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Foxconn admits hiring underage interns
Foxconn released a statement on Tuesday confirming it violated Chinese labor laws by illegally hiring underage workers at its Yantai plant in Shandong Province. Several workers as young as 14 years old were discovered as part of an internal investigation, says a CNET report. Foxconn's statement was released shortly after this violation was reported by China Labor Watch. According to China Labor Watch, these underage workers were part of a school intern program that sends students to work at Foxconn for a period of time. Foxconn did not check the IDs of the interns to confirm they met China's legal minimum working age of 16 years old. In its statement, Foxconn said it immediately sent the interns back to their schools and is taking steps to ensure this doesn't happen again. "This is not only a violation of China's labor law, it is also a violation of Foxconn policy and immediate steps have been taken to return the interns in question to their educational institutions," says Foxconn's statement. "We are also carrying out a full investigation, in cooperation with the respective educational institutions, to determine how this happened and the actions that must be taken by our company to ensure that it can never happen again."
Foxconn admits child labor laws breached by use of underage interns
Foxconn has admitted that it employed underage interns in breach of China's child labor laws. An internal investigation at its Yantai factory found some of the young trainees were aged 14- and 15-years old (16 being the legal minimum). In a statement received by CNET, the company advised that "this is not only a violation of China's labor law, it is also a violation of Foxconn policy and immediate steps have been taken to return the interns in question to their educational institutions." This comes as a further blow to the firm's employment record, after recent riots breaking out and strikes over iPhone 5 quality standards. These interns were sent to the facility from schools, with Foxconn carrying out full investigations with the relevant educational bodies to try to work out how this was allowed to happen. The tech manufacturer has been keen to accept responsibility for its part in the situation, advising strong action will be taken against any full-time members of staff found to have played a part in the breach.
Multiple Foxconn labor disputes disrupt iPhone production
In the last week, Foxconn faced several rounds of labor disputes that threatened to slow iPhone 5 production, says a report by Bloomberg. The disputes occurred on October 1, October 2 and on October 5. In each case, the company had to stop production lines after workers protested overly strict working conditions. Bloomberg claims the Asian manufacturer lost two work shifts on October 5 at its Zhengzhou plant when workers became frustrated by increased pressure to keep the iPhone 5 free from scratches. Scratching of the iPhone 5's outer casing has been reported among owners who discovered the blemishes when they opened their new iPhone. China Labor Watch believes over 3,000 workers were involved in this mass walkout that halted iPhone 5 production for an entire day. Foxconn confirmed there were two isolated disputes between production teams and quality control teams at the company on October 1 and October 2. The manufacturer denied reports that iPhone 5 production stalled. Foxconn also declined to comment on the alleged October 5 incident and Apple has not commented on any of these incidents.
Daily Update for October 9, 2012
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
Workers at Foxconn's Zhengzhou factory strike in reaction to new iPhone 5 quality standards
Unbox that shiny new iPhone 5 only to find it marred with scratches and blemishes? Good news: Apple is asking Foxconn to adhere to stricter quality demands for its flagship handset. Not so great news: workers at the firm's Zhengzhou factory are striking over the demands. According to China Labor Watch, three to four thousand workers stepped off the production line to protest the new standards, which only allow for a 0.02mm appearance defect. "It's tough under such stringent quality requirements," writes Sina Weibo user and Foxconn employee Yefudao. "A 0.02mm appearance defect is already beyond that of our vision. With such a demanding task, workers' mental pressure becomes so immense that they have to vent it out." China Labor Watch reports that the issue stems not only from the higher quality demands, but the fact that workers are being asked to meet them without receiving the training necessary to do so. The situation hasn't broken out into a riot, but a dispute between line workers and quality control inspectors reportedly sparked a fight that led to property damage, injury and some hospitalization. Production lines have temporarily been frozen by management while Foxconn deals with the situation.
Entertainment Weekly print edition comes with a 'smartphone-like Android device'
If there's one advantage a print magazine still has over an online publication, it's the ability to offer all manner of crazy freebies glued to its pages. Maybelline samples, CDROMs packing the latest version of WinZip, or -- in tomorrow's edition of Entertainment Weekly -- something that actually looks pretty enticing. Flick it open to the right page and you'll spot an LCD display that magically displays video ads and live Tweets from the CW Network. Intrigued by how such a thing could function, Mashable did a teardown (literally) and discovered all the ingredients of a budget Android smartphone, including components which aren't strictly necessary for the task at hand: a 3G modem with T-Mo SIM (which seems to have some degree of voice connectivity), a full-sized battery, USB port and even a partially-built QWERTY keyboard. Suddenly, that $50 myTouch doesn't seem so cheap.
Sharp takes out $4.6 billion loan while it continues restructuring
Much of the business news out of Japan from Sharp hasn't been good, but for now at least it's worked out a loan agreement to keep rolling. It's still pursuing a deal with manufacturer Hon Hai Precision Industry / Foxconn that would provide a much-needed injection of capital, but those talks have reportedly stalled. Until something happens there it has a 360 billion yen ($4.6 billion) syndicated loan worked out with a couple of Japanese banks that runs until June 30th 2013. We're still not sure how Sharp will proceed with all this, but hopefully an agreement can be reached that brings its sweet IGZO LCD tech and any other new screens it will be showing off at CEATEC next week to more devices.
Foxconn's Taiyuan plant faces worker unrest, "2,000 person" riot
A Foxconn facility in Taiyuan, China is the scene of ongoing disturbances as workers rioted in the overnight hours. Engadget's Richard Lai, monitoring the Chinese microblogging and social sites, sees unofficial reports that the trigger for tonight's events was when security guards struck a Foxconn employee. The plant is reportedly among those responsible for some iPhone 5 components, according to NBC; specifically, the aluminum back plate (original Chinese undercover report here). Harsh working conditions and pressure for overtime work in the run-up to the iPhone launch may have been contributing factors in the current unrest. While Apple has made efforts to diversify its supplier chain and ensure humane working conditions at its contract manufacturing partners, there is still much to be done. Early this year, Mike Daisey's monologue The Agony & The Ecstasy of Steve Jobs purported to expose bad labor practices at Apple suppliers in China, only to be exposed itself as inaccurate and exaggerated in some key details.
Riot breaks out at Foxconn's Taiyuan plant, reportedly over guards beating up a worker (update: confirmed)
News just came in that workers at Foxconn's Taiyuan plant have started a riot in the wee hours in China, and that police forces are on site to control the crowd. While the motive isn't clear, Sina Weibo user Li Tian reports that the riot isn't related to the recent anti-Japan protests, though judging by his photos, much damage has been done in the process. The same site suffered from a strike back in March over salary dispute -- the front-line workers failed to receive the promised pay rise. On a similar note, Foxconn's Chengdu plant also had a riot in June, but that was apparently due to an argument between some workers and a local restaurant owner. Update: We are seeing unofficial reports claiming the "2,000-people" riot was triggered by security guards hitting a worker at 10pm local time. Update 2: According to a provincial website, Foxconn's Taiyuan industrial park focuses on magnesium alloy components for consumer electronics, heat conduction products, LED lighting products, mobile phone products and magnesium alloy automotive components. Update 3: An undercover report from August mentioned that the Taiyuan plant processed the back casing of the iPhone 5. It also highlighted the company's harsh management as well as "practically compulsory" over-time work. We don't doubt that this riot escalated due to dissatisfaction over working conditions. Update 4: Unsurprisingly, the original Sina Weibo posts have since been deleted. At the time of publication, the author had already noticed that some of the photos were already being censored by Sina. However, the photos over at Baidu Tieba are still intact. Update 5: Well this is interesting. Foxconn has told Reuters that there was "a fight among workers from different production lines," but the company's spokesperson said they're "still investigating the cause of the fight and the number of people involved." An official statement will be released on Monday. Update 6: The Next Web has heard that there were no deaths in the incident. Here's hoping those 40 injured people will recover quickly. Update 7: Foxconn has told CNET that production has resumed today. Update 8: Reuters spoke to some employees who confirmed the fight between guards and workers. This wouldn't be the first time the two sides clashed in a Foxconn facility.
Pegatron reportedly nabs 50 to 60 percent of iPad mini orders, breaks up Foxconn's monopoly
While folks are waiting for their precious new iPhones to arrive on their doorsteps, word has it that the leaky iPad mini has unsurprisingly entered mass production, but with a twist. According to today's front page news on Taiwan's Economic Daily News, reports from two local securities firms claim that Pegatron's managed to nab a staggering 50 to 60 percent of iPad mini orders from Apple, meaning Foxconn is finally no longer the sole assembler of iPads. Together (plus component suppliers Foxlink, AUO, TPK and others), both companies will apparently be able to churn out up to 5 million iPad minis monthly. Then there's the iPhone 5 as well: the paper says at least 53 million units are expected to be shipped this year, therefore Apple's adding Pegatron to the assembling front line as early as Q4 in order to maintain a steady supply of products. Obviously we can't use this information alone to deduce whether Apple is moving away from Foxconn, but as long as people get their iDevices then it's all dandy.
Foxconn iPhone factory faces new labor issues
Electronics manufacturer Foxconn has come under fire again, specifically in the Chinese factory that assembles Apple's iPhones. The New York Times reports that the company has been accused of "compelling" students to work at its assembly plant, a charge that Foxconn denies. Foxconn claims that "interns" can be found on the assembly lines but are free to go whenever they choose. At the same time, representatives for advocacy group China Labor Watch claim to have spoken with students who say they are being made to work on the line by their teachers. Li Qiang, founder of China Labor Watch, says vocational students spent time at Foxconn to learn, not work. However, Li claims, those students are told they will not graduate unless they work on the line. A Foxconn representative told The Times that interns represent 2.7 percent of his company's workforce in China, all of whom are recruited "under the supervision of the local government, and the schools also assign teachers to accompany and monitor the students throughout their internship." Late last year, the Fair Labor Association worked closely with Apple to investigate and ensure fair working conditions at Foxconn's China factories. Apple has also posted "Supplier Responsibilities" to its website.
Sharp mortgages itself to the hilt just to keep going
Sharp has mortgaged its offices and factory buildings in order to raise the cash it needs to stay in business, according to Reuters. It's cut a deal with banks for nearly $2 billion in short-term credit secured on its assets -- including the factory that reportedly produces displays for the iPhone. Sharp had pinned its hopes on cash from Hon Hai, but the Chinese giant is apparently delaying the money with the aim of gaining more control over Sharp's business. In response, Sharp has pledged to send president Takashi Okuda to meet Hon Hai's Terry Gou in Taipei -- just as soon as it's scraped together the air-fare.
Foxconn announces $226 million half-year net loss, blames usual suspects
Manufacturing behemoth Foxconn (Hon Hai) has announced a record net loss of $226 million on turnover of $2 billion for the first half of the year. Unsurprisingly, it attributed the loss to the European debt crisis, global economic slowdown and its customers "continuous struggle" for market share. While it made a big push to encourage new customers, capacity far outstripped demand. In order to stem the tide, it's relocating some of its Shenzhen-based facilities to sites in Northern China -- and it's also in talks with carriers to become an ODM, building white-label smartphones in the same way that Huawei and ZTE do. While the loss isn't a rosy picture, the company does have nearly $2 billion stashed in the bank, so it shouldn't be worrying too much.
One year of Tim Cook as CEO of Apple
Exactly one year ago today, Tim Cook took over the leadership of Apple from Steve Jobs. CNET's Josh Lowensohn reports that his first year at the company has been a huge success. Not everyone believed that Cook, who had filled in for Jobs twice during his battle with pancreatic cancer, would keep the company on its incredible journey. When the announcement of his appointment as CEO was made, Apple's stock dropped more than $6 a share. But now the stock is up 44 percent over its value at this time in 2011 and Apple was recently named the most valuable company in the world in terms of market capitalization. During Cook's first year, the company continued to see revenue growth outpacing the rest of the industry during a worldwide recession, continues to fight patent battles against rivals in court to assure that Apple (in the words of Cook) "not become the developer for the world," and has released follow-ons to its highly successful products. However, some Wall Street analysts believe that Apple's future is bleak without the charisma of Jobs at the helm. Forrester CEO George Colony was quoted in April as saying that "Apple's momentum will carry it for 24 to 48 months, but without the arrival of a new charismatic leader it will move from being a great company to being a good company." Cook has made several mistakes. He hired John Browett to replace Ron Johnson as the head of Apple's retail operations, and Browett tried playing with staffing at some stores. That resulted in rumors that employees were going to be laid off or work fewer hours, forcing the company to publicly announce that it had been trying out a new staffing plan and had gone back to the old and trusted system. Widespread criticism of iPhone ads using celebrities and the recent "Genius" ads shown during the 2012 London Olympics are considered another faux pas. On the other hand, Cook has been visible in ways that Jobs would never have been. He visited Foxconn plants during criticism of the way that the manufacturer treated its employees. He created a matching charitable donation plan for employees, and set up better employee discounts for Apple products. He even made a personal donation of $100 million to the Stanford (CA) hospitals and PROJECT (RED), while Jobs wasn't known as a philanthropist. The long-term future of Apple cannot be foretold, but after the first year of Tim Cook at the helm, it looks like the company is doing just fine. Be sure to read TUAW blogger Michael Grothaus's post from last year talking about his personal experiences with Cook.
Daily Update for August 22, 2012
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
Fair Labor Association reports on Apple, Foxconn progress
The Fair Labor Association, a "collaborative effort of universities, civil society organizations and socially responsible companies dedicated to protecting workers' rights around the world," has been working with Apple on audits and recommendations to keep workers at supplier Foxconn's plants safe and happy. The FLA issued a report yesterday showing significant progress towards creating a better working environment for Foxconn employees. Apple joined the FLA in January of 2012 after reports of hostile working conditions and worker suicides at Foxconn plants. The findings published in the FLA report show that all 195 actions that were due during April and May were completed. Foxconn also completed 89 action items ahead of their deadlines, with 76 items remaining on the list of actions to be completed over the next year. Probably the best news was that Foxconn has made significant progress towards bringing its factories into compliance with Chinese legal limits on working hours, reducing hours to under 60 per week (with overtime). The goal? To reach full compliance of the legal limit of 40 hours per week plus an average of 9 hours of overtime, while making sure that workers are still compensated fairly. The text of the full statement of the FLA follows. Show full PR text WASHINGTON, D.C. - The Fair Labor Association today published a status report verifying implementation of action items after assessments conducted by the FLA at three facilities of Apple's largest supplier, Foxconn. This verification reviewed items slated for April and May, finding that Foxconn has completed all of the 195 actions that were due. In addition, 89 action items were completed ahead of their deadlines. The remaining 76 items are due over the course of the next year. In February and March 2012, FLA conducted a full body scan to establish a baseline of working conditions and compliance with labor laws at three Foxconn facilities in one of the most comprehensive and detailed assessments in the history of manufacturing. Apple and Foxconn accepted the FLA's findings and recommendations and created a robust 15-month action plan with defined target dates of completion. Independent investigators engaged by FLA returned to each of the facilities from June 25 to July 6, 2012, to verify completion of the action items due. Apple was the first electronics company to join the FLA, a coalition of universities, non-governmental organizations and businesses committed to improving the well-being, safety, fair treatment, and respect of workers, in January of 2012. "Our verification shows that the necessary changes, including immediate health and safety measures, have been made. We are satisfied that Apple has done its due diligence thus far to hold Foxconn accountable for complying with the action plan, including the commitment to reform its internship program," said Auret van Heerden, President and CEO of the Fair Labor Association. "When we finished our initial investigation in March, Foxconn promised to address concerns with its internship program by ensuring that student interns do not work overtime, their work has a more direct connection to their field of study, and they understand that they are free to terminate the internship if and when they wish." FLA also found that Foxconn took steps to bring its factories into full compliance with Chinese legal limits on working hours by July 2013. Foxconn has already reduced hours to under 60 per week (including overtime) with the goal of reaching full compliance with the Chinese legal limit of 40 hours per week plus an average of 9 hours of overtime per week while protecting worker compensation. This commitment was one of the most significant to flow from the assessments. "The next phase of improvements will be challenging for Foxconn because they involve major changes in the working environment that will inevitably cause uncertainty and anxiety among workers. As Foxconn prepares to comply with the Chinese legal limits on work hours, consultation with workers on the changes and implications will be critical to a successful transition," said van Heerden. FLA's verification found that many physical changes to improve worker health and safety were made during this period, including the enforcement of ergonomic breaks, changing the design of workers' equipment to guard against repetitive stress injuries, updating of maintenance policies to ensure equipment is working properly, and testing of emergency protective equipment like eyewashes and sprinklers. Foxconn has also engaged consultants to provide health and safety training for all employees. Foxconn helped to extend unemployment insurance coverage for migrant workers working in Shenzhen by advocating for legislation that will allow them to access the unemployment insurance scheme, effective January 1, 2013. This change has implications not only for those employed at Foxconn, but for all other migrant workers in Shenzhen. "The verification confirmed that Apple and Foxconn are ahead of schedule in improving the conditions under which some of the world's most popular electronics are being made," said van Heerden. "Apple and Foxconn's progress since the March assessment, combined with the additional actions planned through July 2013, would create the roadmap for all Chinese suppliers in the tech industry." Detailed status updates on each item from the action plans for the three factories can be found at http://www.fairlabor.org/report/foxconn-remediation-verification. FLA will continue to conduct verification assessments of the progress at the three Foxconn factories over the next year and will report results at www.fairlabor.org. ###
Fair Labor Association's Foxconn investigation notes improved factory conditions
Back in March, the Fair Labor Association issued the results of its investigation of Foxconn's Chinese plants, spurring a joint effort between Apple and the manufacturer to make working conditions better for employees. The non-profit has since followed up to investigate the fruits of the companies' promise, visiting three Foxconn facilities for a visual inspection of the factories and review of documentation like payroll records and policies. The FLA discovered a fair amount of progress being made on its visits, noting, Many physical changes to improve worker health and safety have been made since the investigation, including the enforcement of ergonomic breaks, changing the design of workers' equipment to guard against repetitive stress injuries, updating of maintenance policies to ensure equipment is working properly, and testing of emergency protective equipment like eyewashes and sprinklers. Foxconn has also engaged consultants to provide health and safety training for all employees. Also on the list is the election of unions, extension of insurance coverage and the reduction of the work week down to (a still over-the-limit) 60 hours. The organization has promised to continue to monitor progress as Foxconn and Apple work to meet all of its goals. Check out the source link below for a more complete look at the findings.
Foxconn investment in Sharp looking less likely due to LCD manufacturer's shrinking stock value
Foxconn's parent, Hon Hai Precision Industry, partnered up with Sharp earlier this year, taking a stake in Sharp's Sakai LCD manufacturing plant and investing another $850 million in the company. Unfortunately, that latter investment deal is in danger of dissolving due to Sharp's financial troubles. The Wall Street Journal reports that Sharp's shares have fallen enough in the months since the aforementioned agreement was consummated in March -- due to flagging sales and excess inventory -- that Sharp's given Hon Hai the option to back out of the deal. However, Hon Hai's still interested in buying ten percent of the Japanese company, and has expressed an interest in renegotiating the terms of the investment. So, it seems we'll have to wait and see if Sharp accepts Hon Hai's continued advances, but you can read more about the company's financial woes right now at the source below.
Foxconn fanless nano PCs get priced, dated and tweaked
Remember those Foxconn built nano PCs that surfaced back in May? The giant manufacturer recently made them official, detailing a few unexpected tweaks in a Russian language press release. Now decked out in a sleek black finish, the nettops will sport the same I/O, but one image courtesy of FanlessTech hints that DVI might be thrown into the mix despite lacking a mention in the official press release. The AT-5250 model won't be walking the Cedar Trail with an Atom D2700 as originally planned -- instead, its sights are set on a 1.86 GHz D2550. On the other hand, the AT-5600 will pack a Radeon HD 6320 alongside the anticipated AMD E450 APU. Surpassing their presumed sub-$200 price tag, they're set to ring up at $260 and $280, respectively, when they launch this September. Journey past the break for the translated press release.
Bloomberg: Amazon is planning a smartphone
While most of the Amazon hardware rumors since the Kindle Fire launched have centered around a 10-inch version of the tablet, Bloomberg's "people with knowledge of the matter" say a smartphone is in the works. The rumors center around a purported chase for wireless patents (presumably so Amazon can fight off the kinds of challenges currently faced by companies like Samsung and HTC) and partnership with Foxconn for manufacturing. There's no details yet on what the device could be like or when it will arrive, but we're not getting too excited right away -- we've been down this road before with that Vizio Phone that never appeared. Amazon certainly has the infrastructure to enter the cellphone market with its appstore and media delivery services, but is anyone ready to jump into a two-year contract on a (presumably) reskinned-Android device?
