REPORTS

 

Report on the Effect of SARS on Workers in China

 

Summer 2003

 


By China Labor Watch, Anthony B Cino  

 

 

Table of Contents

 

Summary                                                                                                                               

 

Introduction                                                                                                                         

 

Macro Effects of SARS on the Chinese Worker                                            

 

Fear and the Handling of Information                                                             

 

Punishing the Rumors                                                                                                        

 

Factory and Government Policies, Workers without a Voice                      

 

The Difficulties Faced by Migrant Labor                                                        

 

Legal Methods of Enforcement                                                                        

 

Conclusion                                                                                                                           

 

 


 

Summary:

 

Workers were dramatically affected by the advent of Severe Acute Respiratory Syndrome (SARS) in China.  The plight of workers in China during SARS is best described as one of powerlessness.  China was affected on a macro-level to a degree which is still being determined, but which caused many businesses to flee China in favor of other locations, or for business to be slowed down until the situation improved.  These events have affected employment, security, and wages of workers.  On a more local level, as SARS developed into an epidemic, laws were put in place to prevent the spread of the disease and allegedly to protect the workers.  This resulted in the temporary closing of factories and the quarantining of others while work continued.  Workers were not provided with the most current information on what was going on and were not given a say in their own lives.  China Labor Watch understands the difficulty of the situation put before the government and the people of China, and commends those that did their most to prevent the spread of the disease and provide current and accurate information to the public, but especially to those that had the best interest of the workers in mind.  The following is the result of an investigation in China by Chinese researchers as well as an intensive monitoring and review of local and international government and media reports on developments throughout China and in specific regions.

 

 

Introduction

 

 

The end of 2002 saw the beginning of a new epidemic that spread throughout the beginning of 2003 and killed hundreds, sickened thousands, and frightened and otherwise affected millions or billions.  Perhaps nowhere was this felt more acutely than in China.  China Labor Watch initiated an investigation of the impact Severe Acute Respiratory Syndrome (SARS) has had on workers.  As the disease came to an end, China Labor Watch continued the investigation and has sought to include other sources of information to obtain a better overall picture of the situation and to understand what was and was not done to protect workers.  We have found that the main effect on workers was one of disempowerment.  Because of the illegality of independent representative unions, workers had no one to act on their behalf to make sure their concerns, needs and best interests were being looked after. 

 

 

Macro Effects of SARS on the Chinese Workers

 

 

The effect of SARS on the Chinese economy has been substantial.  Although it now appears that China’s growth in its second quarter will be higher than had been previously expected, there is no doubt that SARS slowed down the Chinese economy during this time.  China’s economy actually grew by 9.9 percent in the first three months of this year – its fastest quarterly growth in years.[i]  This was largely due to the fact that SARS was not the global threat that it was later perceived to be, and also that Chinese companies were still covering orders that were placed before SARS struck.  However, second quarter GDP dropped to 6.7 percent growth for a total 8.2 percent growth rate for the first half of the year.[ii]  This slowdown in development was in many ways caused by the impact of SARS , for example many companies went to other countries for their supplies and products, were forced to delay business ventures, and often times closing factories when it was suspected that  SARS may be present.  All of these in turn have had a serious effect on workers.

 

Because of SARS, foreign companies delayed launching new projects, starting new ventures or opening new factories that they had planned for China.  Others have shifted business from China to other countries for fear of how SARS would affect their businesses.  China’s textile exports were hurt by the SARS epidemic as overseas orders began shifting to competitors such as India, Pakistan, and Turkey.[iii]  Reports have shown that apparel exports in India grew by almost 14% in the first four months of the year, largely because of business that left from China due to SARS.[iv] 

 

The Associated Press reported that “foreign companies, heeding advisories not to travel to the mainland, are putting off launching new products, opening new factories or starting new joint ventures.”[v]  One paper reported, “In Japan, a major investor in China, a survey of 2,015 companies by the Japan External Trade Organization found that 70 percent said SARS was affecting operations.  Three quarters said business negotiations stalled, while one-third said they suspended production because of limits on travel by their staff, according to the agency.”[vi]  Companies such as Sumitomo and Dowa Mining Co. postponed ventures in China until things cleared up.[vii]

 

The economy has been affected as businesspeople avoided China and the need to take precautions within the country interfered with work and deliveries.  “The production system is seriously affected.  Goods, materials and supplies are not being delivered,” says Chen Xingdong, chief economist in Beijing for BNP Paribas Peregrine Securities Ltd.  “These problems will surface more in June, July or even August,” Chen said. [viii]

 

According to Henry Huang, manager of public and government affairs for ASIMCO, his company has been hindered by SARS at every turn. This American company, which has joint ventures in China’s beer and auto parts industries has encountered a variety of problems: “Delivery people sometimes cannot send goods to certain areas,” says Huang.  “Some markets for components are half-closed, some totally closed.  It’s affected some deliveries and some sales, bit it’s not like a fatal problem. [ix]

 

There were many reports of factory and office building closures due to SARS.  In Beijing, the Beijing Matsushita Color CRT Co., which employs 5,200 people producing television picture tubes,[x] and Beijing Matsushita Lighting Co., which employs 400 were closed down, keeping the nearly 6000 workers at home because a Chinese employees fell ill with SARS.[xi]    Ricoh Electronics Technology, a major Japanese office equipment maker, also had to close a Beijing factory from May 5 to May 11 after a 25 year-old employee came down with SARS.  Ricoh provided the rest of the workers at the factory with masks, disinfected work spaces every day, and provided company buses so that its workers could avoid using public transport for commuting.[xii]  U.S. mobile phone maker Motorola briefly closed its 18 story Beijing offices because the company’s 33 year old project manager had contracted SARS.  Approximately 1000 personnel were affected as they were unable to work at the building, from home, or from the Motorola’s other office in West Beijing.  Many other multinational corporations have already sent employees out of the city and back to their home countries.

 

The Macroeconomic effects of SARS were significant, but limited.  They indirectly affected workers throughout China by denying them work opportunities that would have been available to them. Given this situation, CLW sought to understand what circumstances workers found themselves in after SARS hit, how the epidemic was handled, and any impact it had on the lives of workers in China.

 

Fear and the Handling of Information

 

Government handling of information about SARS led to much fear and misunderstanding among workers.  Like many in China, workers were concerned for their safety and health and wanted good information on the situation so that they could make well informed decisions on what was best for them and their families.  After initially covering the epidemic up, Beijing Mayor Meng Xuenong was fired [xiii]and the nation’s health minister Wenkang and then admitted that the SARS cases were actually 10 times what had been previously thought.  This caused a lot of fear, especially in Beijing, and precipitated an exodus of laborers trying to flea the city to protect their health.[xiv]  Reporting on this same time period, Newsweek reported that “Posters in Beijing’s Sahoyaoju neighborhood announced that by municipal orders, ‘floating people’ must ‘leave the city for some time,’ and those who fail to depart will meet with police action.  In contrast the General Office of the State Council, China’s cabinet, officially told college students and migrant workers not to leave, fearing the estimated 750,000 ‘floating people’ and thousands of students would carry the virus home.”[xv]

 

These kinds of conflicting policies and contradictory information fueled a feeling of helplessness among workers and an increased desire for information.  Many tried to protect themselves from SARS by leaving the cities that were the hotspots of the epidemic, in spite of the Chinese Cabinet’s adopted policy of ordering municipal governments and employers not to fire migrant laborers or send them home.  As was reported in one paper, the policy made little difference to some.  The paper quoted one worker as saying, “Our boss said we weren’t allowed to leave, but he didn’t discuss who would pay our medical fees if we got sick… We were afraid of getting SARS so we quit.”[xvi]

 

Punishing the Rumors

 

In such an environment, the desire for accurate information is enormous.  When accurate information is not available, people look for any information that is available.  This is human nature and was the case with workers in China during the epidemic.  Authorities in China have sought to control information about SARS so that people would not be given misinformation that may lead to panic or further spreading of the disease.  One result of this practice has been the persecution of some workers who passed on information they believed to be true. 

 

One example from Chinese media relates that an employee of an electronics factory in Dongguan City, Guangdong province named Peng Mo received an email regarding “Atypical Pneumonia” that said: “Qingxi’s Samsung electronics factory has already had one person die of SARS, Dongguan health bureau has already sent people to come investigate the factory.  20 people are already suspected of having contracted the virus, and have been taken to Dongguan city.  Reputedly, the illness originated with a staff worker at the Samsung factory in Hong Kong where workers have almost all been put on forced vacation...”  After reading the email and believing it to be true, Peng Mo passed the email onto 40 other employees.  However, after authorities in Dongguan verified that the letter was fabricated, Peng Mo was dismissed by his employer and two days later was arrested by the authorities.[xvii]

 

On May 15, 2003 it was announced by PRC state media that the Supreme People’s Court had laid down new standards that made it so people who spread rumors about SARS or violated quarantine orders could face long prison sentences.  Xinhua news agency quoted a court circular as saying those convicted of intentionally spreading rumors could be jailed for up to five years.  According to China News Service, by the end of May, Chinese police had detained at least 107 people in a crackdown on SARS-related rumors, of which at least 12 were arrested and formally charged and 33 other were placed in detention.[xviii]

 

 

 


Factory and Government Policies, Workers without a Voice

 

Besides the indirect effects of losing opportunities for work because of the overall economic environment in China, as wellas the psychological effects of fear, workers were directly impacted in very serious and frightening ways on a daily basis.  China Labor Watch conducted an investigation into the situation of several foreign factories in the regions of South East China surrounding Dongguan and Shenzhen cities.  There are three factories that were focused on because their experiences are representative of the greater number of factories investigated by CLW.  The examples that we will cite here are: Dongguan ??Meida Electonics Products Factory which produces medical and toy products and employs 3000 people, Dongguan City Changan Shili Electronics Factory which primarily produces computer components and employs 8000 people, and Shenzhen Nantai Electronics Product Factory which produces computer components and employs 6000 people.  In total, 50,000 people are employed at the factories where China Labor Watch conducted its investigations. 

 

Positive Changes and Steps

There are several changes that came to the factories after SARS that can be seen as being positive.  According to China Labor Watch’s investigation of the YuAn area of Shenzhen City and of 10 factories in Dongguan, workspaces, dormitories and eating areas were being cleaned and disinfected, and inspections were carried out to make sure sanitation policies were being observed.  These are new policies that were not in effect before the SARS outbreak.  CLW has also observed that the food in the cafeteria was more sanitary than before.  China Labor Watch does not expect that this will continue far into the future, as the memory of SARS fades.  Changes in the cleanliness of factories and the sanitary environment for preparing food are important, but workers have little voice in maintaining these improvements.

 

Every local government of Guangdong fortified their SARS inspection centers.  When workers took the public busses they were required to have their temperatures taken.  From March until May, when China Labor Watch’s investigators were performing their research in the area, they were asked to show credentials and had their temperatures taken.  On April 25th the researchers discovered that someone in the Zhuhai station was not allowed to board a bus, due to the fact that he was suspected of having SARS.

 

Without a Voice

Before April, if there was a worker who came down with a relatively serious cold, the factory would force the worker to leave the factory to rest, and would not provide any money to help with treatment.  One example which China Labor Watch had heard about was a worker who was suspected of having SARS being forced to leave the factory to rest.  The factory did not support the worker with money for medical treatment but took the worker to a train station and put the worker on a train to Guizhou.  China Labor Watch suspects that this worker was not able to get treatment in time and died sometime after leaving the factory.

 

There have been two changes in the treatment of suspected SARS cases after April.  Before April, factories would force workers suspected of having SARS to leave the factory and pay for medical attention themselves.  Later on the policy changed so that when a factory suspected a worker of having SARS, the local government would not permit factory workers to leave the factory, and would also not allow any of the workers of factories in the area to leave.

 

For example, according to a China Labor Watch investigation, Shenzhen Nantai Electronics Factory on April 28th stopped letting its workers leave the factory because one worker was suspected of having SARS.  The workers were forced to stay in the factory for 14 days, after which the workers in the area around this factory were quarantined in the same way and not permitted to leave their factories.  The policy was strictly enforced for the average worker that had no way of having his or her voice being heard.  This is contrasted with some high level managers that did not have to abide by the quarantine and were able to leave the factories to go home to their families.  The workers, having fewer resources available to them were at the mercy of the government and factory management.

 

As stated above, in the period between March 20th and May 20th, if a worker became ill with a fever the worker was forbidden to leave their factory.  According to our investigation, in early May ten factories in the area of Shenzhen Nantai Electronics Factory stopped allowing their employees to leave the factories because a worker in Shenzhen Nantai Electronics Factory was suspected of having SARS.  The policy here was not to close the factory and cease operations, but rather prevent employees from leaving, as work at the factory continued normally with only those workers suspected of being sick not working.  The rest of the workers continued to work as before.  They were not permitted to leave, and were forced to remain in the factories.

 

In the investigation of these factories, we found no cases of workers that had been fired because of contracting an illness, but workers were often temporarily taken off work or told to leave to seek medical attention.  During this time the workers did not receive any pay regardless of the cause of their illness.  Typically workers would be allowed to return to their jobs after 14 days.  Outside of the quarantine policies, the treatment that healthy workers received did not change much during this SARS period.  Workers were provided with Chinese medicinal soup to drink to help prevent SARS and employees began wearing masks that they had to purchase themselves.

 

Perhaps most emblematic of the powerlessness of the workers plight is that when a worker came down with a fever, regardless of whether or not it was SARS, the worker was without exception quarantined and was not paid or given any kind of allowance during this time.  The corresponding loss of the right to leave their workplace for the fellow workers placed a heavy burden and stress on those workers that were otherwise healthy.  The workers for the most part were absolutely powerless and had to leave all decisions about their own lives, safety and health to the local authorities and the plant managers, without any means of having a voice in their own fate.  No independent unions exist that can act on behalf of the rights of the laborers in these factories.

 

When the factories had goods to produce, employees worked both normal and overtime shifts.  The only change is that workers were not allowed to leave, except those suspected of having SARS.  All other workers had to continue to work.  An example of where this took place is Dongguan City’s Changan Shili Electronics Factory.

 

 

The Difficulties Faced by Migrant Labor

 

From a health perspective, migrant labor became the focus of concern for many in the government who were concerned that their movements may spread SARS to areas of the countryside previously unaffected by the epidemic.  For many concerned with the rights of laborers, Migrant laborers are a focus of concern as they are all the more vulnerable and less organized than there counterparts.

 

Migrants and Construction

According to the United Morning Post in Beijing, earlier in the summer it was officially disclosed by the Health Bureau that migrant workers suffering from SARS reached 10% of total cases of SARS, representing a significant increase in the infections among migrant laborers.  Before this, the highest cases of SARS infections in Beijing were hospital workers, officials, white collar workers, and retirees.  It is believed that a big portion of these infected workers are construction workers.  At the time of the report, besides hospitals and clinics, Beijing had 5 places that were quarantined because of cross infections.  Of these 3 of them were construction sites.

 

China’s Yanhai City’s rapidly developing construction industry employs a large number of low wage migrant labors from inland China.  Frequently, 30 migrants will live in a temporary work shed next to the construction site that is only approximately 20 square meters.  These facilities are not only poorly ventilated, but are also crowded, making them a breading ground for the spread of the disease.  In response to the SARS epidemic, Beijing City demanded that all work sites must ensure all employees’ average living space is at least 2 square meters and that every room can not have more than 15 people.  In addition, construction companies also must limit construction site workers’ coming and going, and at the same time every day take the temperatures of every worker twice.

 

Large Numbers Returning Home

According to a Zhongguang Network report on May 7th, Henan province in China, has over 5,000,000 people that work outside the province as migrant laborers.  Because of SARS, many of these migrant laborers went home in order to avoid infection in the cities where there are more cases.  As of May 7, the number of returning workers was about to exceed 800,000 people.  From May 1 to May 4 there were 290,000 people who had returned and 75% of those that returned came from a SARS hotspot.  This made the work of preventing and curing cases all the more difficult. 


Forced Health Inspections

One precaution that was taken by local and federal governments was the forced health inspections of migrant laborers returning home from the cities.  According to a Dahebao report on May 6, 2003, A villager in Henan province, Wuyang county, Xinan Town came home from working outside the town at the end of April, and refused health inspections claiming that not being sick was a good enough excuse not to go.  After receiving a visit on May 1 by other town government official, Huang and his wife refused to submit to the tests and insulted the authorities.  The people’s police then determined, in coordination with the town government’s SARS prevention and control workers, to conduct a forceful health inspection.  After eliminating suspicion that Huang Mo had SARS, the county Public Safety bureau, according to law, placed Huang Mo under administrative detention and carried out educational criticism towards his wife because of their treatment of the health workers and his refusal to comply with SARS inspection.

 

Legal Methods of Enforcement

 

Another element that led to some of the fear and concern about SARS in China were the strict punishments that the government put in place to gain control of the epidemic.  The government said on May 15th that it may execute SARS patients who violate quarantine in the most radical step so far to contain the epidemic.  In a bid to curtail the spread of the disease, China’s judiciary announced that under the country’s infectious disease law SARS patients who violate quarantine restrictions could face execution or life imprisonment:  “Intentionally spreading sudden contagious disease pathogens that endanger public security or leads to serious personal injury, death or heavy loss of public or private property will be punishable by 10 years to life imprisonment or the death penalty,” Xinhua news agency said.[xix]

 

People who spread rumors about SARS or violate quarantine orders could face long prison sentences under tough new standards laid down by China’s Supreme People’s Court, state media said on Thursday.  Those who violate their quarantine can be sentenced to up to seven years in prison, while those convicted of intentionally spreading rumors can be jailed for up to five years, the official Xinhua news agency quoted a court circular as saying.

 

The new interpretations of existing laws suggest jail terms of up to 10 years for people convicted of giving illegal medical treatment and “severe punishment” for firms selling fake medical products or hiking prices during and epidemic.  Officials can also be jailed for neglect of duty during a public health crisis, the agency said.[xx]


Conclusion

 

With the advent of SARS and the hundreds it killed, thousands it sickened, and the millions it frightened and otherwise affected, China Labor Watch found that the major impact of SARS on the majority of workers was one of fear and disempowerment.  Because of the illegality of independent representative unions, workers had no one to act on their behalf to make sure their concerns, needs and best interests were being looked after.  China was affected in a significant way on a macro-level but on a more local level the laws put in place to prevent the spread of the disease and to protect workers resulted in the closing of factories and the quarantining of thousands.  Workers were not provided with the most current information on what was going on and were not given a say in their own lives.  It will be difficult for the best interests of workers to be looked after in such events without a representative body that is able to push for their rights.

 



[i] The Associated Press, May 26, 2003, “Factory Closures, Delays Ventures: SARS Crisis Nibbles at Chinese Economy.” By Elaine Kurtenbach, Beijing

[ii] Asia Times, August 19, 2003 “Will China Revalue the Yen.” http://www.atimes.com/atimes/China/EH19Ad04.html

[iii] Financial Times Information, Global News Wire – Asia Africa Intelligence Wire, Business Daily Update, May 23, 2003 “SARS Affects China’s Textile Export.”

[iv] Financial Times Information, Global News Wire, The Economic Times of India, Coleman & Co Ltd, The Economic Times, May 29,2003 “SARS Shine: Apparel Exports Spurt by 14%.”

[v] The Associated Press, May 26, 2003, “Factory Closures, Delays Ventures: SARS Crisis Nibbles at Chinese Economy.” By Elaine Kurtenbach, Beijing

[vi] The Associated Press, May 26, 2003, “Factory Closures, Delays Ventures: SARS Crisis Nibbles at Chinese Economy.” By Elaine Kurtenbach, Beijing

[vii] The Nikkei Weekly (Japan) May 26, 2003. “SARS prompting rethink of China production plans.”

[viii] The Associated Press, May 27, 2003, “SARS strikes at economic heart of China.”

[ix] The Associated Press, May 27, 2003, “SARS strikes at economic heart of China.”

[x] Asia Pulse Pte Limited, May 22, 2003, “Two Matsushita factories in Beijing closed due to 5 SARS cases.” Beijing.

[xi] Financial Times Information, Global News Wire – Asia Africa Intelligence Wire, Business Daily Update.  May 22, 2003, “Japanese Factories in Beijing Closed in SARS Alert”

[xii] Agence France Presse, May 21, 2003 “Ricoh says closed Beijing factory due to SARS” Tokyo.

 

[xiv] Los Angeles Times, May 10, 2003 “The World, China May Reap a Bitter SARS Harvest”

[xv] Newsweek (New York), April 27, 2003 Sunday, Nassau and Suffolk Edition. “China’s Epidemic Discord: Warring SARS strategies afflict politics, public health. “ Byline Laurie Garrett.

[xvi] Los Angeles Times, May 10, 2003 “The World, China May Reap a Bitter SARS Harvest”

[xvii] Chinese News Source

[xviii] Deutsche Prees-Agentur, May 15, 2003China to crack down hard on SARS rumour-mongers, quarantine breakers.”

[xix] Agence France Presse, May 15, 2003. “China to execute SARS Quarantine Offenders”

[xx] Deutsche Prees-Agentur, May 15, 2003China to crack down hard on SARS rumour-mongers, quarantine breakers.” Beijing.