Friday July 13, 2:36 pm Eastern Time
Disney Pulls Piecework Tiaras, Wands
Disney Pulls Piecework Tiaras, Wands Amid Minimum-Wage Probe
LAGUNA HILLS, Calif. (AP) -- The Walt Disney Co. [NYSE
IS - news] has pulled from its shelves beaded tiaras and wands made by a company that allegedly paid women to make them for less than minimum wage.
State labor officials are investigating allegations of labor violations by KTBA Inc., the Laguna Hills company that was contracted to make the tiaras and wands.
Disney's action Thursday came after The Orange County Register reported the workers were paid 60 cents a tiara but couldn't make the 10 an hour needed to meet the minimum wage. The tiaras sold for $9.99 each, the newspaper reported.
To meet the state's $6.25 minimum hourly wage, a worker would have to make one of the sparkling pink-and-white tiaras every six minutes. The products, named for Tinker Bell, Ariel and Sleeping Beauty, were sold at Disney's stores and parks.
Women who worked for KTBA told state labor inspectors they would have to keep up an impossible pace to make minimum wage. They added that rushing the job created hazardous working conditions because they could burn themselves with hot glue or poke themselves with wire.
``I'm not going to do this anymore,'' worker Azahalia Richards told the Register. The Garden Grove resident said she was able to make only two tiaras per hour. ``It is too much work for nothing,'' she said.
The women appeared to be working under conditions that would violate minimum wage and other labor laws, said Miles Locker, California Department of Industrial Relations spokesman.
Disney auditors met Thursday with KTBA officials to discuss the allegations and review its contracts, Disney spokesman Ken Green said.
``We've canceled all pending orders and placed a hold on all merchandise made (by KTBA) that was scheduled for shipment,'' Green said.
KTBA President Carol A. Schelin maintained that workers could earn at least minimum wage if they worked diligently.
``Some people are naturally very good at this kind of work and some aren't. We always tell new people that this isn't for everyone,'' she said in a statement Thursday.
``Using piecework has not just been a business model for us but it's actually been a mission of mine to provide work for mothers who want to stay at home with their children. I was a stay-at-home mom myself,'' her statement said. ``My intention always has been to provide flexible work with fair pay to support mothers and to strengthen families.''
Disney Pulls Piecework Tiaras, Wands
Disney Pulls Piecework Tiaras, Wands Amid Minimum-Wage Probe
LAGUNA HILLS, Calif. (AP) -- The Walt Disney Co. [NYSE
IS - news] has pulled from its shelves beaded tiaras and wands made by a company that allegedly paid women to make them for less than minimum wage.State labor officials are investigating allegations of labor violations by KTBA Inc., the Laguna Hills company that was contracted to make the tiaras and wands.
Disney's action Thursday came after The Orange County Register reported the workers were paid 60 cents a tiara but couldn't make the 10 an hour needed to meet the minimum wage. The tiaras sold for $9.99 each, the newspaper reported.
To meet the state's $6.25 minimum hourly wage, a worker would have to make one of the sparkling pink-and-white tiaras every six minutes. The products, named for Tinker Bell, Ariel and Sleeping Beauty, were sold at Disney's stores and parks.
Women who worked for KTBA told state labor inspectors they would have to keep up an impossible pace to make minimum wage. They added that rushing the job created hazardous working conditions because they could burn themselves with hot glue or poke themselves with wire.
``I'm not going to do this anymore,'' worker Azahalia Richards told the Register. The Garden Grove resident said she was able to make only two tiaras per hour. ``It is too much work for nothing,'' she said.
The women appeared to be working under conditions that would violate minimum wage and other labor laws, said Miles Locker, California Department of Industrial Relations spokesman.
Disney auditors met Thursday with KTBA officials to discuss the allegations and review its contracts, Disney spokesman Ken Green said.
``We've canceled all pending orders and placed a hold on all merchandise made (by KTBA) that was scheduled for shipment,'' Green said.
KTBA President Carol A. Schelin maintained that workers could earn at least minimum wage if they worked diligently.
``Some people are naturally very good at this kind of work and some aren't. We always tell new people that this isn't for everyone,'' she said in a statement Thursday.
``Using piecework has not just been a business model for us but it's actually been a mission of mine to provide work for mothers who want to stay at home with their children. I was a stay-at-home mom myself,'' her statement said. ``My intention always has been to provide flexible work with fair pay to support mothers and to strengthen families.''
