Tuesday, 17 September, 2019

Hon Hai adjusts dispatch workers' ratio in China | Economics

Apple and Foxconn broke Chinese labor law to build latest iPhones Apple and Foxconn broke Chinese labour laws on the upcoming iPhone
Sandy Mccarthy | 11 September, 2019, 06:32

Tech giant Apple Inc and Foxconn, its manufacturing partner reportedly confirmed that they violated a labor rule laid down by China by having used too many temporary staff in the largest iPhone factory in the world, following the reports of its alleged harsh working conditions.

In the report released by the CLW, the organization said that in August 2019, around 50 percent of the workforce at Hon Hai's Zhengzhou plant were dispatch workers, even though China's labor law stipulated that temporary workers must not exceed 10 percent of a company's workforce.

In August Foxconn admitted it had found cases of employed Chinese high school students in illegal overtime work making the Amazon Alexa devices at its factory in the southern city of Hengyang.

Apple said in a statement obtained by CNBC that some of the allegations raised by CLW are true, but it did not state which ones.

Foxconn separately confirmed overreliance on temporary workers, known internally as dispatch workers. Chinese law dictates this percentage cannot exceed 10%.

Apple has acknowledged that it found the percentage of temporary staff to be higher than their standard and that it is working closely with Foxconn to fix the issue.

"Apple and Foxconn know that the issue with dispatch workers is in violation of labor laws, but because it is profitable to hire dispatch workers, they haven't addressed the issue". Nonetheless, suppliers and assemblers are all the time attempting to churn out extra handsets. According to the report, workers at Zhengzhou Foxocnn put in at least 100 overtime hours a month during peak production seasons. Typically operating on wafer-thin margins, they employ millions of mostly migrant and temporary workers because activity tends to wax and wane with shopping seasons and fluctuations in demand. That is almost three times higher than the 36 overtime hours allowed by Chinese labor law.

USA rallies to beat Great Britain & Ireland in Walker Cup
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Some dispatch workers have not received promised bonuses.

Workers must get approval to not do overtime.

The factory doesn't provide adequate protective equipment for staff. Find out the event timing according to your region. These emerged during Steve Jobs' tenure at Apple when there were multiple suicides at Foxconn factories.

"We looked into the claims by China Labour Watch and most of the allegations are false".

Most factory workers are paid about CNY 4,000 (roughly Rs. 40,000) a month, one CLW investigator found. While Apple hasn't commented as to whether Foxconn broke labor laws, but the company says it has investigated and is working to resolve the situation.

However, while Apple acknowledges the group's point about temporary workers, it maintains the other findings are inaccurate.

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