Go Back   MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Reply
 
Thread Tools Search this Thread Display Modes
Old Mar 29, 2012, 03:13 PM   #1
MacRumors
macrumors bot
 
Join Date: Apr 2001
Fair Labor Association Reaches Agreement with Foxconn on Working Hours and Pay




Following an audit of Foxconn's facilities where the company assembles Apple products, the Fair Labor Association (FLA) today announced that it has reached an agreement with Foxconn that will result in stricter controls over working hours and an examination of salaries paid to workers at the facilities.
Quote:
Foxconn has committed to bring its factories into full compliance with Chinese legal limits and FLA standards on working hours by July 2013, according to its remediation plan in FLA's report. The supplier will bring working hours in line with the legal limit of 49 hours per week, including overtime. This means a reduction in monthly overtime hours from 80 to 36, and would be a significant improvement given that most of the technology sector is struggling to address excessive overtime.

More importantly, while employees will work fewer hours, Foxconn has agreed to develop a compensation package that protects workers from losing income due to reduced overtime. In order to maintain capacity while reducing workers' hours, Foxconn committed to increase its workforce significantly as it builds additional housing and canteen capacity.
During its audits, the Fair Labor Association found numerous violations of both Chinese labor laws and FLA standards when it comes to working hours, with average workload coming in at over 60 hours per week during peak times. Instances of unfair overtime pay were also uncovered, with overtime payments only being made in 30-minute increments. Consequently, workers received no pay for overtime work of up to 29 minutes, while workers putting in 30-59 minutes of work received pay for only 30 minutes' worth of work.




The FLA found several other issues in its audits, ranging from health and safety to lack of worker union representation. Full details on the results of the FLA's audits are available through the organization's website. The FLA will continue to monitor Apple's and Foxconn's efforts at compliance, and will post follow-up reports on its investigations.

Article Link: Fair Labor Association Reaches Agreement with Foxconn on Working Hours and Pay
MacRumors is offline   0 Reply With Quote
Old Mar 29, 2012, 03:15 PM   #2
jazzkids
macrumors member
 
Join Date: Feb 2004
Location: Providence, RI
good!
jazzkids is offline   0 Reply With Quote
Old Mar 29, 2012, 03:16 PM   #3
macduke
macrumors 68040
 
macduke's Avatar
 
Join Date: Jun 2007
Location: Columbia, MO
While this is good, don't be surprised (or complain) when the price of your Apple gear starts to go up! Something has to give.
__________________
15" Retina MacBook Pro / Quad 2.6GHz Core i7 / 16GB / 512GB SSD
128GB iPhone 6 Plus / 64GB iPad Mini Retina LTE / Original iPhone & iPad
Canon 7D / 24-105L / 100-400L / Sony RX100 / Xbox One
macduke is offline   -6 Reply With Quote
Old Mar 29, 2012, 03:17 PM   #4
blow45
Banned
 
Join Date: Jan 2011
Chinese labour law is an oxymoron
blow45 is offline   13 Reply With Quote
Old Mar 29, 2012, 03:17 PM   #5
ronwasserman
macrumors regular
 
Join Date: Mar 2008
Location: Los Angeles
 
Glad to hear there may be changes.

Or Apple will move everything Fixconn where there is no agreement.
ronwasserman is offline   -2 Reply With Quote
Old Mar 29, 2012, 03:19 PM   #6
blow45
Banned
 
Join Date: Jan 2011
Quote:
Originally Posted by macduke View Post
While this is good, don't be surprised (or complain) when the price of your Apple gear starts to go up! Something has to give.
And as we all know apple's margins are way too low to give....
blow45 is offline   10 Reply With Quote
Old Mar 29, 2012, 03:19 PM   #7
FFArchitect
macrumors regular
 
Join Date: Mar 2010
Is there documentation/attention to this issue for other companies? (Sony, Samsung, etc)
__________________
Fame Foundry
Charlotte Website Design
FFArchitect is offline   6 Reply With Quote
Old Mar 29, 2012, 03:20 PM   #8
Rocketman
macrumors 603
 
Rocketman's Avatar
 
Join Date: Dec 2001
Location: Claremont, CA
The confluence of the report, Apple's response, and trends in China itself means that they will need to hire 20% more employees to conform to the per worker hourly reduction pledge. Wage prices in China reliably go up 15% per year and the Chinese Rimimbi currency is all but locked against the dollar.

Now this does have the offset of paying less overtime by about 10-15%.

But overall we should see a labor component cost increase of about 15% per year with it being a bit front loaded as compliance ramps.

The single easiest way to have things cost us less is to borrow and spend less at the Federal government level. It is causing currency destruction at a rate of about 7% a year reliably under the Obama Presidency. We currently deficit spend at the shocking rate of about $250B a MONTH and we were promised stimulus would be one time and about $866B with a then ANNUAL deficit of about $450B.

The TARP, Fed actions, and such are large in scale to the tune of about $7T, about the same scale as the liquidity lost when home prices vaporized $7.5T in about a year and a half. The Fed has "sterilized" those actions, but they are real, have to be unwound some day and there are hard costs to real people to keeping interest rates ridiculously low. Also most of TARP and bank liquidity has been paid back with over $100B in net profit paid into the treasury already.

All of that stuff together makes it cost us more for gasoline (30% since Obama's budget was passed on currency destruction alone, no issues from oil speculation or Iran included in that), food, commodities, and payments to China.

In the CNBC interview the FLA President characterized the forward leaning of Apple and Foxconn on labor issues in China as likely to lead to a "race to the top". For those of us critical of Chinese policies of various types, this is only good. It is also having direct impact on large parts of Chinese society.

So I call it a mixed picture but far more good than bad, and slightly bad for forward earnings of AAPL.

Rocketman
__________________
Think Different-ly!
All 357 R or D House jobs bills over 4 years died in the D Senate, ordered by the D President. Buy a model rocket here: http://v-serv.com/usr/instaship-visual.htm Thanks.

Last edited by Rocketman; Mar 29, 2012 at 03:45 PM.
Rocketman is offline   -1 Reply With Quote
Old Mar 29, 2012, 03:21 PM   #9
macMD
macrumors 6502
 
Join Date: Nov 2005
Location: New York
First I will say great job. Next I have to ask why exactly does it take 16 months to get into compliance. Yes I do realize its a gigantic company with so many bodies and they will clearly have to hire more workers etc, etc. Still it shouldn't have gone on for so long, but that was the house that was built.

As for Apple product prices going up, why the heck should they. Apple is the most profitable company, their margins are ridiculous and Apple can afford to eat some of the cost. Really $400+ per iPhone in profit for the base model is a lot.
macMD is offline   -4 Reply With Quote
Old Mar 29, 2012, 03:21 PM   #10
ciociosan
macrumors member
 
Join Date: Apr 2009
Location: Lund, Sweden
I LOVE UNIONS.


that is all.
__________________
15" MacBook Pro i7, 64 GB White iPhone 4 S⃣ , 24" Aluminium iMac (2.4 GHz, 4 GB RAM, 1 TB HD) ; 32 GB Black iPhone 3G S⃣ , White MacBook (2.0 GHz, 2 GB RAM) ; 2nd gen. iPod Shuffle, iMac G3
ciociosan is offline   -2 Reply With Quote
Old Mar 29, 2012, 03:33 PM   #11
macduke
macrumors 68040
 
macduke's Avatar
 
Join Date: Jun 2007
Location: Columbia, MO
Quote:
Originally Posted by blow45 View Post
And as we all know apple's margins are way too low to give....
They could, but do you honestly believe they will? I doubt it, but we'll see.
__________________
15" Retina MacBook Pro / Quad 2.6GHz Core i7 / 16GB / 512GB SSD
128GB iPhone 6 Plus / 64GB iPad Mini Retina LTE / Original iPhone & iPad
Canon 7D / 24-105L / 100-400L / Sony RX100 / Xbox One
macduke is offline   0 Reply With Quote
Old Mar 29, 2012, 03:34 PM   #12
adildacoolset
macrumors 65816
 
Join Date: Sep 2011
Location: Lusaka, Zambia(If you know where it is)
there? Is everyone happy? Can we please stop this now?

UPDATE: We can see from the negative votes that people still want to argue and make noise
__________________
Last edited by adildacoolset; Tomorrow at 09:42 AM. Reason: grammar error

Last edited by adildacoolset; Mar 29, 2012 at 04:36 PM.
adildacoolset is offline   -17 Reply With Quote
Old Mar 29, 2012, 03:35 PM   #13
nsayer
macrumors 6502a
 
Join Date: Jan 2003
Every time I hear about labor unions in communist countries, I chuckle a little at the irony.
nsayer is offline   1 Reply With Quote
Old Mar 29, 2012, 03:36 PM   #14
thekev
macrumors 603
 
thekev's Avatar
 
Join Date: Aug 2010
Quote:
Originally Posted by macduke View Post
While this is good, don't be surprised (or complain) when the price of your Apple gear starts to go up! Something has to give.
It happens. The thing is to hold everyone to the same standard. In the end we either will or will not buy products. It's not like this is going to drive AAPL under.

Quote:
Originally Posted by Rocketman View Post
So I call it a mixed picture but far more good than bad, and slightly bad for forward earnings of AAPL.

Rocketman
That was a really nice explanation.
__________________
world's largest manufacturer of tin foil hats, none of that aluminum foil crap.
thekev is offline   0 Reply With Quote
Old Mar 29, 2012, 03:36 PM   #15
BadPirate
macrumors newbie
 
Join Date: May 2008
Missing context

Quote:
This means a reduction in monthly overtime hours from 80 to 36, and would be a significant improvement given that most of the technology sector is struggling to address excessive overtime.
Seems to me like we could agree that mandatory (or compulsory) overtime is an evil... but what about voluntary overtime?

If you really want to work 80 hours a week because you want / need the extra money... are we really doing you a favor saying you can't?

What's important is that you can't be fired or otherwise passed over due to NOT working overtime... But overtime (even lots of it) seems to be a personal value (or not)...
BadPirate is offline   6 Reply With Quote
Old Mar 29, 2012, 03:40 PM   #16
303aegiszx
macrumors newbie
 
Join Date: Nov 2010
Quote:
Originally Posted by macMD View Post
As for Apple product prices going up, why the heck should they. Apple is the most profitable company, their margins are ridiculous and Apple can afford to eat some of the cost. Really $400+ per iPhone in profit for the base model is a lot.
Seriously? You've already paid 600+, what's another 100-200 to you? Just put it on your credit card. If you want the product produced at the rate it's currently at, and the quality, you pay the price.

We pay large amounts for homes, cars, furniture, etc. so it could be argued that in fact products like the iPhone and iPad are more of a necessity.. and if you need it, as opposed to "want it", might as well pay for it.
303aegiszx is offline   -12 Reply With Quote
Old Mar 29, 2012, 03:43 PM   #17
flottenheimer
macrumors 65816
 
flottenheimer's Avatar
 
Join Date: Jan 2008
Location: Up north
Quote:
Originally Posted by macMD View Post
... Next I have to ask why exactly does it take 16 months to get into compliance. Yes I do realize its a gigantic company with so many bodies and they will clearly have to hire more workers etc, etc. Still it shouldn't have gone on for so long ...
It will take 16 months exactly because it is a gigantic company (1.2 million employees!).
Change takes time. Considering Foxconn's size and all the stuff that needs to be changed I'm actually surprised they can do it in 16 months.
__________________
A computer is like a bicycle for the mind.
Steve Jobs
flottenheimer is offline   4 Reply With Quote
Old Mar 29, 2012, 03:43 PM   #18
Xiph0s
macrumors regular
 
Join Date: Jun 2008
Location: Secaucus, NJ
Quote:
Originally Posted by blow45 View Post
Chinese labour law is an oxymoron
lmao smartest comment of the day so far.
Who cares, they can give them 300% increase in overtime pay but the government
will find a reason to take it back. In which case they don't NEED a reason. "Better dead than red"
Xiph0s is offline   -5 Reply With Quote
Old Mar 29, 2012, 03:47 PM   #19
ad2435
macrumors member
 
Join Date: Dec 2009
$500 for an ipad and the foxconn employees MAKE LESS THAN $1 PER HOUR.


OMG
ad2435 is offline   -11 Reply With Quote
Old Mar 29, 2012, 03:48 PM   #20
q64ceo
macrumors regular
 
Join Date: Aug 2010
Isnt it kinda sad that they had to make an agreement to actually follow the law?
__________________
iMac i7 27inch mid 2010 | iPod Touch 4th Generation | iPad 2 | eMac 1.25 PPC mid-2004 | So I sold out and got an iPhone. Using all this Apple stuff is making me rusty on my real computer skillz
q64ceo is offline   4 Reply With Quote
Old Mar 29, 2012, 03:49 PM   #21
joneill55
macrumors 6502
 
Join Date: Sep 2007
Does this mean the nets come down?
joneill55 is offline   -2 Reply With Quote
Old Mar 29, 2012, 03:55 PM   #22
velocityg4
macrumors 68040
 
velocityg4's Avatar
 
Join Date: Dec 2004
Location: Georgia
All other citations I understand except for lack of worker union representation. Unless they actually formed a union this should not be mentioned.
__________________
Quadra 650 040 33MHz 72MB RAM, 2GB HD, 2x CD
Macbook C2D 2.0Ghz; 3GB RAM, 500GB HD
Home Made i5 4.0Ghz, GeForce 560 Ti, 16GB RAM, 256GB SSD RAID 0, 3TB HD RAID 0 in a G5 Case.
velocityg4 is offline   -1 Reply With Quote
Old Mar 29, 2012, 04:00 PM   #23
mrochester
macrumors 6502a
 
Join Date: Feb 2009
Unless Foxconn are swallowing the extra costs involved in potentially hiring more staff to cover the shortfall in man hours, it's the companies with already razor thin profit margins who I feel sorry for the most. Apple are at least in the position to simply assume any increase in labour/contract costs. The cynic in me would suggest this was Apple's ploy all along; look like the good guys by inviting the FLA in, pay whatever extra required in labour/contract costs, and price your competitors out of the business as a result of these increases.
mrochester is offline   2 Reply With Quote
Old Mar 29, 2012, 04:04 PM   #24
Glideslope
macrumors 68030
 
Glideslope's Avatar
 
Join Date: Dec 2007
Location: NY
Quote:
Originally Posted by ad2435 View Post
$500 for an ipad and the foxconn employees MAKE LESS THAN $1 PER HOUR.


OMG
So what? Stop posting Dribble. Words mean nothing. If you want to make a statement then don't purchase the product!!!!!!!!!

Everything else will be redistributed.
__________________
" A leader leads by example. Not by force." Sun Tzu
Glideslope is offline   -6 Reply With Quote
Old Mar 29, 2012, 04:05 PM   #25
Will do good
macrumors 6502
 
Join Date: Mar 2010
Location: Earth
Quote:
Originally Posted by ad2435 View Post
$500 for an ipad and the foxconn employees MAKE LESS THAN $1 PER HOUR.


OMG
What does iPad cost and less than $1 /hr have to do with anything? Apple don't own Foxconn, Foxconn is a supplier to ALL the electronic companies. Have they all agree to raise they hr wage to Chinese workers too? or should this be just Apple issue?

The cost of living is different in China than the US. etc.. etc.. read and understand how the world really is, Foxconn have hundreds and thousands of workers standing inline applying for job at each job fair, if you think these better options elsewhere, please advice.
Will do good is offline   6 Reply With Quote

Reply
MacRumors Forums > News and Article Discussion > MacRumors.com News Discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
Price Advice: What is a fair price to pay for a Late 2011 17 in. alexp77 Buying Tips and Advice 1 Feb 15, 2014 12:34 AM
Foxconn and Apple Make Strides Towards Improving Work Hours, But Still Violate Chinese Limits MacRumors MacRumors.com News Discussion 28 Dec 13, 2013 08:26 AM
Efforts by Apple and Foxconn to Improve Electronics Industry Labor Conditions Starting to Take Hold MacRumors MacRumors.com News Discussion 60 Feb 4, 2013 09:26 AM
iPad: How much would be a fair price to pay on Ebay for iPad3 piatti iPad 5 Nov 5, 2012 01:19 PM
Fair Labor Association Finds Progress in Follow-Up Status Report on Foxconn's Apple Facilities MacRumors MacRumors.com News Discussion 35 Aug 22, 2012 02:36 PM

Forum Jump

All times are GMT -5. The time now is 05:19 AM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC