Apple supplier Pegatron still using low pay, excessive overtime, watchdog group says

Posted:
in iPhone edited April 2016
One of Apple's iPhone manufacturers, Pegatron, is still seeing its labor force put in excessive overtime -- something unfortunately necessary for workers to meet basic financial needs, according to China Labor Watch.

Image Credit: Bloomberg
Image Credit: Bloomberg


Between September and October 2015 the advocacy group said it collected 1,261 pay stubs showing evidence of extreme overtime, a Bloomberg report noted on Monday. Pegatron has insisted that China Labor Watch miscounted, as that period included state holidays, when pay was three times standard. The latter organization countered, however, by saying it has collected another 441 pay stubs since March pointing to the same conclusion.

Pegatron now uses a complex system of face scanners, badges, and iPads to track punch-ins, something nominally intended to comply with multiple standards -- including Apple's, which limit workers to 60 hours per week. Pegatron said it follows Electronic Industry Citizenship Coalition guidelines, which limit overtime to 80 hours per month. Chinese law normally limits overtime to 36 hours per month, but Pegatron states that it's officially exempt.

In its Supplier Responsibility Report for 2015, Apple claimed that following 640 audits of the supply chain, compliance with its hourly standards was at 97 percent. Activist groups have argued though that suppliers can sometimes pull deceptive tactics when an audit is incoming.

Both Pegatron and Apple's main manufacturing partner, Foxconn, have come under regular scrutiny in the past several years. Activist groups and media reports have called attention to issues including not just poor wages and excessive hours, but underage labor, terrible dorm conditions, and lax safety standards. While the situation has generally improved -- partly due to companies like Apple responding to the media -- problems have not been fully stomped out.
«1

Comments

  • Reply 1 of 22
    ceek74ceek74 Posts: 324member
    "suppliers can sometimes pull deceptive tactics when an audit is incoming" - You think?  Exactly like EVERY other company.
    jbdragon
  • Reply 2 of 22
    It's worth noting that Pegatron likely assembles products for other tech companies as well, not just Apple. Not that the media cares, Apple always seems to be the poster child for workers treatment and supplier responsibility while other companies remain silent on the issue.
    SpamSandwichpte applelkruppjbdragon
  • Reply 3 of 22
    I guess I don't see what the big deal is. Where does it state these people have to work there?
    SpamSandwichpte apple[Deleted User]jbdragon
  • Reply 4 of 22
    ceek74 said:
    "suppliers can sometimes pull deceptive tactics when an audit is incoming" - You think?  Exactly like EVERY other company.
    Do you have proof of this, or are you just assuming?
  • Reply 5 of 22
    ktappektappe Posts: 824member
    ceek74 said:
    "suppliers can sometimes pull deceptive tactics when an audit is incoming" - You think?  Exactly like EVERY other company.
    Which is why it's stupid in this day & age to schedule occasional audits. With all the tracking Pegatron does, why can't Apple audit continuously?  Or station someone in person there for 3 straight months so Pegatron is forced to toe the line for a long time.
  • Reply 6 of 22
    What is China Watch arguing here? That the Chinese that work at these factories are the most oppressed and underpaid in the world and it is all Apple's fault? Take-home pay averages 4,200 yuan to 5,500 yuan ($650-$850) a month which is higher than many places pay in China. What do the Samsung factories pay their workers? In comparison, minimum wage in Greece is about $900 per month. India is not even on the same scale. The US is about $1,200 but MUCH higher cost of living. This all seems to be well timed Apple bashing ahead of earnings.

    VisualSeedredraider11pte applepatchythepiratejbdragon
  • Reply 7 of 22
    ceek74 said:
    "suppliers can sometimes pull deceptive tactics when an audit is incoming" - You think?  Exactly like EVERY other company.
    I have worked for several big companies that were all doing things by the book and even they would put on a show for the different types of audits they went through. It didn't matter if it was government regulators or simply the corporate office sending a guy down to check on things, everybody was on their toes. 
  • Reply 8 of 22
    apple ][apple ][ Posts: 9,233member
    I read the article in the OP last night before it was posted here.

    Some of the workers quoted in the article actually do want to work more and get overtime, because, here's a shocker, they wish to make more money!

    Conditions which make people perform mandatory overtime have been drastically improved and simply speaking, there is no issue here, no problem, nothing to see here, move along people, don't crowd the street.

    Those advocacy groups are untrustworthy, they operate on assumptions, not facts, and in the end, they do nothing good for the workers.

    And apparently, those groups disapprove of workers getting paid extra for the holidays? Maybe the workers should just get paid normal pay and not extra? What a bunch of moronic, slobbering, clueless, hysterical people those groups are.
    VisualSeedredraider11pte applepatchythepiratejbdragon
  • Reply 9 of 22

    What is China Watch arguing here? That the Chinese that work at these factories are the most oppressed and underpaid in the world and it is all Apple's fault? Take-home pay averages 4,200 yuan to 5,500 yuan ($650-$850) a month which is higher than many places pay in China. What do the Samsung factories pay their workers? In comparison, minimum wage in Greece is about $900 per month. India is not even on the same scale. The US is about $1,200 but MUCH higher cost of living. This all seems to be well timed Apple bashing ahead of earnings.

    From reading this article, I can't figure out what exactly they are alleging. Excessive overtime? Probably. Citing Apple's guidelines, industry norms and the law, means very little if the Chinese government waived the overtime limits enforced by the law for the company. While Apple should bring the issue up with the company and demand they be addressed (and canceling their contract if they aren't), I don't see how it is Apple's burden to micro-manage these things. The Chinese government has jurisdiction over labor practices of Chinese companies in China and should enforce its own regulations. If it comes down to Apple making sure the correct holiday overtime rate is being paid, this defeats all the advantages of using a subcontractor. I'm all for putting pressure on companies and countries to eliminate inhumane working conditions, but I draw the line at trying to use a heavy hand to enforce what we think are "ideal" working conditions.  
    edited April 2016 teejay2012
  • Reply 10 of 22
    linkmanlinkman Posts: 1,035member
     issues including not just poor wages and excessive hours, but underage labor, terrible dorm conditions, and lax safety standards.
    Except for the underage part, this sounds just like my time in the military...
  • Reply 11 of 22
    apple ][apple ][ Posts: 9,233member
    linkman said:
     issues including not just poor wages and excessive hours, but underage labor, terrible dorm conditions, and lax safety standards.
    Except for the underage part, this sounds just like my time in the military...
    The longest that I ever had to work was about 52 hours straight, practically non stop, without any breaks. That was quite a while ago, and I don't intend on ever doing it again, but when I hear about somebody working more than 60 hours in one week? Big effing deal.
    VisualSeedpte apple
  • Reply 12 of 22
    apple ][ said:
    linkman said:
    Except for the underage part, this sounds just like my time in the military...
    The longest that I ever had to work was about 52 hours straight, practically non stop, without any breaks. That was quite a while ago, and I don't intend on ever doing it again, but when I hear about somebody working more than 60 hours in one week? Big effing deal.
    Considering the original mac team boasted that they were working more than "90 hours a week and loving it", I'd find it a bit hypocritical for Apple to claim 60 hours was excessive. Especially for those doing it in oder to earn extra money for their families. 
    edited April 2016
  • Reply 13 of 22
    dipdog3dipdog3 Posts: 89member
    The article states the workers can't work over 60 & even if they tried, the turnstiles won't let them in if they have exceeded 60 in a week.

    Looked at the images from the paychecks they had, and some had more than 60 hours listed, but whether that was from holidays or something else was hard to tell since it was in Chinese.
    edited April 2016
  • Reply 14 of 22
    SpamSandwichSpamSandwich Posts: 33,407member
    I guess I don't see what the big deal is. Where does it state these people have to work there?
    Not only that, most workers in these factories WANT to work extra hours to make money faster. They usually move to the cities, make a bunch of money and move back to the country to have kids.
  • Reply 15 of 22
    apple ][apple ][ Posts: 9,233member
    I guess I don't see what the big deal is. Where does it state these people have to work there?
    Not only that, most workers in these factories WANT to work extra hours to make money faster. They usually move to the cities, make a bunch of money and move back to the country to have kids.
    These so-called advocacy groups are actually working against the workers interests and the workers rights.

    Who gave them the right to speak out for all workers? If I were a worker there, I'd be pretty pissed that some two bit group was going against my interests and limiting my freedom when it comes to choosing my work hours. 

    It's almost like some thug union that will deduct money from your paycheck, regardless if you want to be a member or not.
    edited April 2016 SpamSandwich
  • Reply 16 of 22
    apple ][ said:
    Not only that, most workers in these factories WANT to work extra hours to make money faster. They usually move to the cities, make a bunch of money and move back to the country to have kids.
    These so-called advocacy groups are actually working against the workers inerests and the workers rights.

    Who gave them the right to speak out for all workers? If I were a worker there, I'd be pretty pissed that some two bit group was going against my interests and limiting my freedom when it comes to choosing my work hours. 
    This is absolutely true.  Many of these employees will happily work as many hours as they get, they actually aren't *required* to do overtime, they do it voluntarily-- and if they don't *want* to do the overtime there are plenty of other people who are happy to pick up the slack.

    If this was such a horrible place to work, why to people 1) line up for hours to apply for jobs and 2) work as many hours as possible for as long as possible?  Foxconn at least has NO problem finding workers, they turn away more than they accept.

    Just in case you were wondering-- I personally know people that work at Foxconn (but not on the Apple products.)


    SpamSandwichpte apple
  • Reply 17 of 22
    maestro64maestro64 Posts: 5,043member
    I am starting to think these groups are not interested in average Chinese working long hours, they are just trying to slow production down so other placing in the world look more favorable to hire workers. They know the government of China will not do a think and if apple and other companies force Chinese companies to pay more and work less hours may be worker will get jobs elsewhere.
  • Reply 18 of 22
    This is absolutely true.  Many of these employees will happily work as many hours as they get, they actually aren't *required* to do overtime, they do it voluntarily-- and if they don't *want* to do the overtime there are plenty of other people who are happy to pick up the slack.
    Actually, when Apple just do a new release of iPhone in Sept/Oct time period, over time is mandatory and not elective.  No time off is allowed, either.


  • Reply 19 of 22
    adrayvenadrayven Posts: 460member
    It's worth noting that Pegatron likely assembles products for other tech companies as well, not just Apple. Not that the media cares, Apple always seems to be the poster child for workers treatment and supplier responsibility while other companies remain silent on the issue.
    They are known to work for Dell, HP, and Toshiba.
  • Reply 20 of 22
    lkrupplkrupp Posts: 10,557member
    ceek74 said:
    "suppliers can sometimes pull deceptive tactics when an audit is incoming" - You think?  Exactly like EVERY other company.
    Do you have proof of this, or are you just assuming?
    It’s called common sense and basic human nature. No assuming needed.
Sign In or Register to comment.