Students & Scholars Against Corporate Misbehavior SACOM

Wal-Mart Finds Unsafe Practices at Factory of China Supplier of Appliances
By Robert Fenner - Sep 7, 2010 12:24 PM GMT+0800

Bloomberg News: http://www.bloomberg.com/news/2010-09-07/wal-mart-finds-unsafe-practices-at-factory-of-china-supplier-of-appliances.html

Wal-Mart Stores Inc., the world’s largest retailer, has found unsafe work practices in a mainland China factory operated by Elec-Tech International Co., which supplies the chain with home appliances.

Elec-Tech will decommission hazardous machines until the installation of improved safety features such as infrared detectors, Kevin Gardner, a spokesman for Bentonville, Arkansas- based Wal-Mart, said by e-mail today, confirming details in an earlier report in the South China Morning Post.

Students & Scholars Against Corporate Misbehavior, a Hong Kong-based organization that lobbies companies on labor conditions, last month said safety shortcomings at Elec-Tech led to unsafe work practices and injuries to workers. The southern China-based manufacturer produces appliances such as coffee makers, blenders and food processors.

Wal-Mart made two unannounced audits at Elec-Tech’s plant in Zhuhai and identified 55 incidents of staff injuries, the South China Morning Post reported. Gardner said the details in the report were accurate.

Calls to Elec-Tech’s headquarters in Zhuhai in the southern Chinese province of Guangdong weren’t answered.

Elec-Tech declined 1.4 percent to 20.03 yuan at the 11:30 a.m. trading break in Shenzhen, paring its gain this year to 17 percent.

To contact the reporter on this story: Robert Fenner in Melbourne at rfenner@bloomberg.net