Watchdog group finds Pegatron exploiting workers in lead up to 'iPhone 7' launch
Apple's repeated demands that suppliers cut costs have reportedly prompted "iPhone 7" manufacturing partner Pegatron to skirt the tech giant's audits with covert decreases in effective pay and increases in illegal overtime amid worsening working conditions, according to frequent critic China Labor Watch.
The most recent report by China Labor Watch utilizes copies of pay stubs collected in 2015 and 2016. The group claims that Apple's falling profits is putting pressure on manufacturing partners to lower costs, a situation that leads to mistreatment of Chinese workers.
Over two years of examination, the group collected over 2000 pay stubs. The base wage of most workers was equal to the legal minimum wage for the time period which varied between $304 and $350 per month. This is reportedly offset by deductions taken in accordance with China labor law from the paychecks for social insurance, and other fees assessed by the company for lodging and other expenses.
China Labor Watch claims that the average wage in Shanghai was $895 per month. By comparison, Pegatron workers who had accumulated up to 90 overtime hours received only $633 per month over the evaluation period, and in off-peak manufacturing times generally made between $301 and $452 per month.
Further, the group discovered excessive overtime in departments where more man hours are needed. An analysis of payroll records in March revealed one employee worked 109 hours, or three times the legal limit of 36 hours. Apple responded to the findings in July, saying that while the China Labor Watch statistics were higher than in-house audits, excessive overtime continues to be a problem in certain departments.
China Labor Watch claims that Pegatron's working condition is "Apple's responsibility" despite Apple not holding a financial stake in the ownership of the company. Additional complaints against Apple are levied for it seemingly wanting to "keep money in its hands and do nothing" about Pegatron's working conditions.
In Apple's supplier responsibility report for 2016, the company claimed that following 640 audits of the supply chain, compliance with its hourly standards exceeded 97 percent. China Labor Watch denies that audits are effective, as measures can be taken beforehand to game the system, with the company able to fake records that show compliance to the Apple-ordered requirements.
Activist groups and media reports have called attention to issues at both Pegatron and Foxconn that span pay issues, use of underage labor, terrible dorm conditions, and lax safety standards. While Apple claims that the situation has improved radically under supervision, reports continue to surface of continuing problems.
The most recent report by China Labor Watch utilizes copies of pay stubs collected in 2015 and 2016. The group claims that Apple's falling profits is putting pressure on manufacturing partners to lower costs, a situation that leads to mistreatment of Chinese workers.
Over two years of examination, the group collected over 2000 pay stubs. The base wage of most workers was equal to the legal minimum wage for the time period which varied between $304 and $350 per month. This is reportedly offset by deductions taken in accordance with China labor law from the paychecks for social insurance, and other fees assessed by the company for lodging and other expenses.
China Labor Watch claims that the average wage in Shanghai was $895 per month. By comparison, Pegatron workers who had accumulated up to 90 overtime hours received only $633 per month over the evaluation period, and in off-peak manufacturing times generally made between $301 and $452 per month.
Further, the group discovered excessive overtime in departments where more man hours are needed. An analysis of payroll records in March revealed one employee worked 109 hours, or three times the legal limit of 36 hours. Apple responded to the findings in July, saying that while the China Labor Watch statistics were higher than in-house audits, excessive overtime continues to be a problem in certain departments.
China Labor Watch claims that Pegatron's working condition is "Apple's responsibility" despite Apple not holding a financial stake in the ownership of the company. Additional complaints against Apple are levied for it seemingly wanting to "keep money in its hands and do nothing" about Pegatron's working conditions.
In Apple's supplier responsibility report for 2016, the company claimed that following 640 audits of the supply chain, compliance with its hourly standards exceeded 97 percent. China Labor Watch denies that audits are effective, as measures can be taken beforehand to game the system, with the company able to fake records that show compliance to the Apple-ordered requirements.
Activist groups and media reports have called attention to issues at both Pegatron and Foxconn that span pay issues, use of underage labor, terrible dorm conditions, and lax safety standards. While Apple claims that the situation has improved radically under supervision, reports continue to surface of continuing problems.
Comments
The article mentions the average wages for Shanghai. Are the factories in Shanghai? It might be like comparing average wages for Manhattan to the average wages for some community in West Virginia.
Lastly, the Chinese people might not be free but they don't have to work for Pegatron. They could be working for some dildo factory somewhere, probably getting paid in kind.
and the luxurious amount of space for me to live! Does it come in get me the fuck out of here? I'm sure they have an open bed if you can hack it.
The Pegatron factories are in Shanghai. It's similar to old New York where you had sweatshop workers working in extremely poor working conditions, making a fraction of what other manufacturing workers made. Except that was many years ago.
No, not actually.
Thanks for playing.
And that iPhone series of two years ago? The iPhone 6 series: a huge hit. So "declining demand" my tushy
Reality: https://en.m.wikipedia.org/wiki/Rural_society_in_China
So according to you, Pegatron can refuse more orders because they are not greedy and prioritize their own employee's well being rather than their own profits?
So... if I hire a contractor to put up some sheetrock in my house I'm responsible for policing the contractor and his/her labor relations with his/her employees to ensure nobody is being exploited?
What Apple does for supplier responsibility goes so far beyond what any other company of its size and scope currently does or has ever done. No, Apple is never above reproach but these organizations are simply taking advantage of Apple's good nature and desire for ethical treatment of all workers as a tool to advance their own political causes. In Apple's defense, they always handle these disparaging attacks with dignity and cooperative dialog, which is infinitely more positive than those people who believe that trying to drag Apple down somehow increases their own moral standing. Sorry, but it doesn't work that way.
There are similar reports on other companies and some get coverage but Apple gets more for obvious reasons. The same labour watch organisation found Samsung suppliers were using child workers a few years back so Samsung ditched them. We are all responsible for the products we consume, Apple or Android or the shoes you wear. These NGOs do amazing work to let us know what is happening so companies can take action and consumers can boycott if they don't. Take off the Apple glasses for a minute and consider how lucky you are to have been born into a situation that means you are buying the phone, not assembling it.