Claims of labour abuse surface at Labubu toy suppliers

Allegations of labour exploitation have emerged at factories in China producing Labubu figurines, a globally popular designer toy line, prompting scrutiny of working conditions within a supply chain tied to one of the country’s fastest-growing collectibles businesses.

Workers interviewed by labour rights groups and regional media describe shifts stretching well beyond legal limits, pay that barely meets local minimum standards, and employment practices that rely heavily on temporary and migrant labour. The accounts centre on manufacturing sites in southern China that supply subcontracted toy assemblers responsible for producing Labubu figures sold across Asia, Europe and North America.

Labubu, created by Hong Kong artist Kasing Lung and commercialised through licensed production partners, has become a cornerstone product in the designer toy boom. Its success has intensified production demands, particularly during peak retail cycles linked to new character releases and limited editions. Workers say output targets rise sharply during these periods, with overtime treated as compulsory rather than voluntary.

Several employees reported working 10 to 12 hours a day for six or seven days a week during high-volume runs. Chinese labour law sets the standard workweek at 44 hours and caps overtime, but enforcement varies by region and sector. Factory staff told monitors that overtime pay was sometimes calculated at flat rates, undermining statutory multipliers meant to compensate extended hours.

Wages remain a central grievance. Entry-level workers said monthly earnings hovered close to local minimum thresholds despite the long hours, with bonuses tied to productivity targets that were difficult to reach. Deductions for accommodation, meals and alleged quality defects further reduced take-home pay. Some workers claimed payslips lacked transparency, making it hard to verify whether overtime had been properly recorded.

Recruitment practices also drew criticism. Temporary staffing agencies are commonly used to meet fluctuating demand, limiting workers’ access to social insurance and reducing job security. Short-term contracts can discourage complaints, as renewal decisions often rest with supervisors who control shift allocation and overtime opportunities.

The factories named in the allegations are not directly owned by the brand’s intellectual property holder but operate as third-party suppliers. This structure is typical in the toy and consumer goods industries, allowing brands to scale quickly while keeping fixed costs low. Labour advocates argue that such arrangements can dilute accountability unless brands impose rigorous oversight.

Companies linked to the Labubu supply chain have said they require suppliers to comply with local labour laws and internal codes of conduct. Some have pledged audits and corrective action where violations are identified. Industry specialists note, however, that announced standards do not always translate into shop-floor realities, particularly when price pressures and tight delivery schedules dominate supplier relationships.

China’s manufacturing sector has faced renewed attention over labour compliance as export-oriented industries rebound unevenly. Rising living costs in industrial hubs such as Guangdong and Zhejiang have increased worker turnover, while younger employees show less willingness to accept long hours for low pay. This has led factories to rely more on dispatch labour, a trend regulators have sought to curb.

Consumer awareness is also shifting. Designer toys command premium prices, and buyers increasingly question whether those margins support fair wages along the production line. Rights groups argue that brands benefiting from strong demand have room to absorb higher labour costs without passing them fully to consumers.

The controversy highlights broader tensions within China’s light manufacturing economy, where legal protections exist but enforcement can lag amid competitive pressures. Local authorities periodically launch inspections, yet advocates say sustained compliance requires brands to adjust purchasing practices that incentivise excessive overtime.