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Sent to you by Bill Boulware via Google Reader: Fair Labor Association
publishes findings of Apple/Foxconn Investigation via 9to5Mac by Jordan
Kahn on 3/29/12
We knew the Fair Labor Association would publish the initial findings
of its investigation into Apple's Foxconn facilities, and now the
report is officially available through the organization's website. The
full report released today and is here. The press release outlining the
investigation is below. According to the recommendations, Foxconn
committed to "bring its factories into full compliance with Chinese
legal limits and FLA standards on working hours by July 2013."
The last we heard from the FLA about its audits into Apple's Foxconn
facilities was that it found "tons of issues." Apple became the first
technology company accepted as a member into the organization after
controversies surrounding working conditions in Apple's supply chains
abroad became mainstream. As for what the FLA found in its audits of
the three Foxconn facilities, here is an excerpt from the report:
FLA's investigation found that within the last 12 months, all three
factories exceeded both the FLA Code standard of 60 hours per week
(regular plus overtime) and the Chinese legal limits of 40 hours per
week and 36 hours maximum overtime per month. During peak production
periods, the average number of hours worked per week exceeded 60 hours
per worker. There were periods in which some employees worked more than
seven days in a row without the required 24 hours off.
The FLA said Foxconn's commitment will "reduce working hours to legal
limits while protecting pay, improve health and safety conditions,
establish a genuine voice for workers, and will monitor on an ongoing
basis to verify compliance." This will lead to a maximum 49-hour
workweek, including overtime for employees and a decrease in monthly
overtime from 80 hours to 36 hours. While we reported some workers were
unhappy with working fewer hours, Foxconn also committed to a
compensation package for workers with reduced 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.
Apple issued the following statement to The Wall Street Journal: "We
think empowering workers and helping them understand their rights is
essential."
FAIR LABOR ASSOCIATION SECURES COMMITMENT TO LIMIT WORKERS' HOURS,
PROTECT PAY AT APPLE'S LARGEST SUPPLIER
Independent Investigation Uncovers Significant Issues; 35,500 Anonymous
Surveys Give Voice to Worker Concerns
FLA to Monitor, Publish Progress Reports on Apple and Foxconn
Implementation
WASHINGTON, D.C.— After a thorough, independent investigation found
significant issues with working conditions at three factories in China
operated by Apple's major supplier Foxconn, the Fair Labor Association
secured groundbreaking commitments that will reduce working hours to
legal limits while protecting pay, improve health and safety
conditions, establish a genuine voice for workers, and will monitor on
an ongoing basis to verify compliance. The nearly month-long
investigation found excessive overtime and problems with overtime
compensation; several health and safety risks; and crucial
communication gaps that have led to a widespread sense of unsafe
working conditions among workers.
"The Fair Labor Association gave Apple's largest supplier the
equivalent of a full-body scan through 3,000 staff hours investigating
three of its factories and surveying more than 35,000 workers. Apple
and its supplier Foxconn have agreed to our prescriptions, and we will
verify progress and report publicly," said Auret van Heerden, President
and CEO of the Fair Labor Association, a coalition of universities,
non-profit organizations and businesses committed to improving the
health, safety, fair treatment and respect of workers worldwide.
FLA's investigation found that within the last 12 months, all three
factories exceeded both the FLA Code standard of 60 hours per week
(regular plus overtime) and the Chinese legal limits of 40 hours per
week and 36 hours maximum overtime per month. During peak production
periods, the average number of hours worked per week exceeded 60 hours
per worker. There were periods in which some employees worked more than
seven days in a row without the required 24 hours off. Full worker
survey data is available at www.fairlabor.org/affiliate/apple.
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.
FLA also discovered that 14 percent of workers may not receive fair
compensation for unscheduled overtime. The assessment found that
unscheduled overtime was only paid in 30-minute increments. This means,
for example, that 29 minutes of overtime work results in no pay and 58
minutes results in only one unit of overtime pay. Foxconn committed to
pay workers fairly for all overtime as well as work-related meetings
outside of regular working hours. In addition, FLA secured agreement
from Foxconn and Apple to retroactively pay any worker due unpaid
overtime. The companies are currently conducting an audit to determine
the payments due to workers.
According to FLA's worker survey, 64 percent of employees say that
compensation does not meet their basic needs. FLA will conduct a cost
of living study in Shenzhen and Chengdu to assist Foxconn in
determining whether worker salaries meet FLA requirements for basic
needs, as well as discretionary income.
FLA observed other serious issues in areas such as health and safety,
worker integration and communication, treatment of interns, and China's
social security enrollment, among others.
A considerable number of workers feel concerned about the protection of
their health and safety. More than 43 percent of the workers report
that they have experienced or witnessed an accident. These accidents
range from hand injuries to factory vehicle accidents. Foxconn has
committed to be more inclusive of workers in health and safety
monitoring and decisions.
Until now, Foxconn only recorded accidents that resulted in a
production stoppage. Beginning immediately, Foxconn committed to
require supervisors and workers to report all accidents resulting in an
injury.
Many of Foxconn's health and safety problems, including blocked exits,
lack of or faulty personal protective equipment and missing permits,
were immediately corrected during the course of the investigation. FLA
found that, one year after the Chengdu explosion, Foxconn had improved
operating procedures, measurement, and documentation to reduce risks
related to aluminum dust where Apple products are made.
The assessment also found that the union at Foxconn is dominated by
management representatives and does not provide true worker
representation. In keeping with local laws, Foxconn has agreed to
ensure elections of worker representatives without management
interference.
FLA also secured agreement by Foxconn to find alternative ways to
address low enrollment in social security benefit programs and to adapt
its internship program to ensure that interns enjoy the protections
necessary for a productive, healthy and safe educational experience.
"If implemented, these commitments will significantly improve the lives
of more than 1.2 million Foxconn employees and set a new standard for
Chinese factories," van Heerden said.
Following the FLA's methodology, independent assessors logged more than
3,000 staff hours inside the factories. They evaluated conditions based
on visual observation and review of policies, procedures and
documentation (payroll and time records, production schedules, employee
records); interviewed hundreds of Foxconn workers and managers both on-
and off-site; and conducted an anonymous worker perception survey of
35,500 randomly-selected Foxconn workers – providing an in-depth
understanding of working conditions, particularly during peak
production of Apple products.
Under FLA rules, its assessors have unfettered access to conduct
thorough investigations of Apple suppliers. This investigation of three
Foxconn factories at Guanlan, Longhua, and Chengdu, in China is the
beginning of FLA's in-depth, thorough examination of the entire
operation to assess whether workers' rights and labor standards are
being respected throughout Apple's supply chain.
"Joining the Fair Labor Association is voluntary. But once a company
joins, FLA sets the rules of investigations and has full access to any
supplier, owns the information collected and publishes its findings and
recommendations for remedial action," van Heerden said.
In addition to follow up studies related to this first investigation,
FLA will verify Apple's and Foxconn's implementation of their
remediation plans and will report publicly on progress.
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