Investigation of the working and living conditions in two Procter and Gamble factories in the Guangdong and Sichuan Provinces conducted through worker interviews

China Labor Watch

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Investigation of the working and living conditions in two Procter and Gamble factories in the Guangdong and Sichuan Provinces conducted through worker interviews.CLW_Procter_Gamble_Investigation.pdf: 4911 downloads, before Oct. 1, 2020

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Procter & Gamble Factory Investigation

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Procter & Gamble Factory Investigation 
China Labor Watch (CLW) conducted an investigation of two factories, one in 
Guangdong Province and one in Sichuan Province. 
 
Investigation I: 
Procter & Gamble Huangpu Factory, Guangzhou City, Guangdong Province 
Translated by Manfred Elfstrom 
 
Bestfriend Human Resources Co. Ltd. Dormitory for Temporary Workers 
at the Procter & Gamble Huangpu Factory in Guangzhou 
I. Respondents and Research Methods 
II. Background and Factory Overview 
III. Work Hours 
IV. Forced Overtime 
V. Wages 
VI. Living Conditions 
VII. Meals 
VIII. Working Environment and Management 
IX. Benefits 
 
I. Respondents and Research Methods 
 
Three investigations were conducted between August and October 2005. All 
investigations centered around the P&G Huangpu Factory, located on Binhe Road in the 
Guangzhou Economic Development Zone. As the investigator could not enter factory 
grounds, the interviews were conducted off-site. Eight workers were interviewed, of 
whom four were women and four were men. Six other workers were approached but 
refused to be interviewed. All interviewees were randomly selected 
 
II. Background and Factory Overview 
Procter and Gamble (P & G) is a Fortune 500 American company with branches in 80 
countries and distribution in over 160 countries.  Its products include paper goods, 
household cleaners, prescription drugs, cosmetics, snacks, beverages and skin and hair 
care products. Altogether, P & G owns more than 300 brands.  In 1988, P & G 
established its first joint venture in China: the Guangzhou Procter and Gamble, Ltd.  
Since then, the corporation has begun joint ventures and independent enterprises in over a 
dozen places in China. 
 
Workers are separated into formal and temporary workers. Formal workers usually live in 
Guangzhou city and commute to work via a company shuttle. It is possible that the 
workers who declined to be interviewed were formal workers. Temporary workers are 
contracted out by the Guangdong Bestfriend Human Resource Co. Ltd. (Bestfriend Co.) 
These workers are under the employ of both Bestfriend Co. and P&G. There are between 
200-300 such temporary workers at the factory, though interviewees did not have exact 
numbers. The factory produces shampoo, skin care products, feminine care products and 
oral hygiene products. The factory manufactures for the following companies: OLAY, 
Rejoice, Pantene, Head & Shoulder, Sassoon and Crest. 
 
Procter & Gamble Huangpu Factory, Guangzhou 
III. Work Hours 
 
All contract workers work 12 hour days. The factory works two shifts. The day shift is 
from 8am to 8pm, with the night shift taking over at 8pm. Workers switch shifts about 
every two weeks. Day shift workers have a paid half hour lunch break from 2pm to 
2:30pm. Night shift workers have two paid breaks, one for twenty minutes and one for 
thirty. Workers can eat and speak to one another during the breaks but are not allowed to 
leave the compound.  
 
Workers are allowed four days off per month. Workers must rotate their days off such 
that there are enough workers at any given time.  If there is not an overwhelming demand, 
workers can take holidays off, as well.  
 
Attendance is kept by what are called “group leaders.” Once attendance has been 
recorded, the supervisor at the factory must sign off so that the contractor, Bestfriend Co., 
can calculate payment with P&G. 
 
IV. Forced Overtime 
 
Workers are sometimes sent to the packaging department of the Procter & Gamble Zhong 
Yuan Wu Liu Company South District Distribution Center. They are forced to do 
overtime here after they have already put in 12 hours at the factory. Sometimes, if all the 
work at the Huangpu factory has been completed and there’s nothing else to do, the 
workers will be sent straight to the Zhong Yuan Wu Liu Company. Because of this, the 
workers are completely exhausted. Even when there is no work for them to do at P&G, 
they are still not allowed to rest. If these workers do not put in the overtime they will be 
sanctioned by Bestfriend Co. The worker will either have 60 yuan deducted from his/her 
next pay check or be suspended for seven work days. For these seven days, of course, 
there is no pay.  
 
Procter & Gamble Zhong Yuan Wu Liu Company South District Distribution Center 
V. Wages 
 
Contract workers are paid 4.07 yuan per hour.  Overtime pay is 6.1 yuan per hour, which 
complies with the national requirement that workers receive time-and-a-half for overtime. 
When workers work on statutory holidays they receive three times their standard wage. 
 
An average temporary worker’s monthly income is 1,200-1,300 yuan, but there are also 
occasionally months when they receive only 700-800 yuan. Their pay depends on the 
demand for the factory’s goods. 
 
Workers are paid on the 25th of each month. Usually wages are distributed on time, but 
occasionally workers get paid a day or two late. 
 
VI. Living Conditions 
 
Bestfriend Co. rents several apartments at a “Peasant Apartment District,” which is 
basically a ghetto for migrant workers from the countryside. Due to the paternalistic 
nature of the dormitory management, which includes giving adult workers curfews, a 
large number of workers decide to rent apartments independently though it means they 
must travel further to get to work. 
 
In the Bestfriend Co. dormitories the rooms measure about 12-13 square meters. In these 
are placed four bunk beds, accommodating six or eight workers total. There is also a 
collective closet in which workers can keep personal affects. There is a ceiling fan in 
each room for ventilation. Each room has its own small bathroom.  The workers in each 
room divide the rent, 280 yuan, between themselves. The dormitory also has a common 
room with a few tables and chairs, as well as a television.  
 
 
Common Area at the Bestfriend Human Resources Co. Dormitory for  
Temporary Workers at Procter & Gamble, Guangzhou 
 
VII. Meals 
 
Workers eat lunch and dinner at the factory cafeteria. Breakfast is not provided. A 
standard meal consists of four dishes, rice and soup. The workers have stated that the 
food is sub-standard, though the sanitary conditions are acceptable. 
 
VIII. Work Environment and Management 
 
The Bestfriend Human Resource Company has a rigid set of “Reward and Punishment 
Regulations” (see attached). There are six levels of punishment. The first four are 
monetary, ranging from a 10 yuan fine to a 60 yuan fine. Losing one’s job is the fifth 
level of punishment while losing one’s job with no severance pay is the sixth. One can 
receive the sanction by either P&G or the Bestfriend Human Resources Company.  
 
The workshop is air-conditioned and workers are not required to move or lift heavy 
objects. There are no objectionable chemicals or odors in the factory. 
 
IX. Benefits 
 
Temporary workers do not enjoy paid marriage or bereavement leave. As P&G mostly 
only hires younger workers (between 18-23), there is no child labor and there are no 
pregnant women in the factory. Temporary workers receive no social insurance 
whatsoever.  Some workers have a contract with Bestfriend (see attached), but few with 
P&G. There is no union. 
 
Workers who have no recorded absences receive a monthly bonus of 20 yuan. Workers 
who have had no citations for safety or quality violations receive a bonus of 100 yuan per 
month.  
 
Before workers are hired they are required to pay for a health exam in order to receive a 
Health Card.  
Investigation II: 
Chengdu Procter & Gamble, Ltd., Chengdu City, Sichuan Province 
Translated by Manfred Elfstrom 
 
 
I. Overview  
II. Work Hours 
III. Wages.  
IV. Meals 
V. Work Pace 
VI. Fines and Deductions 
VII. Holidays and Benefits 
VIII. Hiring Policy 
IX. Work Safety 
X. Supervision and Inspection 
 
 
I. Overview 
 
The subject of this report is P & G’s independent enterprise, Chengdu Procter and 
Gamble, Ltd (CPG).   CPG is located in Chengdu City’s Qing Bai Jiang District in Da 
Wan Town, on Solidarity Street.  It employs almost 500 people, of whom 160 are 
formally employed and 300 are “temporary”, workers on contracts. CPG manufactures 
Ariel and Tide laundry detergents.   
 
II. Work hours 
 
CPG uses four teams of workers which rotate such that there teams are working on any 
given day and the fourth team rests. In this way every team has a break every four days 
and each worker puts in roughly 23 days of work per month. This schedule does not 
change for holidays. 
 
The day shift starts at 7:45am and ends at 3:45pm. The middle shift is from 3:45pm to 
11:45pm and the night shift from 11:45pm to 7:00am.   
 
III. Wages  
 
Managers, skilled workers and formal workers all receive hourly wages.  Some of those 
who do physical labor, such as packing, are paid hourly wages and some are paid piece-
rate wages.  Workers receive their wages in sealed envelopes such that no workers know 
what others are earning. 
  
Formal workers’ wages are decided according to their position, the type of work they do 
and the number of years they have worked at the factory.  Those who have just become 
formal workers earn a base wage of 800 yuan per month. Taking into account bonuses 
and housing subsidies, these workers earn a total of about 1,200 yuan per month. 
Workers who have been with the factory a bit longer can bring in 1,700 or 2,000 yuan per 
month.  High-level managers earn approximately 5,000 yuan.  
 
Temporary workers usually earn about 23 yuan per day or 400 or 500 yuan per month.  . 
 
IV. Meals 
 
The factory has a cafeteria, which is divided into a formal workers’ cafeteria and a 
temporary workers’ cafeteria.   Formal workers pay about eight yuan per meal. The 
temporary workers pay three yuan per meal. The temporary workers often choose to eat 
at outdoor stalls across the street, as they find the cafeteria food unacceptable.  
 
V. Fines and Deductions. 
 
For every product lost due to worker error, the company deducts 10 yuan and the worker 
must compensate for the lost product.  
 
A formal worker who misses two or three days of work will be fired. A temporary worker 
who misses work only once or twice will be fired. Formal workers who miss work lose 
half of their year-end bonus as punishment.  
 
Formal workers may disobey management twice before being removed. A temporary 
worker can do so only once before dismissal.  
 
Workers are also required to wear work uniforms. For these, the temporary workers must 
pay at least 10 yuan. Formal workers receive the uniforms free of charge. 
 
VI. Holidays and Benefits 
 
Only when demand is especially high do workers need to work their usual schedules on 
holidays. Formal workers, unlike temporary workers, receive paid holidays, marital leave 
and bereavement leave. 
 
For formal workers, the factory supplies pension insurance, health insurance and all other 
social insurance, as is stipulated by Chinese law. However, temporary workers receive 
none of these benefits – even those temporary workers who have worked for many years 
at the factory. Furthermore, temporary workers receive no housing subsidies, while 
formal workers do. 
  
VII. Hiring Policy 
 
Every year the factory goes to a few professional schools to recruit graduates to be formal 
workers. Every year the factory will also promote two or three temporary workers to 
formal workers status. 
 
For the most part, the temporary workers come from the area. There are a two contracting 
companies that will hire out temporary workers to the factory. The workers’ pay checks 
are deducted to compensate the contracting companies. The factory itself has no contract 
with these workers. 
 
VIII. Work Safety 
 
The workers work with dangerous chemicals, such as sodium alkyl benzene sulfonate, 
when producing the detergent. The workers, formal and temporary, are required to wear 
protective goggles and ear covers, as these chemicals can cause severe damage upon 
contact. 
 
IX. Supervision and Inspection 
 
There is a suggestion box in the factory, but workers rarely make use of it. There is a 
union, but it is an officially created union. It was not organized by the workers. The 
factory was originally a state owned enterprise, therefore having a union that was 
essentially an arm of the government. Although the factory is now independent of the 
government, the union is basically the same. Therefore, the workers do not feel that they 
can approach the unions to help resolve their problems. 
 


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