Sporting Goods Intelligence's Report on Sentences of Stella Factory Workers

02 November 2004
China Labour Bulletin appears in the following article. Copyright remains with the original publisher.

Stella Workers Sentenced; What Happens Next?

Glenn Berkey

Sporting Goods Intelligence

1 November 2004

Hong Kong-based labor-rights activist group China Labor Bulletin says that the first five workers who went on trial for the disturbances at Stella factories in Apr. have been sentenced to 2-3 1/2 years in prison by the Dongguan Municipal People's Court. The sentences have not been publicly announced, but CLB says one worker got 3 1/2 years, three got 3 years each, and an under-aged female worker received a 2-year sentence, suspended for three
years. The fates of five other workers (from a different Stella factory) tried on the same charges in the same court on Sep. 8 remains unknown. CLB says some or all of the five convicted workers are likely to appeal.

The five defendants were convicted of "intentional destruction of property" after an Aug. 25, in camera trial that lasted only 66 minutes. The disturbances arose when workers complained about working conditions CLB
director Han Dongfang roughly echoed what many SG brands have been saying privately for a while now: "The government's failure to enforce China's own labor laws is the real source of the growing labor unrest in many parts
of the country today."

There is some question as to how much the factory is to blame for the outcome. One source said that Stella had written a letter to the court on the workers' behalf, but could have done more. This source said the factory could have spoken with government and police officials and gotten the charges dropped entirely, or at the least sent the factory's government liaison to court to testify on behalf of the workers.

On the positive side, several customers said that Stella has been getting better about communicating with them. Weekly overtime reports, which one big brand said it uniquely had wanted for a while, are now being asked for
by and delivered to all customers. Stella has also agreed to quarterly meetings with all customers. The reports and meetings help facilitate performance audits. "[Stella is] sort of getting it, though they need to do more," one
customer said.

Nonetheless, a couple of customers said they feared Stella would use the convictions as a stick to suppress further worker uprisings, with a see-what-happens-if-you-complain threat. Brands are working together on a new plan
to address labor issues across China, but since it is still in its early stages, no one will discuss it on the record.

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