SHENZHEN: Labor authorities in southern China could fine two firms a total of 1.36 million yuan ($180,000) for forcing their employees to work overtime.

Investigations showed the two firms licensed to make Olympic caps and handbags in Shenzhen, Guangdong Province, ordered their employees to work long hours and one failed to pay them adequate overtime, a spokesman for the Shenzhen labor and social security bureau, said yesterday.

At Mainland Headwear Holdings, 2,779 of the 3,000 employees were forced to work 40 to 53 extra hours in May, while at the Yue Wing Cheong Light Products Co, 1,779 of the 2,600 employees were forced to work 60 to 100 extra hours, the spokesman said.

Mainland could be fined about 833,700 yuan and Yue Wing Cheong 533,700 yuan, equivalent to 300 yuan for each employee, the spokesman said.

The two companies have applied for a public hearing.

Mainland has already paid its workers money owed, and Yue Wing Chong has been ordered to pay the arrears.

The two firms, together with two others - Lekit Stationery Co and Eagle Leather Products Co in Dongguan City - were also accused of using child labor in a report by PlayFair 2008, a global alliance of trade unions and labor organizations.

The Beijing Organizing Committee for the 2008 Olympic Games (BOCOG) said last week that investigations showed that Lekit did use child labor, but not for Olympic Games products.

However, BOCOG terminated Lekit's license and ordered it to cease operating.

The three other companies were found not to have used child labor, but approval of their new products has been suspended.

Xinhua

(China Daily 08/08/2007 page4)