Asked about the fines, the company manager said "The situation is complicated. If the workers do not follow the operation manual, and cause mistakes in production, not only the workers but also the head of their assembly line, department or even the factory may be fined."

"Sometimes young workers in their early 20s do not follow the manual strictly and cause injuries," he added.

The SACOM report suggests accidents are the result of the intensity of work in the Zhuhai plant, where manager bonuses depend on productivity, and exhausting work schedules with compulsory overtime of up to 134 hours a month. The legal maximum amount of overtime allowed under China's Labor Law is 36 hours per month.

"I cannot say 100 percent we do not have an overwork problem but our workers do not work more than the maximum time regulated in the Labor Law," the Elec-Tech manager said.

Ask how the company will respond to the report, the manager said: "We will improve our management of both equipment and staff. We will increase safety training and education for the workers to make sure they strictly follow the operations manual."

According to the SACOM report safety training provided by the company is inadequate. The report also says that infra-red safety devices are available for some of the machines at the plant but have not been installed.

Ruan Libing said the workplace was crowded and noisy with materials strewn around the workshop. He said four other accidents took place in the month he lost his arm.

"The company just told us to be careful," Ruan said. "I think their training and management are both flawed."

Elec-Tech posted net profits of 49 million yuan (US$ 7.2 million) in 2009 following a 162 million yuan loss in 2008. Walmart's earnings rose 3.6 percent in Q2 2010 to US$3.59 billion, driven mainly by sales growth in China and Brazil.