Apple Inc. (NASDAQ:AAPL) Denies Claims It Violated Chinese Labour Laws In Zhengzhou Factory

Mouss Kleindler - September 10, 2019

On Monday Apple Inc. (NASDAQ:AAPL) denied allegations that it violated Chinese labor law. The company is accused that with its manufacturing partner Foxconn, they violated Chinese labor laws by having several temporary staff.

Apple used 50% of temporary workers in Zhengzhou factory

China Labour Watch published a report on Sunday, indicating that over 50% of the staff at the largest iPhone manufacturing facility in Zhengzhou in China were temporary workers who included student interns. The advocacy group also points out to violations of other rights like student interns working overtime during the peak production season contract to internship laws.

According to Chinese laws, temporal hires should not exceed 10% of the total works force. In September, most of the student workers went back to school, leading to a decrease in the number of temporary workers. This was still more than the threshold stipulated by Chinese law.

In a statement, the company indicated that it has looked at the claims by CLW and established that most of the allegations are not true. Apple, however, indicated that through its investigation, it established that the proportion of dispatch staff was way more than recommended standards. The company has stated that it is closely working with its manufacturing partner to solve the matter. Apple claims that whenever there is an issue, they always work with suppliers to reach a solution immediately.

Regarding conditions of the workers, the company state that all its employees receive proper remuneration including bonuses and overtime wages. Apple indicated that all overtime work undertaken was voluntary, and there was no proof of forced labor.

Foxconn confirms work compliance disparities

Foxconn established that their workforce compliance issues in its Zhengzhou factory. The Apple manufacturing partner issued a statement indicating that they had established disparities in the use of dispatch works and the number of hours of overtime. The company says that although the overtime work was voluntary, it was nonetheless not consistent with its guidelines. Foxconn established that the affected workers received all their earned overtime and associated bonuses.

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