Fair Labor Association supplier audit reveals excessive overtime, Apple pledges to continue improvem
As part of its partnership with Apple, the Fair Labor Association has conducted an independent audit of supplier Quanta, and discovered that the company's factories were responsible for some labor violations, including excessive overtime and hiring fees.
The FLA's assessments were published Friday, but actually represent data from visits conducted by the association a year ago, in August of 2013. The FLA visited Quanta facilities in Shanghai and Changshu, looking for potential instances of non-compliance with the association's Workplace Code of Conduct.
As of last year, Quanta employed 31,706 people on Apple production lines in Shanghai, and another 4,711 in Changshu. A total of 389 worker interviews were done in Shanghai and 132 in Changshu.
The FLA found that nearly two-thirds of workers at the Changshu facility received no mandatory rest day during the fourth quarter of 2012. Compliance with hours of work and industrial relations received the poorest scores at the Changshu facility, as ranked by the association.
FLA findings from Quanta's Shanghai facility.
The findings made by the FLA join Apple's own internal audits, of which 451 were conducted last year. Apple became the first technology company to join the FLA in early 2012, agreeing to allow the association to independently assess facilities in its supply chain and report detailed findings on the association's website.
The FLA's findings come with a series of recommendations that have been made to Apple to help improve compliance. Alongside the FLA's publication of its findings, the company released a statement to TechCrunch in which it revealed its own experts have audited these same sites 16 total times, most recently in July.
FLA findings from Quanta's Changshu facility.
"In the year since the FLA's visit, we have worked closely with Quanta to drive meaningful improvements in areas identified by both the FLA and Apple," the company said. "Apple conducted four follow-up inspections on top of the annual audits of both facilities, to ensure the needed corrections are in place."
Apple also acknowledged that excessive overtime hours have been an issue with Quanta, as the supplier averaged 86 percent compliance with its 60-hour workweek policy. That's lower than the overall 95 percent compliance level among all companies in Apple's 2014 Supplier Responsibility report.
"Excessive overtime is not in anyone's best interest, and we will continue to work closely with Quanta and our other suppliers to prevent it," Apple said.
The FLA's assessments were published Friday, but actually represent data from visits conducted by the association a year ago, in August of 2013. The FLA visited Quanta facilities in Shanghai and Changshu, looking for potential instances of non-compliance with the association's Workplace Code of Conduct.
As of last year, Quanta employed 31,706 people on Apple production lines in Shanghai, and another 4,711 in Changshu. A total of 389 worker interviews were done in Shanghai and 132 in Changshu.
The FLA found that nearly two-thirds of workers at the Changshu facility received no mandatory rest day during the fourth quarter of 2012. Compliance with hours of work and industrial relations received the poorest scores at the Changshu facility, as ranked by the association.
FLA findings from Quanta's Shanghai facility.
The findings made by the FLA join Apple's own internal audits, of which 451 were conducted last year. Apple became the first technology company to join the FLA in early 2012, agreeing to allow the association to independently assess facilities in its supply chain and report detailed findings on the association's website.
The FLA's findings come with a series of recommendations that have been made to Apple to help improve compliance. Alongside the FLA's publication of its findings, the company released a statement to TechCrunch in which it revealed its own experts have audited these same sites 16 total times, most recently in July.
FLA findings from Quanta's Changshu facility.
"In the year since the FLA's visit, we have worked closely with Quanta to drive meaningful improvements in areas identified by both the FLA and Apple," the company said. "Apple conducted four follow-up inspections on top of the annual audits of both facilities, to ensure the needed corrections are in place."
Apple also acknowledged that excessive overtime hours have been an issue with Quanta, as the supplier averaged 86 percent compliance with its 60-hour workweek policy. That's lower than the overall 95 percent compliance level among all companies in Apple's 2014 Supplier Responsibility report.
"Excessive overtime is not in anyone's best interest, and we will continue to work closely with Quanta and our other suppliers to prevent it," Apple said.
Comments
When I got paid by the hour I loved over time especially when it hit doubt pay. I suspect if you asks lots of those workers they probably love over time too since it allows you to make more money than you would have otherwise.
Yeah forced over time is not good, but they should not immediately assume that ever work does not want the over time.
Yeah forced over time is not good, but they should not immediately assume that ever work does not want the over time.
I was under the impression that the overtime was not paid accordingly, making it a violation. Simply having overtime doesn’t sound like much of a violation to me.
I was under the impression that the overtime was not paid accordingly, making it a violation. Simply having overtime doesn’t sound like much of a violation to me.
I think that they are paid. But I think it's mandatory, not voluntary. And that's where the questions start.
"Your day off is just around that corner, Brother !"
shame on apple for not working harder to improve the working conditions of these people in Asia.
With more than 150 billion in cash and market capital of almost 600 billions they could certainly afford to spare some money on improving the working conditions..
What an idiotic comment
Can you actually read? Apple is doing, and has been doing, what is necessary to resolve the issue. So get off your soap box and go get yourself a good education.
I have been living in a China for the last 5 year and visiting here for 15, and can tell you that most Westerners have no clue about this country. These are young adults working in these factories who actually make more money than anyone in there family has ever made. They work hard to save for their future, and to support their families back home. Their goal is to work hard for two or three years to make as much as they can in a short period of time. In fact, the majority of them ask why they are being punished when their hours are cut back. The reality is these are good jobs that offer them a better future. Those that don't like the work can easily quit and walk down the street to get a new job immediately. The truth is that these workers make more per year on average than recent college graduates.
Agree with your point of view ?I am a collage student from China.
What an idiotic comment
Just block the idiot. That’s what al lot of us have done.
The responsibility should be on the government of the country NOT on Apple regarding worker conditions! Apple hires contractors to supply a service, it would be pompous to impose rules on how the contractor conducts it's business that is for the government of the country. Layoff of Apple and write letters to the government of the country if you are so concerned!
Hope you're not the same person who's against the Government raising the minimum wage and letting the free market decide here in the States
It's Apple's problem, it's America's problem and many first world countries who want their iPhones stocked fast and at an expected cost. Raise the iPhone $200 to accommodate for proper work conditions and watch this country drown in tears, as well as Apple's stock price. When America's mindset changes on the ethics of our diamonds, clothing, electronics and food and start putting our money with our mouth is, will stuff like this change.
When America’s mindset changes on the ethics of our diamonds…
Lab-grown diamonds are cheaper than mined ones. I don’t see many rats complaining.
I'm glad we have not found life on another planet, you would want our government to send them money. ;-)
It's really easy for you to sit in your armchair and solve the worlds problems with Apple's pocketbook.
I have been living in a China for the last 5 year and visiting here for 15, and can tell you that most Westerners have no clue about this country. These are young adults working in these factories who actually make more money than anyone in there family has ever made. They work hard to save for their future, and to support their families back home. Their goal is to work hard for two or three years to make as much as they can in a short period of time. In fact, the majority of them ask why they are being punished when their hours are cut back. The reality is these are good jobs that offer them a better future. Those that don't like the work can easily quit and walk down the street to get a new job immediately. The truth is that these workers make more per year on average than recent college graduates.
Agreed.
My observation is that it is a double-edged sword; most workers have families far from the factory cities. They don't like being away from home for such long lengths of time (because most live in the company-sponsored dormitories, and traveling to home every weekend is prohibitive due to time and/or money), but they earn so much more than if they stayed in their small towns. So they accept factory work as a net positive job. The typical work week is 6 days a week, 12 hours a day, at least in the factories that I support.
I was under the impression that the overtime was not paid accordingly, making it a violation. Simply having overtime doesn’t sound like much of a violation to me.
They also have limits on total amount of over time allowed. In China the practice is to have everyone work over time and not add another shift of workers if it can be avoid. I am not sure if the issue is no pay or too much time, I suspect it is too much time since that is the easiest to find.
What people in the US fail to understand when it comes to China and labor is the fact how the rules work. In the US if you are being worked too much without the required breaks and associated pay you can file a claim with the US government and ideally they will look into. In China if a complaint is made to the China government they just turn around and notified the companies who use that factory about the issue and make they address the issue otherwise they run into problems.
China would never step in and stop over time and the such, they only interesting making sure worker have jobs and get paid and they make companies like Apple the heavies. This way if Apple does not want their name dragged through the mud it usually means that they need to fix the issue with the factories and it usually means they apple has to agree to pay more to build their products. Over time is cheaper, then hire entire new shift of workers, but over time is an easier issue to be found by these outside watchdog groups.