Apple making cheaper iPhones at Chinese factory that mistreats workers, group says

[alp227]

Source: San Jose Mercury News

A human-rights group recently infiltrated a Chinese factory that is making a new iPhone offering from Apple (AAPL) and found dozens of violations of labor rights, according to a report the group released Monday.

"At this moment, in Shanghai, China, workers in Apple's supplier factory Pegatron are monotonously working long overtime hours to turn out a scaled-back, less expensive version of the iPhone," the report reads, detailing six-day workweeks of 11-hour days with pay of $1.50 an hour, which adds up to a salary less than half the average of Shanghai residents.

The group, China Labor Watch, also reported that Pegatron used labor agencies that charged illegal fees and kept the ID cards of workers it recruited to block them from resigning, along with other violations such as unpaid overtime, underage workers and discrimination against certain ethnic groups. In all, China Labor Watch reported 86 labor-rights violations, with 36 of those breaking laws.

Apple issued a statement to The Wall Street Journal after it published news of the report Sunday evening, saying Apple had audited Pegatron facilities 15 times in the past six years, and determined in June that Pegatron workers had an average workweek of 46 hours. The company also said that it had approached Pegatron immediately after China Labor Watch uncovered that workers' ID cards were being held and forced them to stop the practice, adding that new revelations will be investigated in special inspections this week.

Read more: http://www.mercurynews.com/business/ci_23753920

[jberryhill]

1. " and discrimination against certain ethnic groups"

They weren't abusing people without regard to ethnic origin?

Sounds like the restaurant complaint - lousy food and small portions.

[Blue_Tires]

2. That can't be...

I thought Apple had an internal investigation of its contractors and later declared everything was A-OK?

[tridim]

8. Apple knows that Apple people only listen to Apple PR. nt

[DJ13]

3. Apple had audited Pegatron facilities 15 times in the past six years

"Hey, we're coming for an audit, is three weeks from now enough time?"

[Warren Stupidity]

4. Oh we don't care about that anymore because an entertainer exaggerated some stuff

in a one-man play he wrote and produced about Apple, slave labor, and our addiction to high tech gear, and Ira Glass confused Mike Daisey for a journalist and got very angry when he discovered Mike was instead an actor and entertainer. So we don't care about the "special economic zones" and the horrendous working conditions anymore.

[ChromeFoundry]

5. wait for it...in.. 3... 2... 1....

"But, but, other companies are doing it too. Don't single out Apple because I already invested in the company and even have the Apple logo sticker on the back window of my SUV. Apple is so cool. They invented everything. They have the best products and they are not evil like Google and Microsoft. And I need to make them look good to validate my overpriced purchase. If they look bad, I will look like a jerk while standing in the line at Starbucks. Oh, and Samsung is sooo totally corrupt, you should not even be focusing on this because it was China's fault and Apple didn't have anything to do with it. They had to do this because they needed to remove Samsung form being the majority component supplier for the iPhone's... it's all Samsung's fault for stealing a lot of the market share from Apple. It's not their fault. How dare you say anything bad about Apple when they have been so instrumental in making the world a better place for everyone, except for the people that actually make their products. How dare you!"

[Blue Idaho]

6. It's not just Apple.

Many high tech companies use Pegatron's design and manufacturing services. Does that make mistreating workers any more palatable? Not on your life. But this thread could also be titled Android smartphone supplier or Chrome device supplier, or HP Computer supplier mistreats workers.

[ForgoTheConsequence]

7. Its not about doing its about saying.

Apples sells me a cute little phone with a glowing logo and has hip commercials so I feel progressive. And really that's all that matters.

[bunnies]

9. and dont forget that its ridiculously over-priced,

so you also get to show people how rich and indulgent you are.

[ForgoTheConsequence]

10. True.

I make sure I never cover up the Apple logo so people know i'm not some poor loser. Half the time I walk around town holding my phone with my arm extended logo side out.

[OhioChick]

11. Awesome! How much cheaper are they going to be?

[Heywood J]

12. Maybe one of those child workers is the reincarnated Steve Jobs. (NT)

[quadrature]

13. slavery...whats not to like?

(unless you're the slave)

[christx30]

14. Most of that is crappy to do to workers

but 46 hours a week isn't bad. I used to work between 60 and 70 when I was building computers at Dell. Mandatory overtime. You work it or you work elsewhere.
Not excusing Pegatron. I'm just saying that 46 hours isn't something to get excited about.

[wordpix]

15. "Apple audited Pegatron facilities 15 times in the past 6 yrs"---word audit, not "inspection" used

Comes to 2.5 audits/year - not so many - and we don't know if some/all of these were financial audits as opposed to on-site inspections.

Apple has a pattern of getting caught with their pants down on overseas factory abuse and saying, "We audited and had no idea..." I say boycott Apple while being content with your one year-old device instead of demanding new all the time.