Disney case highlights China supply chain pitfalls

John Ruwitch
Reuters
02/12/2008

SHENZHEN, China (Reuters) - In his dim two-room flat, Huang Renzhong showed a visitor a Mickey Mouse statuette and explained how creating Disney figurines during 15-hour work days in a grim factory led to a $90,000 lawsuit.

The circumstances surrounding the case Huang filed with four colleagues last year suggest that firms such as the Walt Disney Co that outsource production to licensees are more exposed to poor labor practices than companies with more direct control over their supply chains, despite concerted efforts to stamp out labor violations.

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