National Labor Committee report on Chinese CE factories uncovers deplorable conditions
Yesterday, the National Labor Committee produced a report on the working conditions at the KYE Factory in Dongguan City, Guangdong, China. KYE operates (like many factories in China) a live-work facility and generated sales of $400 million in 2008. KYE manufactures outsourced products for HP, Best Buy, Samsung, Foxconn, Acer, Logitech, and ASUS. Their largest customer, however, is reportedly Microsoft. The report details some of what we've come to expect in stories of labor abuses -- near children, most of them women, working for 16 or 17 hours a day, living in nearly deplorable conditions, for less than a dollar an hour -- all so that the world's ever-growing need for / addiction to consumer electronics can be fed. Now, the gadget industry isn't the only offender by a stretch -- but it's quickly becoming one of the largest (in addition to producing a truly horrific amount of toxic garbage). After the break are some choice facts from the report that our readers might be interested in ingesting, so read on.
Microsoft released a statement today saying that it is "committed to the fair treatment and safety of workers" employed by its vendors, and that its begun an investigation into the allegations of the report. It couldn't be clearer, however, from the ever-mounting pile of evidence, that nearly every major company selling us our gadgetry is at least complicit -- if not completely at fault in this situation. Microsoft (and all the other companies accused) outsource production in large part because of the cheapness of the labor provided by lax labor laws in countries like China -- which necessarily leads to conditions such as these.
As Engadget is primarily a source for news and information on consumer electronics, we feel it's our responsibility to help draw attention to this report -- this is our industry, and abuses like the ones detailed above should be dragged into the harsh light of day. We're urging CE-makers to make serious inquiries about the practices in their factories, and start making real changes that will prevent this kind of thing from growing as this industry moves forward. Engadget as a site isn't in the habit of taking sides or making political statements, but when something is so obviously an affront to humanity, it's easy to speak up about it. We urge you to do the same, especially to the companies you're buying your devices from.
- KYE recruits hundreds-even up to 1,000-"work study students" 16 and 17 years of age, who work 15-hour shifts, six and seven days a week. In 2007 and 2008, dozens of the work study students were reported to be just 14 and 15 years old. A typical shift is from 7:45 a.m. to 10:55 p.m.
- Along with the work study students-most of whom stay at the factory three months, though some remain six months or longer-KYE prefers to hire women 18 to 25 years of age, since they are easier to discipline and control.
- Workers are paid 65 cents an hour, which falls to a take-home wage of 52 cents after deductions for factory food.
- Workers are prohibited from talking, listening to music or using the bathroom during working hours. As punishment, workers who make mistakes are made to clean the bathrooms.
- Fourteen workers share each primitive dorm room, sleeping on narrow double-level bunk beds. To "shower," workers fetch hot water in a small plastic bucket to take a sponge bath. Workers describe factory food as awful.
- Workers can only leave the "compound" during regulated hours.
Microsoft released a statement today saying that it is "committed to the fair treatment and safety of workers" employed by its vendors, and that its begun an investigation into the allegations of the report. It couldn't be clearer, however, from the ever-mounting pile of evidence, that nearly every major company selling us our gadgetry is at least complicit -- if not completely at fault in this situation. Microsoft (and all the other companies accused) outsource production in large part because of the cheapness of the labor provided by lax labor laws in countries like China -- which necessarily leads to conditions such as these.
As Engadget is primarily a source for news and information on consumer electronics, we feel it's our responsibility to help draw attention to this report -- this is our industry, and abuses like the ones detailed above should be dragged into the harsh light of day. We're urging CE-makers to make serious inquiries about the practices in their factories, and start making real changes that will prevent this kind of thing from growing as this industry moves forward. Engadget as a site isn't in the habit of taking sides or making political statements, but when something is so obviously an affront to humanity, it's easy to speak up about it. We urge you to do the same, especially to the companies you're buying your devices from.
























and people say china is suppose to take over as world power??? that will never happen they are a backwards country and third world...
And all of this happens just so Gates can stuff another truckload of benjamins in his account, instead of leaving those jobs in this country, and then people wonder why the economy is getting worse and worse with each passing decade.
I feel bad for those Chinese people but you should feel bad for Americans who could be paying their bills with the money those jobs would provide if they remained in this country. Capitalism is the worst thing to ever happen to the world. All it does it make nobility out of thieves.
The conditions in China and other outsourced CE manufacturing facilities are bad. However, until the consumer agrees to pay a premium for American made, workers rights branded CE products, the companies will be forced to outsource labor. American Apparel type companies are yet to be seen in the CE space and there could be a place for that.
Look at all these lazy people sleeping on the job. So THAT's the reason the iPad launch was pushed a month in Canada. I want my iPad now, get back to work!
/dark humor
OMG and you still supporting this by buying apple's.
@HighestRanked2
Microsoft is a software company
What would you expect? Corporation care only about money, at any cost to human suffering.
lets start a riot
We need to remove the profit margins from big brands and give a much larger share of the profits to workers of the Chinese manufacturers. For example, let them have normal work hours, holidays and better food for one.
This should be the law of our supposed moral countries, no product shall be sold without strict worker rights controlled all the way to the factory.
We can still buy $200 Android phones, let the worker make 10x higher salary per work hour, let them have normal work hours, holidays, better sleeping conditions, better food and more rights in general.
This is perfectly possible. The argument of us having to pay more for products if Chinese workers had more rights is NOT true. The big brands we buy are making sometimes more than 100x of the money that the workers are getting to manufacture the product. This is NOT fair.
Why should Apple make 100x more than the workers making the iphone? Give Apple half as much profit per iphone, and the Chinese worker would have 50x more money/holidays, much better food and living conditions.
Apple makes $500 of profits in average per iphone sold, while the worker who made and assembled it made less than $5. Take $250 away from Apple's profit margins and pay the Chinese worker a much higher salary, holidays, better food, better sleeping conditions and more.
@Charbax
No, Apple is not doing anything wrong. Remember as the public company, Apple's goal is to maximize share holder's value. The higher the profit margin, the happier the investors.
This is not going to stop until China puts up similar labor laws like the ones we have in the US.
@jtang The US can simply demand from China to much improve their labor laws.
US is being completely amoral by just disregarding it as a China issue.
It would be a piece of cake for Obama tomorrow to demand that China improve it's labor laws. China would probably be happy to change it, the US brands like Apple would not be happy about it.
@Charbax
Apple makes $500 per iPhone sold????? In what universe are you living in? I'm no Apple fanboy. In fact, I think Jobs is an a-hole. But that's just plain wrong.
Don't get me wrong, I agree with you that working conditions should be better, they should be allowed to play music and go to the toilet, and the 16 hour workday is hell.
But the wages they're paid per hour are actually not that bad for the standard of living in China. Have you ever been there?
obviously the people who say "at least they have a job" are little kids who did not go to college. As you guys should know United States is not a third world country. Keeping people from third world countries in factories will not make them grow into a country like ours. This is what these companies are doing. To prevent other countries from growing and gaining mass amount of money.
Companies like Microsoft and Apple know EXACTLY what is happening in these e-sweatshops.
It benefits their profits to turn a blind eye to the problem - they have an option to act responsibly, which is at odds with profits. Guess which one wins every time?
Only if this effects public image and sales will anything change. (Look at the effect that the negative Greenpeace report had on Apple - they changed their products).
Unfortunately most people will simply read this article and move on (most will not even see this).
Thank you for posting this news. Best info on Engadget in some time.
thank you engadget for this article.
i feel like our cheap tech is not worth the lives of these people.
wait a minute, where is the proof electronics made in the US, Japan, and Europe cost more? The electronics I buy from the US, Japan, and Europe are actually cheaper than the electronics from a third world country.
An uprising is in order. Time for the People's Republic of China to live up to its name..
The additional problem of the increasing suicide rates is another problem that cannot be ignored:-
http://www.theage.com.au/digital-life/digital-life-news/we-are-like-prisoners-apple-microsoft-face-slave-labour-claims-20100415-sfrp.html
Most "assembled in USA" Apple iMac and MacBook computers are being built by illegal immigrant workers in Fremont, CA. How much Quanta play them? Oh, wait a minute... those workers are not even on their payroll.
This is their punishment for having adopted communism 60 years ago. They basically wasted 30 years of development and now they basically have to work extra hard to catch up with the developed world.
In reply: I agree with the Pastor it is wrong but as the jungle grows there is rank, I cannot condemn capitalism for I fought for my country & followed my orders. I am an American & we vote for those to lead us into the future regardless of the wrongs, if you wish to argue against capitalism & you are an American, I'm worried to ask what way you think our government should be run.
It's very simple. We want our goods cheap and affordable. This is how we get such great bargains. If we don't want to feel guilty about working conditions, we can pay more and have our gadgets made in Germany or America where workers live in paradise. Until then, enjoy your cheap goods.
The worker "forgets" to mention lunch and dinner breaks (1 hour each) and that they usually get something like 10min off for every 2 hours work. Besides sleeping when the productions tops for some issue.
This is not supposed to soften the hardship of uneducated workers life, but what kind of perspective do uneducated workers have around the globe? Some guy moving crates in a warehouse in Europe has also not exactly a dream job.
Did they write what the alternative would be? I am sure a prostitute has better income, ah wait there is no prostitution in china :).
I get so excited when I read intelligent comments on here, been a while since that's happened. It's usually silly things like "First" or the cliche "does it run crysis" (which still gets me sometimes). Nice to see people bringing up stats and 5!. Let me continue this battle of the minds with the following:
"There are lies, damned lies, and statistics."
I think (and hope) for the sake of humanity that we realize that we should not treat each other like this. Whatever these people are doing can be done cheaper by machine. The only reason a machine isn't doing it is because it's cheaper (in initial capital investment) to get slave-wage labor versus hiring engineers to design and build an automated system. I think the private capital investment is there to make automated systems eliminating this type of slave-wage labor, machines are cheaper than people and don't commit suicide, ask for sick days, and perform consistently. Investors would easily recoup their initial investment over a period of 5-10yrs all while helping humanity. Yes it puts people OUT of work but it gives them a chance to develop their mind and contribute to society, what makes people valuable is their ability to imagine, to problem solve, not to mindlessly make plastic items.
Yes. I copy!
I'm not an Economist by any means but know that things like this happen because of the evil green stuff-- money. Because here's the deal... People enjoy getting good deals. Moving production over to countries like the US, with better labor laws, or even changing the labor laws in those countries is going to increase the price of our beloved gadgets. Consumers need to be willing to make those sacrifices. I know I cannot speak for all consumers but I, for one, would be willing to pay more for quality products that were created in quality environments.
It's not just consumers though. Cost could also be soaked up by companies making a bit less of a profit on their sales. Unfortunately, some companies are more willing to do this than others. I tip my hat to those companies will to make a sacrifice for the betterment of society.
All in all this is a travesty for humanity and is something we need to battle as a group. This means consumers, companies, and people willing to spread the word of injustices like this article show.
Thanks Engadget for drawing attention to something that many do not think about or simply refuse to acknowledge. Kudos!
Those look like great working conditions to me... I can't get away with sleeping on the job!
their condition seems to be better than mine. I work more than 16 hours a day 7 days a week in order to pay bill. I don't get to take a nap during lunch hour. I don't have uniform. My living condition is not so much better than theirs. Who is helping me out here?
Anyone remember way back when Bill said, "We COULD charge $60 for Windows 95?" Apparently he meant it.
And yet, with all that markup, it only goes to the shareholders.
Maybe it's time for a global revolution. I know one thing; now that we've started our family I'm glad we live in this horrible wonderful country (USA), and since I make a lot more than $0.51/hr I'd be more than happy to pay even more for overpriced plastic crap AS LONG AS I KNEW THE EXTRA DOLLARS WERE GETTING PEOPLE OUT OF THESE PRISON CAMPS.
Fuck mass capitalism for this reason exactly. There must be greater concessions made to the human element in every part of the vertical supply chain. Maybe if companies like Microsoft and HP and other big players would actually SEND COMMITTEES TO SUPERVISE conditions, things would change.
And maybe we wouldn't have to worry about the impending bidding war with China for oil anymore. A bonus.
It's not communism or capitalism or whatever ism that's causing this.
It's just greed feeding to fierce, unethical competition among selfish factory owners. They don't do any estimate on how much to charge their clients. None at all. They just make sure they lowered their price enough to seal the order, then deal with cost cutting latter. If these factory owners can grow-up, unite, and say, we're not going to make deals that's unachievable, none of these crap would happen.
Wow, that kind of abuse totally annoys me. I wish not to do business with anyone that uses such labor. Especially US companies, there is no excuse.
Lou
www.fbi-logs.hk.tc
In actuality, it is not the lowest price we are paying for these devices with: It is the highest. The price of other people's lives and potential. For the great electronics we consume, we should be charged an enormous fee, on the grounds that what we are controlling required another person to be controlled first. But alas, our mere abstract of worth and currency can never compensate for the cost of those lives.