Investigation Of Apple Supplier Foxconn Finds Issues At Factories

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The Fair Labor Association found problems at three plants run by Apple (NASDAQ: AAPL) supplier Foxconn. Oddly enough, these come as Apple CEO Tim Cook visits China where the plants are based. The Fair Labor Association said it got concessions from Foxconn which will lead to better conditions for workers.

FLA said

“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.

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