Gold Peak Industries (Holdings) Limited is an Asian multinational company based in Hong Kong. Its factories mass-produce batteries for toys, laptops and cameras, which are exported throughout the world. With a turnover amounting to 740 million euros this year, it is one of the world’s largest producers and exporters of this type of products. This thriving company has nevertheless been accused of violating basic labour safety rules and neglecting the health of its workers. For several years, close to 400 Chinese workers were exposed to a highly toxic product, cadmium, used by Gold Peak in the manufacturing of batteries. The workers were neither informed of the risks to their health nor given adequate protection. Despite strong mobilization by former employees of Gold Peak factories, supported by several labour rights organizations in Hong Kong, the multinational refuses to compensate intoxicated workers and to enter into genuine negotiations with employees.

In December 2003 workers at the Shenzhen and Huizhou factories in Guangdong province discovered that they had been intoxicated by cadmium. Manipulation of this metal without appropriate protection can cause health problems ranging from nausea, dizziness and pain to serious kidney, lung and bone damage, and even cancer. Once absorbed, cadmium takes 10 to 30 years to be eliminated by the body. Consequent to these revelations, workers at the Gold Peak factories demanded that the company pay for them to have medical tests. Initially management refused, then finally agreed after a three-day strike, in line with Chinese legislation. Blood tests revealed that ten workers had cadmium poisoning and that 400 others had excessive levels of cadmium.

Demands for compensation not satisfied

Early in 2004 the intoxicated workers started to demand compensation, primarily to be able to pay the high medical costs of their treatment. In view of the scale of the crisis, the Gold Peak factory managers offered them compensation, provided they resigned and undertook not to lay charges. Many of the workers accepted, essentially through fear of the harmful effects of cadmium on their health if they remained at the factory. However, Gold Peak failed to keep its promises and ended up refusing to adequately compensate these former employees who were consequently left with no recourse. The firm furthermore refused to pay for the medical treatment of workers’ children who had been intoxicated during their mothers’ pregnancy. In September 2004, when mobilization was stepped up, the workers tried to present their complaints to the authorities in Peking. Gold Peak, supported by government authorities, responded by threatening to prosecute them. In August 2005, when it was evident that the mobilization was not weakening, Gold Peak finally announced the creation of a fund to provide financial assistance for the intoxicated workers. This fund nevertheless proved to be hopelessly insufficient and serious shortcomings in its management made it unworkable. The company itself said that only 4% of the 400 intoxicated workers had benefited from aid. This is largely explained by the fact that the company had not informed the workers adequately of the approach to follow to benefit from the aid. Today, 244 former workers of the Gold Peak factories are engaged in the struggle to obtain compensation. They are denouncing this company’s illegal and irresponsible practices.

Intimidation and humiliation

Faced with the demands of its former employees, Gold Peak still refuses to negotiate. It prefers using the tactics of humiliation and intimidation to silence protesters. For instance, in order to dissuade workers from undergoing the annual medical examination that the company is legally compelled to finance, the workers are required during the examination to undress completely, to provide samples of urine and to shower in the presence and under the supervision of the medical staff. This practice is denounced by the workers who see it as humiliating and who demand that it be stopped immediately. The most recent example dates from June 2006 when three labour rights organizations, Globalization Monitor, the Hong Kong Federation of Trade Unions, and the Neighbourhood and Worker’s Service Centre, were summoned to appear in the Supreme Court of the Hong Kong special administrative region. They were accused of libel by Gold Peak, for disseminating a denunciatory post card intended to raise public awareness.

FOR MORE INFORMATION

Peuples Solidaires mission to Hong Kong:
  During a five-day mission to Hong Kong in June 2006, members of Peuples Solidaires met the organizations working on human rights issues in China, including Asia Monitor Resource Centre and Globalization Monitor which originally launched this appeal.
  The Coalition of trade unions and Hong Kong NGOs on the Gold Peak cadmium incident:
  This coalition groups together several organizations, including: Asia Monitor Resource Centre, the World Organization Against Torture (OMCT), the Hong Kong Liaison Office for the International Trade Union Movement, the Justice and Peace Commission of the HK Catholic Diocese, Students and Scholars Against Corporate Misbehaviour, China Labour Bulletin, China Labour Action, Ziteng, and others.

On the Web:
  The Global Monitor site: http://globalmon.org.hk
  For more general information on the labour situation in Asia, see the site of the organization Asia Monitor Resource Centre (AMRC): http://www.amrc.org.hk/

TO WRITE:
  By email: gp@goldpeak.com
  By letter: copy the proposed letter or change the wording.
   By fax: 00 852 2489 1879
  Important:Message of solidarity: send Globalization Monitor a message of solidarity to let them know of your support.
  Reaction time: on reception, and until 5th December 2006.

PROTEST LETTER

  Mr. Lo Chung Wing
  CEO
  Gold Peak Industries (Holdings)
  Limited Gold Peak Building
  8/F, 30 Kwai Wing Road
  Kwai Chung New Territories
  Hong Kong
  CHINA

Dear Mr. Lo Chung Wing,

I have been informed by Réseau-Solidarité of the social conflict which opposes Gold Peak to its ex- employees, in respect of a case of cadmium intoxication in workers and your subsequent refusal to provide the intoxicated workers with decent compensation.

I am extremely preoccupied with your employees and ex-employees situation and urge you to:
  Immediately provide the affected workers with fair and decent compensation;
  stop the humiliating body-checks and provide recognized and professional medical check-ups to your workers;
  stop threatening your workers and apologise for any harassment, injustice and discrimination directed at them. You should undertake to enter into genuine negotiations with the workers involved;
  withdraw your legal action against the three Hong Kong groups.

Sincerely yours,

Signature:

SOLIDARITY MESSAGE FOR GLOBALIZATION MONITOR (you may use your own style and wording):

  Globalization Monitor
  P.O. Box
  72729 Kowloon
  Central Post Office
  Hong Kong
  CHINA

Dear friends of Globalization Monitor,

I have been informed of the social conflict that opposes you to Gold Peak, in respect of the cadmium intoxication in workers.

I support your action and sent a letter to the CEO of Gold Peak Industries, Mr. Lo Chung Wing, requesting that he takes immediate action to implement your demands.

With warm regards,

Signature :