On January 4th and 15th, 2007, SACOM returned to the Shenzhen site of Hivac Startech Film Window.  Hivac is a direct supplier of Foxconn and a second-tier supplier of Motorola.

Interviews from those visits verified Hivac have lost substantial orders for Motorola lenses, forcing Hivac to terminate the employment of close to half of its workforce. Hivac now employs only approximately 400 people despite a maximum capacity of 800 workers.  Most of the 400 workers still employed worry they will lose their jobs before the Chinese New Year and that they will never receive the recompense owed to them for lay offs.

According to senior level managers and production workers, orders to Hivac for Motorola lenses dropped in excess of 50% in 2006 after mass media drew attention to a SACOM report exposing workers’ rights violations at Hivac including the serious poisoning of 9 workers.  Since the beginning of 2005, Motorola lenses were the bulk of Hivac business and the mainstay of workers’ employment.  After media attention, orders for Motorola lenses dropped drastically to an insignificant portion of Hivac business.

Three of the nine poisoned women workers who first drew SACOM attention at the beginning of 2006 are still in the Shenzhen Hospital for Occupational Disease Treatment & Prevention.  One of these women will suffer the rest of her life from the pain of having lost a child as a result of n-hexane poisoning. Since December 2005 when the nine workers were convinced of their symptoms, they insisted their employer offer them medical examinations and insurance according to the law.  Sadly, their efforts were in vain. It was not until September 19, 2006, just before Motorola sent Intertek to interview workers in response to the SACOM report that Hivac agreed to discuss damages to workers. Hivac agreed to give every worker suffering n-hexane poisoning a tiny sum of seven to eight thousand yuan.  However, they pressured workers to agree, among other things, not to raise future complaints in connection with their disease.  Otherwise, the employer said they would get no recompense at all.  These efforts to silence workers from discussing the long term effects of their poisoning no doubt influenced the quality of the “independent” audit commissioned by Motorola.

SACOM insists Motorola uphold its code of conduct and improve the conditions of its suppliers to prevent the recurrence of these poisonings and other serious violations that risk workers’ lives.  It is common knowledge that the majority of transnational firms are not effectively implementing their codes of conduct.  At best, their efforts promote a system of “model” factories that give transnational firms a chance to avoid public scrutiny and deny their responsibilities to the workers manufacturing their products.  Consumers did not accept transnational firms when they denied responsibility for the conditions of their first tier outsourcing partners, and they will not accept these firms from denying their responsibility again.

If Motorola is to effectively enforce its code of conduct, it needs the help of independent NGOs able to provide on the ground experience.  SACOM wants to focus on pragmatic improvements to working conditions that, first and foremost, protect workers’ lives.  We sincerely hope Motorola will dialogue with us to develop a program of solutions to the workers’ rights violations of their suppliers.  Whatever Motorola chooses to do, we demand that Motorola act NOW to find trustworthy NGO partners to more effectively implement its code of conduct!  We ask Motorola to respond responsibly to these issues.

Motorola, Inc. Corporate Offices

1303 E. Algonquin Road, Schaumburg, Illinois 60196 U.S.A .

+ 1 847 576 5000 www.motorola.com

Michael Loch michael.loch@motorola.com

Corporate Director EHS Strategic Initiatives

John Plyler jplyler@motorola.com

Manager, Supply Chain Global Corporate Citizenship

David Buck d.buck@motorola.com

Director of Global Procurement

Below, SACOM offers a list of what Motorola needs to do to rectify the situation at Hivac and beyond.

Motorola should:

(1) ensure workers receive appropriate treatment for occupational poisoning and compensation according to the standards of the Chinese Labor Law and the Law on Prevention & Control of Occupational Diseases;

(2) compensate all workers laid off as a direct result of the loss of Motorola orders at Hivac according to the standards of the law;

(3) engage Hivac to develop and carry out a long-term remediation plan for the workplace;

(4) give every worker at every Motorola supplier a written employment contract and a copy of Motorola’s Code of Conduct in Chinese;

(5) coordinate with SACOM and independent NGOs to provide workers at all Motorola suppliers with labor rights training;

(6) facilitate the formation of mechanisms of worker representation at all Motorola suppliers.  Only by actively engaging workers in the process of implementing its code of conduct will Motorola get the commitment of its suppliers and find long term solutions to workers’ rights violations in suppliers’ factories.