The management of Leisure Clothing, which ended up in a controversy after two of its directors were charged with human trafficking for the purposes of labour exploitation, exclusively invited this newsroom to the factory to see for itself the current conditions of its workers.

This newsroom was given a free hand to decide who to interview on the shop floor.

The China state-owned clothing manufacturer's workers comprise Maltese, Chinese, North Koreans and Vietnamese nationals. The company's premises are in Bulebel industrial estate.

After this newsroom interviewed a number of workers while on the job last Friday, the management explained why only a group of eight Vietnamese workers hit out at the company out of a total complement of 210 local and foreign workers. The majority of workers at the factory are Chinese.

Leisure Clothing has been operating in Malta for the past 28 years. But some two months ago, the Nationalist Party's media alleged that the company engaged in human trafficking and exploitation of its workers.

"Unfortunately," the management said, "it turns out that Vietnamese workers are not as skilled as Chinese and North Koreans, and since the workers' bonuses are not fixed, unlike the bonuses of local workers, their monthly wages rely heavily on performance bonuses.

"Therefore, it is due to lack of skills, that their income is not as high as that of the Chinese and North Koreans.

"One cannot expect a high salary if his or her skills are poor since their wages are based on performance bonuses here at Leisure Clothing."

The management said that the Chinese don't complain over their wages because they are highly skilled and therefore get a better wage as a result of the performance bonuses they receive in return for their efforts.

"It is not that Vietnamese are lazy or anything, but they cannot seem to be as productive as the Chinese," the management said.  It is estimated the Vietnamese end up earning around €200 to €300 less than the Chinese or North Koreans.

The management said it still has a few Vietnamese on the books who did not complain like the other eight Vietnamese did.

When asked by this newsroom to explain why one Chinese former worker has testified along with the eight Vietnamese workers, a management spokesperson claimed that the Chinese former worker in question is in a relationship with one of the Vietnamese former workers and it is evident he was left with no option but to back his partner's claims.

But the spokesperson said that the former Chinese worker was a good worker and the company was very satisfied with his performance.

Liao Pingschen, from China, and Hoang Thi Cam Van, from Vietnam, gave similar testimonies in court recently of how they were deceived by agents, in China and Vietnam, claiming that they were shown a sample contract that they agreed to and were then presented with a second contract immediately prior to their departure for Malta in a hurried manner. They had paid the agents €1,600 and €2,600 respectively.

The Vietnamese woman said that when she came to Malta she found the working hours were different to those agreed upon before her arrival and claimed she was forced to work a lot of overtime. She did not do anything about the situation as she didn't understand the language and had no one to turn to in Malta. It was also alleged that on their arrival at the airport, a company representative asked them for their passports.

Passports and cash

Claims also emerged in court that the passports of workers were taken on their arrival to Malta by a company representative.

The Chinese employee who has since left, refused to say who the company's representative who collected him from the Malta airport was of fear for his future "since the company is owned by the Chinese government".

All workers interviewed on film by this newsroom, including Maltese workers, denied having ever witnessed irregularities - especially human trafficking - the most serious of charges the directors of Leisure Clothing are faced with.

"We are happy to work here," workers said. Some foreign workers said that they have been working with Leisure Clothing for a good number of years.

A number of Maltese workers said that they have been working for the company for as long as 20 years. Another Maltese worker said that she never saw any irregularities take place and also claimed that a worker who made allegations against Leisure Clothing had enough money to purchase an Apple iPad implying that the workers had enough money in hand to purchase anything they desired. The Maltese worker said that not even she could afford it.

One Chinese worker said she had gone back to China and returned to work for the company in Malta at a later date.

Asked if, before the case came to light, they were locked inside the factory and left to work hours on end without proper food and water, the workers said that this was not the case. At this point, a Maltese worker said that "we are like a family here". She also pointed out that many a time, some foreign workers have asked the management if their relatives can also work for the company.

When asked if it was them who gave their consent for the company to keep a portion of their wage, the Chinese, Vietnamese and North Korean workers all said that they had signed a contract and willingly gave the company the go-ahead to keep a portion of their wage temporarily until the workers requested it.

They said they felt their money was in a safe place when in the company's hands.

When asked why they did not turn to a bank instead, the foreign workers said that there are too many procedures one has to go through, including the fact that there's a language barrier. A management spokesperson said that he has nothing against the workers having personal bank accounts.

The spokesperson explained that workers who join the company sign up for a portion of their wage to be kept by the company for a temporary period but any time a worker requires his or her funds, the company obliges. "It is theirs, after all, and in the 27 years of operation, we have no outstanding dues with anyone who worked for us.

"It is a culture the Chinese are used to which varies from that of how Europeans think it." In fact, on joining the company some 28 years ago as a regular employee , and made director later, one of the company's directors, who is facing charges, is said to have had his salary retained by the company in the same way, meaning that it has always been the case that workers' wages are retained and kept in a 'safe deposit box'.

"All workers are comfortable with the situation and those who do not agree do not sign up and work elsewhere. It's a choice they make."

Company says it forks out 15% interest on workers' savings

The management said that Leisure Clothing gives workers 8.6RMB (Chinese Yan Renminbi)  for every €1 they earn or is saved, even if the exchange rate is lower than that. Currently, the RMB exchange rate is currently 7.6RMB to one euro. This, the management said, is a result of the workers' savings being kept by the company.

The company started off 28 years ago as a joint venture between the Chinese government and Maltese government. Now it is only the Chinese government which owns it, since in 1996, the Maltese government sold its share.

In court, the Chinese former employee had said that he feared speaking out since the company is owned by the Chinese government.

When asked if they feared speaking out, the rest of the Chinese workers laughed off the suggestion and said that they do not fear doing so and if there was something wrong they would say so.

The management also highlighted that they would not employ Vietnamese workers any longer due to the problem they were encountering with such workers: a lack of skills.

The management said that Chinese workers were despatched to Leisure Clothing through a Chinese agency and as for the Vietnamese, an agency in Vietnam despatches workers to the company via the Chinese agency as well.

A spokesperson for the management also said that it is the nature of Chinese people that they know their limits and are self-disciplined. "We Maltese in general tend to slack a little when our boss is away," he said, but with Chinese workers, you don't get this kind of attitude.

The management said that workers are not pushed to the limit to work and the workers conduct their work at their own pace.

"They don't have to punch in and out when using the lavatory for instance, like in other certain factories," the management said. "We pay for their food, lodging and health expenses. Besides, nobody is under any severe pressure to work."

Maltese workers say Leisure Clothing organises Christmas Party every year

Maltese workers said that Leisure Clothing organises a Christmas party every year. The management pointed out that it organises a party for Chinese and Vietnamese workers towards the end of January as well to celebrate the Chinese New Year.

More on Leisure Clothing in tomorrow's edition of The Malta Independent on Sunday