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Apple's full response to labor abuses report

Apple investigating work practices at Chinese supplier of iPhone parts

By , Network World
July 30, 2013 02:24 PM ET

Network World - The Wall Street Journal carried a statement from Apple in response to the China Labor Watch report alleging extensive abuses of workers at Pegatron facilities.

In the statement, Apple said it had been in contact with CLW for some months, investigating some of the practices CLW brought to its attention. In one case, Apple auditors confirmed that a small number of worker ID cards were being withheld, and demanded that Pegatron stop the practice.

The company also noted that it has made “15 comprehensive audits at Pegatron facilities since 2007, covering more than 130,000 workers making Apple products including annual audits of Pegatron’s final assembly locations and surprise audits at both RiTeng and AVY within the past 18 months.”

[MAIN STORY: Cheap iPhone 'confirmed' by labor abuse report]

“Their latest report contains claims that are new to us and we will investigate them immediately,” according to the Apple statement. “Our audit teams will return to Pegatron, RiTeng and AVY for special inspections this week. If our audits find that workers have been underpaid or denied compensation for any time they’ve worked, we will require that Pegatron reimburse them in full.”

Here is the full text of the statement, which is not yet posted on Apple’s website:

Apple is committed to providing safe and fair working conditions throughout our supply chain. We lead the industry with far-reaching and specialized audits, the most transparent reporting and educational programs that enrich the lives of workers who make our products. Apple is the first and only technology company to be admitted to the Fair Labor Association, and we are dedicated to protecting every worker in our supply chain.

As a part of our extensive Supplier Responsibility program, Apple has conducted 15 comprehensive audits at Pegatron facilities since 2007, covering more than 130,000 workers making Apple products including annual audits of Pegatron’s final assembly locations and surprise audits at both RiTeng and AVY within the past 18 months.

Additionally, we have closely tracked working hours at all of these facilities. Our most recent survey in June found that Pegatron employees making Apple products worked 46 hours per week on average. Excessive overtime is not in anyone’s best interest, and we work closely with our suppliers to prevent it. Apple surveys working hours for more than 1 million employees across our supply chain each month and we report the findings on our website.

We have been in close contact with China Labor Watch for several months, investigating issues they’ve raised and sharing our findings. When they first told us that workers’ ID cards were being withheld, an auditor from our Supplier Responsibility program was on site the next day to investigate. We confirmed that labor brokers for Pegatron were holding a small number of IDs as they helped set up bank accounts for those employees. We demanded Pegatron put a stop to this practice and a new system was in place within a week.

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