Apple says illegal student labor discovered at iPhone X plant

After controversy about removing apps from its Chinese App Store, Apple is facing further issues in China, this time connected to its Chinese supply chain and the labour practices of its main supplier.

In the past, Apple has been heavily criticised for conditions at the Foxconn plant which makes iPhones. Foxconn is the largest electronics manufacturer in the world and it employs 1.2 million workers in China. However, in recent years its factories have suffered a rash of worker suicides, a plant explosion and riots by workers. Apple and Foxconn have jointly been criticised for hiring underage workers and encouraging excessive overtime.

This led to greater surveillance by Apple and the company has also tried to counter negative publicity by issuing a yearly review of its supply chain.

Students working more than 11 hours each day

The latest news is therefore a setback for the company’s governance and compliance efforts. It appears that a group of students at Apple’s Chinese manufacturing plant, operated by Foxconn, was found to be working overtime, in violation of the local labour laws. The students, aged between 17 and 19, were apparently working more than 11 hours daily, on a “voluntary” basis. They were paid and given benefits but the issue is that they should not have been working overtime in the first place.

So what were the students doing at the factory? It seems that they were there as participants in a school internship programme. The Financial Times reported some of the students as saying that they had no choice but to do the internship, in order to graduate from their study programme.

Foxconn and Apple admit a breach of policy

Foxconn stepped up with a statement saying that its policies didn’t allow interns to work more than 40 hours a week – in other words, no overtime. It admitted that some parts of its “campuses” hadn’t adhered to the policy and emphasised that the number of students involved was small.

Apple issued a statement saying that it had sent staff to the plant to investigate the problem. The company says that since 2012, it has reduced the total number of under age workers in its end to end supply chain, right from the start of the chain, which is the meaning of the rare earth minerals used in smartphones. Many Apple investors are made uncomfortable by reports of poor working conditions, although they rarely make a dent in the share price.

To some extent, Apple is unfortunate in bearing the brunt of the criticism. Foxconn makes electronic products for Sony, Amazon, Shar, Toshiba, Nokia, Motorola and others. It assembles PCs for Dell, Acer, Hewlett Packard and others, and makes networking equipment for Cisco. So why does Apple attract the bulk of the criticism for poor working conditions at Foxconn?

Is Apple unduly targeted?

In part, this is due to Apple’s size. It is Foxconn’s biggest client and it supplies at least 40% of Foxconn’s revenue. It is also a very high profile Western company, with an enormous market capitalisation, and labour organisers may feel it’s therefore more productive to target Apple, than a number of smaller companies. It has to be said however, that Apple competitor Samsung, has also come under scrutiny.

Not helpful when the iPhone X is launching

This story couldn’t have surfaced at a more inopportune moment for Apple. It has just started shipping the iPhone X and finds its coverage in the West being dominated by the interns and overtime story. The fact that the factory is making the iPhone X simply makes it a more newsworthy story as far as the Western media is concerned.

In China however, the story is unlikely to gather anything like the same publicity. Apple has had problems with its Chinese iPhone sales in the past few quarters, losing market share to Chinese smartphone makers.

However, the one bright aspect for Apple, is that advance orders for the iPhone X are apparently strong in China and Korea. With one third of iPhone users being Chinese, this is a market they must win over if the new phone is to be successful.

Hot this week

Did David Wineland and Serge Haroche Steal Idea For The Nobel Physics Prize?

Dr. Omerbashich says the Royal Swedish Academy is a Crime Scene and he has the proof that Nobel laureates stole his discovery.

New Approaches to Disaster Relief Challenges

Disaster relief has always been a challenge. NASA, Google,...

3 Legitimate Money Making Methods to Supplement Your Income

In a perfect world, when your landlord raises your...

2016 Predictions by World Renowned Medium and Psychic Lindy Baker

World renowned medium and psychic Lindy Baker is interviewed by The Hollywood Sentinel, discussing psychic power, the spirit world, life after death, areas of concern in 2016, and much more.

Digital Coupon Customers Spending More Than Double At Stores

A new study shows that customers who use digital coupons go shopping more for groceries and other household goods more often and spend more on their shopping trips.

Are Alaska Bear Viewing Tours Becoming More Mobility-aware for Mixed-ability Travelers?

Key Takeaways Compare Alaska bear viewing tours by walking...

Clothing and Footwear Online: The Complete Guide to Buying Fashion That Fits

Clothing and footwear are among the most purchased online...

Baby Products Online: How to Shop Smart for Everything Your Baby Needs

Shopping for baby products online combines the significant advantage...

Buying Jewellery and Fashion Accessories Online: A Complete Guide

Jewellery and fashion accessories represent one of the most...

Buying Sports and Fitness Equipment Online: The Complete Buyer’s Guide

The sports and fitness equipment market is one of...

Related Articles

Popular Categories