New reports released last week by China Labor Watch and the National Labor Committee (NLC) have confirmed that two Wal-Mart factories in southern China are sweatshops. The factories, one making stationary and the other toys, are both characterized by dismal wages and exhausting hours with workers working up to thirteen hours per days, six to seven days a week. Workers at both factories do not receive health insurance, maternity leave, paid holiday leave, marital leave, or leave for the deaths of family members. The Lung Cheong International Toy Factory, investigated by China Labor Watch and the NLC for four years, requires workers to paint one toy truck every fourteen seconds for a wage that amounts to 33 cents per hour (including overtime). According to the testimony of workers, the paint frequently makes them sick yet all newly hired workers are required to sign agreements stating that the factory is not responsible for any injuries received. A similar situation prevails at the Panyu United Stationary Factory, where workers make 34 cents per hour for similarly demanding work schedules.

Wal-Mart’s shift in production towards China has partially been a result of China’s entry into the World Trade Organization (WTO). China’s WTO membership has allowed Wal-Mart to double its imports from China, all of which are now received without tariffs and quotes, Wal-Mart has benefited from existing WTO provisions and is seeking expansions, specifically with regard to further elimination of restrictions on where companies can operate and increased market access. Moreover, Wal-Mart has supported an expansion of the WTO’s General Agreement on Trades and Services (GATS) that could allow corporations to override zoning laws in countries around the world.