Workers at factory in Guangdong Province have complained about low pay and aggressive and verbally abusive behaviour
British-owned luxury goods manufacturer Burberry has pulled production of its bags from a factory in the Guangdong Province of China.
The move follows concerns that working hours and conditions at the factory, operated by the Korean company Simone Accessories Collection, were in possible violation of Burberry's ethical guidelines.
The China-based factory makes handbags for several western clothing and accessory brands. As well as Burberry, previous clients include Michael Koors and Coach.
It has been the centre of worker grievances. In June 2011 employees staged a four-day strike. They complained about low pay and aggressive and verbally abusive behaviour by the factory's new Korean management.
During the strike large numbers of police arrived to maintain order, and some strikers were arrested.
In June 2010 Burberry joined the Ethical Trading Initiative and the company has put the ETI Code into its own Ethical Trading Code of Conduct.
One section of the code states that "workers shall not on a regular basis be required to work in excess of 48 hours per week and shall be provided with at least one day off for every 7-day period on average".
According to the Bureau of Investigative Journalism, however, workers at the Simone factory have been working up to 11 hours a day on a six-day working week.
The fashion firm confirmed that it "had been made aware of work hours exceeding 60 hours per week".
The company said it had advised Simone that it considered this to be non-compliance with its code of conduct.
Prior to pulling out of the Chinese factory, Pamela Batty, Director of Corporate Responsibility, stated "we do recognise that more needs to be done and we thank the Bureau of Investigative Journalism for bringing these issues to our attention". The company received its last consignment of Simone-made products in July.
Last week Burberry was in the headlines after warning its profits would be at the bottom end of expectations.