By Patrick Avenell

VTech has issued a global media statementin response to damaging claims made in relations to conditions at its mainland China factories. VTech is the manufacturer of Telstra-branded home phones and it's wholly owned subsidiary VTech Australia is Telstra local distributor.

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The statement reads:

"VTech Holdings today responded to certain allegations made by the Institute for Global Labour and Human Rights regarding operations of its factories in mainland China. The Group categorically rejects these allegations and is now considering taking appropriate legal action.

"VTech is a responsible and caring employer wherever it has operations, and this includes mainland China. The Group and its subsidiaries abide strictly by the legal requirements relating to employment in all jurisdictions where it operates, including mainland China. Emphasis is placed on people-oriented management to ensure harmonious staff relations, especially in the Group's manufacturing facilities. VTech takes care to ensure that the work environment is safe and that employees are adequately housed and cared for.

"VTech is widely acknowledged for its excellent human resources management and has a long track record of good labour relations in mainland China, where it is a pioneer among Hong Kong companies in establishing operations and where it currently employs approximately 33,000 people."