Earthquake in China

Imagine for a moment, a natural disaster claiming nearly 90,000 lives and leaving some 5 million homeless. It’s hard to envision this when so much of our attention is focused on our flat economy and the shaky value of our homes.

But in central China, the rising numbers of dead and homeless are realities citizens and their government continue to face each day in the wake of a 7.9-magnitude earthquake May 12 that left thousands of buildings crumbled.

Fortunately, an outpouring of support from around the world has gone to the victims and their families. The quake-damaged area isn’t a furniture producing region like southern China, but the industry nonetheless is stepping forward to contribute much-needed funds and support.

Here are some examples: 

* Leaders, shareholders and employees of case goods and upholstery manufacturer Fairmont Designs contributed $500,000 to the relief effort. The money will be distributed by a nonprofit group that rebuilds unsafe school buildings, and also will provide water, food and shelter in the hardest-hit areas.

“Our funding will go to the reconstruction of the school buildings and to some of the orphans whose parents died,” said company Chairman George Tsai, who was especially moved by the impact on children and schools in the region. He noted that many of the workers in his Dongguan-area production facilities are from the region that was hit.

“The reason we did this is that I feel we owe it to them for the success of Fairmont Designs,” said Tsai. “These people have been with us for 10 years.” 

* Rita Ho, president of manufacturer Somerton Home Furnishings, said a number of the employees of company parent Kingstone Furniture also have families in the affected area. She said the company is helping those employees with financial assistance and providing them time off so they can return to their families.

“We are doing everything we can to assist them,” she said. 

* Lacquer Craft Mfg., which has plants in Dongguan and the Shanghai area, gave some employees a paid month off so they could return to their families in the affected area. The company and its employees also raised an undisclosed amount for the relief effort.

“The Chinese people really came together to deal with this devastation, and our factory also played its part by not only raising funds and donating at the individual level, but also at the corporate level,” said Lacquer Craft President Mohamad Amini. 

* Amini’s brother Michael Amini, who is chairman and CEO of U.S. importer AICO, announced at the recent opening of the first Michael Amini store in Hangzhou, China, that he is donating 100,000 yuan (about $14,400) to help the earthquake victims. 

* Factories workers also have raised money for the relief effort. Their generosity is especially significant given the level of their wages. One factory owner, who chose to remain anonymous, told Furniture/Today that his 900 workers donated about $2,000 to the cause, which represents about 1% of their wages per month. The company also gave donations to local governments in various towns affected.

Some, however, are choosing a low profile in donating to the cause. That’s because the Chinese government apparently views such organized efforts among the citizenry with some trepidation. A recent column in the Wall Street Journal said the government distrusts groups that can raise such support among the masses.

In the past, China has even taxed charitable contributions at a rate of 12%. That means the person donating has to pay the tax, according the aforementioned factory owner, who added that the government has lifted the tax in the case of the earthquake.

Still, we’re not surprised at how the industry has stepped up to the plate in this case. On that note, we’d love to hear more stories about what furniture companies are doing to support the cause. What is your company doing to help the victims of this disaster?