Xie's threat is the latest fallout from a report released by PlayFair
2008, which alleges children as young as 12 work at China-based factories producing Olympic-licensed products like bags, caps and stationery products.
The report also alleges forced overtime and the violation of minimum-wage rules.
Entitled "No Medal for the Olympics on Labor Rights," the report was
critical of the local Beijing 2008 Olympics organising committee, and the
Lausanne-based International Olympic Committee, for failing to monitor the production.
The 2008 Olympics are dwarfing records for spending, and top IOC officials expect it to be the most profitable.
Big spenders
Beijing is spending about $40 billion to modernise the city, and sponsors are keen to be involved to take advantage of China’s growing middle class.
The PlayFair report singled out four companies in southern China.
Three were set up with capital from Hong Kong, and the other was Taiwan-invested.
One of the companies, Yue Wing Cheong Light Products (Shenzhen) Co. Ltd., was listed with its headquarters in the United States.
All four companies have denied the allegations.
Peter Ho, chief executive officer of Mainland Headwear Holdings Ltd.,
issued a statement on Tuesday.
"Groundless"
"The allegations in the report from PlayFair about our factory are
totally groundless," the statement said.
Ho said the lowest paid workers in the factory in Shenzhen earned an average of $145 a month, above the legal minimum wage of $90 in southern China.
"Comparing our factory with a low-margin sweatshop is outrageous when we so much believe in our social responsibility to help the poor and uplift the general well being of future generations."
Embarrassed Beijing local organising officials had released a statement
saying they had "a strict policy for manufacturers of Olympics-licensed
merchandise under a socially responsible management system."
Contracts cancelled
The Beijing Organising Committee for the Games acknowledged the
four companies have Olympic contracts, but they would be canceled if the companies violated national labor laws.
"BOCOG will deal with the issue seriously so as to maintain the image and
reputation of the Beijing Olympic Games," the statement said.
However, Playfair said cancelling contracts was not the answer.
"The workers in these factories have been subjected to serious exploitation," Brussels-based PlayFair said.
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| The Olympic logo is all over China [GALLO/GETTY] |
"The Beijing Games Committee should insist that the companies respect the fundamental rights of these workers and should not cut and run from a problem for which the Olympics movement and, in particular, the IOC itself must take full responsibility."
The IOC has distanced itself from the controversy by saying it does not have direct control over all official products that carry the five-ring Olympic label.
It said it has policies on fair labor standards that it expects Olympic host cities and licensed manufacturers to follow.
No additional monitoring
The IOC rejected calls from Playfair for additional monitoring, saying it
already works with associations of sporting goods makers and retailers on codes of conduct.
The report though has gained support in the USA with U.S. House Speaker Nancy Pelosi called for a "thorough investigation" by the IOC and the Beijing organisers.
"The Olympic Charter calls for ‘respect for universal fundamental ethical
principles'," Pelosi said.
"It is my hope that the organizers of the 2008 Olympics and the corporations cited in the reports will end any practices that are inconsistent with international labor right standards and the Olympic ideals."