Apple's image may be tarnished by poor factory conditions
Apple presents an image of quality, but an audit of its factories in mainland China showed that more than half of these weren't paying their workers properly last year.
Following an investigation on Tuesday into many Chinese companies violating recent labor laws, it's now known through Apple's 2009 responsibility progress report that 45 of the 83 factories that built iPhones and iPods in 2008 weren't paying valid overtime rates for those workers that qualified, while 23 of these weren't even paying some of their workers China's minimum wage.
A deeper look at Apple's findings found that about 25 of the 83 also discriminated to some degree against people based on ethnicity, biological issues like disabilities, or political leanings. 22 didn't meet environmental standards, while almost exactly a fifth also had problems with on-site living conditions and safety.
In a few extreme cases, seven factories had been caught having at least at one time hired underage workers, though were weren't more than 25 people involved. Some workers at six factories also had to enter debt to a recruitment agency just to start work and were effectively forced to work to pay off their recruiters.
When contacted by Bloomberg, Apple maintained that it has regularly audited all of its suppliers in China and otherwise since 2007 and that it has actively sought to improve conditions for those contracted and migrant workers most likely to be hurt by labor abuses. The report itself mentions that Apple goes above and beyond inspections performed by other companies and talks to contractors and migrants themselves, also insisting on ways for employees to complain about conditions without fear of retaliation.
Still, bringing these outstanding issues to light underscores a number of labor-related problems in Asia that have dimmed Apple's often heavily polished corporate image up to and including this year. After an unofficial look into sub-par conditions at Foxconn factories producing iPods during 2006, Apple had little option but to conduct its first sweeping audit and clean up widespread problems at the Chinese firm. In Taiwan, where labor laws are more rigidly enforced, Apple has still had to contend with allegations of questionable pay cuts and retaliatory firings at Wintek, which supplies iPhone screens to this day.
Following an investigation on Tuesday into many Chinese companies violating recent labor laws, it's now known through Apple's 2009 responsibility progress report that 45 of the 83 factories that built iPhones and iPods in 2008 weren't paying valid overtime rates for those workers that qualified, while 23 of these weren't even paying some of their workers China's minimum wage.
A deeper look at Apple's findings found that about 25 of the 83 also discriminated to some degree against people based on ethnicity, biological issues like disabilities, or political leanings. 22 didn't meet environmental standards, while almost exactly a fifth also had problems with on-site living conditions and safety.
In a few extreme cases, seven factories had been caught having at least at one time hired underage workers, though were weren't more than 25 people involved. Some workers at six factories also had to enter debt to a recruitment agency just to start work and were effectively forced to work to pay off their recruiters.
When contacted by Bloomberg, Apple maintained that it has regularly audited all of its suppliers in China and otherwise since 2007 and that it has actively sought to improve conditions for those contracted and migrant workers most likely to be hurt by labor abuses. The report itself mentions that Apple goes above and beyond inspections performed by other companies and talks to contractors and migrants themselves, also insisting on ways for employees to complain about conditions without fear of retaliation.
Still, bringing these outstanding issues to light underscores a number of labor-related problems in Asia that have dimmed Apple's often heavily polished corporate image up to and including this year. After an unofficial look into sub-par conditions at Foxconn factories producing iPods during 2006, Apple had little option but to conduct its first sweeping audit and clean up widespread problems at the Chinese firm. In Taiwan, where labor laws are more rigidly enforced, Apple has still had to contend with allegations of questionable pay cuts and retaliatory firings at Wintek, which supplies iPhone screens to this day.
Comments
Of course, many of those workers will still prefer it to the old rural life of poverty that they would have had but a generation ago. However it doesn't excuse the exploitation.
I hope that Apple has the backbone to stop using factories that repeatedly fail, otherwise the checks mean nothing and the abuses will continue.
And we should think of why our new shiny technology gadget is only $299, because someone is sitting down for 12 hours a day doing repetitive, menial but fiddly work, for a pittance in our terms.
Building them in the first world with first world wages would add a bit to the cost ... until unions got involved anyway.
That's not to say that I agree with how they are treated in either situation.
I have seen this first-hand (China) and it is despicable.
I lived with it in corporate America for too many years to count. Might just explain my "spotty" resume?
http://blog.mozilla.com/security/200...in-firefox-35/
No comment about the article...
1. Sort out the conditions.
2. Price cut across their product range to reflect the discounts they are getting by paying these factories peanuts.
I would go for option 2
Well 2 options here for Apple.
1. Sort out the conditions.
2. Price cut across their product range to reflect the discounts they are getting by paying these factories peanuts.
I would go for option 2
you can guarantee that the factory owners and mainland company executives aren't paying themselves peanuts. you'll bump into their sons and daughters in college campuses all around the world...
Well 2 options here for Apple.
1. Sort out the conditions.
2. Price cut across their product range to reflect the discounts they are getting by paying these factories peanuts.
I would go for option 2
Is anything actually Made in the USA anymore?
One doesn't have a whole lot to do with the other, unless Apple wants to present an image of "sound business ethics practiced internationally."
It wouldn't make any difference whether paraplegic bears built iPhones in dirt for example. The iPhone stands on its own as a quality product, irresepective of who made it and where. If the product is up to snuff and meets expected standards of form and function, that's what counts in terms of a product qua product.
Working conditions and wages are a humanitarian/labour law issue, and has little to do with Apple's "image of quaity", which they have earned on the strength of their products, not from the people making them under whatever conditions.
So I give it between 5 to 8 years and we will start start seeing labels on Apple boxes saying: "Designed by Apple in California. Assembled in North Carolina."
This is what happens when you outsource your jobs to a communist country that still employs slave labor.
Is anything actually Made in the USA anymore?
Of course, but everyone would complain about the price because it's union workers or people that get paid a real wage to design and assemble.
Working conditions and wages are a humanitarian/labour law issue, and has little to do with Apple's "image of quaity", which they have earned on the strength of their products, not from the people making them under whatever conditions.
That "image of quality" is part of Apple's brand which can be easily tarnished with news that their products are being made in factories where workers are treated poorly. I would think that is a huge concern to Apple. You can bet that competitors are going to call attention to it. I'm sure Microsoft is filming a new TV commercial as we type...
Is anything actually Made in the USA anymore?
Yep, slaves. Most don't even know it.
Of course, but everyone would complain about the price because it's union workers or people that get paid a real wage to design and assemble.
True. But Apple is already charging premium prices for their products, so, there's really no excuse. It's more a result of greedy CEOs and stock holders. How about the Executive Staff take a few million less home and give up a Ferrari or two and pay workers a fair wage.
This is what happens when you outsource your jobs to a communist country that still employs slave labor.
Is anything actually Made in the USA anymore?
Is this comment based on the assumption that minimum wage laws are not socialist at all and rather very much libertarian?
That "image of quality" is part of Apple's brand which can be easily tarnished with news that their products are being made in factories where workers are treated poorly. I would think that is a huge concern to Apple. You can bet that competitors are going to call attention to it. I'm sure Microsoft is filming a new TV commercial as we type...
Their hardware competitors are typically using those same factories. As for Microsoft calling attention to it, they will be simultaneously outing Dell and HP among others.
There's a reason why they have to mention California. To keep people's minds in the US and not on overseas/production issues (at least that's part of it). I think it also implies that the products are made in California. Think about it. They simply could use "Designed by Apple".
Sounds like Walmart.
As SJ would say: "Boom"
Ho chi minh....ftw
Uh, you do know Nguyễn