Workers at a factory in Shenzhen making toys for the Walt Disney Company have lodged a complaint with the city's labor department, claiming they are being paid below the minimum wage and are overworked.

More than 70 workers at Jin Da company made the accusation of sweatshop conditions on Monday at the labor station of the Nanwan sub-district office in Longgang District, where the factory is located.

The workers were also worried about losing their jobs after the factory relocates to neighboring Dongguan, a public relations officer at the office surnamed Zhang said.

"Our law enforcement team has gone to the factory to understand the situation from the perspective of workers and management. We will try to mediate and help them reach an agreement," she said.

Referring to the workers' accusations, Zhang said if there were violations of the Labor Law, the management will be asked to rectify the problem and will be punished.

The situation arose after more than 700 employees were asked in May to sign short-term contracts, which did not specify working hours or salary, the Hong Kong-based Ta Kung Pao newspaper said.

The alternative was "taking a vacation", according to the paper.

The factory closed some workshops this month and asked workers to accept 180 yuan a month and take a break from work, the paper said.

Workers speculated this was an underhand way for management to reduce severance wages when it relocated at the end of this year and took their grievances to the authorities

Zhang, however, said a preliminary investigation found the factory was not intending to move the whole plant to Dongguan.

"Management should strengthen communication with workers. But we cannot make any further conclusions before the investigation ends," she said.

Disney has been accused of running sweatshops following investigations by the Hong Kong-based organization, Students and Scholars Against Corporate Misbehavior.

Walt Disney Company (Asia Pacific) Ltd spokesperson Alannah Goss said the company and its affiliates took claims of unfair labor practices very seriously and will investigate any such allegations thoroughly.

"We have a long-standing and firm commitment to the safety and well-being of workers, and fair and just labor standards," Goss said.

(China Daily September 14, 2007)