Tim Cook to address Chinese suppliers' worker issues at Apple shareholder meeting tomorrow

Posted:
in AAPL Investors edited January 2014


Apple's annual shareholder meeting will be held tomorrow at the company's Cupertino California campus, and activists are gearing up to use the event as a springboard for their "high impact communications programs," including a continuation of issues related to working conditions among Apple's Chinese suppliers that Apple addressed at last year's meeting.



A history of attracting activism



Previous Apple shareholder meetings have been dominated by protest campaigns, such as the environment-themed conflict waged by Greenpeace and the Silicon Valley Toxics Coalition in 2006, both of which were organized by "toxics campaigner" Iza Kruszewska.



At that year's meeting, Steve Jobs suggested that Greenpeace hire staff with engineering backgrounds who could understand the issues involved, and insisted that Apple does more to push environmentally sound, innovative manufacturing techniques than other PC makers, blasting the criteria behind Greenpeace's highly publicized 'Greener Guide to Electronics,' which ranked a random assortment of manufacturers according to goal commitments listed on their websites.



In 2007, the Teamsters and AFL-CIO unions challenged the company's executive compensation reporting and tried to garner media attention around a shareholder proposal that would have ineffectually pleaded that the company not backdate stock options again, had the symbolic gesture not failed to pass.



In 2009, several shareholders in attendance expressed dissatisfaction with Apple for granting shareholders only a very short few minutes to comment and query executives, particularly after giving so much airtime to special interests pushing political agendas that have regularly been rejected by the majority of the company's shareholders.



Cook talks China



Last year, Apple's shareholder meeting seemed to escape from its usual onslaught of activism, although the issue of Apple's environmental policies and its supplier responsibility issues in China were raised by Tim Cook himself, who stated "we have the highest standards," adding that Apple is the most transparent in its auditing and reporting than any other company, reporting actual problems and taking real action.



Cook also noted that Apple had forced reimbursements of $300 million from its suppliers to workers and has involved governments to get involved and understand the issues. "We are doing the heavy lifting," Cook said. "I am really proud of the changes we have forced in," noting that Apple's actions "will help more than Apple," because the company is pushing to change how business is done.



Spitfire outrage gearing up for shareholder meeting showdown



This year, Cook is likely to be pressed further on the issues, with at least one petition group planning to bring pages of printed out names of online petitioners. Multiple groups collecting petitions related to Apple's suppliers have sought to bring petitions to Apple's corporate headquarters, and then to Apple retail stores after their "deliveries" failed to gain the necessary attention. Retail employees have since stopped accepting the boxes of printed names, leading to efforts to bring the printouts to Apple's shareholder meeting instead.



The original petition, started at the end of January by Mark Shields, pleaded with Mac fans to demand that Apple "release a worker protection strategy for new product releases," claiming that repetitive stress injuries and suicides "typically spike because of the incredible pressure to meet quotas timed to releases."



Shields didn't disclose in the petition, nor in his subsequent media interviews, that he is actually a director at the Washington DC based Spitfire Strategies, "a consulting firm offering advice on strategic communications and campaign planning for a wide range of non-profits and foundations," as IFOAppleStores recently reported.



Spitfire describes itself on its website as being "dedicated to helping nonprofits and foundations create and implement high impact communications programs to achieve their social change goals." In its report, IFOAppleStores stated Shields "said he posted the petition 'as a private citizen,' and that it had 'nothing whatsoever to do with my professional life at Spitfire.'"



Shields' Change.org petition and the SumofUs.org group operating its own petition (involved with printing out names to deliver to Apple) are both coordinating their initiatives through the same public relations firm, an effort that has given them significant media attention and notoriety in being able to sustain media attention.



Petitions drives ignore facts in Apple's public reports



Both groups took credit for Apple's announcement that it would be working with the Fair Labor Association to independently audit its suppliers' factories, despite the petitions getting started after Apple announced its plans.



Of the two groups' petitions, Shields' Change.org drive focuses on suicide and injuries it relates to Apple's scheduling, despite Shield's admission that he has no facts to back up the claim that there is any connection between deaths or injuries and Apple's quotas or other supplier requirements.



Shields' petition asks for a action plan on worker suicides, while ignoring Apple's publicly available, annual Supplier Responsibility reports, which document in detail what the company is doing and has done.



This year, Apple says it "surveyed more than 1000 workers about their quality of life, sources of stress, psychological health, and other work-related factors," noting that "the team designed the questionnaire, delivered and collected it, and tabulated the results without Foxconn’s involvement." Apple also reported that it:



• Interviewed workers face to face, met separately with their managers, and evaluated working and living conditions firsthand.

• Reviewed the facts of each suicide and the known circumstances behind them.

• Evaluated Foxconn’s management of the crisis, assessing the effectiveness of counseling services and emergency response systems.



The report also details other actions Apple took in partnership with Foxconn, including the implementation of an "employee assistance program (EAP) that focuses on maintaining employee mental health and expanding social support networks. In addition, they have begun the process of expanding operations to other parts of China, enabling workers to be closer to their home provinces."



Belated action demanded after the fact on n-hexane



The SumOfUs.org petition focuses instead on specific injuries (and four deaths) sustained by workers at a Wintek plant who in 2009 were instructed by the factory to clean iPhone screens using n-hexane, a toxic chemical that can cause nervous system failure. The company subsequently banned the use of the chemical and paid workers bonuses and made other financial compensations.



However, the SumOfUs.org petition falsely implied Apple directed the use of the toxic chemical to save itself money, and states that it continues to do so rather than using safer alternatives while being fully aware that it will hurt workers.



The SumOfUs petition described "a young girl" who "every day, during her 12+ hour shifts, six days a week, she repetitively swipes tens of thousands of them. She spends those hours inhaling n-hexane, a potent neurotoxin used to clean iPhone glass, because it dries a few seconds faster than a safe alternative. After just a few years on the line, she will be fired because the neurological damage from the n-hexane and the repetitive stress injuries to her wrists and hands make her unable to continue performing up to standard," adding that "scenarios like this have been all too real in Apple’s Chinese supply chain."



In realty, Apple disclosed the use of n-hexane at one site as a violation of its "worker endangerment" policies in its Supplier Accountability report, noting that "we required the facility to discontinue use of n-hexane, to fix the factory’s ventilation systems, and to implement improvements to their management systems for Environmental Health and Safety."



This was reported months prior to the petition, indicating that the petition was either simply ignorant of the facts Apple was making publicly available, or purposely misleading to incite sensational reaction.



SumOfUs.org describes the incident as occurring "in an Apple factory" and states, "If more people know about what we [workers hurt by n-hexane] went through, Apple will feel pressured to change so other workers don’t have to suffer like we did," while at the same time referencing Apple's public reporting of the violation, which addressed that rather than needing to "feel pressured" to do something, Apple addressed the issue almost a year ago to prevent others from being similarly harmed by unsafe conditions at one of its suppliers' facilities.



Greenpeace similarly made vast and often vague claims about Apple's environmental policies that implied and suggested all sorts of abuses that were not true about the company, from using prison labor to dumping reclaimed waste on children in third world nations. At the same time, Greenpeace largely ignored the very real environmental lapses of Apple's competitors because they did not result in media attention and were virtually worthless to use in fundraising.



[ View article on AppleInsider ]

Comments

  • Reply 1 of 20
    apple ][apple ][ Posts: 9,233member
    Great news for me!



    No dividends, no stock splits, none of what some people were hoping for. Instead they'll waste their time talking about some non-issue that very few people care about. If the stock takes a dip tomorrow, I'll be ready to make my move and my finger will be on my Magic Trackpad, ready to strike at a moment's notice.
  • Reply 2 of 20
    quinneyquinney Posts: 2,528member
    Quote:
    Originally Posted by AppleInsider View Post


    Both groups took credit for Apple's announcement that it would be working with the Fair Labor Association to independently audit its suppliers' factories, despite the petitions getting started after Apple announced its plans.



    Ante hoc ergo propter hoc
  • Reply 3 of 20
    slurpyslurpy Posts: 5,384member
    Cook needs to grow some balls and just lay it down as it is: That Apple has done and is doing more than every other company combined on this issue, and that it's insane to to hold Apple as the scapegoat for the fact that EVERY FUCKING THING YOU BUY comes from China. Also, that this new type of dishonest sensationalism is basically being used as click-bait because of the Apple name by attention-whores.
  • Reply 4 of 20
    herbapouherbapou Posts: 2,228member
    Quote:
    Originally Posted by Slurpy View Post


    Cook needs to grow some balls and just lay it down as it is: That Apple has done and is doing more than every other company combined on this issue, and that it's insane to to hold Apple as the scapegoat for the fact that EVERY FUCKING THING YOU BUY comes from China. Also, that this new type of dishonest sensationalism is basically being used as click-bait because of the Apple name by attention-whores.



    Yep, those guys are beyond helping anyone and are only doing it for themselves. They are starting to piss me off.



    Apple open up the factory and sent and audit. Its not like they did nothing... those guys will never be satisfied.
  • Reply 5 of 20
    MacProMacPro Posts: 19,727member
    Quote:
    Originally Posted by Slurpy View Post


    Cook needs to grow some balls and just lay it down as it is: That Apple has done and is doing more than every other company combined on this issue, and that it's insane to to hold Apple as the scapegoat for the fact that EVERY FUCKING THING YOU BUY comes from China. Also, that this new type of dishonest sensationalism is basically being used as click-bait because of the Apple name by attention-whores.



    I'd add that it's hardly likely eight year olds are sitting at those brightly lit work benches on stools putting logos on the back of iPads. This isn't American coal mines at the turn if the 19th century.
  • Reply 6 of 20
    freerangefreerange Posts: 1,597member
    Quote:
    Originally Posted by Slurpy View Post


    Cook needs to grow some balls and just lay it down as it is: That Apple has done and is doing more than every other company combined on this issue, and that it's insane to to hold Apple as the scapegoat for the fact that EVERY FUCKING THING YOU BUY comes from China. Also, that this new type of dishonest sensationalism is basically being used as click-bait because of the Apple name by attention-whores.



    Well said!
  • Reply 7 of 20
    Didn't Steve Jobs say you could only please people some of the time?
  • Reply 8 of 20
    herbapouherbapou Posts: 2,228member
    Quote:
    Originally Posted by digitalclips View Post


    I'd add that it's hardly likely eight year olds are sitting at those brightly lit work benches on stools putting logos on the back of iPads. This isn't American coal mines at the turn if the 19th century.



    All I have seen so far are pretty good conditions. Not to mention those workers are mostly between 17 and 25, at that age sleeping is dorm is a lot easier. Those conditions would be hard for people 30+, but for those guys its not so bad.



    There are worst working conditions in North America.
  • Reply 9 of 20
    As an American living and teaching in China, the ignorance and arrogance of Americans is an embarrassment at best, and pathetic at its worst. I have worked in both an auto plant and steel mill in the US as a front line worker so I know something about harsh work environments - at a Ford engine plant I had to work MANDATORY 7 days a week and had only 2 days off an entire summer only because I called in sick one day and they gave us the 4th of July. I had to STAND ALL DAY at a conveyor line inspecting heavy cast iron parts for that job. At the steel mills I often worked double shifts to make extra money, and worked outdoors ON TOP OF THE OVENS. It was so hot I had to wear thermal underwear even in the summer to keep the heat off. I also had to wear wooden clogs on the bottoms of my work boots to keep from burning the bottoms of my feet. Add to that, wearing a screen in front of my face in case the gasses I worked around burst into flames as the screen would help keep the flames from burning my face although a couple times they snuck under and burned my neck. These idiot Americans complaining about worker conditions in China have no clue what they are talking about and should just shut the fuck up and work at solving our own problems back in the US. The problem is none of these morons have actually ever worked in a factory. Meanwhile, Foxconn workers are not only working in modern well lit and clean factories, but are also saving money for themselves, as well as sending money home to their poor rural families to help support them. They are making a living wage, and an above average factory wage for China. I applaud Apple for what they are accomplishing on this front.
  • Reply 10 of 20
    Quote:
    Originally Posted by FreeRange View Post


    As an American living and teaching in China, the ignorance and arrogance of Americans is an embarrassment at best, and pathetic at its worst. I have worked in both an auto plant and steel mill in the US as a front line worker so I know something about harsh work environments - at a Ford engine plant I had to work MANDATORY 7 days a week and had only 2 days off an entire summer only because I called in sick one day and they gave us the 4th of July. I had to STAND ALL DAY at a conveyor line inspecting heavy cast iron parts for that job. At the steel mills I often worked double shifts to make extra money, and worked outdoors ON TOP OF THE OVENS. It was so hot I had to wear thermal underwear even in the summer to keep the heat off. I also had to wear wooden clogs on the bottoms of my work boots to keep from burning the bottoms of my feet. Add to that, wearing a screen in front of my face in case the gasses I worked around burst into flames as the screen would help keep the flames from burning my face although a couple times they snuck under and burned my neck. These idiot Americans complaining about worker conditions in China have no clue what they are talking about and should just shut the fuck up and work at solving our own problems back in the US. The problem is none of these morons have actually ever worked in a factory. Meanwhile, Foxconn workers are not only working in modern well lit and clean factories, but are also saving money for themselves, as well as sending money home to their poor rural families to help support them. They are making a living wage, and an above average factory wage for China. I applaud Apple for what they are accomplishing on this front.



    Thank you for a great post.



    But facts like these don't matter to those whose worldview is driven by a combination of naiveté (regarding the global economy) and bitterness (towards Apple).
  • Reply 11 of 20
    gtrgtr Posts: 3,231member
    "At that year's meeting, Steve Jobs suggested that Greenpeace hire staff with engineering backgrounds who could understand the issues involved"



    Fucking love it.
  • Reply 12 of 20
    Quote:
    Originally Posted by GTR View Post


    "At that year's meeting, Steve Jobs suggested that Greenpeace hire staff with engineering backgrounds who could understand the issues involved"



    Fucking love it.



    Where or when was this said? I only ask cause I've never heard it before.
  • Reply 13 of 20
    slurpyslurpy Posts: 5,384member
    Quote:
    Originally Posted by FreeRange View Post


    As an American living and teaching in China, the ignorance and arrogance of Americans is an embarrassment at best, and pathetic at its worst. I have worked in both an auto plant and steel mill in the US as a front line worker so I know something about harsh work environments - at a Ford engine plant I had to work MANDATORY 7 days a week and had only 2 days off an entire summer only because I called in sick one day and they gave us the 4th of July. I had to STAND ALL DAY at a conveyor line inspecting heavy cast iron parts for that job. At the steel mills I often worked double shifts to make extra money, and worked outdoors ON TOP OF THE OVENS. It was so hot I had to wear thermal underwear even in the summer to keep the heat off. I also had to wear wooden clogs on the bottoms of my work boots to keep from burning the bottoms of my feet. Add to that, wearing a screen in front of my face in case the gasses I worked around burst into flames as the screen would help keep the flames from burning my face although a couple times they snuck under and burned my neck. These idiot Americans complaining about worker conditions in China have no clue what they are talking about and should just shut the fuck up and work at solving our own problems back in the US. The problem is none of these morons have actually ever worked in a factory. Meanwhile, Foxconn workers are not only working in modern well lit and clean factories, but are also saving money for themselves, as well as sending money home to their poor rural families to help support them. They are making a living wage, and an above average factory wage for China. I applaud Apple for what they are accomplishing on this front.



    Thanks for being one of the very few online who knows what the fuck they're talking about, and posting your experience. Unfortunately, the nature of the internet is that people with zero knowledge or insight yell the loudest. I'm sure anyone who's worked in a factory setting would agree with you. As you said, it's utterly embarrassing.
  • Reply 14 of 20
    slurpyslurpy Posts: 5,384member
    Quote:
    Originally Posted by Daramouthe View Post


    Where or when was this said? I only ask cause I've never heard it before.



    http://www.roughlydrafted.com/RD/RDM...4C9887A5A.html



    History repeats itself. I wish Steve was still around so he could give more no-bullshit responses.



    Quote:

    Jobs' Challenges Greenpeace Incompetence.

    Those comments didn't stop Greenpeace representatives from using the meeting as an opportunity to advertise the groups anti-Apple campaign. Among the activists sent by Greenpeace was Iza Kruszewska, one of the key architects of the corporation's Apple-oriented fundraising program.



    Kruszewska was wearing a Greenpeace t-shirt styled after the former iPod ads, presenting Apple's products as dangerously toxic and encouraging user donations to Greenpeace to somehow solve that issue.



    After attempting to take credit for Apple's announcements, Kruszewska questioned Jobs about Apple's potential do more to advance Greenpeace's political goals in announcing principles, but Jobs insisted that such “flowery” announcements were not really doing anything for the environment.



    Jobs suggested that Greenpeace hire staff with engineering backgrounds who could understand the issues involved, and insisted that Apple does more to push innovative manufacturing techniques than other PC makers.



    When Apple talks to its manufacturers, he said, they report that no other companies are pushing for similar, real changes. He questioned the real efforts HP and Dell were making to back up their announcements.



    Jobs also blasted the criteria behind Greenpeace's highly publicized Greener Guide to Electronics, which ranks a random assortment of manufactures according to commitments listed on their websites.



    Jobs said Greenpeace needed to develop rankings that reflected what companies actually do, not just what they promise to do at some point in the future.




  • Reply 15 of 20
    Quote:
    Originally Posted by Slurpy View Post


    Cook needs to grow some balls and just lay it down as it is: That Apple has done and is doing more than every other company combined on this issue, and that it's insane to to hold Apple as the scapegoat for the fact that EVERY FUCKING THING YOU BUY comes from China. Also, that this new type of dishonest sensationalism is basically being used as click-bait because of the Apple name by attention-whores.



    Isn't that exactly what he has been saying? Did you listen to what he was saying on Wall Street a couple of days ago?
  • Reply 16 of 20
    Quote:
    Originally Posted by Slurpy View Post


    http://www.roughlydrafted.com/RD/RDM...4C9887A5A.html



    History repeats itself. I wish Steve was still around so he could give more no-bullshit responses.



    Thank you for the link and your right too. Apple is being challenged on how it's production is going over in China. Even though its not just Apple that has things assembled over there and that Apple does not own Foxconn. People are easily willing to believe a lie more than the truth without the facts to backup their claims.
  • Reply 17 of 20
    Quote:
    Originally Posted by Daramouthe View Post


    Thank you for the link and your right too. Apple is being challenged on how it's production is going over in China. Even though its not just Apple that has things assembled over there and that Apple does not own Foxconn. People are easily willing to believe a lie more than the truth without the facts to backup their claims.



    Cook would do himself and Apple a huge favor if he told these activists to STFU.
  • Reply 18 of 20
    Quote:
    Originally Posted by GTR View Post


    "At that year's meeting, Steve Jobs suggested that Greenpeace hire staff with engineering backgrounds who could understand the issues involved"



    Fucking love it.



    Classic Steve.
  • Reply 19 of 20
    Quote:
    Originally Posted by herbapou View Post


    Yep, those guys are beyond helping anyone and are only doing it for themselves. They are starting to piss me off.



    Apple open up the factory and sent and audit. Its not like they did nothing... those guys will never be satisfied.



    Can't agree more. +1.
  • Reply 20 of 20
    Quote:
    Originally Posted by FreeRange View Post


    As an American living and teaching in China, the ignorance and arrogance of Americans is an embarrassment at best, and pathetic at its worst. I have worked in both an auto plant and steel mill in the US as a front line worker so I know something about harsh work environments - at a Ford engine plant I had to work MANDATORY 7 days a week and had only 2 days off an entire summer only because I called in sick one day and they gave us the 4th of July. I had to STAND ALL DAY at a conveyor line inspecting heavy cast iron parts for that job. At the steel mills I often worked double shifts to make extra money, and worked outdoors ON TOP OF THE OVENS. It was so hot I had to wear thermal underwear even in the summer to keep the heat off. I also had to wear wooden clogs on the bottoms of my work boots to keep from burning the bottoms of my feet. Add to that, wearing a screen in front of my face in case the gasses I worked around burst into flames as the screen would help keep the flames from burning my face although a couple times they snuck under and burned my neck. These idiot Americans complaining about worker conditions in China have no clue what they are talking about and should just shut the fuck up and work at solving our own problems back in the US. The problem is none of these morons have actually ever worked in a factory. Meanwhile, Foxconn workers are not only working in modern well lit and clean factories, but are also saving money for themselves, as well as sending money home to their poor rural families to help support them. They are making a living wage, and an above average factory wage for China. I applaud Apple for what they are accomplishing on this front.



    Great Post!



    I just hope some of these stupid attention hungry folks will read this!
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