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This is the response Consumer Services is giving in response to today’s
announcement: “LEGO Group to outsource major parts of its production to
Flextronics”
Thank you for letting us respond to you regarding our recent announcement about
changes in our manufacturing locations. Please let me assure you that the focus
of the LEGO Group has always been and will remain on product quality and safety.
No matter whether our products are produced or packaged at our own factories in
Europe or by manufacturers elsewhere, they must comply with our high standards.
The LEGO Group has been purchasing electronic components, textile items and some finished product for the last several years from outside suppliers. This activity continues as production of some LEGO® items for the North American market transitions to an outsider supplier's facility in Mexico. Production of certain LEGO products will be maintained at LEGO owned and operated facilities in Denmark. This decision was not made lightly, but was necessary to maintain the company’s competitiveness in the toy industry.
The LEGO Group is recognized as a company observing high standards in ethical,
social and environmental matters. That will not change. All our suppliers,
whether in Mexico or elsewhere must successfully pass a Code of Conduct audit
and comply with international certification requirements established by the
International Council of Toy Industries (ICTI). The purpose of this Code of
Conduct is to ensure that vendors and their sub-contractors produce components
and supply services to the LEGO Group in a manner that respects the rights of
their employees and the environment. LEGO will monitor compliance with the LEGO
Group Code of Conduct, through our own internal audits or by use of independent
3rd party auditors such as Price Waterhouse Coopers. We will also have LEGO
employees present in the factory to verify product quality, safety and code of
conduct performance.
I will monitor this thread and answer questions you may have about any of this.
Steve Witt
LEGO Community Relations Coordinator
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In lugnet.announce, Steve Witt wrote:
> I will monitor this thread and answer questions you may have about any of this.
Thanks for the statement Steve.
I heard that TLG has a policy of re-training employees that are going to be laid
off, is that happening in this situation? The idea being that they can get a
better job that the one they lost.
Also, can you give us any details of what is in the Code of Conduct? How would
TLG figure a person is being paid a fair wage, for example.
-Lenny
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In lugnet.lego, Leonard Hoffman wrote:
> In lugnet.announce, Steve Witt wrote:
> > I will monitor this thread and answer questions you may have about any of this.
>
> Thanks for the statement Steve.
>
> I heard that TLG has a policy of re-training employees that are going to be laid
> off, is that happening in this situation? The idea being that they can get a
> better job that the one they lost.
>
> Also, can you give us any details of what is in the Code of Conduct? How would
> TLG figure a person is being paid a fair wage, for example.
>
> -Lenny
I believe the code of conduct is available on the web somewhere. I seem to
remember a link being posted on Lugnet ages ago too (although how much ages I
couldn't say).
Tim
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Also, can you give us any details of what is in the Code of Conduct? How
would TLG figure a person is being paid a fair wage, for example.
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Google is our friend:
ICTI Code of Business Practices
I can only assume that this is the Code Steve is referring to.
Mark
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In lugnet.lego, Mark Neumann wrote:
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Also, can you give us any details of what is in the Code of Conduct? How
would TLG figure a person is being paid a fair wage, for example.
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Google is our friend:
ICTI Code of Business Practices
I can only assume that this is the Code Steve is referring to.
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I thought the Code was something internal to LEGO. That the foreign factories
will have to meet both the ICTI Code and an internal Code.
-Lenny
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In lugnet.lego, Mark Neumann wrote:
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Also, can you give us any details of what is in the Code of Conduct? How
would TLG figure a person is being paid a fair wage, for example.
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Google is our friend:
ICTI Code of Business Practices
I can only assume that this is the Code Steve is referring to.
Mark
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It should be more than that. Something in the lines of this one:
http://www.ingersollrand.com/aboutus/codeofconduct.html
Selçuk
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In lugnet.lego, Selçuk Göre wrote:
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In lugnet.lego, Mark Neumann wrote:
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Also, can you give us any details of what is in the Code of Conduct? How
would TLG figure a person is being paid a fair wage, for example.
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Google is our friend:
ICTI Code of Business Practices
I can only assume that this is the Code Steve is referring to.
Mark
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It should be more than that. Something in the lines of this one:
http://www.ingersollrand.com/aboutus/codeofconduct.html
Selçuk
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I will check into what the answer is to this question. I don’t know all of the
details on this so I will find the answers for you. Thanks guys.
Steve
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> Also, can you give us any details of what is in the Code of Conduct? How would
> TLG figure a person is being paid a fair wage, for example.
>
> -Lenny
Mexico is a country where people working an assembly line, such as many
"maquiladoras" found in the Northern States that border the US, make about the
hourly wage of a person in the States (in a similar position), but in a day.
So instead of paying 12 dollars an hour, this becomes 12 dollars per DAY. Which
would be a good salary considering that the minimum wage is 4 dollars per day,
for people with no college degree. Blue Collar workers.
So the employees dont really care about "only the best is good enough", its more
like.. Will I have enough money to pay rent and to by milk and eggs for my kids?
It makes perfect sense to move the operation down to a country where labor is
dirt cheap.
This image shows the housing that floor line level workers can afford to live in
in Mexico:
http://homepage.mac.com/helipilot/.Pictures/vistasaereas/Amontonados.jpg
which is part of this website that shows Mexico from the air.
http://homepage.mac.com/helipilot/PhotoAlbum31.html
You can see the VAST differences of the upper class, middle class (executive at
any company, and "working class" which work in assembly lines.
Mexico has its own code of conduct, regardless of any international conventions.
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> You can see the VAST differences of the upper class, middle class (executive at
> any company, and "working class" which work in assembly lines.
> Mexico has its own code of conduct, regardless of any international conventions.
Ultimately, no matter where TLC decides to manufacture its product, its up
to TLC as to who they hire and what code of conduct they enforce on their
plants and workers. They can enforce their quality standards on even the
cheapest workers.
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> > Mexico has its own code of conduct, regardless of any international conventions.
> Ultimately, no matter where TLC decides to manufacture its product, its up
> to TLC as to who they hire and what code of conduct they enforce on their
> plants and workers. They can enforce their quality standards on even the
> cheapest workers.
Jonathan,
I dont know what kind of experience you have working abroad.
I worked for them for 3 years in Mexico, and it was not until an American
Manager was sent down to get things fixed, after firing 75% of the "work" force
(in my department), that things changed.
Then when the manager's contract ended and left, things reverted back to the old
way, and even worsened.
We will see if outsourcing works better this time around, as I said,
Mexico will present a series of problems that have may not been forseen.
A plastic mafia monopoly, unions, racketeering, and a country that is shifting
from production to distribution of assembled goods.
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