A Statement to Michael S. Dell,

Chairman & CEO of Dell, Inc.

International Labor Day

May 1, 2007

SACOM’s ‘Clean up your Computer’ Campaign

Hong Kong, China & other countries

“…due to multiple reasons – all from quality aspects, safety, material specifications, and

specific process issues, Dell has suspended a supplier for a period of time until an issue is

resolved or an agreed plan exists to resolve an issue. During this period Dell is working with

its tier 1 and tier 2 suppliers to follow up on the situation and the expectations. Dell is

currently working on workshops and training programs for its suppliers…”

Lena Pripp-Kovac

EMEA Head of Corporate Responsibility, Dell, Inc.

in response to SACOM’s labor investigation in China

On the International Labor Day, SACOM calls on Dell to respect workers’ rights and

to uphold social justice:

1. Dell’s “suspension” of the business relationship with a supplier

Dell needs to disclose which supplier it refers to. SACOM hopes that the “suspension” was not a

direct result of pressure on Dell to enforce workers’ rights at the supplier.

SACOM compiled and released a report about ten Dell supplier factories. One of them, Yonghong

Electronics in Shenzhen City, Guangdong Province, China, was found to be employing more than

200 child and student workers under age 16, constituting some 13% of the workforce, in blatant

violation of Chinese Labor Law, the Dell Code of Conduct, and the Electronic Industry Code of

Conduct (EICC).

In response to SACOM’s investigation, Dell has not directly addressed these issues. SACOM asks

Dell to provide thorough information on the supplier being suspended. We ask the company to

disclose the factory name and a summary of concerns identified in regard to working conditions, the

mechanism of suspension, the non-compliance issue that led to suspension – labor or otherwise, and

timing of the disciplinary action taken. There also needs to be an assessment of the immediate and

long-term impact on any underage and/or adult workers at this facility and a discussion of corporate

procedure and requirements involved in resuming the supplier relationship.

2. A plan to be agreed by Dell

In the absence of an explanation by the company, SACOM doubts the accountability and

transparency of Dell’s global compliance program. It seems that Dell has merely shifted its

corporate responsibility downward to the Chinese supplier in question, instead of collaborating

closely with it in working out “an agreed plan.”

3. Dell’s “partnership” with its first and second-tier suppliers

During the last six months, SACOM did not witness any corrective actions regarding the ten

identified suppliers on our list. Similarly, there is a serious lack of concrete data on Dell’s

engagement with either its direct suppliers or subcontractors in China.

4. Dell’s workshops and training programs for its suppliers

Dell offers workshops and programs for its suppliers but there seems to be no involvement of

independent NGOs or a mechanism for the democratic participation of workers. It will be nothing

more than a PR gesture and will not be endorsed by your consumers and workers!

SACOM is disappointed about Dell’s CSR policy and voices deep concern about this

evidence of labor exploitation at Dell’s suppliers in China.

Dell should:

(1) engage the suppliers to carry out efficient remedial procedures in the workplaces;

(2) monitor the implementation of the corrective action plans under the observation of

independent NGOs;

(3) give every Chinese worker at every Dell supplier a written employment contract and a

copy of Dell’s Code of Conduct in Chinese;

(4) collaborate with independent NGOs to provide workers at all Dell suppliers with labor

rights training;

(5) respect workers’ right to bargain collectively by facilitating the formation of mechanisms

of democratic worker representation at all Dell suppliers.

Contact persons:

Jenny Chan, Coordinator of SACOM, wlchan@sacom.hk

Lung Tai, Campaign Coordinator of SACOM, lung@sacom.hk

Websites:

SACOM www.sacom.hk

Bread for All www.ppp.ch

SOMO www.somo.nl

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