Apple clears FoxConn iPod China plant mostly

Stan Beer
Tuesday, 22 August 2006 18:20

IT Industry - Strategy

Sweatshop allegations made in a UK newspaper in June about an iPod manufacturing facility in China have been reported by Apple to be largely unfounded after a comprehensive investigation of the facilities. However, some breaches of Apple's supplier code of conduct were found.

An article that appeared the UK newspaper, Mail on Sunday, described sweat shop factories being run in mainland China by Taiwanese manufacturer Foxconn. The article claimed that young women from rural regions were being severely underpaid half the usual rate, were housed in dormitories of up to 100 and paid half their wages in rent and board.

In response, Foxconn Electronics threatened legal action over the report and Apple launched its own investigation.

After inspecting the FoxConn campus, manufacturing facilities and domitory complexes, and interviewing a range of staff, Apple issued a report stating that the facility largely complied with its supplier code of conduct.

Employees were all paid at least the minimum wage or above and, with the exception of three temporary facilities, the dormitories were found found to be of a satisfactory standard and in many cases free to employees who opted to perform cleaning rosters.

The main area in which the FoxConn facility violated App;e's regulations were in the amount of hours worked. Apple stated in its report:

"We did, however, find that employees worked longer hours than permitted by our Code of Conduct, which limits normal workweeks to 60 hours and requires at least one day off each week. We reviewed seven months of records from multiple shifts of different productions lines and found that the weekly limit was exceeded 35% of the time and employees worked more than six consecutive days 25% of the time. Although our Code of Conduct allows overtime limit exceptions in unusual circumstances, we believe in the importance of a healthy work-life balance and found these percentages to be excessive."

According to Apple, FoxConn has enacted a policy change to make sure Apple's working hours policy is adhered to.