 Our final speaker today is Lee Chan. He founded China Labor Watch, a New York-based independent nonprofit organization in 2000. He has a network of people in China who are in the plants in the electronics industry. And they send reports to him. And he gathers the information together. And he has a report that he'll be releasing soon on an inspection of 10 factories that was recently done. He's frequently cited in the international media. And he has a whole network of scholars, lawyers, and activists around the world who are working with him. He was born in China himself. He'll be speaking through an interpreter. He was a visiting scholar at the Center for the Study of Human Rights at Columbia University, and has come down from New York today for us. We're very grateful, Lee Chan. I speak Chinese, so. So just now, I think about very detailed analysis of situations at Pakistan. Thank you very much, Mr. Ross Esenperry, for the opportunity to share my experience of protecting workers' rights in China. So over the past 11 years, I have been in the U.S. advocating for the rights of Chinese workers. Both Apple and Apple have already denied that Fox Factory is a non-sponsored shop. So the traditional definition of a sweatshop is a factory where workers work in tough and dangerous environments. They may be exposed to hazardous materials, temperatures, or radiation, and must work long hours for low wages. However, this definition must be modified for modern society. At Fox, workers are treated like machines, and we can only earn enough to live on by working excessive overtime. The labor intensity at Fox is extremely high, and the working environment is indifferent and harsh. The value of human life is regarded, and workers are regularly pushed beyond their physical and emotional limits. I believe such a factory is a special. So let's imagine a factory in the U.S. where a worker must work on his feet for 10 hours a day. He lives thousands of miles away from home. I cannot return to see his family for years, because the factory doesn't offer him enough leave time. His base salary is not enough to cover his most basic expenses, so he is forced to work overtime. However, his overtime salary is often withheld or even unpaid. He is constantly abused verbally by his managers. After several years of work, he will be forced to leave his position because he can no longer keep up with the intense pace of the job. What do you think of this factory? Is it a sweat shop or not? In 2006, I received a report from a reporter. After the report came out, Apple did a follow-up investigation on the deputy mayor. In 2006, the deputy mayor of Apple found a problem. The workers worked for 60 hours. They had more than 6 days to get the salary. They worked 7 days a week. In this report, the deputy mayor of Apple just mentioned that the workers' dormitory situation is not good. They have to be changed. So in 2006, China Labor Watch helped a journalist organize a visit to Foxconn. After journalists reported the working conditions at Foxconn, Apple did a follow-up investigation. This is what they said in their own audio report in 2006. We did find that employees worked longer hours than permitted by our code of conduct, which limits normal work weeks of 60 hours and requires at least one day off each week. We reviewed 7 months of records for multiple shifts too of different production lines and found that working limits were exactly 35% of the time. But in this report, the only problem that Apple mentioned was the living conditions at the dormitories. So all this was quoted from Apple's own audio report in 2006 which is available on their own website. So during our investigation in 2006, we took a picture which showed that over 300 workers lived in one dormitory room. It's a huge room. So Apple did acknowledge this fact and it made some improvements in the living conditions. So Apple's recent report did disclose some problems which were found out as early as in 2006. In the past six years, Foxxon did not make any meaningful improvements. For example, like wage increases, I don't think there was any real improvement. So from 2004 to 2010, base salary at Foxxon increased from 380 yuan to 400, 600, 700, 900, 1200. And after the spate of suicide in 2010, Foxxon workers wage increased to about 1550 per month. But this increase is mostly due to inflation in China. So for industry like Foxxon, if they did not increase wages, it would enable to hire enough young workers which they need to work and to search high work intensity. It is true that over time hours have been decreasing at Foxxon. So in 2004 we found out that workers' average hours in a month was 320 to 350 hours. But last year in 2011, the number has decreased to 280 hours per month. However, less over time only needs higher intensity at work. Workers now need to finish 11 hours of work within 10 hours. In our investigation workers told us that they feel exhausted all the time. The problem of overtime is also indirectly proved by the high turnover rate at Foxxon factories. I think there are two indicators to evaluate whether the increase of salary and decrease of overtime is a real improvement. First is whether the wages at Foxxon is a labor wage. Second is the labor intensity. If they reduce the hours but increase the intensity for workers, their intensity is actually higher than before. Between January and April this year, we conducted investigations at 10 factories, 10 Apple suppliers in China. We are putting together a report and hopefully it will be released very soon. Apple has a great influence over its suppliers. So if we want any change at supplier factories, Apple needs to change first. Now Apple is only blaming its suppliers for all the issues and problems. The fact is if Apple increases the other price and they pay higher price, the suppliers will have the ability to make improvements. I would also like to share a few thoughts on the audio report conducted by Apple. As far as I know, this is the first time that Apple ever working together with the NGO. So this also shows the pressure from outside is the success. Secondly, I would like to point out that FLA has been in existence for 12 years and they have conducted thousands of investigations in China. But not a single one factory that supplies factories conditions is better than Foxxon. In order to prove this, I did a recent follow-up investigation on other supplier factories. The conditions at other suppliers are even worse and over time it is actually at 80 hours per month. Apple and Foxxon promise to reduce overtime to 49 hours. But based on my experience over the last decade, I can say that not one single factory, especially Hong Kong, Taiwan and Korean owned factories, can meet that standard. All the overtime hours are over 49. Or none of the FLA member corporations have met that. So thirdly, the FLA audit is mostly just a public relations ad for Apple. So this is a very smart move, so Apple actually just blame all its suppliers for all the problems and underestimate all the problems other problems like student interns, health and safety issues. I think it's okay for angels to cooperate with multinational corporations. But the issue is you cannot do PR for the corporation. So especially when they just say a non-public that Foxxon is not a sweatshop and all these are just PR for the corporate. So many other organizations have been working on this issue for many years. But then if you have another NGO saying that this is not a sweatshop, conditions are good. So our efforts are just wasted. So another thing is Apple has the money to do so and they have the capacity to make any changes. If Apple make the changes, it will lead other companies in the industry to improve as well. So if Apple make the changes, companies in the industry will follow the lead. For example, if Apple promise no more than 49 hours of overtime, so the problem is if it's realized, will it be realized? So in the long run, so in order to improve conditions and factories, it needs efforts from multiple players like angels, the brands and the Chinese and US governments. But there has to be a start and Apple should take the lead. If they start to do something good, I think this is a good start. So we need to keep the pressure on Apple and force it to change.