi. She entered the Mizutani factory at the year 1997. Later she resigned and took some rest after being sick. In 2002, she came back and was promoted to be team leader at 2006, until the sudden closure of the factory at June 2015. Here is Huang’s testimony:

For so many years working in Mizutani factory, I mainly did the design work. After being promoted to be team leader, my salary increased and I had to be responsible for more works. In recent years, we got no overtime work and we could only get ordinary wage during weekends, instead of the double payment according to the law. Since we did not have much overtime work, we do not get much salary. As a team leader, I only got a bit more than ￥3000 per month.

Being trainer at Filipino branch

In June 2014, the factory appointed 12 of us to the Filipino factory to train workers there for 2 months. Most of us were team leaders from different departments. During that period of time, we got double salary and we got good accommodation. Everything was fine in the first month. But I was ill in the next month. I felt dizzy, cold and got diarrhea, so I could not go to work. I went to the local hospital and the doctor said that my health is fine.

Although a new factory was set up in the Philippines, I never thought that the Shenzhen factory willbe closed. During the return trip to China, I asked the Japanese co-worker whether the factory at Shenzhen will be closed. He said it is impossible because it will take several years for the Filipino factory to run smoothly.

16

Discrimination against sick employees

After returning from the Philippines, I still not fell well. I felt uncomfortably cold when the fan or air conditioner was switch on, and I cannot work continuously. I spent more than ten thousand dollars to seek medical aid, but my health still not improved.

Since I was week, I always needed my husband to bring me to the hospital. My husband was the cook of another factory. After he applied for several leaves to accompany me, his boss was unhappyand my husband resigned the work to take care of me. At that time his monthly salary was ￥3600. So we got much less income.

No double payment for work on public holidays

I took one-month’s leave for surgery at December 2014. At the same time, workers were very unhappy with factory’s illegal policy of not giving double payment during weekend works. So they went on strike. After the Chinese New Year holiday, we got more overtime work. It is probably the result of the strike.

1.2 Unpaid Social Insurance and Housing Fund:

Before 2008, some officers joined the Pension Insurance, while workers did not have it. Starting from 2008, the company started to apply Pension Insurance for workers, but claiming that workers can choose not to join, by signing an agreement. Most of the workers chose not to join.

The company started to apply Housing Provident Fund for all employers in April 2011 only. By law,the Housing Fund should be applied from January 2011 in Shenzhen. Similar to the case of Pension Insurance, the company claimed that workers can choose not to join, by signing an agreement. Mostof the workers chose not to join.

However, according to the law and regulations of Pension Insurance and Housing Provident Fund, itis mandatory for all companies and workers to join both of them. The legal requirement is as follow:

Table 2: Extract and translation of Labor Law in mainland China which was effective from 1995

Labor Law in mainland China (enacted in 1995)

Chapter 9 Social Insurance and Welfare Treatment

Article 72 The sources of social insurance funds shall be determined according to the categories of insurance, and the practice of unified accumulation of insurance funds shall be introduced. The employer and individual laborers shall participate in social insurance in accordance with law and pay social insurance costs.

Article 73 Laborers shall be entitled to social insurance treatment in any one of the following cases:

(1) Retire; (2) Suffer diseases or injuries; (3) Become disabled during work or suffer occupational diseases; (4) Become jobless; (5) Give births.

17

Table 3: Extract and translation of Social Insurance Law in mainland China which was effective from 2011

Social Insurance Law in mainland China (enacted in 2011)

Chapter II Basic Old-Age Insurance

Article 10 Each employee shall enroll in the basic old-age insurance system; and the employer and the employee shall jointly make basic old-age insurance contributions.

Article 12 An employer shall make basic old-age insurance contributions at the State-fixed rate of the employees’ payroll, and the contributions shall be deposited into the basic old-age insurance pooling fund.

Source: Ministry of Human Resources and Social Security of the People Republic of Chinahttp://www.mohrss.gov.cn/gjhzs/GJHZzhengcewenjian/201506/t20150625_212401.htm#_Toc277305512

Table 4 Extract and translation of Interim Measures on the Administration of Housing Funds (Shenfu [2010] No. 176)

Interim Measures on the Administration of Housing Funds (Shenfu [2010] No. 176)

Article 3 All government agencies, public institutions, enterprises, private non-enterprise entities, social groups (collectively “entities”) and their on-the-job workers and staff with or without Shenzhen household registration in Shenzhen should pay to the housing fund monthly from December 2010.

Chapter 3, Article 15, 16, 17, 18 and 19 Calculation of housing fund contributionHousing fund contribution = housing fund contribution base x housing fund contribution ratio.

The housing fund contribution base is set at the employee’s average monthly wage in the precedingyear. It should not fall below the minimum monthly wage in the preceding year released by the municipal department of human resources and social security, nor exceed five times the average monthly wage of the employees at work in Shenzhen in the preceding year released by the municipal statistical department.

The entity should adopt a uniform contribution ratio for all employees, which should be between 5 percent and 20 percent. Employer and employee must make equal housing fund contributions.

18

1.2a Evidence: The declaration on ‘voluntarily’ not to join Social Insurance Scheme (Chinese in origin with English translation), which is unlawful according to China Social Insurance Law.

Declaration (Translated from Chinese origin)

As my household registration is not made in Shenzhen City, I am writing to express my wish to pay for pension insurance in my hometown, where my household registration is made and the place I intend to receive my pension at retirement. Thus, I decline the enterprise’s arrangement to pay for my pension insurance in Shenzhen.

The social security allows only a worker to pay for her / his social security premiums in only one place. I shall pay for my pension insurance at the place where my household registration is made and provide the relevant receipts to the enterprise for reimbursement (the rate the enterprise is obligated to pay for). If I fail to pay for the pension insurance at the place where my household registration is made, I shall bear all related consequences and I shall not claim any financial benefitsfrom the enterprises regarding social insurance issues.

Declared and signed byZhang Aizhen14 February 2014

19

1.2b Experts’ Views on voluntary not to join Social Insurance Scheme of Mizutani Comment from China lawyer Peng Kwun: the declaration is unlawful and invalid

Lawyer Pang Kun’s comments on the declaration presented by Mizutani (Translated from Chinese origin- table 5)

Telephone number of Lawyer Pang Kun: +86 135 3011 2348

Regarding the declaration put forward by Mizutani, about a worker refusing to be covered by pension insurance in Shenzhen, Lawyer Pang Kun from Guangdong Hantai Law Firm made the following comments:

1. Social security is a statutory insurance in China and it is a mandatory statutory obligation of the employer to cover workers in the social security scheme. Neither employer, nor em-ployee can causally change this right and responsibility.

2. The declaration, signed by a worker, “refusing the enterprise to pay for his/her pension in-surance”, has indeed violated this national statutory obligation. Therefore it is legally invalidand none of the parties is binding to it.

3. According to Law on Social Insurance, if an employer fails to pay social insurance contribu-tions on time and in full, the social insurance contributions collecting agency shall place an order with the employer demanding full payment within a prescribed period, and an overduepayment fine at the rate of 0.05% shall be levied as of the date of indebtedness. When the payment is not made at the expiry of the prescribed period, a fine above the overdue amount but less than its triple shall be demanded by the authoritative administrative department. Furthermore, an employee is entitled to terminate the labor contract and demand financial compensation from the employer.

4. Apart from the serious legal consequences the employer would face, the worker would run agreater risk when s/he is not covered by social insurance. If s/he is injured at work and has not paid social insurance contribution, s/he is not entitled to claim compensation from the social security bureau. S/he may try to hold the employer accountable, but the chance to be fully compensated is determined by the employer’s ability to bear the risk.

Table 5: The Chinese text from Lawyer Pang Kun from Guangdong Hantai Law Firm

庞琨律师：+86 135 3011 2348

关于水谷出示的《声明书》广东翰泰律师事务所的律师庞琨表示：

1. 社会保险是国家的强制保险，为劳动者办理社会保险是用人单位的法定义务，具有强制

性。无论是用人单位还是劳动者都不能随意处分这项权利义务。

2. 该劳动者签订的有关“拒绝公司为其购买养老保险”的《声明书》，因违反法律的强制性

规定，当属无效，对双方均无约束力。

3. 根据《社会保险法》规定，未按时、足额为劳动者缴纳社会保险费的用人单位，将由社

会保险费征收机构责令其限期缴纳或者补足，并自欠缴之日起，按日加收万分之五的滞纳

金；逾期仍不缴纳者，将被处以罚款。另外，劳动者也有权解除劳动合同，并要求用人单

20

位支付经济补偿金。

4. 除了用人单位须承担较为严重的法律后果外，劳动者自身也会承担较大风险。对劳动者

而言，一旦发生工伤争议，若未缴纳社会保险，则劳动者将不能从社保部门获得任何赔偿，

只能要求用人单位承担赔偿责任。而用人单位承担风险能力的大小将决定劳动者是否能够

获得足额赔偿。

1.2c Experts’ Views on voluntary not to join Social Insurance Scheme of Mizutani Comment from Professor Zhou Chang Zheng, Law School, Nanjing University:

the declaration is unlawful and invalid.

Professor Zhou Changzheng’s comments on the declaration presented by Mizutani (Translated fromChinese origin- table 6)

Regarding the declaration put forward by Mizutani, about a worker refusing to be covered by pension insurance in Shenzhen, Associate Professor Zhou Changzheng from Law School of NanjingUniversity made the following comments:

China’s Labor Law and Law on Social Insurance both state that social security is a mandatory insurance and require the employer to pay contribution for workers’ social security insurance. Social security insurance is governed by the territorial principle, as the employer must provide insurance to workers at the place of employment. Article 58 of Law on Social Insurance states, “An employer shall, within thirty days after taking on labor, proceed to the social insurance agency to apply for social insurance registrations on behalf of the employees. For those whose social insurance registrations are not processed, the assessed scale of social insurance contributions shall be set by the social insurance agency.” Article 60 of the same law states, “Social insurance contributions payable by an employee shall be paid on his or her behalf by the employer through transfer from wage deduction. The employer shall notify each employee of details of social insurance contributions to his or her account on a monthly basis.” Article 7 of Interim Regulation on the Collection and Payment of Social Insurance Premiums, issued by the State Council, states, “Any premium paying entity shall carry out social insurance registration at the local social insurance agency and participate in social insurance.” All these legislations require the employer to pay for workers’ premiums locally.

In order to control the over-development of labor dispatch and protect the rights of dispatched workers, the government requires the employer to pay premiums of trans-regional dispatched workers at the place where the employer is located. Article 18 of Interim Provisions on Labor Dispatch states, “In the event that a labor-dispatching unit in a region dispatches a worker to another region, it shall obtain the social insurance coverage for the dispatched worker at the place where the employer concerned is located, and pay the social insurance premium in accordance with the rules at the place where the employer concerned is located, and the dispatched worker is entitledto the social insurance benefits in accordance with the provisions of the State.” A similar requirement is also stated in Article 38, Regulation on Labor Contracts, Jiangsu Province.

In the Mizutani case, an employer and an employee causally made an agreement to pay social security premium in a place other than where the employer is located. This agreement is a breach ofboth Law on Social Insurance and Labor Law and thus, is invalid. An employer, failed to pay premiums and transfer workers’ share of premiums, signed agreements with workers to change the location of the social insurance coverage, has violated the laws. According to Article 84 of Law on

21

Social Insurance, “When an employer fails to process social insurance registration, the social insurance administrative department shall deliver to the employer concerned an order for rectification within a prescribed period. When rectification does not occur at the expiry of the prescribed period, the employer shall be liable for a fine in excess of its assessed social insurance contribution but less than its triple, and the principals who bear direct responsibilities and other persons with direct responsibilities shall be liable for a fine over 500 but less than 3000 Yuan.” In other words, the labor department should hold Mizutani accountable for its breach of law.

Table 6- The Chinese text from Professor Zhou Chang Zheng, Law School, Nanjing University

南京大学法学院 周长征副教授对水谷公司自愿不购买社保声明书的意见

中国的《劳动法》和《社会保险法》采用的是强制保险制度，用人单位为参保义务人，都

必须为劳动者缴纳社会保险，而且社会保险采取属地管理原则，用人单位应当在单位所在

地为劳动者参保。《社会保险法》第五十八条规定：“用人单位应当自用工之日起三十日内为其职工向社会保险经办机构申请办理社会保险登记。未办理社会保险登记的，由社会保

险经办机构核定其应当缴纳的社会保险费。”第六十条规定：“职工应当缴纳的社会保险费由用人单位代扣代缴，用人单位应当按月将缴纳社会保险费的明细情况告知本人。”国务院《社会保险费征缴暂行条例》第 7条规定：“缴费单位必须向当地社会保险经办机构办理社会保险登记，参加社会保险。”这些法律都要求用人单位在当地为劳动者参保。

为了控制跨地区劳务派遣的过度发展，保护被派遣劳动者的合法权利，政府要求用人单位

为异地派遣的劳动者在用工单位所在地参加社会保险。人力资源和社会保障部在 2014年颁

布的《劳务派遣暂行规定》第十八条规定：“劳务派遣单位跨地区派遣劳动者的，应当在用

工单位所在地为被派遣劳动者参加社会保险，按照用工单位所在地的规定缴纳社会保险费，

被派遣劳动者按照国家规定享受社会保险待遇。”这在《江苏省劳动合同条例》第三十八条

也有类似的规定。

你所提到的案件中，企业与工人之间关于自行在异地参保的协议，因为直接违反了《社会

保险法》和《劳动法》，所以是无效的。企业通过与工人签订协议的形式，改变社会保险

的参保地，没有履行其代扣代缴义务，该行为是违法的，劳动部门应当依照《社会保险

法》第八十四条予以处罚。该条规定：“用人单位不办理社会保险登记的，由社会保险行政

部门责令限期改正；逾期不改正的，对用人单位处应缴社会保险费数额一倍以上三倍以下

的罚款，对其直接负责的主管人员和其他直接责任人员处五百元以上三千元以下的罚款。”

1.2d Disrespectful of workers’ right to social protection

1.2d.1 Evidence: account no. 40: The couple workers, Wenxia and her husband

No social insurance for retirement at all!

Wenxia and her husband worked for Mizutani for 12 and 18 years respectively. But the company did

22

not apply for Pension Insurance for both of them, which was violating the law. Wenxia said that the factory only started applying Pension Insurance at 2008. Such application was also restricted by management level.

In 2005, Wenxia quitted the job to give birth to baby. She returned to at 2008. At that time, the management asked whether she want to apply for Pension Insurance. Considering that she may not work there for a long time to take care of kids and mom, she did not apply for it. After that the management did not ask her again. But the company applied the Insurance on work-related injuries, medical care, unemployment and pregnancy.

No Pregnancy Insurance, Having only basic income during pregnancy leave

In 2005, when Wenxia was pregnant, she quitted job and went home. But at that time, the factory did not pay for the Pregnancy Insurance, and she can apply for not working overtime after getting pregnant. But during the maternity leave, she got no pregnancy subsidy. The salary was not given according to the average monthly salary before. Instead, she only got the basic salary.

Being unemployed, what’s going on with her family?

Wenxia’s husband’s mother passed away for a long time; his father stayed at the hometown being sick. They also have two daughters. The elder one is 20 years old and she did not have a work. The younger one is 10 years old and studying at a private school in Shenzhen. The school charges ￥2700 per semester. With the transportation and meal fee, the cost per semester is ￥3700.

Now Wenxia and her husband were unemployed and cannot find new job. And the couple do not want to leave Shenzhen because it is better not to change school for her daughter frequently. So Wenxia is still staying at Shenzhen to take care of her daughter. As a result, she is not able to work in factories because of the long working hour.

It is the toughest moment of her family. However most factories do not employ workers over 40 years old. It is very difficult for Wenxia and her husband to find regular jobs. Throughout their working lives, they never joined the Pension Insurance. So they can get to pension after retirement. So what will happen when they get old? Wenxia hope that she can pay back for the pension contribution such that she can receive pension when after retirement.

1.2d.2 Evidence: account no. 189: The Story of Yang Zhongyou and his record in Shenzhen Social Insurance Management Fund Centre

Unemployed, pension and housing fund missingYang entered Lebao Factory at 2005. At the end of 2013, Yang heard that the boss opened a new factory in the Philippines. He also saw some machines being moved away. In 2015, his salary was ￥2600, when the factory suddenly shut down on that year. He started paying for pension insurance since 2008, and he did not join the Housing Fund. ‘I am not quite clear with this issue. I do not want to buy a flat at Shenzhen, so I signed, declaring that I do not want to join the Housing Fund.’

Yang started paying medical and injury insurance since March 2005, but in the record of Yang in the Social Insurance Management Fund Centre, shows Mizutani did not actually contribute for medical insurance till July 2006.

The record of the starting date of Yang's account in Social Insurance Management Fund Centre

23

24

Current situationYang is now 47 years old. Being the eldest son of the family, he has to pay for the living of parents. He also has 3 children. He does not have special skills. Although still want to work at factories, factories are not willing to employ workers of his age. ‘It is not easy for workers in their 40s to enter factories. It is even harder to find factories which are willing to pay for our pension insurance.’

1.3 No consultation before Factory Relocation and Wrongful dismissal:

According to the Mizutani workers, they noticed that the factory has been planning for factory relocation from Shenzhen to Philippines since 2014 but they were never formally informed or consulted by the employer on the arrangement of factory closure. This is another violation of Chinese Labor Contract Law of the factory that the employer has the responsibility to inform the labor union. Although there is no union in the factory, the employer should at least inform the workers through official channel or staff meetings. On the other hand, the Mizutani suddenly announced the factory closure and threaten of no compensation in which the factory workers felt no choice but to resign from employment for reasons imposed by the employer.

Table 7: Extract and translation of Labor Contract Law in mainland China

Labor Contract Law in mainland China (enacted in 2008)

Article 36 An Employer and a Employee may terminate their employment contract if they so agree after consultations.

Article 41 If any of the following circumstances make it necessary to reduce the workforce by 20 persons or more, or less than 20 persons but accounting for 10% or more of the total number of employees of the Employer, the Employer may only do so after it has explained the situation to thelabor union or to all of its employees 30 days in advance, has considered the opinions of the labor union or the employees, and has submitted its workforce layoff plan to the labor administrative department:

(1) restructuring pursuant to the Enterprise Bankruptcy Law;

(2) serious difficulties in production and/ or business operation;

(3) the enterprise switches production, introduces significant technological innovation or adjusts itsbusiness model, and still needs to reduce its workforce after amending the labor contracts; or

(4) a material change in the objective economic conditions relied upon at the time of conclusion ofthe labor contracts renders it impossible for the parties to perform.

Article 43 If an Employer is to terminate a labor contract unilaterally, it shall first inform the labor union of the reasons. The labor union shall have the right to demand that the Employer make the necessary adjustment if the Employer violates laws, administrative regulations or the labor contract. The Employer shall consider the opinions of the labor union and notify the labor union in writing of the outcome of its handling of the matter.

25

1.3a Evidence: account no. 189: The Story of Yang Zhongyou and his record in Shenzhen Social Insurance Management Fund Centre

At late 2014, the workers went to strike. For 3 months before the strike, workers had no overtime work and they only got the basic salary of ￥2030. The reason of no overtime is that all the orders went to the Filipino factory. Workers were very angry. In the afternoon of 16 January 2015, since the factory delayed to give monthly salary, the workers went on strike. At that time the workers wentaround the factory building to call for other co-workers to join.

Yang joined the strike. At that time, there were 400 to 500 workers and all of them went to the open area of the factory, except the managerial staff. But Feng, a senior manager went to the workshop and said, ‘let them mess things up! Those who participated can get no money!’ During strike time, some workers sit at the top of the building and Feng’s husband even said that ‘You can jump off the building. If you jump, I will give you ￥200000!’. During the negotiation, workers scolded Feng and said that she did not treat workers as human.

Factory suddenly closed, workers being ignored

On 18 June 2015, the boss announced that the factory is to be closed. At that time, the officers of the district, official union and labor department came. The officer of labor department required us to write a letter of resignation and hand it in to the HR before the noon of 19 June. Yang felt very strange because it is the factory to fire workers but not the other way round. So it is unreasonable to require them to write the letter of resignation. Also, after handing in the letter, they would not be entitled to get the unemployment insurance.

The sudden closure of factory stimulated Yang to think about the weak position of workers. ‘I don’t understand. The behaviors of workers and bosses were regulated by the labor law. Its effect should be equal to everyone. According to the law, workers should give one-month’s notification for resignation. But now, the factory suddenly unemployed workers without notification,’ said Yang. ‘The factory has lawyers and HR managers responsible for workers’ issue. So I do not understand why such things could happen.’ Yang realized that the boss completely ignored the well being of workers.

1.3b Evidence: account no. 75: Huang Yutan: Sudden closure, abandoning workers

On 16 June 2015 when the boss announced the closure of factory, we were still working at 2/F. The management forgot to tell us to attend to the meeting. Later, new security guards entered the factoryand they did not let us enter the workshop, inside I had all my stuffs including contract, clothes and shoes. The guards do not let me go inside to take the stuffs.

The closure of factory was so sudden that we have no preparations for it. At that time, many of us could not find new jobs, and we were sad being treated like this. So, after 2 weeks, we elected representatives to bargain with the factory and demand an explanation: for what reason did the boss abandon us who worked for him for nearly 20 years.

I do not understand what the boss is thinking. Throughout these years, I worked hard but got sick, and I spent huge lots of money for treatment. Since I got many sick leaves at the last year of working, I only got ￥39000 as the economic compensation of being unemployed.

Throughout this year, I want to find the boss and ask whether I can get some subsidy because I kept being sick. But he was staying in the Philippines and did not come. Even on 18 June, when the factory closed, I still want to talk to him about this. But I can’t find him eventually.

26

After closing the factory, the boss sent several managerial staff to Dongguan to setup another factory. 20 seninor workers and some machines were also sent there. Although I used to be a team leader, they did not ask me to go there because I am always sick.

I did not ask for any sick leave from 2002 to 2014. Originally, my monthly salary was more than ￥3000. But after being ill, I could only get something less than ￥2000. It is because I can only have paid sick leave with doctors’ proof. However each time the doctor can only give me a 2-day sick leave, but I can only go to the hospital once every week, instead of every time I feel sick. So most of my sick leaves are not paid.

I joined the Pension Insurance at 2006. My pension was paid according to the minimum wage level,not base on the due wage by law. After the closure of Mizutani factory, I am unable to continue to pay for the pension because factory would not employ workers of my age. Also, I am not healthy enough to work at factories. Now I am worrying whether I can pay for Pension Insurance for 15 years such that I can get pension after requirement. If it is possible to pay a sum of money equivalent to 5 years’ contribution, I would like to do so.

1.4 Disrespecting workers' rights to collective bargaining

Workers sent petition letter to Mizutani on 19 June, asking for negotiation. Mizutani's HR person replied verbally, refusing negotiation with workers. By 22 June, according to workers, they were forced to leave in poring rain, leaving their luggage in the dormitory as they were not allowed to enter the plantation.

27

1.4a Evidence: the letter with signature of worker sent to Tani on 19 June, showing workers' written request on negotiation.

28

29

1.5 Underpaid compensation:Workers has got part of compensation but the compensation is calculated base on received wages. By law, compensation should be calculated by due wage of the past 12 months, between June 2014 and May 2015.

1.5a Evidence: The payment slips provided by worker Yang Zhongyau(account no.189), Huang Yutan(account no.75) which showed the underpayment.

Worker Yang Zhongyou's payment slips(account no.189):

30

Worker Huang Yutan's payment slips(account no.75):

31

2. Disney's violation on code of conduct:

Declared CSR by Disney What found

Coercion and Harassment: Manufacturers will treat each employee with dignity and respect, andwill not use corporal punishment, threats of violence or other forms of physical, sexual, psychological or verbal harassment or abuse

Breaking of strikes, coercion in regards to back pay owed/payment of. Police initiated violence against workers.

Nondiscrimination: Manufacturers will not discriminate in hiring and employment practices, including salary, benefits, advancement, discipline, termination or retirement, on the basis of race, religion, age, nationality, social or ethnic origin, sexual orientation, gender, political opinion or disability.

Back pay of compensation not paid correctly (housing not paid, social security not paid, wages not up to legal minimum, retirement pay not to legal standards, etc)

Association: Manufacturers will respect the rights of employees to associate, organize and bargain collectively in a lawful and peaceful manner, without penalty or interference.

Unions/associations have been shut down by localauthorities and police when they stood together todemand just compensation

Compensation: We expect manufacturers to recognize that wages are essential to meeting employees' basic needs. Manufacturers will, at a minimum, comply with all applicable wage and hour laws and regulations, including those relating to minimum wages, overtime, maximum hours, piece rates and other elements of compensation, and provide legally mandated benefits. Except in extraordinary business circumstances, manufacturers will not require employees to work more than the lesser of (a) 48 hours per week and 12 hours overtime or (b) the limits on regular and overtime hours allowed by local law or, where local law does not limit the hours of work, the regular work week plus 12 hours overtime. In addition, except in extraordinary business circumstances, employees will be entitled to at least one day off in every seven-day period. Manufacturers will compensateemployees for overtime hours at such premium rate as is legally required or, if there is no legally prescribed premium rate, at a rate at least equal tothe regular hourly compensation rate. Where local industry standards are higher than applicable legal requirements, we expect manufacturers to meet the higher standards.Evidence from workers Huang Yu

See Section III: overtime hours and pay not fairly distributed.

32

Tan(account no. 75) point to violations hereHealth and Safety: Manufacturers will provide employees with a safe and healthy workplace in compliance with all applicable laws and regulations, ensuring at a minimum reasonable access to potable water and sanitary facilities; firesafety; and adequate lighting and ventilation. Manufacturers will also ensure that the same standards of health and safety are applied in any housing that they provide for employees.

Disney has investigated the claims made by the workers, including their claim that they were coerced to sign a letter of termination that removed any liability on behalf of Mizutani, and found these claims to be warrantless, regardless of the evidence suggesting otherwise.Monitoring and Compliance: Manufacturers will authorize Disney and its designated agents (including third parties) to engage in monitoring activities to confirm compliance with this Code of Conduct, including unannounced on-site inspections of manufacturing facilities and employer-provided housing; reviews of books and records relating to employment matters; and private interviews with employees. Manufacturers will maintain on site all documentation that may be needed to demonstrate compliance with this Code of Conduct.

33

Section IVSuggestion from WE and HKCTUThe Mizutani (Shenzhen) Toy Factory Co. Ltd. violated numerous laws over the years while Disneybenefited from the products made there. Therefore WE and HKCTU suggest that

1. Disney must investigate the case and fulfill its commitment to workers’ rights across the supply chain and help the Mizutani workers reclaim their missing compensation in the wake of the company’s abrupt factory closure in June 2015;

2. Mizutani unilaterally terminated workers’ labor contracts. Legally, it should pay double-severance compensation and Disney should pay the missing part of the compensation;

3. Compensation should be calculated by wages payable (currently, one month’s wages compensation is calculated by the average wages payable of the past 12 months, between June 2014and May 2015), instead of the actual wages;

4. The missing premiums of workers’ social security insurance since their dates of commencement should be paid;

5. The missing contribution of workers’ housing provident fund since their dates of commencement should be paid.

34

Appendix 1: Detailed account of unpaid compensations of 196 workers2015.9.8

No. Name(in Chinese)

Time joining the factory

Owed compensation (RMB)

Balance of paid compensation (RMB)

Owed Social Insurance (month)

Owed Housing Fund (month)

1 梁永华 2008.02.16 35100 2000 0 0

2 梁海林 2014.01.09 5950 400 0 0

3 何月珍 2011.02.14 10630 1200 0 0

4 邢永珍 2010.04.13 7050 1470 0 0

5 江泽华 2012.02.02 8100 930 0 0

6 段娟 2010.02.26 12860 1470 64 50

7 李春连 2006.09.16 21920 2400 2012年 8月开始缴纳 50

8 汪燕 2006.06.02 31000 2530 57 0

9 易金香 2010.02.23 13680 1470 58 50

10 邹立忠 2003.07.28 43580 3200 58 50

11 刘元秀 2000.02.15 40100 4140 184 40，2014年 9月开始缴纳

12 唐国源 2001.03.07 42590 3880 171 50

13 郭卫刚 1997.05.05 145450 4940 29 50

14 高秀芳 2011.02.14 10640 1200 49，从 2015年 1月开始缴纳

50

15 吴平安 2006.04.02 40340 2540 110 0

16 刘志容 2005.03.11 25550 2800 76 32，2015年 1月开始缴纳

17 李兴琼 2010.03.08 13920 1470 2010年 10月开始缴纳 44，2015年 1月开始缴纳

18 吕国强 2009.07.13 18200 400 t.b.c t.b.c

19 高建新 2010.02.22 18310 1470 64, 0

20 高爱华 2006.02.13 23160 2540 22 34，2014年 2月开始缴纳

21 吕刚 2013.04.01 11060 2540 26 26

22 王誉艳 2006.06.17 22510 2530 46 0

23 邹凤英 2003.03.18 32960 3340 147 50

24 高新华 2004.09.11 39780 2940 129 0

25 孟金华 2012.02.02 8450 940 0 34

26 梁素香 2006.06.25 21681 1683 30 t.b.c

27 张月萍 2007.05.18 20587 2269 37 0

28 黄小兰 2011.04.18 9787 1201 t.b.c t.b.c

29 刘时英 2008.08.23 16880 1870 82 50

30 唐桂华 2002.05.08 32000 3600 153，从 15年 1月开始缴纳

50

31 金晶 2000.12.01 47990 4000 90 19

32 李蓓蓓 2009.05.07 15400 1730 2009年 6月开始缴纳 40

33 梁朦 2007.03.03 20600 2270 58 50

34 刘国金 2009.11.19 14720 1600 7 50

35

35 高琼华 2007.03.10 21800 2260 93 50

36 李立琼 2010.02.24 21500 1470 64 2011年 4月开始缴纳

37 蔡杏美 2000.02.20 81720 4140 7 0

38 李立君 2009.11.03 24080 1600 0 50

39 刘东平 1998.02.11 46740 4670 208 50

40 文霞 2008.03.22 19280 2000 88 0

41 林永莲 2006.05.09 24430 2540 109，从 2015年 1月开始缴纳

50

42 黄金亮 1997.07.01 47230 4800 143 6，2011年 9月开始缴纳

43 余小玲 2008.02.19 18040 2000 42 50

44 贺运桃 2004.02.23 37170 3070 22 42

45 何凤鸣 2010.03.12 14570 1470 64 50

46 赵碧昌 2007.11.05 18760 2000 85，从 2015年 1月开始缴纳

50

47 龙六妹 2007.08.12 19070 2140 27 0

48 邓颂英 2014.06.16 3560 400 1 4

49 李正军 2005.01.12 57800 2800 18 2011年 9月开始缴纳

50 许金玉 2001.11.14 33800 3740 133 31

51 李红花 2006.02.07 22770 2540 49 30

52 李红霞 2004.01.31 43530 3070 30 2013年 4月开始缴纳

53 郭德胜 2002.5.21 50340 3600 53 0

54 张焕君 2012.12.10 7680 780 4

55 张英 1998.02.08 67130 4670 104 36

56 易满菊 2005.01.12 25120 2800 55 50

57 廖妙松 2001.03.01 44413 3871 4 0

58 秦丽华 2012.09.17 7164 570 t.b.c t.b.c

59 张孟连 2006.11.20 21518 0 2015年 1月开始缴纳 未缴纳

60 秦小林 2001.02.15 34553 2755 2010年 3月开始缴纳 未缴纳

61 邹瑜 2003.02.11 30387 2375 101 50

62 邱兰平 1998.10.10 60928 4539 95 33

63 胡伏军 2007.09.07 19096 1520 95个月，2015年 1月开始缴纳

45

64 李桂英 2001.02.03 67816 3871 5 0

65 于利延 2011.05.13 15939 1201 0 8

66 桑玉香 2010.03.15 12402 1468 2010年 3月开始缴纳 2014年 1月开始缴纳

67 杨秀红 2011.02.24 10516 1201 31

68 杜芝华 2002.11.26 50053 0 未缴纳 未缴纳

69 徐艳林 2010.03.29 18441 1028 2010年 3月开始缴纳 未缴纳

70 陈毅 2011.06.28 8128 324 2015年 1月开始缴纳 未缴纳

71 钟家福 2005.02.21 26156 945 2015年 1月开始缴纳 未缴纳

72 李春容 2002.02.22 37732 3604 101 0

73 谷志荣 1997.06.12 61549 4939 120 0

36

74 汪百生 2001.06.21 73556 2660 59 50

75 黄玉坦 2002.03.06 42741 3604 53，2006年 9月开始缴纳 6

76 陈梅招 2006.11.12 21438 2403 22，2008年 8月开始缴纳 t.b.c

77 胡贵枞 1997.05.06 60624 4939 132，2008年 5月开始缴纳

t.b.c

78 温清华 2008.07.25 16597 2403 45个月，2012年 4月开始缴纳

46

79 王荣娇 2001.02.06 80736 3871 t.b.c t.b.c

80 夏晴晴 2013.04.10 5672 667 t.b.c t.b.c

81 袁小兵 2008.02.28 27937 2002 t.b.c 27

82 陈爱香 2011.02.12 19777 1201 t.b.c t.b.c

83 洪钦从 2006.05.23 34656 2536 76 6

84 李艳 2011.12.23 8676 412 43 2012年 1月开始缴纳

85 张小琼 2011.06.09 12190 1200 49 48

86 韩玉欢 2012.02.02 8630 930 36 40

87 黄建国 2011.02.23 13170 1200 46 44

88 刘四香 2006.03.06 26670 2540 59 46

89 陈芬 2011.02.15 10760 1200 46，从 2015年 1月开始缴纳

50

90 李天琼 2005.02.15 26820 2800 120，从 2015年 1月开始缴纳

50

91 冯军 2010.03.11 16600 1470 64 50

92 林三叶 2005.03.01 20300 2800 41 50

93 郑洪琼 2009.02.13 15630 1730 23 12

94 汪汉敏 2008.06.17 21430 2000 48 50

95 赖明琼 2014.02.01 3610 400 13 16

96 陈兵 2000.04.21 39630 4130 176 40，从 2014年 10月开始缴纳

97 徐凤安 2011.10.25 9640 1070 38，从 15年 1月开始缴纳 44

98 罗敏 2006.11.19 21590 2400 41 0

99 唐志勇 2003.08.21 30900 3200 142 50

100 秦元林 2005.03.25 27560 2800 124 50

101 刘东花 2012.05.07 8930 930 37 37

102 唐顺叶 2005.03.01 27630 2800 124 50

103 熊寿珍 2009.06.03 16080 1730 72 50

104 梅志群 1997.07.30 52760 4800 128 50

105 韦丽花 2010.05.11 13440 1470 61 50

106 冉从菊 2004.03.22 44890 3070 49

107 李辉 2008.08.04 17200 1870 76 40，从 2014年 9月开始缴纳

108 汪万元 2012.02.02 8490 930 34 35

109 李珍田 2007.06.16 19900 2270 10 40

110 彭新华 2005.03.08 24680 2800 37 40，从 2014年 9月开始缴纳

37

111 洪银华 2011.02.14 10970 1200 46 50

112 马桂群 2001.02.03 34626 2711 88 未缴纳

113 刘兴华 2012.02.02 8284 654 2013年 3月开始缴纳 未缴纳

114 李仁兰 2003.03.18 31212 1125 142 未缴纳

115 徐桂林 2006.02.09 22493 未缴纳 未缴纳

116 周晓华 2008.10.07 17150 1309 t.b.c 未缴纳

117 唐建菊 2004.10.04 27819 2937 74 25，2013年 8月开始缴纳

118 张爱珍 2014.02.14 3820 400 10 0

119 秦永安 2008.03.10 17420 2010 15 t.b.c

120 刘小方 2007.05.06 31399 1589 12 未缴纳

121 何小明 2006.02.20 45058 2536 18 t.b.c

122 刘苏英 2004.12.23 41503 2937 22 t.b.c

123 李建军 2013.03.01 10327 从未缴纳 从未缴纳

124 周凤彩 1999.06.08 42024 从未缴纳 从未缴纳

125 邓先翠 2004.02.12 28382 3070 71 t.b.c

126 宁家芬 2012.06.04 8295 934 2 9

127 高明霞 2009.05.07 15834 669 从未缴纳 t.b.c

128 杨用琴 2012.02.21 8040 930 2015年 1月开始缴纳 未缴纳

129 欧发翠 2007.04.02 19780 1140 55 t.b.c

130 文阳秀 2008.08.22 16220 1850 0 0

131 袁燕玲 2011.09.26 13190 1050 0 0

132 秦永进 2006.12.09 25700 1510 17 50

133 文芝 2012.03.12 12953 0 2012年 3月开始缴纳 2011年 6月开始缴纳

134 黄万春 2005.01.03 52962 2803 0 0

135 徐大洋 2000.08.29 102345 2805 4 从未缴纳

136 唐慧军 2012.02.13 8890 930 t.b.c t.b.c

137 赵琼昌 2010.06.10 13350 1460 60 50

138 赵美昌 1999.03.06 56930 4400 92 46

139 曹秀珍 2004.05.19 27930 3060 70 50

140 高兰凤 2001.02.06 31120 3870 85 40

141 李双英 2007.03.26 21160 2270 32 50

142 时金环 2002.02.22 34650 3600 154，从 2015年 1月开始缴纳

50

143 程远芳 2002.10.10 25520 3470 108 0

144 郭金枝 2010.04.01 14370 1470 63 50

145 周友彩 2005.08.15 26380 2800 118，从未缴纳 46

146 刘华玉 2011.06.01 10380 1200 49，从 2015年 1月开始缴纳

42

147 冉从太 2003.03.03 35610 3330 141，从 2015年 1月开始缴纳

50

148 向世菊 2000.04.01 58910 4130 79 50

149 祝洪珍 2010.02.04 13960 1470 64 50

38

150 吴绍金 2005.03.08 26300 2800 76 50

151 陈秀玉 2014.03.03 2970 400 t.b.c t.b.c

152 方春英 2005.02.21 23900 2790 106 36

153 刘会莲 2011.02.15 11100 1200 15 50

154 赵会昌 2001.02.03 34420 3860 178 50

155 赵纯碧 2003.03.05 34870 3340 142，从 2015年 1月开始缴纳

50

156 马承娇 2003.02.10 33500 3330 142 50

157 朱金梅 2010.03.06 12920 1460 2010年 4月开始缴纳 38

158 李必华 2013.05.06 6750 670 t.b.c 26

159 舒金花 2012.01.05 8310 930 2012年 3月开始缴纳 40

160 汤利均 2001.11.19 40810 3730 88 0

161 熊庆兰 2011.02.15 11380 1200 0 50

162 许敏 2008.03.02 25720 2000 0 50

163 郭宗兰 2012.09.11 6880 800 0 0

164 郑五土 2001.06.13 61726 3871 64 0

165 汪强 2010.04.20 21169 1028 0 50

166 吴运书 2000.07.14 74865 4005 6 0

167 曾艳 2011.03.08 10557 0 未缴纳 未缴纳

168 陆白华 2012.07.05 10745 0 未缴纳 未缴纳

169 苏秀锦 2011.09.01 11424 748 从 2015年 1月开始缴纳 未缴纳

170 宋开如 2012.03.03 8165 0 未缴纳 2015年 3月开始缴纳

171 谭周秀 2001.04.01 54665 3871 61 43

172 刘碧山 2002.02.25 33034 3604 98 0

173 文明飞 2012.02.22 7448 934 从 2015年 1月开始缴纳 2013年 8月开始缴纳

174 杨青珍 2009.03.02 12740 669 从 2015年 1月开始缴纳 未缴纳

175 郭春英 2006.02.06 21784 0 从 2015年 1月开始缴纳 未缴纳

176 陈凤英 2007.03.11 20296 0 未缴纳 未缴纳

177 谭光怀 2011.03.06 9454 841 2011年 3月开始缴纳 未缴纳

178 陈小敏 2007.09.09 19179 未缴纳 未缴纳

179 何又香 2003.11.01 29964 2244 54，2008年月开始缴纳 50

180 王誉祝 2006.06.12 22743 2536 52 2013年 5月开始缴纳

181 向守芬 1998.03.05 83737 4672 72 50

182 张望军 1999.08.19 61072 4272 83 34

183 刘楚织 2006.08.24 20736 1683 20 未缴纳

184 秦仁芳 2005.02.16 36603 2803 53 2011年 4月开始缴纳

185 张群丽 2006.02.14 34180 2530 107，从 2015年 1月开始缴纳

50

186 叶运招 2002.03.04 47660 3670 87 5

187 徐炳华 2011.05.03 11600 1200 43，从 2015年 1月开始缴纳

49

188 郭美凤 2007.08.26 20180 2140 94 50

39

189 杨忠友 2005.02.01 30180 2800 39 50

190 万燕 2000.01.15 57760 4130 78 2011年 6月开始缴纳

191 吴磊 2009.02.09 16800 1740 53 0

192 罗爱琴 2003.03.01 34510 3340 107 50

193 廖常辉 2002.04.15 36540 3600 124 50

194 司二军 2013.04.01 6470 670 0 0

195 宋丕立 2000.10.19 38160 4000 90 0

196 王运波 2007.04.07 19958 2348 93 50

Sub-total: RMB5319928 RMB418712 RMB3551977 RMB610774

40