Money Matters - Simplified

Labor rights group shoves China Apple iPhones in scorching soup!

Trouble in Apple iPhone paradise once again!! This time it’s a Labor rights group that is agitated with a Chinese company producing Apple iPhones. The accusations included excessive working hours and withholding of the pay packets of the employees.

Apple in a soup

Now this is certainly not very welcome news for Apple Inc. A Chinese Company that had been handed over the responsibility of producing iPhones by the Apple Inc, is facing some angry labor right charges.

The China Labor Watch has raised a reprimanding finger at the Pegatron Corp., a Taiwanese company, which was found violating labor laws and working conditions. Apple Inc has handed over the duty of assembling the iPhone 5 , iPhone 4 and iPhone 4s to the Pegatron.

Detailed investigations

The investigations carried out by the China Labor Watch targeted two companies in Shanghai and one factory in Suzhou. The total number of employees was about 70,000 people. The companies were not following labor laws and were violating human rights.

The complaints regarding the environmental violations and labor infringements were put forth by a Tiawanese company Foxconn, which is a unit of Hon Hai Precision Industry Co. They have asked the authorities to peer closely at the labor conditions existing in the Chinese factories producing Apple products namely iPhones.

The allegations

The factories were making the laborers work extra hours, discriminating against ethnic minorities and women. The employees stayed in poor living conditions, experienced pollution, and faced a volley of safety and health problems.

Data collected showed that the employees had to chip in almost 66-69 hours weekly whereas the permissible hours are only 49. Even the pregnant women could not escape as they had to work almost 11 hours daily. And the time cards were falsified to hide the crime!!

Apple has made a statement saying that it is "committed to providing safe and fair working conditions throughout our supply chain. 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." Investigations will be carried out regarding the matter promised Taiwanese company's chief executive.

Pegatron management was actually holding the identity cards of some employees forcibly were proved by Apple Inc. And now we wait for more accusations to be proved true! Apple Inc joined hands with the Fair Labor Association and laid down a code of conduct .

This group is a monitoring group for the rights of the workers. Their inspection on the Foxconn resulted in improvements and maybe Apple gets to see a ray of hope! Pegatron was also accused of "discriminatory hiring practices". The group also accused the company of hazardous chemicals being dumped into the water.

Pegatron CEO Jason Cheng also issued a statement "We take these allegations very seriously. We will investigate them fully and take immediate actions to correct any violations to Chinese labor laws and our own code of conduct."