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Summary: iPhone maker increases supply chain audits to tackle underage and underpaid workers after Foxconn suicide reports.
[Reuters in SAN FRANCISO, 25 January 2013] Apple increased audits of working conditions at major suppliers last year, discovering multiple cases of underage workers, discrimination and wage problems. The iPhone and iPad maker, which relies heavily on Asian-based partners to assemble the vast majority of its iPhones and iPads, said it conducted 393 audits – 72 per cent more than in 2011 – reviewing sites where more than 1.5 million workers make its gadgets. In recent years Apple has faced accusations of building its profits on the backs of poorly treated and underpaid workers in China. That criticism came to the fore around 2010 after reports of suicides at Taiwan'sFoxconn Technology Group drew attention to the long hours worked by migrant labourers, often for a pittance in wages and living in severely cramped conditions. Foxconn is the trading name of Hon Hai Precision Industry and employs 1.2 million workers across China. Under chief executive Tim Cook, who took over from Steve Jobs in 2011, Apple has taken steps to improve its record and boost transparency, including extensive audits of its sprawling supply chain. Last year, it agreed to separate audits by the independent Fair Labor Association. In an interview, Apple's senior vice-president of operations, Jeff Williams, said the company had increased its efforts to solve two of the most challenging issues – ensuring there were no underage workers in its supply chain and limiting the working week to 60 hours. While child labour reflected a small percentage of the workforce, Apple is investigating its smaller suppliers – which typically supply parts to larger suppliers and hence face less scrutiny – to bring them into compliance. "We go deep in the supply chain to find it," Williams said. "And when we do find it, we ensure that the underage workers are taken care of, the suppliers are dealt with." In one case, Apple ended its relationship with a component maker after discovering 74 cases of underage workers. Apple also discovered an employment agency that was forging documents to allow children to work illegally at the supplier. Apple reported both the supplier and the employment agency to local authorities, the company said in its latest annual report on the conditions in its supply chain. Child labour is an issue that is part of the larger supply industry. The component maker that Apple found to have violated child labour laws supplied parts to more than 100 different companies, Williams said, vowing to eradicate underage labour from the industry. "I don't know how long it will take to get there but that's our goal," said Williams, who has spent a significant amount of his 14 years at Apple in Asia managing the supply chain. Williams said a key focus for Apple in 2013 will be ensuring that suppliers do not abuse the internship system, especially in China where many colleges require students to complete internships as part of their curriculum. Further Information:  Â