Corrispondenza intervenuta fra Ron Oswald Segretario Generale IUF-UITA-IUL e Jack M. Greenberg Presidente di McDonald’s Corporation

Corrispondenza intervenuta fra Ron Oswald Segretario Generale IUF-UITA-IUL e Jack M. Greenberg Presidente di McDonald’s Corporation

To: Jack M. Greenberg, Chairman and CEO, McDonald’s Corporation

Fax: +1 630 623 5004

Concerns: Abusive Labor Practices at the City Toys factory in Shenzhen,
China

Dear Mr. Greenberg,

We have been informed of the abusive labor practices at the City Toys
factory in the Shenzhen province of China, which include the use of child
labor, excessive hours of work, forced overtime and dangerously inadequate
housing conditions. City Toys produces toys for your "Happy Meals."

Your company statement dated 5 September asserted that child labor is
forbidden by your Supplier Code of Conduct, and that several prior
investigations by the auditing firm SGS had not revealed these violations
at the City Toys factory. This statement reveals that the company’s system
of monitoring and verifying compliance with its supplier code is clearly
inadequate and lacks transparency and credibility.

We understand that McDonald’s is now conducting a more thorough
investigation. However press reports indicate a continuing attempt by the
contractor to cover up the abuses, specifically by dismissing the under-age
employees and trying to prevent their communications with investigators. We
reject this approach to resolving the problems. These young people need
attention and support from the outside community, and not to be swept under
the rug. Moreover the wretched working and living conditions at the factory
are no more suitable for 16 years olds than for younger children.

Nor will simply switching orders to another contractor resolve the issue.
We demand instead that McDonald’s attempt to work with this supplier to
remedy the abuses as soon as practicable.

Affiliates of the IUF represent McDonald’s employees in many countries. We
have already been in discussion with these unions in different countries,
and will keep them fully informed of your response and of your progress or
lack thereof in addressing these problems.

We look forward to hearing from you about this problem, and are prepared to
further discuss how your supplier code might be rendered more credible.

Yours sincerely,

Ron Oswald
General Secretary

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McDonald’s McDonalds Corporation
McDonald’s Plaza
Oak Brook, Illinois 60523-1900

September 13, 2000

Mr. Ron Oswald
Rampe du Pont Rouge 8
Petit-Lancy, Switzerland CH 1213

Dear Mr. Oswald:

Thank you for taking the time to contact McDonald’s regarding our standards
for partnering with business-suppliers abroad. I appreciate this
opportunity to share information with you regarding this important issue.

First, let me start by emphatically stating that McDonald’s has established
a well-respected record and reputation for business honesty and integrity.
We believe that all employees deserve to be treated with dignity and
respect. We also strongly believe that those suppliers who are approved to
do business with the McDonald’s System should follow the same philosophy,
and in the best interest of the System, McDonald’s will refuse top approve
or do business with those suppliers who do not uphold, in action as well as
words, the same principles.

As we publicly stated last week: McDonald’s fully supports our suppliers’
decision to halt all production of toys for McDonald’s at the City Toys
facility in China. It was the right thing to do based on our comprehensive
audit of City Toys. The suppliers who work on our business know that
McDonald’s will not tolerate violations of our Code of Conduct for
Suppliers. Accordingly, we responded to allegations about City Toys as soon
as we heard of them by implementing a full-scale audit of this plant.
Meanwhile, we will continue to review constructive input based on the
facts.

McDonald’s has, and will continue to seek a dialogue with concerned and
knowledgeable groups as another potential source of information and
perspective.

Severing business ties is a last resort, and we do not take it lightly. We
try to work with our suppliers to improve standards and continue to raise
the bar for the industry. Our auditing system routinely identifies issues
that do not call for termination, but instead remedy problems that help
improve the safety and working conditions of the workers. However, in the
case of City Toys, the lack of key documentation, and other findings,
called for strong action.

Meanwhile, in a fair and objective manner, we will continue to audit and
review the manufacturing facilities contracted by our suppliers to work on
McDonald’s business. We will also continue to do everything we can to tray
to make sure these kinds of practices do not occur again. We take our Code
of Conduct seriously, as our actions demonstrate.

Again, Mr. Oswald, thank you for sharing your comments with us.

Sincerely,

Sara Ericksen
Representative
Customer Satisfaction Department

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To: Jack M. Greenberg, Chairman and CEO, McDonald’s Corporation

Fax: 00 1 630 623 5004

Concerns: Situation at City Toys factory – Shenzhen, China

Dear Mr. Greenberg,

We have received a reply from your company’s Customer Satisfaction
Department to our letter of September 12 regarding the situation at the
City Toys factory in Shenzhen, China.

Regrettably, this reply did not address the issues of corporate
responsibility raised in our letter. Your statement that the "right thing
to do" was to terminate your relationship with the Chinese toy supplier
only enforces our impression that rather than being an instrument for the
establishment of working conditions, safety standards and business
practices which are above reproach, the McDonald’s Code of Conduct for
Suppliers is a means for the company to avoid accountability when it is
revealed that standards have not been met. In this case, it appears that
rather than providing the basis for a moral engagement to correct
violations and a mechanism for doing so, the Code has allowed you to wash
your hands of any and all responsibility.

As a consequence of your company’s decision, hundreds of workers, women and
children, have been fired - without compensation, without alternative work
and without an alternative to work.

We urge you to work jointly with your supplier to reinstate, offer
alternative jobs and appropriate compensation to the adult workers who have
been fired as a result of your action, and to provide the appropriate
alternative to the underage workers, which is educational and recreational
facilities.

By failing to do so you would only encourage the public to think that your
code of conduct is no more than a marketing tool with no direct effect on
your managers or suppliers. As we stated in our previous message, the
company’s system of monitoring and verifying compliance with its supplier
code is clearly inadequate and lacks transparency and credibility.

We were delighted to read that your company believes that all employees
deserve to be treated with dignity and respect. We hope that this would
apply to the employees at City Toys factory, as well as to all employees at
McDonald’s undertakings who face considerable problems when they choose to
be represented by trade unions.

We will closely monitor developments in Shenzhen and keep our affiliated
unions informed.

We support efforts made by trade unions and other organizations to find a
mutually satisfactory solution to the situation of City Toys workers at
Shenzhen.

Yours sincerely,

Ron Oswald
General Secretary