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Apple gadget maker has 'significant' labor issues: audit
by Staff Writers
Washington (AFP) March 29, 2012


Workplace abuses were uncovered in an audit that equated to "a full body scan" of three Chinese factories pumping out coveted Apple gadgets, independent investigators reported on Thursday.

Employees at each of the factories exceeded a work-week limit of 76 hours set by Chinese law and, in some cases, worked more than seven days straight without a required 24-hour break, according to the Fair Labor Association.

"The Fair Labor Association gave Apple's largest supplier the equivalent of a full-body scan through 3,000 staff hours investigating three of its factories and surveying more than 35,000 workers," said FLA president Auret van Heerden.

"Apple and its supplier Foxconn have agreed to our prescriptions, and we will verify progress and report publicly."

Along with excessive overtime and not always compensating workers properly for extra hours that were put in, the nearly month-long investigation uncovered health and safety risks and "crucial communication gaps."

Foxconn has pledged to bring factory conditions into full compliance with Chinese law and FLA standards regarding working hours by July of next year, according to the report.

"If implemented, these commitments will significantly improve the lives of more than 1.2 million Foxconn employees and set a new standard for Chinese factories," van Heerden said.

The report was released as Apple chief Tim Cook paid a visit to China, where state media said the man tipped to be country's next leader had told him foreign firms should do more to protect workers.

International labor watchdog groups have said workers in Chinese plants run by major Apple supplier Foxconn of Taiwan are poorly treated, and have blamed a string of apparent suicides on the conditions.

Vice Premier Li Keqiang, who is likely to be China's next premier, met the new Apple chief executive on his visit to Beijing on Tuesday, the official Xinhua news agency reported.

Li told Cook multinational companies should "pay more attention to caring for workers," the report said.

Cook on Wednesday visited a Foxconn plant employing 120,000 people in China's central city of Zhengzhou, where he viewed the production line, Apple said.

California-based Apple is wildly popular in China, where its products such as the iPhone and iPad are coveted by wealthy consumers.

Apple agreed in January to allow inspections by the independent labor watchdog following reports that employees were overworked and underpaid at Foxconn factories in China.

Apple expected the FLA team to inspect manufacturing areas, dormitories and other facilities, and conduct an extensive review of documents related to procedures at all stages of employment.

Besides Foxconn plants, FLA teams will also inspect factories owned by two other Taiwan-owned manufacturers, Quanta and Pegatron, which also make Apple products.

"When completed, the FLA's assessment will cover facilities where more than 90 percent of Apple products are assembled," Apple said earlier this year.

Apple stock price slid slightly after release of the report, inching down to $608.18 in after-hours trading that followed close of the market in New York.

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China tells Apple to 'care for workers'
Beijing (AFP) March 29, 2012 - The man tipped to be China's next leader has told Apple that foreign firms should protect workers, state media said Thursday, as the US giant fends off criticism over factory conditions in China.

International labour watchdog groups have said workers in Chinese plants run by major Apple supplier Foxconn of Taiwan are poorly treated, and have blamed a string of apparent suicides on the conditions.

Vice Premier Li Keqiang, who is likely to be China's next premier, met Tim Cook while the new Apple chief executive was visiting Beijing on Tuesday, the official Xinhua news agency reported.

Li told Cook multinational companies should "pay more attention to caring for workers", the report said.

Cook on Wednesday visited a Foxconn plant employing 120,000 people in China's central city of Zhengzhou, where he viewed the production line, Apple said.

California-based Apple is wildly popular in China, where its products such as the iPhone and iPad are coveted by wealthy consumers.

Greater China -- which includes Hong Kong and Taiwan -- has become Apple's fastest growing region, and revenue from there is second only to the United States.

"Tim had great meetings with Vice Premier Li and other top officials in Beijing," Apple said in a statement provided to AFP on Thursday.

"China is very important to us and we look forward to even greater investment and growth here," it said.

The company declined to comment on the issues discussed at the meetings with officials, which included Beijing's mayor.

Apple is still grappling with a series of problems from negative publicity over its supply chain to a trademark contest.

Chinese computer firm Proview Technology (Shenzhen) claims it owns the "iPad" trademark, and has sought to block sales of the iconic tablet computer in China through lawsuits.

Apple says it legally bought the rights to the trademark.

Xinhua quoted Li as saying that China would "strengthen intellectual property rights protection", although the report did not say whether he commented directly on the trademark dispute.

The Taiwan affiliate of Proview registered "iPad" as a trademark in several countries including China as early as 2000 -- years before Apple began selling its product.

The US titan subsequently bought the rights for the global trademark, but Proview claims the Taiwanese affiliate had no right to sell the Chinese rights.

A Chinese court is now considering an appeal by Apple after rejecting its earlier lawsuit against Proview for trademark infringement last year due to lack of evidence.

A watchdog group, Fair Labor Association, recently toured Foxconn facilities and factories of other Apple suppliers in China with Apple's consent but has yet to release its findings.



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New York (AFP) March 29, 2012
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