The New York Times published three articles on sunday that document just how distructive this company is, and non of the articles are what I would call drastic hype.
An Ohio Town Is Hard Hit as Leading Industry Moves to China
By JOSEPH KAHN
Published: December 7, 2003
RYAN, Ohio ?- For 40 years workers in Bryan made Etch A Sketch, a children's drawing toy that has outlasted almost all others, and to a significant extent Etch A Sketch made Bryan.
That was true, at least, until a winter day three years ago, a week before Christmas, when Ohio Art executives called representatives of the Paper, Allied-Industrial, Chemical & Energy Workers Union into head offices and delivered the news. The Etch A Sketch line was moving to Shenzhen, China. About 100 union employees would lose their jobs.
http://www.nytimes.com/2003/12/07/national/07OHIO.html
THE WORLD'S SWEATSHOP: THE ETCH A SKETCH CONNECTION
Ruse in Toyland: Chinese Workers' Hidden Woe
By JOSEPH KAHN
Published: December 7, 2003
HENZHEN, China ?- Workers at Kin Ki Industrial, a leading Chinese toy maker, make a decent salary, rarely work nights or weekends and often "hang out along the street, play Ping-Pong and watch TV."
These are the official working conditions at Kin Ki as they are described on paper ?- crib sheets ?- handed to workers just before inspections.
Those occur when big American clients, like the Ohio company that uses Kin Ki to produce the iconic toy Etch A Sketch, visit to make sure that the factory has good labor standards.
Real-world Kin Ki employees, mostly teenage migrants from internal provinces, say they work many more hours and earn about 40 percent less than the company claims. They sleep head-to-toe in tiny rooms. They staged two strikes recently demanding they get paid closer to the legal minimum wage.
Most do not have pensions, medical insurance or work contracts. The company's crib sheet recommends if inspectors press to see such documents, workers should "intentionally waste time and then say they can't find them," according to company memos provided to The New York Times by employees
Etch A Sketch is the same child's drawing toy today that it was in 1960, when Ohio Art first produced it in Bryan, Ohio. But efforts to keep its selling price below $10 on shelves at Wal-Mart and Toys "R" Us forced the company to move production to China three years ago.
Kin Ki stays competitive, workers say, by paying them 24 cents an hour in Shenzhen, where the legal minimum wage is 33 cents. When the Etch A Sketch line shut down in Ohio just after the Christmas rush in 2000, wages for the unionized work force there had reached $9 an hour.
http://www.nytimes.com/2003/12/07/international/asia/07CHIN.html
DISCOUNT NATION
Is Wal-Mart Good for America?
By STEVE LOHR
Published: December 7, 2003
"Wal-Mart is the logical end point and the future of the economy in a society whose pre-eminent value is getting the best deal," said Robert B. Reich, the former labor secretary and a professor of social and economic policy at Brandeis University.
To the company's supporters, Wal-Mart is an agent of economic virtue, using its market power to force suppliers to become more efficient and passing the gains on to consumers as lower prices. The enthusiasts say Wal-Mart is a big reason for the country's almost nonexistent inflation and impressive productivity gains.
To keep cutting costs, Wal-Mart is tough on its suppliers. Selling to Wal-Mart, by all accounts, is a brutal meritocracy. Manufacturers have been forced to lay off workers after Wal-Mart canceled orders when another vendor cut its price a few cents more. Other suppliers have shifted to low-cost operations in China and elsewhere when squeezed by Wal-Mart to cut costs further.
Â…said Michael J. Silverstein, a senior vice president at the Boston Consulting Group. "Wal-Mart has forced manufacturers to get their act together and forced them to compete internationally."
http://www.nytimes.com/2003/12/07/weekinreview/07LOHR.html?pagewanted=2