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Protesters claim credit for Apple's January announcement of FLA inspections
Protest groups Change.org and SumOfUs.org recently delivered boxes containing 250,000 petition signatures to the Grand Central Terminal Apple Store, demanding that Apple investigate and improve worker conditions in Chinese factories. Now that inspections have begun, those same groups are claiming victory. "This new announcement shows the pressure is getting to Apple," says Taren Stinebrickner-Kauffman, Executive Director of SumOfUs.org. There's just one problem: Apple's announcement isn't new. Apple announced its partnership with the Fair Labor Association on January 13, nearly a month before Change.org and SumOfUs.org delivered their signatures. In the same press release erroneously taking credit for Apple's partnership with the FLA, SumOfUs.org criticises the group as "a business-funded group with a long track record of serving as a corporate mouthpiece, not an effective advocate for workers." The New York Times' report on the FLA is hardly as scathing, though it has found that "many labor advocates say its efforts have barely made a dent in improving working conditions." AppleInsider has criticised both groups for what it calls "slacktivism," "retroactive activism," and "empowering social change after the fact," since Change.org and SumOfUs.org are claiming credit for actions Apple took long before either group's petitions even began. In fact, most of the "worker abuses" cited in these petitions are sourced from Apple's own annually-released Supplier Responsibility Report. Jim Dalrymple of The Loop has classified the groups' actions as "nothing more than a publicity stunt." "If these protesters are really concerned about the workers in China, why not deliver that petition to the other companies that manufacture products at Foxconn. Where is the press release saying they were going to visit HP, Dell, Microsoft and others?" Dalrymple asks. "I emailed the PR guy Brett Abrams yesterday and asked him that. No response." Change.org and SumOfUs.org's petitions have not accomplished anything that Apple wasn't already planning to do on its own. The issue the groups have raised is a serious one, but claiming credit for actions Apple took over a month ago seriously damages their credibility. Meanwhile, in a conference with Goldman Sachs, Tim Cook detailed the steps Apple is taking to improve conditions at its suppliers' factories (many thanks to Mac Rumors for its detailed transcription). "We think the use of underaged labor is abhorrent. It's extremely rare in our supply chain, but our top priority is to eliminate it totally. We've done that with our final assembly and we're now working with vendors farther down in the supply chain," Cook said. "If we find a supplier that intentionally hires underage labor, it's a firing offense." On workplace safety: "We don't let anyone cut corners on safety. If there is a problem on safety, we seek out the foremost experts and set a new standard and apply that to the entire supply chain. We focus on the details. If there is a fire extinguisher missing from a cafeteria, that facility doesn't pass inspection until that fire extinguisher is in place." Beginning in January, Apple began collecting weekly data on over half a million workers in its supply chain, with specific focus on overtime. Apple sets a 60 hour/week cap on supplier workers' overtime hours, and reports indicate its suppliers already have 84 percent compliance. Apple's goal on this is 100 percent. Thus far Apple has been issuing annual Supplier Responsibility Reports, but Apple will now supply those reports on a monthly basis and release them on its website. No other manufacturer has committed to that level of transparency in its suppliers' working conditions. By American standards, especially among those who have never set foot in a factory and are unfamiliar with the gruelling pace, poor working conditions, and worker abuses present in even the best and most tightly-regulated of factories, the conditions at Foxconn may indeed sound harsh. But real changes or improvements in those working conditions are not going to come from signing an online petition and tamely delivering a box of signatures to a handful of retail outlets. The only way conditions at Foxconn have any chance at improving is if companies like Apple take steps to put pressure on their suppliers, and Apple has already done exactly that -- well before anyone outside the company asked it to. In fact, Apple has taken far greater strides in this area than any other consumer electronics manufacturer, so the continued focus on Apple not only seems illogical, it also seems counterproductive. Other consumer electronics companies must be looking at the situation, where Apple's unprecedented transparency about its suppliers has backfired into a PR nightmare, and Sony/Dell/HP/etc. must be saying to themselves that maintaining the silent status quo is better for them in the long run. This is the third year in a row where, like clockwork, Apple's release of its Supplier Responsibility Report has been followed by a media firestorm and a laser-like focus on Apple to the exclusion of every other Foxconn client. With Apple now committed to releasing these reports monthly, the danger now is that the linkbaiting and Apple-focused controversy will never end. As long as every company except Apple keeps getting a free pass, no real improvements at Foxconn (or anywhere else) are going to happen.
Apple opens up inspection of its Foxconn plants to Fair Labor Association
One of Apple's major manufacturing cogs, Foxconn, will receive voluntary audits from the Fair Labor Association on factories in both Shenzhen and Chengdu in China. These inspections already began earlier today over in "Foxconn City", where the FLA has started polling "thousands" of employees, covering both their working and living conditions. Facilities (including dormitories) will be inspected by the FLA, which will also sift through all the required employment documents, with its findings set to be published in March. In total, the assessment will cover more than 90 percent of Apple's assembly locations. It following its self-published supplier responsibility report and recent concern over its production methods and worker conditions. See how Apple breaks it down in its press release after the break.
Foxconn plans to build five Brazilian factories to produce Apple products
Apple relies on electronics assembly firm Foxconn to build iPads and iPhones in China. Now Foxconn is reportedly planning to build five new factories in Brazil to help meet the demand for Apple products. There's already one plant cranking out iPads and iPhones, and each of the new factories is expected to have about a thousand workers. The exact locations of the new plants have not yet been decided, with officials from the Brazilian government and Foxconn planning on meeting after the Chinese New Year. The Brazilian government wants the factories in the country: just last week, they approved tax reductions and exemptions that make it attractive for Foxconn to produce iPads in Brazil. A new "Inter-Ministerial Decree 34" provides excise tax, social contribution tax, and federal contribution tax incentives for companies investing in the research and development of keyboard less touchscreen tablets weighing less than 750 grams (the iPad 2 tops out at 613 grams). In other Foxconn news, Chinese tech news site M.I.C. Gadget reports that thousands of Chinese citizens lined up for a chance to try for jobs at an iPhone plant in Zhengzhou. Despite recent Western press accounts painting the company -- and Apple -- as exploiting Chinese workers, there are literally tens of thousands of individuals who feel that a low-paying job in less-than-perfect working conditions is better than no job at all. The photo below shows part of the crowd waiting outside a labor agency in Zhengzhou to apply for the jobs.
Nissan recovering from quake, ramps up Leaf deliveries
We have some good news from the Land of the Rising Sun -- a fresh batch of Leafs are on their way to American shores. At the New York Auto show, Nissan announced that the first shipments of post earthquake-produced EVs should be in the hands of American consumers by April 27th. The company still expects to fulfill current orders by the end of summer and on May 1st will begin accepting new reservations for vehicles in Arizona, California, Hawaii, Oregon, Tennessee, Texas, and Washington. Buyers in the southeastern US will be able to join the plug-in parade this fall, to be followed by a nationwide launch in 2012. Now that the auto manufacturing plants are getting back to business as usual following the tsunami that ravaged Japan, we can only hope the rest of the country isn't too far behind. PR after the break.
Sharp suspends production at its two largest LCD factories following Japanese quake
Toshiba, Hitachi, and Panasonic already said they would shutter their liquid crystal display plants for a month following the 9.0 magnitude earthquake and resulting tsunami that struck the country on March 11. Now, Japan's largest exporter of LCD TVs (Sharp, for those keeping notes) has suspended production at its two biggest factories, thanks to a shortage of a gas used in the manufacturing process. The Osaka and Mie plants, which have a combined capacity of 172,000 sets per month, won't reopen until May 6, at the earliest. Until then, the company claims it has enough TVs in its inventory to last about a month. One JP Morgan Chase analyst estimates that the company stands to lose 50 billion yen ($590 million) this fiscal year due to the freeze. That all seems trivial, of course, given that more than 27,000 people in Northeastern Japan are dead or missing and the country is widening its evacuation zone, all while recovering from relentless aftershocks, including one that hit yesterday. Still, the domino effect of a strangled supply chain remains relevant to us as tech journalists, particularly if a scarcity in materials has the potential to drive up prices -- and affect as many kinds of products as we think it will.
Leaf deliveries delayed by Japanese quake, but Nissan and Sony already reopening factories
Not the jolliest of news if you were waiting on a fresh new Leaf EV to blow in any time soon, as Nissan has had to understandably delay shipments as a result of the natural disaster that has befallen Japan. Updates on when customers might expect their orders to be completed will be forthcoming as soon as available. There are happier developments on the isle of Japan itself, however, where Nissan is resuming limited operations at five plants today and expects to be producing vehicles again by Thursday, which will last as long as supplies do. Sony has also shaken off some of the effects of the recent earthquake and says it'll restart production of lithium-ion batteries at its Tochigi prefecture plant tomorrow. So, encouraging signs ahead for Japan's industry, let's hope everyone else's recovery proves to be as swift.
Wintek workers still experience effects from n-hexane exposure, Apple issues a report
It's been a few months since we checked in on the workers at Wintek, where they manufacture touchscreens for the likes of Apple. As you might remember, the former company was facing a lawsuit for chemical poisoning that occurred between May 2008 to August 2009 when the company substituted alcohol for n-hexane in the manufacturing process. Both Apple and Wintek maintain that ultimately a total of 137 people had been hospitalized, and all have recovered -- but as Reuters points out, daily exposure to the chemical has been known to cause "long-term and possibly irreversible nerve damage," and Wintek employees have maintained that the company has left them holding the bag for symptoms that could very well flare up again in the future (or, in some cases, never really went away). "We are unable to cope with the medical costs of treatment in the future," said Guo Ruiqiang, a worker at the plant. "We can only stay in the factory and see what happens. We just feel very helpless now." For Apple's part, the company has mandated that Wintek "work with a consultant to improve their Environmental Health and Safety processes and management systems" in anticipation of a complete reaudit of the facility in 2011. [Warning: PDF More Coverage link]
Toshiba building new factory to churn out iPhone LCDs, says Nikkei
Word on the street -- and by that we mean a Nikkei Business Daily report -- is that Toshiba's dropping a cool 100 billion yen (around $1.2 billion in US currencies) for a new factory in the Ishikawa prefecture, Japan. Its raison d'être? Low-temperature polysilicon LCD panels, primarily for the iPhone (no indication on which version; Apple is said to be investing in a portion of the factory, as well). Construction begins early next year and production is apparently slated to commence in the second half. More than enough time to stockpile unicorn tears for the assembly line.
Intel announces plans to spend up to $8 billion on U.S. factory upgrades
Apple and Google may be sitting on their piles of cash, but Intel sure is dipping into its reserves in a big way these days -- the company has just announced that it's following up its nearly $8 billion acquisition of McAfee with a multi-billion dollar investment in upgrades to its factories in Arizona and Oregon. That investment will total between $6 billion and $8 billion, and include the development of an entirely new fabrication plant in Oregon, in addition to upgrades at the two existing facilities that will allow Intel to move forward with its 22-nanometer manufacturing process. As you can no doubt guess, the investment will also be quite a boon to both areas -- Intel says that the upgrades, which will take place over "several years," will create as many as 8,000 construction jobs and between 800 and 1,000 permanent jobs at the facilities. Head on past the break for the full press release.
More concerns over suicides at Foxconn
There was more bad news out of China this week -- manufacturer Foxconn (who makes quite a few parts for Apple devices) has been dealing with a rash of employee suicides, as low pay and long hours on the workers seems to be taking their toll. Yesterday, another worker reportedly tried to take his own life [Ed. note: original 9to5Mac link broken], and there are reports of more than 15 other attempts within the plant. Apple has responded, saying that they're working closely with the company to try and solve the issue. In order to do that, the company claims it's going to raise wages by 20%, although it's not clear yet when or how that plan will be implemented. It also says that some employees will be relocated closer to their homes -- about a fifth of the workforce will be moved to plants closer to their families. Apple isn't alone in helping Foxconn deal with the problem, either -- Sony, Nokia, Nintendo, Dell, and HP all get parts from these factories and are pressuring the company to do better. Finally, John Gruber points out that as bad as this Foxconn story is, it might not be all that remarkable, unfortunately. Even with the reported 13 suicides, Foxconn has over 800,000 workers, which means the company's suicide rate is below the national average in China, and China is number 26 on the worldwide list. But numbers and averages aside, a death is a death, and everything Foxconn can do to help their employees lead better lives should be worth it.
Foxconn CEO: 'We are definitely not a sweatshop'
The problems that have emerged in China at one of Foxconn's largest factories continue -- with reports this morning that an eleventh person has fallen from a building there, making him the ninth person to die there this year. Foxconn's CEO Guo Tai-ming yesterday released a statement to the Chinese press addressing the situation publicly for the first time. He stated: "We believe that we are definitely not a sweatshop. It's very difficult to manage a manufacturing team of 800,000 something. With the others around the world it adds up to almost 900,000, so there's a lot to be done every day. However, we believe that we'll soon be able to stabilize this situation." The video also, however, details a new undercover report -- this time eight men who met online -- three of whom ended up being recruited by Foxconn. Their claims? New employees must sign a voluntary affidavit committing to between 60 and 100 hours of overtime each month -- far more than the legal limit of 36 hours. Managers often verbally abuse workers, and randomly deduct pay from their performance bonuses. The 900 yuan minimum wage per month (around $132) is very low in comparison to the company's profits and standing in the country. Possibly the most interesting tidbit unearthed here is the claim that over the past three months, Foxconn has lost about 50,000 workers each month, and as such, has become desperate to make up for the lost manpower. Recruitment standards -- which used to include proof of secondary education -- have been all but dropped, and new recruits need only show identification to obtain a position. Finally, Foxconn has apparently hired about 50 new counselors over the past two days, and the front-line managers are also now trying to communicate with the workers to get a feel for the situation. We'll keep our eyes peeled for further developments, but in the meantime, hit up the source link to view the full news report in Chinese.
44 Chinese workers sue Wintek over screen cleaner poisoning
If you've got an early Apple iPad, chances are its screen was cleaned with a banned substance called n-hexane, which releases a toxic nerve gas upon use. 2,000 workers at Wintek's East China LCD plant went on strike in January, claiming the substance was poisoning them, and now 44 of those reportedly affected are planning to sue. According to reports, the screen cleaner was originally used because it performed better than alcohol, but Wintek has since fired the factory manager who suggested n-hexane and discontinued its use. That didn't keep 62 workers from winding up in the hospital, however. The Guardian interviewed two hospitalized workers last week, and you'll find their stories at our more coverage link below. We're sure you'll agree these Chinese labor violations are getting out of hand -- let's hope this lawsuit spurs government and industry to do something concrete about worker abuse.
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.
Apple supplier audit reveals sub-minimum wage pay and records of underage labor
Apple's famous desire for total control over its operations seems to have extended to its manufacturing facilities as we've come across Cupertino's Supplier Responsibility 2010 Progress Report, which details audits the American company has done of its overseas suppliers and the failures identified therein. The findings are pretty damning on the whole, with more than half (54 percent) of all factories failing to meet Apple's already inflated maximum 60-hour work week, 24 percent paying less than the minimum wage, 37 percent failing to respect anti-discrimination rules, and three facilities holding records of employing a total of eleven 15-year olds (who were over the legal age of 16 or had left by the time of the audit). Apple is, predictably, not jazzed about the situation, and has taken action through train-the-trainer schemes, threats of business termination with recidivist plants, and -- most notably -- the recovery of $2.2 million in recruitment fees that international contract workers should not have had to pay. It should come as no shock to learn that cheaper overseas factories are cutting illegal corners, but it's disappointing to hear Apple's note that most of the 102 audited manufacturers said Cupertino was the only vendor to perform such rigorous compliance checks. Still, we'll take what we can get and the very existence of this report -- which can be savagely skewed to defame Apple's efforts (as demonstrated expertly by The Daily Telegraph below) -- is an encouraging sign that corporate responsibility is being taken seriously. We hope, wherever your geek loyalties and fervor may lie, that you'll agree Apple's leading in the right direction and that its competitors should at the very least have matching monitoring schemes. They may have to swallow some bad PR at first, but sweeping up the dirty details of where gadgets come from is juvenile and has no place in a civilized world. Hit the source link for the full report.
Study finds horrible working conditions at Microsoft, Dell ODM factory
Despite the fact that the world economy is suffering from cutbacks in nearly every job sector, factory workers in places such as the Meitai factory in Dongguan City, Guangdong, China -- which assembles and produces keyboards for companies including Lenovo, Microsoft, Dell, HP and IBM -- have been relatively insulated from the downturn, and their jobs secure. The National Labor Committee has conducted a covert operation to investigate the working conditions at the factory, however, and found them to be less than acceptable. The workers -- who arguably are not compensated very well to begin with -- are cheated out of wages for negligible wrongdoing, forced into overtime, fed food that even a Dickens character would refuse, work twelve hours a day seven days a week, and sleep in dorms which are "primitive" (yes, workers live at the factory). The report that the NLC has compiled is quite long, detailed, depressing, and begins, ironically, with a Bill Gates quote. Hit the read link for the full story.Update: It looks like the source material at the read links is only working intermittently. [Via Boing Boing]
Dell looking to sell factories to increase profitability
It looks like Dell is taking a rather drastic step to attempt to cut some of the costs that have been dragging it down in recent years, with The Wall Street Journal now reporting that the company plans to sell "most -- and possibly all -- of its factories" within the next 18 months -- if it can find some buyers, that is. As the paper notes, the factories were originally built to serve a PC market driven by corporate customers ordering large volumes of desktop PCs, but they've fast become a drag on the company as growth has shifted towards laptops sold at retail stores. While nothing is anywhere near official yet, the Journal pegs big contract manufacturers angling for a bigger piece of Dell's business as the most likely buyers, although there's a number of obstacles that could block such a sale, particularly when it comes to Dell's factories in the US. Dell is also said to be considering simply closing down some of the factories, and instead rely on those aforementioned contract manufacturers to build its PCs. Hit up the link below for the full saga and backstory.[Via Blogrunner, image courtesy J.P.R Sdn Bhd]
Apple promises to investigate "iPod City"
Even though the veracity of that Daily Mail story about supposed substandard working conditions in several Chinese iPod factories is still up in the air, the Apple PR machine has already begun rolling out something of a damage control campaign, issuing a statement that reemphasizes the company's commitment to internationally-recognized manufacturing codes of conduct. Citing protocols outlined in the Universal Declaration of Human Rights and by the International Labor Organization, Apple stressed its own supplier code of conduct's commitment to safe workplaces, environmentally-friendly manufacturing processes, and most importantly to the issue at hand, ensuring that workers are treated with respect and dignity. Instead of flat out denying the Mail's claims, however, Apple seems to be adopting a more contrite approach, claiming that it is "currently investigating the allegations regarding working conditions" in the Hon Hai-owned plant. We're happy to see that Apple has taken notice of this story and is concerned with the folks who are vital in bringing their products to market, but the real test is whether we'll ever actually hear anything else about these factories once the company has completed the promised investigation. [Via iLounge]
