Hasbro - Manufacture

Manufacture

Over the years Hasbro has outsourced the manufacture of its products to third-party companies, mostly in China. At the Chinese factories, which Hasbro does not directly own or operate, migrant workers are compensated with meager salaries for their labor. At one such factory, in Dongguan, China, basic assembly line jobs pay a little over one hundred US dollars per month, China's minimum wage.

In 2007, a workers' rights group investigated several of Hasbro's Chinese suppliers and found that, in one instance, a toy factory in China's Guangxi Province had hired 1000 junior high school students. The same group discovered other widespread labor violations, including unsafe working conditions, mandatory overtime, verbal abuse and sexual harassment of employees. Hasbro issued a statement, saying that it would "act swiftly and decisively in making any necessary changes" and had "increased the intensity of ongoing safety review efforts." Critics counter that, as Hasbro has no official regulatory control of these factories, it responds to such investigations by acquiring independent auditors, who make unannounced visits to the East Asian subcontractors. Factory managers are then "coached" in how to fool the auditors.

Outside Asia, Hasbro owns and operates only two manufacturing facilities, one in Waterford, Ireland, the other in East Longmeadow, Massachusetts, USA. In recent years, the company has cut jobs at both plants in response to increasing competition from lower cost locations in China. At the end of 2006, for example, Hasbro's Irish division laid off more than one third of its workforce.