Pro-Worker NGO Criticizes Apple’s Failures of Corporate Social Responsbility in China

by SACOM

Hong Kong, 28 February 2014

On the day of Apple’s annual general meeting, Students and Scholars Against Corporate Misbehaviour (SACOM) is urging Apple again to take immediate and constructive action to fulfil its corporate responsibility by improving the working conditions in its suppliers.

Despite respectable quarterly revenues of US$57.6 billion and a net quarterly profit of US$13.1 billion in the first quarter of its fiscal year of 2014, the company is unwilling to share its success with frontline workers – those who turn its ideas into real products. Apple’s newly published Corporate Supplier Responsibility (CSR) Progress Report projects an ideal workplace at Apple suppliers, yet we doubt workers are enjoying any benefit at all: Continue reading

‘Worse than Foxconn’–Apple’s supplier Pegatron Group

logoCLW(July 29, 2013) Today, China Labor Watch (CLW) published an investigative report detailing the labor violations of three factories of Pegatron Group, a major supplier to Apple. In 2013, Apple has increased its orders to these factories, which have benefitted from and relied upon labor violations to increase their competitive edge.

CLW’s investigations revealed at least 86 labor rights violations, including 36 legal violations and 50 ethical violations. The violations fall into 15 categories: dispatch labor abuse, hiring discrimination, women’s rights violations, underage labor, contract violations, insufficient worker training, excessive working hours, insufficient wages, poor working conditions, poor living conditions, difficulty in taking leave, labor health and safety concerns, ineffective grievance channels, abuse by management, and environmental pollution.

In short, the Pegatron factories are violating a great number of international and Chinese laws and standards as well as the standards of Apple’s own social responsibility code of conduct. Continue reading

Capital Strike, Part Deux: Can Obama Negotiate?

 

by Carl Proper

Apple Operations International, in the Hollyhill Industrial Estate, one of the Irish subsidiaries employing  4 percent of Apple’s global work force and purportedly earning 65 percent of its worldwide income

Apple Operations International, in the Hollyhill Industrial Estate, one of the Irish subsidiaries employing 4 percent of Apple’s global work force and purportedly earning 65 percent of its worldwide income (Michael MacSweeney/Reuters)

As I reported in this blog December 9 (U.S. multinationals pursue victory in Capital strike against taxes), nominally U.S. multinationals are refusing to bring back to the United States nearly $2 trillion in self-defined “overseas earnings,” as long as they must pay the 35 percent tax on the earnings. Faced with a similar situation in 2004, President George W. Bush arranged “repatriation” of nearly $400 billion at a tax rate of only five percent, based on a kiss and a promise to use the money to create American jobs. New York Times investigative reporter David Kocieniewski later found the action had led to no discernible increase in American investment or hiring. On the contrary, some of the companies that brought back the most money laid off thousands of workers. A study by the National Bureau of Economic Research later concluded that 92 cents on every dollar was used for dividends, stock buybacks or executive bonuses.”1

In a standoff, there has been no repatriation since that time.

But on May 22, one of the still-ongoing tax strike leaders, Apple CEO Tim Cook testified before the Senate Permanent Committee on Negotiations, headed by liberal Democrat Carl Levin of Michigan. Word was that Cook would propose a “dramatic simplification” of corporate tax laws. In a promise reminiscent of 2004, he would “present specific proposals aimed at encouraging companies to bring back foreign earnings to the United States and invest that money in job creation, as well as research and development.” 2

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Why Foxconn Workers Rioted in Taiyuan

by Paul Garver

Militarized Security at Taiyuan Foxconn Plant Provokes Riot

During the night of 23-24 September, several thousand assembly workers outfought security guards, overturned police vehicles and damaged company property outside a giant Foxconn factory producing the Apple iPhone5 at Taiyuan in north central China.

Foxconn claimed the riot was a mere dormitory scuffle between workers from two different provinces, but hundreds of photos showing the dramatic actions in the streets outside the factory flooded Chinese Internet sites (most subsequently deleted by government censors).  It required the intervention of some 5000 armed paramilitary forces to put down the rebellion.

The dormitory incident that triggered the riot led to the severe beating of workers by Foxconn security guards (sub-contracted thugs), prompting fellow workers to resist and eventually send the guards into flight.  The militaristic security guards are universally detested by Foxconn workers, who demolished security posts and vehicles during the riot.

Rioting is not the most sophisticated or organized form of collective worker resistance.  But it represents a major step forward from the wave of individual worker suicides of Foxconn workers in 2010.  Workers from other Foxconn plants in Henan, Shandong and Shenzhen provinces posted letters on China’s online forms praising the Taiyuan workers for their courage.
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Apple Launches iPhone5 with Forced Student Labor

by Paul Garver

Photo by Steve Jurvetson/Wikimedia/Creative Common

Rural American schools used to empty out for a few weeks in the fall to allow farm children to help harvest potato or fruit crops for family farmers.

The world has changed. In 2012 students are required to leave classrooms in interior Chinese cities to help with the Apple harvest – specifically to produce the Apple iPhone5, just as their predecessors did in 2011 to assemble the Apple iPhone 4S.

According to Chinese media sources, several vocational schools in the city of Huai’an in eastern China required hundreds of students to work on assembly lines at a Foxconn plant to manufacture cables for the iPhone5. Their teachers told them they would not graduate unless they worked for Foxconn, since “Foxconn does not have enough workers without the students.”

An assembly worker in Zhengzhou, where the iPhone5 is assembled, reported to China Labor Watch last month:
We are now producing the iPhone5. We 87 workers have to assemble 3,000 phones per day, and as our team leader told us, after the new iPhone goes public, we will need t assemble 6,500 phones per day. We are now working more than 10 hours a day. There are many student workers in our production line, all of whom are around 18 years old. They’ve been complaining and demanding to go back to school but are never allowed.

The recent promises Apple and Foxconn made through the audits of the Fair Labor Association to reform its brutal regime for Chinese assembly workers and student “interns” evaporated like smoke under the pressures to launch the iPhone5 as quickly as possible.

Continue reading

Chinese Students and Workers Confront Global Capitalism at Foxconn

by Paul Garver

Photo by Steve Jurvetson/Wikimedia/Creative Common

If the cotton mills of Manchester exemplied 19th century capitalism and the River Rouge Ford plant symbolized capital’s 20th century stage, its early 21st century embodiment is Foxconn. In its thirty giant  factory complexes  1.2 million young Chinese workers assemble over 50% of all the electronics products consumed over the globe. Armies of young men and women perform monotonous repetitive assembly work under quasi-military discipline for at least 60 hours a week for minimal pay and virtually no social benefits.

Foxconn, controlled by Taiwanese billionaire Terry Gou, is China’s largest exporter and 60th largest global corporation with annual revenues of $79 billion (2010). Its largest corporate customer is Apple, but every other major global electronics company also contracts Foxconn for most of their final assembly tasks. Sophisticated components and parts are manufactured in Korea, Japan, Europe and the USA, shipped to China for final assembly, and then re-exported for sale mainly to more affluent consumers in the Triad (North America, Europe and Japan). About 1% of the cost of your iPhone, iPad or other advanced electronic device goes to pay the wages of the Chinese workers who assemble them, while another 1% goes to Foxconn executives and shareholders.

Foxconn is a linchpin of the most leading edge and most profitable sectors of global capital. Although its own operating profit margins are razor thin, shaved by the constant cost-squeezing of Apple and other corporate customers, Foxconn has made itself indispensable to global capital by fully utilizing its strategic position in China.

But Goliath has feet of clay. Students and scholars from Mainland China and Hong Kong have been struggling to assist Foxconn workers improve their conditions. And they are beginning to win some astonishing victories.  We can help them extend and consolidate those victories.
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FLA Audit shows Few Improvements for Foxconn Workers

by Debby Chan

Hong Kong, 24 August 2012

On 21 August, the Fair Labor Association (FLA) released a verification report on labour practices at three Foxconn factories producing for Apple in China that were the subject of an earlier FLA investigation. In its report, the FLA trumpets the speedy progress at Foxconn in remediating widespread labour rights violations. However the FLA has overstated the improvements at Foxconn.

Firstly, most of the actions completed by Foxconn are changes at the policy level only, but few substantial changes in labour practices were found at this stage.

Secondly, Foxconn has deliberately delayed implementing many of the actions called for in the remediation plan, even those that are almost cost-free.

Thirdly, workers have had no opportunity to participate in the remedial action process. SACOM has repeatedly demanded democratic trade unions at Foxconn as an indispensable step in reforming its labour practices.
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