makeITfair http://makeitfair.org daily 1 2011-06-14T22:45:10Z Investigation into Apple supplier Foxconn confirms abusive labour conditions http://makeitfair.org/en/the-facts/news/investigation-into-apple-supplier-foxconn-confirms-abusive-labour-conditions GoodElectronics and makeITfair statement -- The FLA report ‘Independent investigation of Apple’s supplier Foxconn’ confirms abusive labour conditions as have been reported over the past years by local and international labour groups. GoodElectronics and makeITfair welcome the FLA efforts but also point out serious flaws in the root cause analysis and the proposed solutions. Since Apple joined FLA in January 2012, makeITfair and GoodElectronics have issued a number of statements commenting upon the new developments. Within 3 months of Apple joining the Fair Labor Association (FLA), an investigation into labour conditions at Apple’s key supplier Foxconn in China was conducted. This investigation has been carried out on an unprecedented scale: 35,500 workers have been interviewed. As announced, FLA has made the full worker survey data available. FLA has elaborated detailed remediation plans for the investigated Foxconn production facilities which were also made available.

The FLA investigative report confirms the occurrence of excessive and unpaid overtime, health and safety risks, serious communication gaps between workers and management , wages that are insufficient to cover basic needs, and abuse of student labour. FLA reports that Foxconn has agreed to address reported issues, with an emphasis on hours of work, compensation, industrial relations and health and safety systems. The announced remediation plans go quite a way towards recommendations made over the years makeITfair and GoodElectronics and other labour advocates, especially regarding reducing working hours while at the same time protecting workers from losing income and workers’ representation.

Continuous reasons for concern, suggestions for action
At the same time, GoodElectronics and makeITfair found serious flaws in the root cause analysis and the solutions proposed by FLA. GoodElectronics and makeITfair are especially concerned that the promised steps made by Foxconn might be mainly words, as Foxconn already earlier promised to reduce the overtime to the amount allowed by Chinese law by the end of 2011.

  • In the first place, Apple, as an important buyer, should amend its purchasing practices and fix unit prices and production deadlines that do not undermine agreements on pay and working hours.
  • FLA fails to report any major findings on one of the most notorious problems at Foxconn, the harsh, psychologically abusive management methods. While aspects of the FLA report do suggest that these issues are very real, and it has long been assumed that these abusive practices are a causal factor in the rash of suicides at Foxconn in 2010 and 2011, there is no comprehensive remediation plan to address these issues.
  • FLA acknowledges some violations in the use of student workers but fails to propose effective action take action on the practice that student interns are made to work normal production hours and risk punishment when they refuse an internship.
  • The FLA announces that Foxconn has agreed to develop a compensation package that protects workers from losing income due to reduced overtime. As 64% of the workers interviewed also indicate that their wage does not meet their basic needs there is an immediate need to raise the wages to a living wage level.
  • While FLA proposes that Foxconn reduces the overtime to legal limits within 15 months, Foxconn should end the illegal overtime practices as soon as possible.
  • The FLA report recognises that the trade union in place is not representative and consists mainly of management and announces that Foxconn has agreed to ensure elections of workers representatives without management interference. While addressing the need for the existing collective bargaining agreement to be known by all workers, the FLA report fails to address the need for workers to negotiate a new collective agreement that covers all aspects including wages, hours, health and safety. A mechanism of collective bargaining should be put in place that enables workers to negotiate with management on appropriate wage levels.
  • Union representatives should be allowed to access training and capacity building that is independent of management to acquire the knowledge and skills necessary to advocate on behalf of the workers they represent.
  • FLA should start involving local labour groups and relevant international stakeholders in its on-going monitoring efforts to verify compliance to the remediation plans at Foxconn, as well as at other Apple suppliers.


See also earlier public statements
published by GoodElectronics and makeITfair on Apple joining the FLA:


More information
Irene Schipper
makeITfair
i.schipper [AT] somo.nl
Tel: + 31 6 30390001

Pauline Overeem
GoodElectronics
p.overeem [AT] goodelectronics.org
Tel: +31 6 41344385

]]> No publisher Joukje Kolff 2012-04-03T15:09:24Z News Item GoodElectronics, makeITfair, IMF declare FLA investigation at Apple supplier Foxconn to be a PR stunt http://makeitfair.org/en/the-facts/news/goodelectronics-makeitfair-imf-declare-fla-investigation-at-apple-supplier-foxconn-to-be-a-pr-stunt On the occasion of Apple’s 2012 annual shareholders’ meeting GoodElectronics, makeITfair, and International Metalworkers' Federation (IMF) share their concerns with Apple shareholders regarding persisting labour rights violations at Apple’s suppliers in China, as well as in India and other countries. GoodElectronics, makeITfair and the International Metalworkers’ Federation (IMF) are among a growing group of concerned civil society organisations calling upon Apple to improve its act. Apple has recently joined the Fair Labor Association (FLA), but this seems to be a mere PR stunt. In January, GoodElectronics and makeITfair commented on Apple joining the FLA in an open statement , pointing out major flaws in the FLA system, but still expressing hope that FLA and Apple would take the necessary steps to address key problems within Apple’s supply chain. Now that FLA has started auditing Foxconn’s production facilities in China, our fears have been justified. Foxconn is one of Apple’s main suppliers and has over the past years repeatedly received bad press for issues such as low wages, long working hours, high work pressure, harsh management style, abuse of student workers, insufficient health and safety measures, etc. The underlying problem is the lack of proper workers’ representation and effective grievance mechanisms.
 
The FLA investigation at Foxconn is not being conducted, as one should expect,  in a proper way. Contrary to FLA’s standard methodology the Foxconn investigation was not unannounced. Foxconn management has been able to take measures to hide abuses: workers at Foxconn’s facility in Zhengzhou reported that under-age workers (16-17 years old) who normally work 12 hours per day were excluded for overtime work during the FLA audit.  The FLA audit report is due for March. Nonetheless, on 15 February, FLA president Auret van Heerden publicly described the Foxconn factories as "very modern and very high tech", saying that the factory floor seemed “tranquil,” and called physical conditions “way, way above the average of the norm”, and blamed “boredom” and “alienation” for many of workers’ problems, including the suicides among Foxconn workers of the past years . Describing working conditions exclusively on the basis of visual observations made during a pre-arranged tour accompanied by Foxconn management, shows no insight in the electronics industry nor any comprehension of the issues at stake.  GoodElectronics, makeITfair and IMF wonder how independent FLA audits can be when already at this stage FLA allows itself to be used for Apple PR stunts.

Moreover, considering the size and number of Apple suppliers worldwide, and the current capacity of FLA we have strong doubts that FLA will be capable to do the necessary serious independent investigations that will help Apple to stamp out labour rights abuses in its supply chain.

GoodElectronics, makeITfair and the International Metalworkers’ Federation (IMF) appreciate Apple’s step to join FLA. Misusing a multi stakeholder initiative as a PR stunt, however, will reflect very badly on Apple’s sustainability initiatives and statements. In addition to proper auditing, Apple also needs to look into improving its purchasing practices by ensuring fair prices and well-planned lead times, allowing workers to work normal hours and earn a living wage. Workers’ representation and training are key.

We call upon Apple shareholders to join us in calling on Apple to do the right thing.

Contact:
makeITfair – Irene Schipper– i.schipper@somo.nl
GoodElectronics – Pauline Overeem – p.overeem@goodelectronics.org
IMF – Jenny Holdcroft – j.holdcroft@imfmetal.org

]]> No publisher Marije Brouwer Apple 2012-02-23T13:05:00Z News Item In China, Human Costs Are Built Into an iPad http://makeitfair.org/en/the-facts/news/in-china-human-costs-are-built-into-an-ipad Last week, The New York Times published articles on the harsh working conditions at Apple suppliers. The findings of the NYT journalists confirm the investigations done by makeITfair and SACOM. This is not extraordinary as Apple’s supplier responsibility reports, in many cases report the same abuses. What is, however, interesting are the revealing remarks of some insiders which underline the relevancy of the demands of the 2011 “Time to bite into a fair Apple” campaign. makeITfair and GoodElectronics called upon Apple to improve its purchasing practices ensuring fair prices and well-planned lead times. This will enable suppliers to take necessary safety measures and to pay a living wage, allowing workers to work normal hours. makeITfair and GoodElectronics called upon Apple to be more transparent about its supplier and engage with labour rights organisations to make sure that working conditions improve.

Li Mingqi, who until April worked in management at Foxconn Technology, one of Apple’s most important manufacturing partners said “Apple never cared about anything other than increasing product quality and decreasing production cost ”,  “Workers’ welfare has nothing to do with their interests,”. “Once the deal is set and Foxconn becomes an authorized Apple supplier, Apple will no longer give any attention to worker conditions or anything that is irrelevant to its products,” said Mr. Li.

“We’ve known about labor abuses in some factories for four years, and they’re still going on,” said one former Apple executive who, like others, spoke on the condition of anonymity because of confidentiality agreements. “Why? Because the system works for us. Suppliers would change everything tomorrow if Apple told them they didn’t have another choice.”

“We’re trying really hard to make things better,” said one former Apple executive. “But most people would still be really disturbed if they saw where their iPhone comes from.”

“If you see the same pattern of problems, year after year, that means the company’s ignoring the issue rather than solving it,” said one former Apple executive with firsthand knowledge of the supplier responsibility group. “Noncompliance is tolerated, as long as the suppliers promise to try harder next time. If we meant business, core violations would disappear.”

“The only way you make money working for Apple is figuring out how to do things more efficiently or cheaper,” said an executive at one company that helped bring the iPad to market. “And then they’ll come back the next year, and force a 10 percent price cut.”

“You can set all the rules you want, but they’re meaningless if you don’t give suppliers enough profit to treat workers well,” said one former Apple executive with firsthand knowledge of the supplier responsibility group. “If you squeeze margins, you’re forcing them to cut safety.”

A former executive in Apple’s supplier responsibility group said: “There is a genuine, companywide commitment to the code of conduct. But taking it to the next level and creating real change conflicts with secrecy and business goals, and so there’s only so far we can go.” Former Apple employees say they were generally prohibited from engaging with most outside groups.  “There’s a real culture of secrecy here that influences everything”.

Read full articles:
In China, Human Costs Are Built Into an iPad. By CHARLES DUHIGG and DAVID BARBOZA. Published: January 25, 2012
How the U.S. Lost Out on iPhone Work. By CHARLES DUHIGG and KEITH BRADSHER. Published: January 21, 2012

]]> No publisher Marije Brouwer 2012-02-01T23:00:00Z News Item Announcement / Invitation - GoodElectronics & makeITfair Round Table http://makeitfair.org/en/the-facts/news/announcement-invitation-goodelectronics-makeitfair-round-table "Workers’ rights in the global electronics sector" - GoodElectronics and makeITfair organise a Round Table bringing together representatives of the electronics industry and civil society organisations, including trade unions, from around the globe. The meeting will take place on 9 + 10 May, in Amsterdam, the Netherlands. Workers’ rights in the global electronics sector

Participation is open for electronics companies, including OEMS, EMS, EICC and GeSI members, trade unions, labour groups, NGOs, (EU) policy makers, activists and academics, etc.

Key themes are trends and consequences in contract labour and wage issues in the global electronics industry. Freedom of association, collective bargaining, position of employment agencies, migrant labour, grievance mechanisms, workers’ training are some of the topics that will be broached.
The focus of the Round Table is on discussing the different perspectives of the various actors and on defining common ground for action towards lasting improvement of labour conditions. Trade union approaches, views of NGOs from major production countries, and policies, practices and recent initiatives by the electronics sector will be considered in a constructive atmosphere. The Round Table offers an excellent opportunity for linking, learning and networking among a diverse group of participants. The programme offers key note speakers, panel presentations, plenary discussions and plenty of time for corridor chat.

The meeting will be held under the Chatham House Rule. Media are not invited. A press moment will take place prior before the closing lunch on Thursday May 10th at 12.30pm.
In 2009, makeITfair and the GoodElectronics Network hosted a Round Table to discuss supply chain social and environmental issues. The May 2012 round table is set up as a follow-up to this session. Click here for the May 2009 round table report.

To register, please return the registration form (attached) to p.overeem AT goodelectronics.org, by March 30 at the latest.

A detailed programme will be available shortly.

Contact persons
About the programme, registration:

  • Pauline Overeem - international coordinator GoodElectronics
    Cell phone: 31.6.41344385
    p.overeem AT goodelectronics.org
  • Irene Schipper - international coordinator makeITfair
    Cell phone: 31.6.30390001
    i.schipper AT somo.nl

Administration, logistics:

 

  • Joke Jeelof – Administration SOMO
    Office 31.20.6391291
    j.jeelof AT somo.nl


Logistic information
Dates                   Wednesday May 9 - Thursday May 10, 2012
Location               Amsterdam, the Netherlands
Venue                  Akantes, Nieuwe Herengracht 95, 1011 RX Amsterdam (website Akantes, in Dutch)

How to reach
Public transport
Tram 9 and 14: stop ‘Mr Visserplein’. Walk into the direction of the Plantage Middenlaan, turn left before the bridge, Nieuwe Herengracht.
All metro lines: stop ‘Waterlooplein’. Take exit ‘Hortus Plantsoen’. Above the ground, walk along the Hortus Botanicus, turn left, cross the bridge with tram rails, and turn right, Nieuwe Herengracht.
More information on public transport.

By car
Paid parking in the vicinity of Akantes.
Underground car park ‘Stadhuis/Muziektheater’at Waterlooplein 1. Open around the clock. Route from A10, direction S 100, turning ‘Centrum’, follow P signs.
Underground car park ‘Markenhoven’ at Anne Frankstraat 2. Open around the clock.
Route from A10, direction S 100, turning ‘Centrum’, follow P signs.
More information on parking in Amsterdam.

]]> No publisher Marije Brouwer 2012-01-29T23:00:00Z News Item Will Apple turn over a new leaf when it joins the Fair Labor Association? http://makeitfair.org/en/the-facts/news/statement-on-apple-report Apple has joined the FLA as the first technology company among a number of garment companies. Is this is a genuine effort by Apple to clean up labour abuses in its supply chain, or merely a way of proving its credentials without actually delivering? For GoodElectronics and makeITfair it is too early to tell. The FLA obligation is to become compliant within the next two years. GoodElectronics and makeITfair will be watching closely to see whether FLA membership means Apple takes action on key problems within its supply chain. The global electronics sector is characterised by persistent labour rights violations. At the basis are an alarming low level of unionisation and the near absence of collective bargaining, particularly in China. Workers face long working hours in unhealthy and unsafe conditions. Overtime is widespread and often not paid appropriately. The facilities in Apple’s supply chain are no exception, as Apple itself has documented in its supplier responsibility reports.

Engage in dialogue with stakeholders

Apple, however, also has a history of failing to engage positively with groups that have raised concrete problems in Apple’s supply chain. In 2011, GoodElectronics and makeITfair did a campaign on Apple, ‘Time to bite into a fair Apple’, calling upon Apple to improve its communication with international stakeholders. That Apple has now joined a multi stakeholder initiative is in principle a good step forward.
makeITfair and GoodElectronics have specifically pressed Apple to engage in dialogue with trade unions and labour rights organisations to improve working conditions at Apple’s suppliers and support communication and negotiation between workers and management at Apple’s suppliers.
Especially in China this is a challenge Apple clearly has not been able to cope with. FLA does not actively facilitate the formation of unions through democratic elections. Regrettably, union representation on FLA board level is also weak.

Fair prices, delivery times and wages

GoodElectronics and makeITfair have also called upon Apple to improve its purchasing practices. We want Apple to pay its suppliers fair prices and apply acceptable delivery times to allow its manufacturers to pay workers a decent living wage. So far, Apple ignored these suggestions.
We consider purchasing practices a key element of responsible supply chain management. Brand companies should enable their suppliers to meet labour standards and not simply transfer this responsibility to their suppliers.
Unfortunately, FLA seems to accept that its members are unwilling to increase the unit price when placing orders. Also when it comes to wage policies, FLA’s position is little ambitious and leaves participating companies ample space to avoid actually paying a living wage.

Further improve transparancy

GoodElectronics and makeITfair call for improved transparency. As of joining the FLA, Apple has published a list of suppliers, together with its 2012 supplier sustainability report. This is a sure step in the right direction. The list, however, only gives supplier names but no other information.

FLA announces that the facilities in Apple's supply chain will be independently assessed and that and detailed findings will be reported on the FLA website. This may sound positive, but the factual requirement is for FLA to independently assess 5% of each member’s supply base. In the past, FLA has had trouble meeting these independent assessment requirements due to capability limitations.

Conclusion

Summarising, there are serious challenges ahead. GoodElectronics and makeITfair look forward to FLA and Apple engaging with relevant local and international stakeholders, including workers and their representatives, to join forces in bringing about the needed improvements.

Contact:

makeITfair – Irene Schipper
GoodElectronics – Pauline Overeem

]]> No publisher René Vlak Apple 2012-01-17T16:10:00Z News Item