Campaign on Apple - FAQ

in Deutsch

About Apple

About The Action Day

Communication with Apple

Did you contact Apple directly to inform them about your demands?

Information for consumers

About makeITfair and GoodElectronics

About Apple

Why did you choose Apple?

Apple is a world leader in producing innovative, smart and beautifully designed electronic goods. Now you might ask: Why does this campaign focus on Apple? Isn’t Apple one of the best performing IT companies? Doesn’t Apple have a promising Supplier Code of Conduct? Doesn’t it publish one of the best corporate social responsibility reports every year highlighting problems in the supply chain and efforts to deal with these issues?

Yes, that’s right! And makeITfair and GoodElectronics recognise these achievements.. However, there is still a long way to go. Apple has repeatedly been called to account to improve its record concerning environmental, social and labour issues, in particular regarding its supply chain. We are especially concerned about the recent problems at two Apple suppliers in China, namely Foxconn and Wintek.

Apart from the two major cases mentioned above, there are plenty of other reasons to target Apple on our Action Day:

Apple is continuously making sky high profits. For instance, Apple reported a net profit of $5.99 billion (USD) for the first quarter of 2011and a record profit growth of 95 percent compared to one year ago.
Apple has one of the most secretive information policies about their suppliers and products in comparison to other IT companies.
Apple has been very uncommunicative when it comes to dialogue with the labour unions and NGOs on the ground.
Apple gives itself a shiny and clean (“white”) image. But shifting the view from the final product to the situation at their suppliers gives you a different perspective.
Apple is producing high-end products. The small cost of a fair phone would not be a problem for their customers. For example, to produce one iPhone labour costs are roughly 0.7 to 1.1 % of its retail price of on average $600.00 (USD). (source iSupply.com)
Apple has only one type of iPhone or iPad. A change in these products would have a major impact.

Is Apple worse than other brands?

There are many problems in the supply chain of IT gadgets, not only in Apple’s supply chain. Often, the big brand companies purchase their products from the same supplier, which means the conditions are similar in the production chain of different IT companies.

However, whereas some producers publish their supplier chains, Apple is very secretive about its supply chain and reluctant in communicating as well as engaging with affected individuals.

Apple is ranked 2nd in the “ethical consumer” guide April 2011 (UK) concerning management of supply chain issues – How can this be?

Rankings of the “ethical consumer” guide focus mainly on CSR reports of leading IT brands. As Apple created a bright report it ranked at the top.. Nevertheless, there are still a lot of problems as mentioned above.

You ask for openness and transparency, but in the latest CSR report of Apple they are open, for instance they admit their suppliers are using child underage labour

It is true that Apple mentions in their latest CSR report some of the problems they’ve encountered in their supply chain. Nevertheless, Apple does not discuss these issues with labour organisations or NGOs but claims to solve the problems themselves. However, this has not been enough. Notwithstanding, there are several other significant problems that still remain un-attended.

What are the production costs of an iPhone

Based on an article in the New York Times (7/2010) and the US based market research firm specialised on the IT industry, iSupply (6/2010), only $6.54 (USD) (1,1%) of the $600(USD) retail price of an iPhone 4 is spend for the assembly, while $360 (USD) (60%) is profit for Apple (sales and marketing not included). That means that only about 4.60 Euro of the price for one iPhone are used to pay workers labour costs.

Does Apple have an influence to change the situation, as the problems are not taking place at Apple production sites, but at their suppliers?

Yes. Apple can influence the situation at its suppliers. First, Apple can raise the awareness of the suppliers and can request that they not only meet the quality standards of Apple products, but also certain social and environmental standards. Apple needs to enable suppliers to implement these standards through their purchasing practices. Top brand companies like Apple need to pay fair prices and plan their lead time in a good way, such as allowing suppliers to produce such high demands. So far, Apple and other companies are lowering prices and demand shorter delivery times when placing orders. This means that workers have long overtime hours and receive a meagre wage for their hard work.

The producer Foxconn is an important supplier to Apple, consequently Apple is important to Foxconn. Foxconn’s market position is driven by Apple’s growth. In July 2010, iSuppli predicted that Foxconn was to take more than half of the global EMS (Electronics Manufacturing Services) industry revenue by 2011, up from 44.2% in 2009.

Who is Foxconn?

Foxconn is a Taiwanese electronic manufacturer giant. It also manufactures for all major global electronics brands. Foxconn Technology Group is part of the Taiwanese company Hon Hai Precision Industry. Foxconn has about 20 plants in China, reportedly employing 800,000 people. The Longhua plant reportedly employs and houses about 300,000 people. Besides plants in China, Foxconn has plants in several other countries, including Guadalajara, Mexico. Foxconn produces computers, TVs, computer games, MP3-players, mobile phones and smart phones, including Apples’ iPhone and the Nintendo Wii. Workers at Foxconn Chinese plants are mostly labour migrants from rural areas who generally have a frail legal and social position in Chinese society. The corporate culture of Foxconn has been described as a quasi-military management system.

To secure contracts, manufacturers like Foxconn minimize their costs to remain competitive. While Foxconn holds primary responsibility for its workers, Foxconn’s buyers – brand companies like Apple, Dell, HP, Nokia and Nintendo - are also to blame for this race to the bottom. It is important to note that abusive labour conditions do not just occur at Foxconn in China, but are found in varying degrees in other plants in other countries as well.

What are the main problems with Foxconn supplier?

In 2010, at one of Foxconn’s factories in China, 19 young workers tried to kill themselves and 16 people subsequently died. Under pressure from brand name companies, the media and concerned electronics consumers, Foxconn has made some improvements to the factory’s oppressive working conditions, including psychological counselling and a low wage increases. But the root cause of the tragedy has not yet been dealt with. Work pressure is high; Foxconn’s management style is authoritarian; student workers are abused as cheap labour; and there is no reliable mechanism (like democratically elected labour unions) for workers to make their voices heard.

Who is Wintek?

Wintek is a Taiwanese IT manufacture that produces touch screens for Apples’ touch-screen products.

What are the main problems with Wintek?

From May 2008 to August 2009, in Suzhou, China, more than 135 factory workers were poisoned at one of Wintek’s factories in China while cleaning the screens of iPhones and iPads with N-Hexane, a highly toxic solvent. This solvent attacks the central nervous system and causes neurological damage which results in headaches, paralysis, muscle weakness and severe fatigue.
Although the victims have been discharged from hospitals, some of them are not fully recovered from the poisoning. Currently, some of them have symptoms of relapse, including sweaty hands and feet, weak limbs, sometimes cramps in the legs. After the poisoning, some workers are still very ill. A young female worker was even paralysed due to the poisoning. As such, the workers are anxious about their health.

22 of the poisoned 137 workers are still employed by Wintek. Recently, 14 of them have gone to different hospitals for health examinations. Medical reports suggested them to have immediate medical treatment. Nevertheless, the workers can hardly afford these medical fees. Labour groups have asked Apple to take its responsibility in monitoring and addressing this situation, but Apple has not yet responded. Affected workers are now demanding check-ups and hospital treatment, as well as sufficient compensation for care and food. Workers who have returned to work insist on decent wages and effective protective equipment.

In January 2011, poisoned Wintek workers wrote to Steve Jobs. They hope that Apple will take care of the medical treatments. Until now, the workers have written 3 letters to Steve Jobs, but there is no response from Apple.. Despite the poisoning which was reported in Apples’ Supplyer Responsibility Progress Report, Apple has never apologized or acknowledged their cries.

About The Action Day

What do you want Apple to do?

These are our main demands towards Apple:

Improve their purchasing practices:

Fair prices and well-planned lead times will make sure that all workers have a fair bite of the apple – allowing suppliers to pay a living wage so that workers don’t have to work long overtime hours to make ends meet.

Improve transparency and communication

By providing consumers with information about working conditions for workers down the supply chain.
By improving communication between workers and management at Apple suppliers.
By engaging with labour rights organisations to make sure that working conditions improve.

Why did you choose “Time to bite into a fair Apple. Call for Sustainable IT!” as your slogan?

We did not want to bash Apple for their performance but encourage them to take the lead in sustainable IT. Therefore this slogan is not too aggressive and plays in a humorous way with the issue and the brand name.

What kind of actions took place during the action day?

In European countries activists distributed fair chunks of the pie by un-evenly cutting a fair home-made apple pie slices and handing them out to the public, demonstrating the injustices faced by Chinese workers. In several places, creative actions around Apples were held. All actions consisted of the general public handing over feedback cards at Apple retail stores demonstrating campaign demands as well as being able to target demands via social media outlets particularly using Twitter and Facebook. Top manufacturer locations like Hong Kong, Mexico and Taiwan hosted large action day protests outside of factories in order to raise awareness to workers of their violated rights as well as demonstrating to Apple that workers understand and know their unfair callings.

How many actions took place and where?

So far we know of actions that will take place in: Berlin (Germany), Budapest (Hungary), Dresden (Germany), Guadalajara (Mexico), Hamburg (Germany), Helsinki (Finland), Hong Kong, Oldenburg (Germany), Stockholm (Sweden), Tampere (Finland), Taiwan, Uppsala (Sweden), Utrecht (The Netherlands) and Amsterdam (the Netherlands).

How do I get up to date about outcomes and further activities?

Check our website: www.makeitfair.org

Which materials are provided by makeITfair?

We offer printed materials as well as online materials.

Specific action materials:

Apple flyer, feedback card, paper with FAQs, background paper,
press releases, video trailer

General makeITfair material:

Consumer guides (mobile phones, mining, production, e-waste and recycling, general about makeITfair), several studies (incl. summaries), educational material, stickers, posters

Communication with Apple

Did you contact Apple directly to inform them about your demands?

Yes, we sent a letter to Steve Jobs (CEO of Apple), Tim Cook (COO of Apple) and national representatives in early April, outlining our concerns and demands. Our telephone conference with Apple lead to small developments but the campaign is still in contact with them and will work on attaining their demands.

Information for consumers

What can I do as a consumer?

Apart from joining the current and social media actions, consumer should:

Buy only new IT products if really needed and ask in the shop about the production conditions of the product.
Recycle your old phones and other IT products properly.
Suggest a project day on this issue at your school, college or with your local group or organisation.
Tell your friends, family and colleagues about the issues.

Is there any fair phone or other fair IT product on the market?

No, so far there is no fair or real “green” phone on the market even though some companies perform better than others. Greenpeace offers a brand ranking which is focussing on environmental aspects such as chemical, e-waste and energy issues.

As we do not see any brand performing seriously well in the social and transparency issues, we do not like to provide rankings. Some companies are doing better by being more transparent or doing trainings with suppliers and workers, but there is still a lot to do for all producers

About makeITfair and GoodElectronics

What is makeITfair?

makeITfair is a project focusing on the electronics industry, especially on consumer electronics like mobile phones and laptops. We want to let people across Europe know about the human rights violations, labour abuses and environmental problems that are taking place around the world in the production chain for consumer electronics. And we want young people to get active to improve the situation. www.makeitfair.org

What is GoodElectronics

GoodElectronics is an international network of NGOs, trade unions, researchers and social activists working on sustainability and human rights in the global electronics supply chain. www.goodelectronics.org

What did you achieve so far?

Since 2007, makeITfair has mobilised tens of thousands of consumers across Europe – sending a strong message to electronics giants like Dell, Samsung, Hewlett-Packard, Apple and Nokia that we want companies to be part of a sustainable IT sector.

makeITfair revealed that the electronics industry is a major buyer of many metals like cobalt, platinum and tin. As a result, electronics companies admitted that they have a shared responsibility for mining conditions in countries like the Democratic Republic of Congo.
In China, Thailand and the Philippines, makeITfair discovered labour abuses at factories that supply brand electronics companies. Suppliers heard about our demands. They have made some improvements to management and conditions in their factories as a result of pressure from their big brand customers.
A pilot project on workers’ training on labour rights was created in China after makeITfairs’ awareness rising. And a multi-stakeholder initiative was launched with a number of electronic brands.
In 2009, 2,380 teachers in Europe used makeITfair education materials in their classes and 13,350 students took part in a web-based quest.

Where do you get your information from?

As part of our research on Apple’s suppliers, we are working together with SACOM (Students and Scholars Against Corporate Misbehaviour), a labour rights organisation based in Hong Kong. They provide us with information directly from China, interviewing workers on the ground. www.sacom.com

SACOM started a campaign about the appalling working conditions at Foxconn after the series of suicides in 2010. One day before the action day, SACOM will publish a new report about the situation at Foxconn. Furthermore, SACOM is also supporting the victims in the Wintek case.

Who is financing the campaign?

The makeITfair project is financially assisted by the European Commission, and co-financed by a number of national donors from governmental and private sources. However, donors do not take responsibility for the contents of our publications, these are the sole responsibility of SOMO and its partner organisations.