Foxconn used five times more temp workers than permitted for 'iPhone 11' assembly surge
After Foxconn violated Chinese labor laws in regards to temporary worker volume, Apple has investigated and is working to resolve the situation.
One of Foxconn's major offices
Apple has confirmed a claim that its major iPhone manufacturer Foxconn has employed too many temporary staff. The country's laws specify that temporary staff -- also known as dispatch workers -- cannot exceed 10% of a company's total workforce. However, Foxconn reportedly had up to 50%.
The non-profit watchdog organization China Labor Watch issued a report saying that it had received complaints about working conditions, including overtime, at Foxconn's Zhengzhou factory.
"Apple and Foxconn know that the issue with dispatch workers is in violation of labor laws, but because it is profitable to hire dispatch workers, they haven't addressed the issue," said Li Qiang, executive director of China Labor Watch. "They have allowed these violations to continue over the years."
While not addressing whether this constitutes breaking Chinese laws, Apple said that it had investigated the issue and concluded that it "exceeded our standards."
"To make sure our highstandards are being adhered to, we have robust management systems inplace beginning with training on workplace rights, on-site workerinterviews, anonymous grievance channels and ongoing audits," continued Apple.
Apple further said that it was working with Foxconn to "immediately resolve the issue" of temporary staff. And regarding the overtime working conditions, the company said that "this issue has been corrected."
Foxconn said that it was addressing all issues.
"We did find evidence that the use of dispatch workers and the number of hours of overtime work carried out by employees, which we have confirmed was always voluntary, was not consistent with company guidelines," continued Foxconn in a statement.
Neither company has addressed China Labor Watch's further claims about alleged verbal abuse, sexual harassment, and exposure to toxic chemicals.
The report specifies that Foxconn's use of temporary staff is during peak production season for Apple's iPhones. Foxconn has been recruiting over the summer to prepare for the manufacture of the iPhones which are due to be unveiled on September 10.
This report also comes at a time when US/China relations are under strain and companies, including Apple, are planning to move production away from the Chinese mainland.
One of Foxconn's major offices
Apple has confirmed a claim that its major iPhone manufacturer Foxconn has employed too many temporary staff. The country's laws specify that temporary staff -- also known as dispatch workers -- cannot exceed 10% of a company's total workforce. However, Foxconn reportedly had up to 50%.
The non-profit watchdog organization China Labor Watch issued a report saying that it had received complaints about working conditions, including overtime, at Foxconn's Zhengzhou factory.
"Apple and Foxconn know that the issue with dispatch workers is in violation of labor laws, but because it is profitable to hire dispatch workers, they haven't addressed the issue," said Li Qiang, executive director of China Labor Watch. "They have allowed these violations to continue over the years."
While not addressing whether this constitutes breaking Chinese laws, Apple said that it had investigated the issue and concluded that it "exceeded our standards."
"To make sure our highstandards are being adhered to, we have robust management systems inplace beginning with training on workplace rights, on-site workerinterviews, anonymous grievance channels and ongoing audits," continued Apple.
Apple further said that it was working with Foxconn to "immediately resolve the issue" of temporary staff. And regarding the overtime working conditions, the company said that "this issue has been corrected."
Foxconn said that it was addressing all issues.
"We did find evidence that the use of dispatch workers and the number of hours of overtime work carried out by employees, which we have confirmed was always voluntary, was not consistent with company guidelines," continued Foxconn in a statement.
Neither company has addressed China Labor Watch's further claims about alleged verbal abuse, sexual harassment, and exposure to toxic chemicals.
The report specifies that Foxconn's use of temporary staff is during peak production season for Apple's iPhones. Foxconn has been recruiting over the summer to prepare for the manufacture of the iPhones which are due to be unveiled on September 10.
This report also comes at a time when US/China relations are under strain and companies, including Apple, are planning to move production away from the Chinese mainland.
Comments
If the standard is a maximum, then it's bad (the level reached is too high).
Of course, they mean the second, but it's not clear from the statement.
Further, how does it harm any of the permanent employees or the 10% representing temporary workers to add one more temporary worker after you’ve reached the 10% threshold? I’d doesn’t make sense. If it’s harmful to have some quantity of temporary workers over some arbitrary limit, why isn’t it harmful to have even that initial 10%, why isn’t the very first temporary worker hire causing harm?
This isn't an honest question:
Further, how does it harm any of the permanent employees or the 10% representing temporary workers to add one more temporary worker after you’ve reached the 10% threshold?
They didn't add one more temp. They added 50% of their workforce as temps. That's 40% more than allowed by law. That's potentially lower wages, lesser benefits, and most importantly lower costs which feed higher profit. The 10% may be an arbitrary number or there could be some data behind it, idk. The ultimate goal is to raise the standard of living and quality of life for the Chinese people. Making more of your citizens permanently employed goes a long way towards that goal. The 10% is an understanding that there needs to be some flexibility built into the system. Just my opinion.
"Workers earn a base wage of 2,100 yuan ($295), which is “insufficient to sustain the livelihood for a family living in Zhengzhou city,” according to the CLW report.
The report also claims other rights violations at the factory including:
- Workers
at the factory put in “at least 100 overtime hours a month” during peak
production seasons, even though Chinese labor law states they must not
work more than 36 overtime hours a month. Resignations are not approved
for regular workers during peak season.
- Some dispatch workers* failed to receive bonuses promised to them from the dispatch company.
- Student employees also work overtime during peak production season even though internship laws prohibit that.
- The
factory does not provide workers with adequate personal protective
equipment and workers do not receive any occupational health and safety
training.
- The factory does not report work injuries."
* They use the term "dispatch workers" instead of "temporary workers" -- likely because they are paid and furnished by outside firms rather than employed by the company itself. Many healthcare organizations in the U.S. employ the same tactic -- use workers employed by outside companies in order to evade workplace rules and worker rights.But, overall, this kind of thing -- misreatment of the workforce -- is reminiscent of how workers were treated in U.S. prior to the 1930's -- until the Roosevelt administration enabled and empowered unions to fight back.
https://www.cnbc.com/2019/09/09/apple-appl-claims-it-broke-china-labor-laws-at-iphone-factory-mostly-false.html
This is just Apple moving production up as much as it can to preempt as much of the tariffs as it can.
If more companies are doing this — as I suspect they are — that’s really bad news for China.
Big whoop. Nothing prevents them from going to work somewhere else.
Unless you agree the trade war has really taken a toll on China and opportunities elsewhere have disappeared for Chinese workers.
I love Apple products, but all this talk by Apple of corporate responsibility and making the world a better place can’t apply only to the US. It has to apply to every country.
That said, Apple temps are paid better, have better benefits, and have a better chance to be hired direct than other companies. But it’s not enough. And the safety net? Unemployment wages are a joke.
The only realistic solution is for temporary workers to become decently paid with decent benefits year round, even if it means movng between several employers throughout the year with some kind of employer-supported fund to make up the balance. And it needs to be everywhere worldwide, so that no company or country can avoid their responsibility.
Clearly, that’s not going to happen without leadership. Apple could be that leader, but thus far has chosen to generally go along with the crowd. Yes, it would cost money. But the goodwill it would engender is worth something too.
Edit: I daresay you could find a corresponding chart that shows the money flowing out of the hands of the lower and middle class and into the hands of the upper class during this period....
But, there is also a balance: Frick and Carnegie brought thousands of refugees over from deplorable conditions and gave them a better (but still deplorable) life -- that eventually spawned the great American middle class union worker of the 50's, 60's and 70's. I see the same process going on today in China and Asia.
I wish that there was an easy answer or an easier way. I think Apple (and maybe Foxconn?) is threading that needle and walking that fine line. (Or, maybe they are just as bad as Carnegie and Frick? -- The answer likely depends on which ideological side one falls on!)
This is no secret, it is well-known.
If your heart really bleeds (along with that of a couple of others here), I believe you should put your money where your mouth is, and: (i) Not buy the company's products/services; (ii) Not buy the company's stock.
People who do otherwise are simply enablers of a system that they (apparently) vehemently despise. I'd go as far to say, they're being hypocritical.
But OMG, Foxconn hired more temporary workers than it was allowed to, and OMG! Apple knew about it. That’s headline worthy news for the NYT, not China’s punitive trade practices and well documented theft of IP.
Sure, it’s an issue to be dealt with but how's about we talk about the abuse of immigrant workers in the U.S. and their low wages, working conditions, and undocumented status first and then what is happening in China.
But you would scream bloody murder if your Chinese products went up in price because of those laborers getting paid better. Everybody is already screaming bloody murder over tariffs raising the price of Chinese goods. I can’t imagine how outraged you would be if automation eliminated most of those laborer’s jobs altogether. Apparently NYC mayor Bill de Blasio is blathering about a “robot tax” that would punish companies who eliminate jobs with automation.