Apple terminates contract with supplier after audit finds underage labor violations

Posted:
in General Discussion edited January 2014
In Apple's seventh Supplier Responsibility Report released late Thursday, it was revealed that the company no longer does business with a Chinese component supplier due to that firm's use of underage workers.

Audit
Worker prepares iPhone for final assembly. | Source: Apple Supplier Responsibility Report


According to the 37-page report, an audit of Guangdong Real Faith Pingzhou Electronics in January 2012 found the supplier responsible for 74 underage labor violations, prompting Apple to end its relationship with the circuit board manufacturer.

Apple's code of labor states that child labor is strictly restricted: "The minimum age for employment or work is 15 years of age, the minimum age for employment in that country, or the age for completing compulsory education in thatcountry, whichever is higher."

For the 2013 report, Apple conducted 393 audits across its supply chain, a 72 percent increase from the year before. In all, audits were conducted in 14 countries covering 1.5 million workers at manufacturing facilities and non-production facilities like call centers and warehouses. The company's audits were broken down into five distinct categories: labor and human rights, health and safety; environment; ethics; and management systems.

Overall practices compliance for labor and human rights, which covers concerns like anti-discrimination practices and wages, was at 77 percent while management systems compliance stood at 73 percent. Of note was a high level of adherence to working hour limits, which is capped at a maximum 60-hour work week with at least one day of rest per seven days of work. As for wages, the company required eight facilities to pay back excess foreign contract worker fees worth $6.4 million after they were found to be using bonded labor.

Labor Compliance


Health and safety checks practices and management systems were similar to the above category with 76 percent and 70 percent compliance, respectively. No core violations were found.

Environmental issues have traditionally been a problem for Apple in China, especially concerning the use of hazardous substances pollution. For 2012, overall compliance and management systems compliance was found to be 78 percent and 72 percent, respectively. Besides one supplier being put on probation for dumping a hazardous waste cutting oil into the restroom receptacle, no egregious violations were found.

Ethics was the highest scoring category with practices and management systems compliance at 97 percent and 90 percent, respectively. Metrics measured included business integrity, protection of whistle-blowers and protection of intellectual property. No significant actions were taken, but four facilities gave Apple's audit team falsified payroll and attendance records. These facilities ultimately furnished the correct records and were put on probation.

Management systems was the poorest scoring of the five categories with respective practices and systems compliance at 69 percent and 68 percent, though no core violations or remedial actions were reported. The audit found 158 facilities had no procedures in place for auditing their own suppliers or did not perform adequate reports, 154 facilites did not conduct internal audits and 138 facilites failed to conduct a management review.

Apple has been extremely proactive in ensuring its supply chain is up to international labor standards after the company's 2011 Progress Report found underage labor violations at a partner manufacturer. On top of its self-auditing practices, Apple in 2012 became the first tech company to join the Fair Labor Association.
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Comments

  • Reply 1 of 39


    The very fact that Apple ever at any point had anything to do with this company and their child labor makes Apple evil¡


     


    Meanwhile, at Samsung… 

  • Reply 2 of 39
    solipsismxsolipsismx Posts: 19,566member
    The very fact that Apple ever at any point had anything to do with this company and their child labor makes Apple evil¡

    Meanwhile, at Samsung… 

    I wouldn't be surprised if there is a headline along the lines of...

    Apple Caught Using Child Labor Attempts To Save Face By Distancing Themselves From Supplier
  • Reply 3 of 39
    asciiascii Posts: 5,936member


    I'm sure no parents, all over the world, want their kids to work. The fact that these were means they must be from a very poor family who had no other choice. So I hope the loss of Apple's business doesn't cause the place to close, and therefore these families to fall on even harder times.

  • Reply 4 of 39
    nagrommenagromme Posts: 2,834member
    So does Samsung release reports with these kinds of details? What actions has Samsung taken? Microsoft? Other electronics companies? Clothing companies? Any companies at all? Is any Apple competitor doing anywhere near as much as Apple to combat the problems? To expose them to the world and not cover them up? To put their own money on the line over it? To invite independent audits? To publicly share their efforts, their successes, their failures, and what they're going to do next?

    Never mind, I forgot... Apple is evil. Samsung and the rest of the "cover it up" companies are always good guys.
  • Reply 5 of 39
    adamcadamc Posts: 583member

    Quote:

    Originally Posted by ascii View Post


    I'm sure no parents, all over the world, want their kids to work. The fact that these were means they must be from a very poor family who had no other choice. So I hope the loss of Apple's business doesn't cause the place to close, and therefore these families to fall on even harder times.



    To calm your fears, set up shop in the US and bring them over to work for you.

  • Reply 6 of 39
    solipsismxsolipsismx Posts: 19,566member
    adamc wrote: »
    To calm your fears, set up shop in the US and bring them over to work for you.

    I doubt his point wasn't that they children should be allowed to work but the deeper concern for why children would have to work in those countries or regions.
  • Reply 7 of 39
    sockrolidsockrolid Posts: 2,789member
    Watch the stock drop due to "lower margins due to increased components costs resulting from switching to higher-cost component supplier after cutting ties with Guangdong Real Faith Pingzhou Electronics..."
  • Reply 8 of 39
    apple ][apple ][ Posts: 9,233member


    Underage workers don't really concern me. If some poor family wants to let their 14 year old son or daughter work at a decent job and make money, then who am I to deny them that? Is it better if their 14 year old daughter starts turning tricks instead? What matters is production and profit and Apple taking the appropriate steps to make their stock more valuable again. Apple's suppliers should be hiring more workers, to make sure that there are no more unnecessary delays and slowdowns in production.

  • Reply 9 of 39
    drblankdrblank Posts: 3,385member

    Quote:

    Originally Posted by ascii View Post


    I'm sure no parents, all over the world, want their kids to work. The fact that these were means they must be from a very poor family who had no other choice. So I hope the loss of Apple's business doesn't cause the place to close, and therefore these families to fall on even harder times.



    I started working when I was in high school because my father didn't give decent allowances.  $20 for the week?  Sorry, but my father was CHEAP.  So I started making what some might consider good money back in the late '70's. About $5/hour working in a retail store.  I should have made more but you know how these people take advantage of kids.  We aren't 18, so we don't have any rights.  The place had many kids under 18 working there.


     


    If the kids have parental convent there is NOTHING wrong with it.  Don't people in this country go to fast food restaurants and have kids under 18 working there?


     


    What I think they don't like is how they TREAT people, that's a concern.  But that's their culture and that's how they discipline their people.  

  • Reply 10 of 39
    irnchrizirnchriz Posts: 1,617member
    Big difference between getting a paper round or working part time in a shop stacking shelves or filling vegetable bags than leaving school and working full time in a sweat shop for the rest of your existence. If you can't see that then you truly are a terrible human being.
  • Reply 11 of 39
    asciiascii Posts: 5,936member

    Quote:

    Originally Posted by irnchriz View Post



    Big difference between getting a paper round or working part time in a shop stacking shelves or filling vegetable bags than leaving school and working full time in a sweat shop for the rest of your existence. If you can't see that then you truly are a terrible human being.


    It doesn't follow that because you have a certain job when you're a kid you'll have the same job for the rest of your life. In fact if you're from a poor family, and they can't afford higher education for you, starting on the bottom rung somewhere and working your way up through sheer concentration and effort might be your best option.

  • Reply 12 of 39
    ifij775ifij775 Posts: 470member
    Underage workers? I want to know why the iPhone 4, a 2 year old product, couldn't be made fast enough last quarter. Whoever is in charge of that should be fired.
  • Reply 13 of 39
    Good for Apple! It's heartwarming to see a huge corporation doing the right thing.
  • Reply 14 of 39

    Quote:

    Originally Posted by Apple ][ View Post


    Underage workers don't really concern me. If some poor family wants to let their 14 year old son or daughter work at a decent job and make money, then who am I to deny them that? Is it better if their 14 year old daughter starts turning tricks instead? What matters is production and profit and Apple taking the appropriate steps to make their stock more valuable again. Apple's suppliers should be hiring more workers, to make sure that there are no more unnecessary delays and slowdowns in production.





    You're not exactly heartwarming.

  • Reply 15 of 39

    Quote:

    Originally Posted by drblank View Post


    I started working when I was in high school because my father didn't give decent allowances.  $20 for the week?  Sorry, but my father was CHEAP.  So I started making what some might consider good money back in the late '70's. About $5/hour working in a retail store.  I should have made more but you know how these people take advantage of kids.  We aren't 18, so we don't have any rights.  The place had many kids under 18 working there.


     


    If the kids have parental convent there is NOTHING wrong with it.  Don't people in this country go to fast food restaurants and have kids under 18 working there?


     


    What I think they don't like is how they TREAT people, that's a concern.  But that's their culture and that's how they discipline their people.  





    <18 is not <15


    Also, you're basically arguing that to each country its own rules (sounds interesting... why's America in Irak/Afghanistan again?) .


     


    On top of which, you're deliberately equating "having a side job", which from 15 is considered OK in most countries to the problem, which is more "being out-of-school at 12 to work in a sweatshop". Not to mention children are more fragile to exposure to toxics than adults, due to their organism still being under construction.


     


    I think your reasoning might benefit from a bit more thought...

  • Reply 16 of 39
    saareksaarek Posts: 1,523member


    It's getting harder and harder to employ the youth these days, working at 15 never did me any harm.

  • Reply 17 of 39
    jragostajragosta Posts: 10,473member
    drblank wrote: »
    I started working when I was in high school because my father didn't give decent allowances.  $20 for the week?  Sorry, but my father was CHEAP.  So I started making what some might consider good money back in the late '70's. About $5/hour working in a retail store.  I should have made more but you know how these people take advantage of kids.  We aren't 18, so we don't have any rights.  The place had many kids under 18 working there.

    If the kids have parental convent there is NOTHING wrong with it.  Don't people in this country go to fast food restaurants and have kids under 18 working there?

    What I think they don't like is how they TREAT people, that's a concern.  But that's their culture and that's how they discipline their people.  

    You got $20 per week allowance to be unacceptable in the 70s and considered your father cheap? Minimum wage in the 70s was something like $1.75 (I know - I had several minimum wage jobs in the 70s) so your $20 was the equivalent of someone else who worked about 12 hours a week. And then you complain about $5 per hour - three times the minimum wage?

    Amazing.
  • Reply 18 of 39
    philboogiephilboogie Posts: 7,675member
    jragosta wrote: »
    Amazing.

    Perhaps the dr. was shooting blanks.
  • Reply 19 of 39
    clemynxclemynx Posts: 1,552member

    Quote:

    Originally Posted by ascii View Post


    I'm sure no parents, all over the world, want their kids to work. The fact that these were means they must be from a very poor family who had no other choice. So I hope the loss of Apple's business doesn't cause the place to close, and therefore these families to fall on even harder times.





    Maybe, but it's not a behavior that has to be encouraged. There has to be a point where it's forbidden. A generation may suffer from it, then society adapts.

  • Reply 20 of 39

    Quote:

    Originally Posted by irnchriz View Post



    Big difference between getting a paper round or working part time in a shop stacking shelves or filling vegetable bags than leaving school and working full time in a sweat shop for the rest of your existence. If you can't see that then you truly are a terrible human being.


     


    You are quick to put your words in his mouth and then condemn him. It sounds like the current gun law debate in the US. "If you oppose a gun ban, you support the murder of children. What a terrible human being!"

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