Apple Outlines New Ban on Bonded Labor at Supplier Factories in 2015 Progress Report

[MacRumors]

Apple on Wednesday released its 2015 Supplier Responsibility Progress Report [PDF] and updated its Supplier Responsibility website, giving new details on its efforts to improve the lives of the workers that assemble its products.

For its ninth annual progress report, Apple conducted 633 audits covering more than 1.6 million workers in 19 countries, and called an additional 30,000 workers to survey them on working conditions.

One of Apple's main achievements in 2014 was putting an end to bonded labor. In October, the company told all of its suppliers that as of 2015, no worker employed on an Apple line could be charged recruitment fees. Employees have, in the past, faced significant fees levied against them by third-party recruiters, who offer them a job at an Apple factory in exchange for money. In some cases, they lose their passports until they're able to pay the fee.

Apple previously prohibited excessive recruitment fees (defined as anything higher than a month's net wages) and required suppliers to reimburse any such fee, but the new ban goes further, preventing all bonded labor. Any supplier who uses bonded labor will need to repay all foreign contract workers in full going forward if they incur recruitment fees.

Apple also made progress eliminating conflict minerals (those that benefit armed groups associated with human rights violations) from its supply chain. As of 2014, 135 smelters have complied with the Conflict-Free Smelter Program, and another 64 are in the process of verification. Four smelters would not commit to the program, and will be removed from Apple's supply chain.

Apple achieved 92 percent compliance with its 60-hour maximum workweek mandate. On average, employees worked under 49 hours per week, and 94 percent of all workweeks included at least one day of rest every seven days.

There were 16 cases of underage labor uncovered at six facilities in 2014, and in all cases, suppliers were required to pay for the worker's safe return home, continue to pay wages, and pay for education at a school chosen by the worker.

A 16-year-old enrolled in Apple's Underage Labor Remediation Program, at school in Henan province, China.​

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Apple often finds itself in the spotlight over the conditions at the factories where its product components are produced, but the Cupertino company has for many years held its suppliers to a strict code of conduct that prevents underage labor and provides safe, comfortable working conditions for workers. Apple's Supplier Responsibility Team conducts supplier audits on a regular basis so that Apple can continue to work towards improving conditions at supplier factories.

Article Link: Apple Outlines New Ban on Bonded Labor at Supplier Factories in 2015 Progress Report

 

[JoEw]

As all companies should be doing, bravo Apple. Obviously there is still much to be done, but I'm glad they are stepping up.

 

[Macboy Pro]

Apple spends many billions on ridiculous solar farms but can't pay the workers a living wage in other countries.

One thing Apple is not is a humanitarian company which is why they spend a lot of time trying to tell everything they are.

You would think that Apple could use that money they spend on solar farms to help pay better wages and provide EXCEPTIONAL working conditions. After all, it is these folks that are the bread and butter of Apple.

I am sure I will get bashed, but unfortunately as much as I love Apple products, this is the sad truth.

 

[Crosscreek]

Maybe that documentary did a little good and probably nothing would have been done without it.

Kudos to the film makers.

 

[swingerofbirch]

Look at what Apple does to the people who work for it through its contractor Arise in the US. You have to pay monthly fees and pay for your own training in order to work for Apple.

 

[teslo]

good steps. more than a lot of other companies would even dream of. lots of people say 'well apple's sitting on 100 bail, man.. surely they could just [x,y,z]..."

well, yeah, unless you expect them to step in and pay another (foreign) company's wages (unlike any other company on Earth), conducting 633 audits and investing in this division of 'oversight' isn't exactly a no-expense endeavor.

edit: looks like i spoke too soon. already a call on this board for apple to pay chinese factory workers... look, it's either you live an American lifestyle with American corporations who sell you things, or you move to where people in need will accept your personal humanitarian aid. using apple as a whipping boy for what all gigantic american companies do is just what i call 'reality ignorance.' especially on a story highlighting how apple is going above and beyond the status quo.

 

[batchtaster]

Apple spends Billion on ridiculous solar farms but can't pay the workers a living wage in other countries.

One thing Apple is not is a humanitarian company which is why they spend a lot of time trying to tell everything they are.

These are not Apple employees. They're employees of Apple's contractors - contractors who, surprisingly, contract their services to whatever company pays them to manufacture their widgets. You don't see Microsoft, Amazon or Sony, who are current and past customers of Foxconn, actively working to make these contractors lift their game. It's like if one of the customers of the company you work for came in and said "hey, we don't think you're paying him enough, and the coffee you provide is crap."

Why do you think it's called "Supplier Responsibility"?

 

[Menopause]

LOL at that picture of happy clapping Chinese people, as if they were delivered this news.

 

[s2mikey]

Ehhhhh. Sorry but this is still ridiculous. They were blessed with one rest day after seven working days? Terrific. How nice of them.

These poor souls are being exploited. Just call it what it is. Please. Thanks.

Whatever though, as long as the obnoxious shareholders and hedge fund crooks are happy.... That's all that really matters.

 

[GeneralChang]

Okay, the way they're handling it when they catch underage workers is awesome. Punishing the employer without punishing the employee who was just desperate for some money. Very nicely handled.

 

[Rogifan]

Hmm...looking at the supplier page I don't see Watch listed anywhere. Unless that list is specific to 2014? I'd be curious to know where the 3,000 or so Watches being used by Apple employees were assembled.

http://www.apple.com/supplier-responsibility/our-suppliers/

 

[teslo]

Ehhhhh. Sorry but this is still ridiculous. They were blessed with one rest day after seven working days? Terrific. How nice of them.

These poor souls are being exploited. Just call it what it is. Please. Thanks.

Whatever though, as long as the obnoxious shareholders and hedge fund crooks are happy.... That's all that really matters.

take it up with China's leaders.

 

[Arcady]

If you built these devices in the United States, you wouldn't have to completely redefine another country's labor practices.

 

[PowerBook-G5]

I'd be curious to know where the 3,000 or so Watches being used by Apple employees were assembled.

http://www.apple.com/supplier-responsibility/our-suppliers/

I've also had this question, for the Apple Watch and other devices that are tested at Apple. I supposed that it IS possible that they manufacture small-ish quantities of pre-release products back in Cupertino.

 

[Small White Car]

You would think that Apple could use that money they spend on solar farms to help pay better wages and provide EXCEPTIONAL working conditions.

So what's the theory? Apple voluntarily offers to pay more for the parts and the supplier companies decide to pass it around and not just keep that as extra profits?

How's that supposed to work, exactly?

 

[bunnahabhain]

Apple spends many billions on ridiculous solar farms but can't pay the workers a living wage in other countries.

One thing Apple is not is a humanitarian company which is why they spend a lot of time trying to tell everything they are.

You would think that Apple could use that money they spend on solar farms to help pay better wages and provide EXCEPTIONAL working conditions. After all, it is these folks that are the bread and butter of Apple.

I am sure I will get bashed, but unfortunately as much as I love Apple products, this is the sad truth.

Oh boy, where to start.

1) You do realize that none of these people are in fact actual APPLE EMPLOYEES?

2) Apple does not claim to be a "humanitarian company". And what does that term even mean? In fact, I know of no company that does. This is simply a straw man argument.

3) Nothing stopping you from flying over to China and handing out $20 bills to employees leaving the factory. Anything is easy for the guy who doesn't have to do it.

4) People only get bashed for making stupid claims while trying to act superior.

 

[Michael Goff]

Apple spends many billions on ridiculous solar farms but can't pay the workers a living wage in other countries.

One thing Apple is not is a humanitarian company which is why they spend a lot of time trying to tell everything they are.

You would think that Apple could use that money they spend on solar farms to help pay better wages and provide EXCEPTIONAL working conditions. After all, it is these folks that are the bread and butter of Apple.

I am sure I will get bashed, but unfortunately as much as I love Apple products, this is the sad truth.

Explain how Apple can dictate what another company pays their employees.

 

[AngerDanger]

I'm just trying to wrap my head around the notion that working conditions can be poor anywhere while staring at two pictures of smiling people. If there was one photo, I'd be dubious, but two seems solid.

 

[theheadguy]

Explain how Apple can dictate what another company pays their employees.

Wow... really? This is very common in service and production contracts, whether workers must be paid at or above prevailing wage, minimum wage, or a set amount.

LOL at that picture of happy clapping Chinese people, as if they were delivered this news.

Lol. Sad but true. Like the 16-year old knows MR is using his face for the story, too.

 

[amirite]

Explain how Apple can dictate what another company pays their employees.

"Pay your employees more or you lose our business"

 

[CFreymarc]

Apple spends many billions on ridiculous solar farms but can't pay the workers a living wage in other countries.

One thing Apple is not is a humanitarian company which is why they spend a lot of time trying to tell everything they are.

You would think that Apple could use that money they spend on solar farms to help pay better wages and provide EXCEPTIONAL working conditions. After all, it is these folks that are the bread and butter of Apple.

I am sure I will get bashed, but unfortunately as much as I love Apple products, this is the sad truth.

Apple is a survivor of the liberal invasion after their IPO back in 1980. After Steve left Apple, all the "social justice" cons that only benefit those who sell to the newly enriched lower class bit into him hard. Starting NeXT, he hired the right people and not those that profit from victims. Hence, the no-charity policy when he returned to Apple.

From this legacy, Apples know everyone has to make a profit and a free labor market will balance out those needs. If we didn't have a minimum wage in the USA and more open markets such as deregulated health care, these units would be built by American high school and college kids getting great industry experience.

----------

"Pay your employees more or you lose our business"

Exactly. Customer is always right. I have seen many clients that contracted contract manufacturing and looking at the lunch room of the line workers before seeing how their product was built.

A while ago, I was working with a company that reviewed payroll records of those CM employees who were hands on with the product build. The company wanted to make sure bonuses payed to the CM was not pocketed by management and went to those working the line. Very nice exit on that one.

 

[Michael Goff]

Wow... really? This is very common in service and production contracts, whether workers must be paid at or above prevailing wage, minimum wage, or a set amount.


Lol. Sad but true. Like the 16-year old knows MR is using his face for the story, too.

"Pay your employees more or you lose our business"

And then Foxconn says "okay" and Apple loses a lot more than Foxconn. What? You think Apple snaps its fingers and they do whatever they want?

 

[CFreymarc]

Oh boy, where to start.
1) You do realize that none of these people are in fact actual APPLE EMPLOYEES?

Most are employees of the CM where labor laws are much different. In most of the USA, employer supplied, fill time housing is illegal (one of the few good things about FDR's New Deal) where you have dorm of employees living together and working in more of a commune / kibbutz style instead of a private housing.

2) Apple does not claim to be a "humanitarian company". And what does that term even mean? In fact, I know of no company that does. This is simply a straw man argument.

The term has no meaning and it just another piece of PR schlock.

3) Nothing stopping you from flying over to China and handing out $20 bills to employees leaving the factory. Anything is easy for the guy who doesn't have to do it.

You'd be surprised when the PRC boys do when the cameras are off. If you are handing out money in public in China, I'm sure some officer will find or use the general "abnormal behavior law" (unconstitutional in the USA) to detain and question him. The some local party official will find out how much money you are worth, shake you up and then tell you not to do it again.

4) People only get bashed for making stupid claims while trying to act superior.

Such a general statement, not even worth of comment.

 

[jamescobalt]

"Bonded labor" sure is a nice euphemism for what the United Nations calls "slave labor", and one of the reasons people should be careful about where they purchase chocolate from too.

 

[Daalseth]

Bravo

Bonded labour is just another form of slavery, literally. Bonded servants and indentured servants were the first slaves in North America. Bravo to Apple for using their clout to fight this scourge.

And to those trying to spin this into something bad, (with their billions Apple should..., or if they only made stuff in the US ..., etc.) name me one other company that is doing this sort of thing. Samsung? Microsoft? Google? GE? Toyota? Any company getting their systems, parts, or components from the third world doing anything approaching this? The answer is no. Nobody is doing as much either publicly or privately, and Apple does a lot behind the scenes without making a big deal about it.

Apple is leading the way on third world workers rights, on conflict minerals, and on environmentally consious operations. Whether they're doing it because it's the right thing to do or because it's good business is irrelevant.