Gaming Press Ignores Allegations that Sweatshop Labor Produces Xbox 360 Controllers

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Monday, May 10, 2010

Editor's note: A few weeks ago, The National Labor Committee, a non-profit, non-governmental organization that advocates for global workers' rights, broke the story about the sweatshop labor that produces Xbox 360 controllers. What, you didn't read about it? Thomas takes the gaming press to task for largely ignoring this violation of labor laws and human decency. That enthusiast journalists ignore important issues such as this is depressing, indeed. -Rob


Babies are delivered by the stork. Parents have many devices at their disposal to tell their kids where babies come from. These white lies obscure the truth from children about the realities of birth.

The same type of fairy tales do not exist for gaming peripherals, though. Many different countries (with different labor laws than the U.S. -- laws that enable a work condition that is a creature of assimilated sweatshop workers) produce accessories.

Manufacturers like to tell stories similar to the stork about where our game controllers come from, but a strong possibility is that they are products of sweatshop labor, and gamers don’t seem to care.

 

On April 13, 2010, The National Labor Committee released a report claiming that KYE Systems Corp. employs underage workers in a sweatshop factory. This manufacturing plant produces Microsoft products -- including mice, web cams, and Xbox 360 controllers.

The New York times later reported that government officials found KYE guilty of employing unregistered workers between the ages of 16 and 18 and forcing shifts beyond the maximum amount of monthly work hours of 196. The labor practice of employing teenagers of those ages is legal as long as they are registered.

Nearly all the information I found was from mainstream press outlets -- the video game press barely covered the story. Apparently, damning evidence against Microsoft products made by underage children is not as important as tracking Infinity Ward LinkedIn accounts and questioning the credibility of game journalists.

Final Fantasy 13 coming to Xbox 360 caused Internet meltdowns, blogs dissected Activison’s SEC filing report like an autopsy, and Capcom’s Captivate event owned the entire game press for days. But when it comes to a 35-page report accusing Microsoft of commissioning a Chinese factory employing underage workers in sweatshop labor conditions, it only deserves a paragraph days after the initial allegation.

Developers constantly complain about crunch time and 14-hour work shifts necessary to push out a product; the gaming press constantly echoes their voices. But what about the sweatshop factory employees who work 15-hour shifts to produce 360 controllers just so they can be victim to the podcast topic, “How many controllers have you broken through rage?”

The silent response given by gamers and critics tells me no one cares if their products are made with sweatshop labor.


The accusations

The NLC’s report's validity may be questionable. The organization claims that it smuggled the photos out over a three-year, covert operation to expose KYE. Also, through further investigation from other sources, KYE was not found guilty of employing anyone under the age of 16. Finally, the NLC only provides an import record of Xbox hardware as evidence that the factory produced 360 controllers.

According to the NLC report, workers are between the ages of 14 and 17 and work 15-hour shifts, 6 to 7 days a week. Women are highly preferable because they are easier to control, and because supervisors and security guards often sexually harass them. The wage is 65 cents an hour, which management reduces to 52 cents after taking food into account. Management also bans workers from talking, listening to music, and taking bathroom breaks.

Violation of these rules results in reduced pay and added janitorial duties. Employees live onsite in 14-person dorm rooms outfitted with bunk beds. Think back -- or forward -- to your freshmen-year college dorm room, add 13 people, and live in it. Employees take showers with a sponge out of a bucket. They are forced to work at a rapid pace in order to meet the quota required to meet Microsoft’s needs.


The Six S’s

Management maximizes production through the Six S’s philosophy -- commandments designed to enforce the necessity to continuous labor. I copied this directly from the NLC report:

Phase 1 - Seiri (整理) Sorting: Separate what you need and what you do not. Separate what you rarely use with what you do not use. Set aside the things you rarely use.

Phase 2 - Seiton (整頓) Straighten or Set in Order: Arrange the tools, equipment and parts that you have sorted in an appropriate way.

Phase 3 - Seisō (清掃) Sweeping or Shining or Cleanliness: The work environment must be thoroughly cleaned and sources of pollution or uncleanliness must be stopped.

Phase 4 - Seiketsu (清潔) Standardizing: Sorting, Straightening, and Sweeping must be maintained at the same time.

Phase 5 - Shitsuke (躾) Sustaining the discipline: Create good habits, obey each of the company's regulations, do not violate company discipline.

Phase 6-  Safety (安全)  Remove potential causers of accidents, eliminate hidden safety problems, maintain normal and safe production.


Microsoft’s response

On April 15, Microsoft responded to the NLC report through their official blog. I decipher their reply into:

We may or may not have known about this. We’re looking into it -- please, please, please, don't pressure us to follow up. This probably doesn't surprise most people and it’s become common practice for American consumers to not care. Look at our other blog posts about all these diverse people enjoying our Microsoft products!

Since this date, the Official Microsoft Blog continues to be silent.


Move along -- nothing to see here

On April 19, Dongguan reported state KYE factories are not guilty of employing under aged workers; however, they are still guilty of violating labor laws.

KYE employs over 300 unregistered workers between the ages of 16 and 18. According to local labor laws, this would only be legal if they were registered and worked a maximum of 196 hours a month, but that was not the case. They were unregistered and worked over 280 hours.

The NLC exaggerated the ages of the workers, but other outlets did not refute the poor working conditions.


The way things are

Be realistic -- many manufactured products consumed in America are likely bred from the blood, sweat, and tears of sweatshop workers.

But when a legitimate accusation against a major video-game player arises, it is worth the scrutiny of the enthusiast press. This story did not deserve to get brushed over, especially when Roger Ebert, Infinity Ward, and Activison receive regular updates. The press demand transparency, and gamers demand the same level of openness from coverage. Full disclosure of the manufacturing process should be included in this pact divulged to the public.

A Santa-Clausian stork does not deliver 500,000-plus units of Nintendo DS systems every month. The most likely scenario is that peripherals come from a factory like KYE, but the truth is that no one knows for certain and no one seems to care.  

 
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Comments (17)
Default_picture
April 29, 2010

It's disgusting that corporations (and governments) are able to get away with these working conditions. Many U.S. corporations do the same thing in the border towns of Mexico. Honestly, I don't know what to do about it. I'm part of the problem since I still purchase things like Xbox 360 products and the occasional pair of Nike shoes. Like you, though, I don't think this issue should have been glossed over. Poor working conditions and environmental issues are often ignored on game websites in favor of sensationalist pieces that will appeal to the masses.

Excellent piece, Thomas, and I hope to see more covering issues we should all be concerned about.

Mikeshadesbitmob0611
May 10, 2010

We should get you a job, post haste.

Photo_on_2010-09-05_at_02
May 10, 2010

I really enjoyed the article. Very well expressed. The stork metaphor was a little much, but keep up the good work nonetheless.

Default_picture
May 10, 2010

Wow, I find it sad that the first place I hear of this is in a blog criticizing how it got no coverage. How could people overlook this in favor of "Are Games Art?! We tell you why or why not for the 16th time this year!"

Jason_wilson
May 10, 2010

If I were a news reporter, this is the kind of story I would chase. It's currently 11 a.m. Pacific time. What are the big news stories I'm finding on gaming sites? A Chinese actress losing her finance -- which has nothing to do with gaming and appears to just be an excuse to run an image for a woman in a bikini; sales charts; and characters "confirmed" (please, ditch this use of confirmed).

What a disgrace.

Default_picture
May 10, 2010

Maybe we could pay attention to this if so many of us didn't get completely fucking incensed whenever a public figure says something about games, be it positive or negative.

May 10, 2010

I accidentally click the report button. I'm sorry about that; great read.

 

Default_picture
May 10, 2010

Very interesting article, Is there just no other choice for these people but to work for a place like KYE?

Brett_new_profile
May 10, 2010

To be fair, this story was picked up last month by a few outlets like IGN and Destructoid.

Default_picture
May 10, 2010

You fail to report all other companies that payed KYE to produce their products. You ignore all other companies and logical statements, and of course, ignores even the official response or the LAW of that country. These people are working, they are doing your jobs the best way they can to solve this kind of problem. Next time, try to do the same: Report something not ignoring the other 'already guilty' parts of the article. 

Mikeshadesbitmob0611
May 10, 2010

Nevel, please use your real name when posting. It's Bitmob policy. I half-agree with what you're saying, but when you post under a pseudonym, people will ignore your arguments and attack that instead. Most people with pseudonyms are trolls, and based on your comment, people may naturally assume that's what you're up to.

Default_picture
May 11, 2010

It's really nice that people are concerned about this. But, some of the points that are made are a little misguided. The Six S practice is derived off of the 5S approach to lean manufacturing. It is a practice that is in place around the world to maintain a safe, efficient, and orderly work place. It is not some sort of cruel and unusual punishment driven down on people.

I think that most people around the world do not understand the fact that there is most likely underage workers in China for a reason. In China there is the single child policy that was put in place by Deng Xiao Ping back in the 80's. If you have more than one child you have to pay the government a penalty when the child is born if you do not pay it your 2nd, 3rd, 4th child etc. are not privileged to social benefits. Also, your first born child may attend public schools free of charge, the ones thereafter must pay to receive schooling. It's a well known fact that there is a lot of poverty in China. Therefore, some kids when they hit their teens will go off to work to support their families or venture off on their own as they are not happy at home. People lie here all the time and birth records are not kept in an orderly fashion. So, sometimes it is hard to prove what a persons age is.

People that work at factories typically live there in the dormitories. Yep, lots of people live in one room. Here's an even better one for ya. The people sometimes do hot racks. When you start your shift someone else comes in hops in your bed and goes to sleep. Of course, this is a common practice in the military as well. So, I have mixed emotions about it. Where is the line crossed? Who knows? People all have the right to leave the factories whenever they want. But, the thing that you must consider here is what is truly a violation of human rights? If you look at the life of the common Chinese person and the life at the factories where the migrant workers work you will find that they are all not that far off. Many of the points that are illustrated in the article are appalling because they are foreign to us as westerners. Point in case:

Washing in a bucket. The common Chinese person lives life from a bucket. Yep, that's right. In the common chinese household the bathroom consists of this: Squat pot style toilet, shower head (situated right next to the squatter), cold water tap, and last but not least the dreaded BUCKET.

The bucket serves a few purposes. The first and foremost use is that a lot of common homes do not have a plumbed squat pot. So, you fill the bucket with the tap next to the toilet and use it to flush it by gravity. The second use is to clean off the surrounding area after you are done using the squatter. The third use is that you use it to bathe in with a rag or a sponge in the event that you are not lucky enough to have an inline water heater for your shower head, or for that matter a shower head. The last use for it is washing clothes. Yep, you put some water and detergent in that bad boy and wash your clothes. You wring them out real good and then you dump the soapy water in the squatter, refill with cold water and rinse and wring. Then you take your clothes outside and hang them out to dry. If you are lucky, nobody will come by and steal them before they are dry. The bucket is the tool that every common person in China has and uses on a regular basis. When you see people leaving or starting work at factories here they have their suitcase, bamboo bed mat, and of course their bucket. The bucket acts as piece of luggage as well! (5th use oh my!)

So, even if you nuke every factory in China people will still be washing in buckets and carrying them around like they are their best friends. It's part of life here that is not going to change any time soon. I used to stay at my girlfriend's place on weekends and it was just something that I had to get used to.

People here at the factories work long hours. Most migrant workers spend very little time outside the factory at going outside will only make them want to spend money. People will usually either save their money for getting married or send it home to their families and make their single trip to their home town at Chinese new year. So, even though there are guidelines as to how many hours a worker should work a lot of times the workers want to work more hours as they will be able to get more income.

The pictures of the people sleeping at their work stations is common place at all factories in China. Some facilities allow people to return to their dorms to sleep, others sleep right where they work. Typical practice is to eat lunch and then sleep for 30 minutes to an hour. Chinese people love their sleep, the biggest past time in China. Not a slam or an insult, just the honest to god truth. Even my girlfriend will spend her entire weekend sleeping if given the opportunity. People sleep in the trains, standing on the street corner, you name it, almost anywhere. The only time they probably will not doze off is when a meal is being served.

Most Asian companies like that operate in China that are not Chinese operate in the same fashion. The common worker is not valued and can easily be replaced by someone who will live at sub western standards. I must applaud the western companies that come in here and setup nice dormitories and give workers good benefits and provide meals that are of good quality. They are making a difference.

The sad fact is that this is the way life is over here in China and it is the way that people are accustomed to living. We as westerns just don't get it because we have had good lives based on the hard work that our ancestors did to give us a comfortable life.

Companies like Microsoft and Apple are trying to make changes through their labor policies for their suppliers. But, Asian companies will lie and cheat to get business as they feel that it is not really important. Only a formality...

We only have ourselves and the executives of our corporations to blame for wanting everything so cheap that we must give to tyrants who do not want their people to flourish.

Edit:

Oh yeah, and Dongguan the city where KYE is located is the armpit of the Guangdong province. Corruption runs rampant, it is a haven for business men to shack up their money girls, hooker capital of Guangdong, loaded with thieves and beggars, and just down and outright a dirty place. The city is loaded with factories that produce counterfeit merchandise. It's China... The epitome of everything that is wrong with China.

Demian_-_bitmobbio
May 11, 2010

Interesting comment. For once I'm not going to ask someone obviously not using a real name to use their real name. 

Default_picture
May 11, 2010

Oops, missed that fact that I should post with my real name. Of course if I had to do that I would not share what I have shared. Big brother is watching haha!

I should start a webpage to show everyone the truth to all of this but I would probably be captured and sent to a re-education camp.

@Panic Fire: my paranoid side kinda agrees with you, and we don't want Bitmob banned in China right?

So of course it will be ignored in the West, European and North American wealth are build upon the Asian, African and South American misery, this phenomena is related to the order of the world to the point the there would be no modern world without it, so we as a collective choose deliberately to ignore it, so we can live happily without facing the costs of our lifestyles; nobody wants to hear that his or her lifestyle is horrendously wrong, so the real implications of the western lifestyle shall be obscured and forgotten.

Default_picture
May 12, 2010

Great article, Thomas! I'm glad to see someone else reporting on the subject.  A couple of blogs I wrote on this issue were featured at 1UP.  I also started a petition to Microsoft asking them to get out of business with KYE.  Believe it or not, as you can read in the blogs, Microsoft laughed me off at first because I "wasn't a journalist".  

Later, after the story gained momentum, Microsoft called and apologized.  I'm still in touch with Microsoft PR and awaiting their next move.  I would be more than happy to share that with you when I get it, Thomas.

Gamasutra picked up on my blog and ran a story on it as well.  I think there hasn't been a major outpouring from the press, but at least certain outlets are even addressing it.

Awesome to see someone else keeping this in the forefront! Sign the petition!

Here are the blogs:

 http://www.1up.com/do/blogEntry?bId=9027732

 http://www.1up.com/do/blogEntry?bId=9028723

 http://www.gamasutra.com/blogs/ReidKimball/20100503/4981/Factories_Building_XBOX_Controllers_Abuse_Workers.php

Default_picture
May 14, 2010

 Matt,

I would highly recommend that you purchase a plane ticket and go to China. While your efforts are admirable and sincere you have no idea what the true conditions are like in China. This is not a matter of a company oppressing people, this is a cultural problem that we as westerners perceive as some sort of inhumane treatment of others. I am not saying that people should be mistreated (and I know it happens here, if you could only see some of the crap I have seen), I think that some of the points in these articles weaken the overall complaints that you are trying to follow through on.

What you don't understand is that China is emerging from being a third world country to a super power. Too many things are happening too fast. Unfortunately peoples way of life will not change as fast. It is all happening and it is taking time. The government is ramming being civilized down people's throats here. There are signs posted all over every city telling people to be civilized, there are commercials on TV telling people to be civilized. It is everywhere. Technology has advanced, money is being made, but people here still live in the ways of the past. When people go to live in these dorms they are actually getting better food and better accommodations than they have at home.

You need to see the countryside firsthand and understand where these people come from, their lives outside the factories. Their living conditions in most places are not good. And I can tell you if you find this appalling and are screaming about human rights you will probably take a new charge as an environmentalist.

I hope that this does not come across to any Chinese people reading this that I am criticizing China. What I have noticed here is that people will witness something that is happening and not do anything to stop it. People will watch other people get robbed and not do anything to help. I have witnessed husbands hitting their wives on several occasions as others looked on and did nothing. This has even occurred in front of police. I still do not understand this yet, how could people just stand by and let things like this happen?

The other problem is corruption. And what everyone will probably find when mistreatment of employees is dug into is that if it was discovered that someone was paid off to make the problem go away.

You need to understand that this is not just a problem with Microsoft and Apple. Nearly every consumer product that you touch that comes from Asia (besides Japan and Korea) is probably made by people that you feel are being oppressed. Get that straight, ALMOST EVERYTHING YOU BUY is made by someone that lives in substandard living and working conditions. The key to this is whose standards are you going by?

The fact that people cannot leave the factory or they will get fired is mostly likely false. There are government appointed attorneys that oversee the firing of operators at factories. I can tell you from experience that it is EXTREMELY difficult to fire the common operator here. Who knows, KYE may be paying off officials to get special exceptions. If that is the case then it becomes a whole different ball of wax... Corruption...

The thing that I have witnessed that really bothers me is employers holding back employees pay for months on end and garnishments of wages for defective products produced by that employee. Nothing like kicking an employee who gets next to nothing in pay every month squarely in the balls when they are already down. 

In regards to the living conditions:

On your site you post pictures of clothes strung out on a line. Well, I live in a higher end condo here and I have about the exact same setup. I may not wash my clothes in a bucket, but I hang them out just like everyone else. As for washing machines. Guess how much one costs here; approximately a thousand US dollars. And guess what; the chamber has a volume of about 10 gallons. The drying machines are the same way. I couldn't fathom spending a thousand dollars on a tiny drying machine so I decided if a billion other people can dry their clothes this way, so can I. Again, another one of the things that people are not accustomed to and cannot afford. Just a way of life here in China. It is pretty interesting to drive down the toll ways and see all of the high rise buildings covered in clothes that have been hung out to dry.

 

I am surprised by the fact that nobody has taken a closer look at the bunks in the dorms and commented on them. No mattress. Yep, they like to sleep on boards here. People come to work at the factories and they bring their bamboo sleeping mats and put em on the board. Comfy huh? There are lots of reasons for no mattresses here. The humidity is one. Guangdong province is humid as hell most of the year. And most buildings here are pure concrete shells with no sort of insulation. There is typically also no heat or AC in most homes / dorms. At the change of the seasons these 3 factors result in one thing when the temperature goes from cold to hot. CONDENSATION. Lots and lots of condensation. So bad in fact that my condo literally had water droplets covering the entire ceiling, the marble floors were covered in water and the tile walls in the kitchen were sweating profusely. Luckily I have AC but no heat. I was able to turn on the AC and dry the place out and use towels to mop up the water on the ceiling and kitchen walls. So back to the mattress. Mattresses here become a haven for mildew and mold in these conditions so most people view them as an inconvienience. I can also speak from experience that when it is really hot and humid that sleeping on a hard bamboo surface is more comfortable than a mattress.

The environment here in Guangdong is punishingly hot. The condos that I live in have a lot of people with a lot of money. They all have AC but they refuse to turn it on even in the hottest of summer months. Why that is, I still do not know. Even in the winter time when it gets close to 40 degrees they still soldier on with no heat. Chinese new year just about killed me. I sat in my apartment and froze my ass off. My point is that people here are not affected like us softy westerners who need comfy climate controls. I am not saying it is right, again it is a cultural thing. I have no idea how people can live like this but they do and they make the decision to do it.

Sorry for rattling, if you come to China I would like to know so I can show you things that go beyond this that will have you absolutely floored. The sad thing is that most of these appalling things are accepted and common place and when that is the case you have to ask yourself how it will ever change. 

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