FOR IMMEDIATE RELEASE:
July 27,2012 (New York), China Labor Watch released a new investigative report on an Apple Foxconn factory, as well as nine other factories in China that supply Apple, finding not only that labor rights violations are still common at Foxconn but also that these violations are rampant throughout Apple’s supply chain. In fact, conditions can be even worse at other Apple suppliers, including at the Riteng factory in Shanghai.
The report found the following problems to be common in the ten factories:
The Riteng factory stands out for its particularly poor working conditions, with these conditions even worse than they are at Foxconn. On average Riteng workers are on the job nearly 12 hours a day, compared to 10 hours a day at the Foxconn factory. The Riteng workers get only about one day of rest each month. Their overtime hours dwarf those of the Foxconn workers, which themselves are well above the legal limit set in China. For Riteng workers, the average hourly wage is 8.2 RMB or $1.30, well below the still-meager average hourly wage of Foxconn workers of 10.2 RMB or $1.62. Half of Riteng workers rated its safety and health as ‘bad’ compared to just 2% of workers giving this rating to the Foxconn factory.
Serious problem of Labor Dispatching has been overlooked by Apple
Our research revealed that the biggest problem overlooked by Apple in their Social Responsibility Reports, is the prevalent use of dispatched labor in their supply chain. Except for Foxconn in Shenzhen which transferred all dispatched workers to direct-hire status in 2011, all other investigated factories overused dispatched labor, including Jabil in Shenzhen where dispatched labor made up almost 70% of the workforce. Of note:
1. Factories can use dispatched labor to employ people short-term without having to pay severance compensation.
2. Factories can use dispatched labor to shift responsibility for worker injuries onto another party.
3. Factories can use dispatched labor to prevent workers from organizing into unions or establishing democratic management systems.
4. Factories can reduce other forms of worker compensation, and thus their labor costs, by hiring dispatched labor. For instance, when companies contribute to social insurance programs for dispatched workers, they pay a smaller percentage or sometimes do not sign up workers at all. Their labor costs can be reduced by 10% to 15% in this way.
5. Dispatched workers have no limitation on the amount of overtime that they work. Some have to work more than 150 hours of overtime every month.
6. Dispatched workers often have to pay sizable fees to the dispatching agency.
Apple must reform
“The squeezing of factory workers exists throughout Apple’s supply chain in China, and not just at Foxconn,” said Li Qiang, executive director of China Labor Watch. “Apple has the responsibility, and the financial resources, to ensure that needed improvements for workers occur systematically and quickly.”
The report, Beyond Foxconn: Deplorable Working Conditions Characterize Apple’s Entire Supply Chain, is based on interviews of 620 workers in ten diverse factories making Apple products in China. The information was collected between January 2012 and April 2012, often despite obstacles presented by Chinese authorities. The full 132-page report can be found at .http://chinalaborwatch.org/pdf/2012627-5.pdf
About China Labor Watch:
Founded in 2000, China Labor Watch is an independent not-for-profit organization. In the past ten years, CLW has collaborated with labor organizations and the media to conduct a series of in-depth assessments of factories in China that produce toys, bikes, shoes, furniture, clothing, and electronics for some of the largest companies. CLW’s New York office creates reports from these investigations, educates the international community on supply chain labor issues, and pressures corporations to improve conditions for workers.
Phone: +001 212-244-4049
Cell Phone: +001 917-257-8589
147 W 35th Street , STE 406
New York, NY 10001
 Actually, the dispatched workers constitutes 70% of the workforce in Shenzhen, and 90% of the workforce in Suzhou, except for managers and technicians. They are estimated percentages based on this investigation.
Relative Videos about the investigative report:
Production Line in Catcher http://youtu.be/UknhWoL6GWQ
Cafeteria and Break Room in Catcher http://youtu.be/m3kK3FOn_40
The Front Door and Living Area of Kenseisha http://youtu.be/FB1mxj7ZsjM