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K'Nex investigates 'sweatshop' report

By Staff -- Playthings,07/14/2008

July 14, 2008—K’Nex Industries is launching an investigation into claims by the National Labor Committee, an international workers' rights watchdog group, that some of its Sesame Street building sets are made under “abusive sweatshop conditions.”

According to an NLC report, the Kai Da Toy factory in Shenzhen, China, where some of K’Nex’s toys are made, violates “every labor law in China” based on factory and product photos, and worker interviews. Its report says Kai Da’s “600 mostly young workers, including a hundred 16-year-old high school students and several children,” are “forced to toil 13 to 15 hours a day… seven days a week, going for months without a single day off” and include “mandatory 19-to-23½-hour, all-night shifts before shipments must leave for the U.S. or Europe.”

In addition to a litany of other complains, the report claims workers “are systematically cheated of half the wages due them, earning just $36.55 for working an 89-hour week instead of the $77.84 they were legally owed”—or “less than 1 cent for each toy they complete.”

In a statement released today, K’Nex said:

“We are a family owned company and we are committed to the safety and welfare of children. The Hoida toy factory is ICTI (International Council of Toy Industries) certified, which means that we comply with the highest safety and labor laws in the toy industry. We take the NLC allegations very seriously and as a result we are launching an immediate investigation.”

The NLC’s announcement was timed to this week’s release in the U.S. and Europe of the latest SKUs in K’Nex’s Sesame Street line. In addition to castigating K’Nex, it also chided Hasbro for distributing K’Nex’s Kai Da-produced products in international markets.

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Submitted by: Brenda Kvale
7/16/2008 9:09:34 AM PT
Location:Kvale Good Natured Games, LLC
Occupation:Marketing

This is unfortunate. I am glad it has been brought to light so that
changes can be made.

After a search, we decided to assemble our company's board games in
the US using labor teams with a long history of social benefit. The
non-profit organization gives fair wages to people with physical,
mental and economic disadvantages. Yes, it's a little more costly for
us, but most people appreciate these authentic efforts. It's a win-win.

(We, too, are members of the Co-op America Business Network and
fully agree with Eileen that the thorough verification process is a great
starting point.)

Submitted by: Eileen Thournir (enlightenedplay@enlightenedplay.com)
7/16/2008 8:43:27 AM PT
Location:Lakewood, CO
Occupation:President, Enlightened Play, kid''s board games

As a business owner, I think it is important that we take an active role in all aspects of our product development. It should not end at the point of handoff to a third-party vendor.
If these allegations are true, it reflects poorly on the company''s executives. It should also be a red flag for licensors in setting stringent guidelines on manufacturers of their products.
I am a member of Co-op America. The organization requires a business to verify and account for all aspects of its organizational procedures, mission and values and employment practices. It takes months to get this approval for membership. Perhaps we should require all businesses, especially when children are concerned, to pass such guidelines.
Yes, I am a struggling small business and it takes time and money that I can ill afford, but I feel it is worth it in the long run. I would rather be part of the solution than the problem. I''d love to hear back from others on their views, pro or con.

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