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

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.
Comments
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.
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.
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.
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.
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.)