Foreign media: In order to meet production capacity needs, Apple ignored the supply chain and violated China's labor law

The Information, an American technology media, reported that Apple has ignored its violation of Chinese labor laws by using a large number of temporary workers (also known as dispatched workers) in its supply chain for many years due to concerns about increased costs and delayed product releases.

Citing an internal company document, the media said that Apple's three main assembly partners, Foxconn, Pegatron and Quanta Computer, faced difficulties in complying with the law between 2013 and 2018, and that Chinese labor law stipulates that the proportion of temporary workers should not exceed 10%. Last year, Bloomberg reported that Foxconn violated this regulation when producing the iPhone 11.

The Information pointed out that in 2014, more than half of the 362 suppliers surveyed violated the regulations on temporary workers; in March 2015, 81 of the 184 Apple suppliers exceeded the 10% cap. The website also said that this situation continued in part of 2016 to 2018. In 2014, Apple gave suppliers two years to improve the problem, but by 2016, there was little progress.

Apple executives also knew that its production strategy increased the need for temporary workers, according to internal Apple data cited by The Information.

After two years of research with Pegatron, Apple researchers recommended raising wages, building better dormitories, reducing the use of temporary workers and not hiring workers under the age of 23. However, three former Apple employees said Apple senior executives were reluctant to push Pegatron to make changes because they wanted to let the supply chain and market demand determine China's labor market environment. Due to thin profit margins, these factories often employ a large number of migrant workers and temporary workers because production activities are often affected by shopping seasons and demand fluctuations.

“Apple is committed to ensuring that everyone in our supply chain is treated with dignity and respect,” Apple said in a statement. “Workplace rights are human rights, and our Supplier Code of Conduct is the strongest in the industry and applies equally to everyone in our supply chain.”

"Factories sometimes use temporary labor, which we monitor closely to ensure compliance with our Guidelines," Apple added. "If we identify issues, we work closely with our suppliers to develop corrective action plans. As always, our focus is on ensuring everyone in our supply chain is protected and treated with dignity and respect."

The company said specific measures include evaluating suppliers through surprise audits and assessing more than 500 standards to ensure compliance. Apple is said to have conducted 1,142 assessments last year, including assessments at final assembly plants, and conducted a total of 50,000 interviews with supplier employees to check whether they receive proper training and understand how to express their demands, while taking new measures to prevent forced labor.

In recent years, Apple has been criticized for its backward labor standards in its supply chain, and the company has been working hard to urge its manufacturing partners to improve factory working conditions, otherwise they will lose cooperation opportunities. However, suppliers and assemblers all have the top priority of producing more mobile phones. Assembly plants such as Foxconn hire tens of thousands of temporary workers every year during the important holiday season to rush production to meet the demand for iPhones.

Last year, a report by China Labor Watch (CLW) also pointed out that Apple has the responsibility and ability to force its supply chain to make basic improvements in working conditions. However, the company is now transferring the extra costs to workers through the supply chain to exploit Chinese workers for profit.

The report pointed out that temporary workers do not have the same benefits as full-time employees, such as paid sick leave, paid vacations and social insurance. Although temporary workers may have a higher base salary, these salaries are paid by third-party companies on short-term contracts, and they are not directly employed by Foxconn. The organization's report also mentioned that temporary workers can be converted to regular factory workers after working for three months.

However, anonymous diaries written by investigators working in the factory show that although overtime is often required, most workers are willing to work overtime to earn more money.