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Friday, January 27, 2012

Apple - The Biggest Tech Scandal Of All Times

China Foxconn Explosion
Protesters outside an Apple store in Hong Kong in May of last year., Kin Cheung / AP Photo


Just how cool is iPhone compared to this one ?


LG Prada 3.0 phone launched 

lg-prada-3-android-phone.jpgAfter hitting the shelves in Korea last month, LG Prada 3.0 phone is available in UK from today onwards. Described as 'World’s Most Stylish Smartphone', Phones 4U is offering the designer Android smartphone for a two-year agreement at $49 per month and more, over a range of other networks. [Available at Phones4U via -Slashgear


Chinese respond to story of Apple's Chinese suppliers


Apple has defended its ethical standards after a newspaper reported factories in China rely on child labour, 24 hour days and unsafe conditions to manufacture iPhones, iPads and computers.

Demonstrators outside an Apple store in Hong Kong protest about the poor working conditions of employees of Taiwanese technology giant Foxconn which manufactures Apple products
Demonstrators outside an Apple store in Hong Kong protest about the poor working conditions of employees of Taiwanese technology giant Foxconn which manufactures Apple products Photo: ANTONY DICKSON/AFP/Getty Images
The financial world's eyes are on Apple this week after it announced record-breaking quarterly earnings. In the midst of all this commentary and congratulations, there was also a sobering article by New York Times reporters Charles Duhigg and David Barboza. Titled "In China, Human Costs Are Built Into an iPad," the story was critical of Apple's relationship with its overseas manufacturing partners.

The piece details the purported harsh working conditions found in the factories of the contract companies that build Apple products. The 7-page article claims Apple puts incredible pressure on its partners to produce a large volume of components in a short amount of time and for little profit.

This incredible pressure forces companies like Foxconn and Wintek to cut corners and risk the safety of their workers to meet Apple's demands. Apple supposedly turns a blind eye to these practices and will even cut money to companies that complain. The article ends with a statement that implicates Apple fans in this scandal by saying "And right now, customers care more about a new iPhone than working conditions in China."

This report was reprinted in the Chinese business magazine, Caixin, and elicited equally emotional responses by the Chinese who both support and condemn Apple. Here are a few samples of the comments left on the Chinese report,

If people saw what kind of life workers lived before they found a job at Foxconn, they would come to an opposite conclusion of this story: that Apple is such a philanthropist. - Zhengchu1982

Apple has gained so much sales revenues from China. Do you think the company really cares about the conditions of those workers? I think they are just proud of having an Apple product. - 李凌云-深圳

1.) It is a pity that, we know that for Apple fans, such a story won't stop their enthusiasm. Just like people are still buying Nike and Adidas shoes, knowing that shoe manufacturing is highly environmentally hazardous; 2.) if a government cannot guarantee the welfare of its own 120 million disadvantaged population and even suppresses their appeals, then how could we require an overseas company to protect the labor rights in a Chinese factory? - Jionglegejiong

When the explosion happened, I was working for media in Chengdu. Domestic media were all silenced and only allowed to use the (Xinhua) official report, because that (Foxconn factory) was a key project. Compare to what The New York Times wrote, the gap really saddened my heart. - Chen Qiye

Without Apple, Chinese workers will be worse off. I hope China can some day soon have dozens of its own companies like Apple, who (only) work on high-end research and development and send manufacturing lines to Africa. - Anonymous

In the end, there's no easy answer to this problem. Apple tries to be transparent and releases an annual report that details its progress in improving supplier working conditions. Apple can pressure its suppliers to conform to its standards, but it has no control over regulation in a foreign country.

Is Apple doing enough, or does it need to do more to ensure the safety of workers at other companies? Right now, the best thing we can do is bring this problem to light and get people (and companies) talking about it.










According to Apple executives and Foxconn management, safety is the last thing on Apple's mind


For hardcore Apple fans, rushing out to buy the next iPhone or iPad is a top priority -- even if it means standing in line for hours. But in the words of an anonymous former Apple executive, most people would be disturbed if they knew where their iPhone came from.

Apple's history with suppliers that are abusive to their employees is no secret.Foxconn and Wintek are among Apple's electronics suppliers that have factories in China with horrible working conditions, but no matter how many times violations of Apple's supplier code of conduct are brought to light, the situation remains the same. Now, The New York Times has taken a closer look at the bleak environment that the employees of Apple's Asian suppliers are forced to deal with in its second installment of its iEconomy series.

Apple's supplier code of conduct, which was developed in 2005, states "that working conditions in Apple's supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible." While this code was made with good intentions, it is not being upheld entirely by Apple or some of Apple's suppliers. Employees have complained of working long hours, unsafe working conditions and little pay -- all in the name of assembling iPhones, iPads and iPods at a rapid pace.

"You can either manufacture in comfortable, worker-friendly factories, or you can reinvent the product every year, and make it better and faster and cheaper, which requires factories that seem harsh by American standards," said a current Apple executive, who requested anonymity due to the sensitive topic. "And right now, customers care more about a new iPhone than working conditions in China."

Foxconn, which is Apple's electronics supplier in Chengdu, China, is one of the worst offenders of Apple's supplier code of conduct. Employees and worker advocates have both described the horrible conditions that workers must endure. Many work over 60 hours per week, putting in an obscene amount of overtime. Some work 12 hours per day, six days or more per week. Signs on the walls of Foxconn offer reminders such as, "Work hard on the job today or work hard to find a job tomorrow." There are 24-hour shifts, and 70,000 of the employees are crammed into tiny dorms when they have some time off. At times, about 20 workers would be stuffed into a three-bedroom apartment. There were also issues with the employment of under-age workers.

As if exhaustion and crowded living spaces weren't enough, the conditions within the actual factory were well below satisfactory. Aluminum dust clouded the Foxconn factories due to machines that polished iPad cases, and the factories had poor ventilation systems. A Hong Kong advocacy group called Students and Scholars Against Corporate Misbehavior published a warning, which was sent to Apple, to let the company know about the potential dangers of aluminum dust buildup.

The warning clearly went unnoticed, since two Foxconn factories exploded as a result of the aluminum dust. The first occurred in May 2011 in Foxconn's Chengdu factory, which killed four people and injured another 77. The second occurred in Shanghai and ended up injuring 59 workers while hospitalizing another 23.

The explosions weren't Foxconn's only high-profile issues over the last few years. In 2010, Foxconn's Shenzhen factory, which is responsible for Apple's iPods, iPhones and iPads, experienced a series of employee suicides due to the stressful and exhausting working conditions. There were at least 12 suicides during this time period as well as a riot. To address the issue, Foxconn made employees promise not to kill themselves and installed anti-suicide nets at its facilities.

"Conditions at Foxconn are anything but harsh," wrote Foxconn in a statement after the riot. "All assembly line employees are given regular breaks, including one-hour lunch breaks. Foxconn has a very good safety record. Foxconn has come a long way in our efforts to lead our industry in China in areas such as workplace conditions and the care and treatment of our employees."

Even Apple seemed to defend its supplier's factories overseas. Steve Jobs, former Apple CEO, made the factories sound like theme parks.

"I actually think Apple does one of the best jobs of any companies in our industry, and maybe in any industry, of understanding the working conditions in our supply chain," said Jobs. "I mean, you go to this place, and, it's a factory, but, my gosh, I mean, they've got restaurants and movie theaters and hospitals and swimming pools, and I mean, for a factory, it's a pretty nice factory."

Jobs' statement seems to contradict the company's own audits, though. Apple has been publishing audits of its supplier's factories since 2007, and completed 396 walkthroughs by last year. Each year, there have been several and consistent violations to Apple's supplier code of conduct. For instance, in 2007, Apple completed three dozen audits where two-thirds demonstrated employees working over the 60 hour limit. There were also cases of underage workers, falsified records, improper disposal of hazardous waste and cases where workers were paid below minimum wage (or even nothing at all) as punishment.

"Apple never cared about anything other than increasing product quality and decreasing production cost," said Li Mingqi, a former Foxconn Technology manager at the Chengdu factory. "Workers' welfare has nothing to do with their interests."





Shameful: World's largest company, Apple, under pressure after appalling Chinese factory conditions exposed

By Mark Duell
Last updated at 11:00 AM on 27th January 2012


Technology giant Apple is under fire after the appalling conditions workers in its Chinese factories are forced to endure was exposed.


Working excessive overtime without a single day off during the week, living together in crowded dormitories and standing so long that their legs swell and they can hardly walk after a 24-hour shift, is commonplace in such factories, it has been revealed.


Almost 140 workers at a supplier in China were injured two years ago using a poisonous chemical to clean iPhone screens - and two explosions last year killed four people while injuring more than 75.


Huang Xuehua, 24, from Guangdong province works inside a Foxconn factory in the township of Longhua in the southern Guangdong province May 26, 2010.
Workers are seen inside a Foxconn factory in the township of Longhua in the southern Guangdong province May 26, 2010.


Hard grafters: Workers inside a factory of Foxconn, an Apple manufacturing partner, in the township of Longhua in the southern Guangdong province. A New York Times investigation looked at the working conditions

The California tech giant had allegedly been alerted to hazardous conditions inside the Chengdu plant in southwest China before the explosions at those plants, reported the New York Times.


‘If Apple was warned and didn’t act, that’s reprehensible,’ Massachusetts Institute of Technology work safety expert Nicholas Ashford told the New York Times.


‘But what’s morally repugnant in one country is accepted business practices in another, and companies take advantage of that,’ the former U.S. Labor Department adviser added.


Banners in the Chengdu plant gave a warning to the 120,000 staff: ‘Work hard on the job today or work hard to find a job tomorrow’. Workers who arrived late often had to write confession letters.


The newspaper’s report comes hot on the heels of Apple announcing whopping $13billion profits on $46billion sales in its last quarter - but the firm still wants its overseas factories to produce more.


At work: Apple executives claim the firm has improved its factories in recent years and issues a supplier code of conduct on labour and safety - but problems still exist, according to labour advocacy groups

At work: Apple executives claim the firm has improved its factories in recent years and issues a supplier code of conduct on labour and safety - but problems still exist, according to labour advocacy groups

Apple executives claim it has improved factories in recent years and issues a supplier code of conduct on labour and safety - but problems still exist, according to employment advocacy groups.


'Work hard on the job today or work hard to find a job tomorrow'


Banner in Chengdu plant

More than half of the suppliers audited by Apple have broken at least one part of its conduct code each year since 2007 and have even broken the law in some cases, according to company reports.


A Foxconn employee jumped or fell from a block of flats after losing an iPhone prototype in 2009 - and 18 other workers apparently tried to commit suicide in two years, reported the New York Times.


Suicide nets were installed to prevent workers from jumping to their deaths and Foxconn began providing better mental health treatment for its staff.


Li Mingqi worked for Apple manufacturing partner Foxconn Technology until last spring and helped manage the Chengdu plant which had the explosion. He is now suing Foxconn over his dismissal.


iPad use: The report comes hot on the heels of Apple announcing whopping $13billion profits on $46billion sales in its last quarter - but the firm still wants its overseas factories to produce moreiPad use: The report comes hot on the heels of Apple announcing whopping $13billion profits on $46billion sales in its last quarter - but the firm still wants its overseas factories to produce more

‘Apple never cared about anything other than increasing product quality and decreasing production cost,’ Mr Li told the New York Times. ‘Workers’ welfare has nothing to do with their interests.’


'What’s morally repugnant in one country is accepted business practices in another, and companies take advantage of that'


Nicholas Ashford, work safety expert

The fatal Chengdu explosion came from an aluminium dust build up three weeks after the iPad came out. Despite Apple’s probe, seven months on there was a further, non-fatal, explosion in Shanghai.


A former Apple executive claimed that the company has had knowledge of labour abuses in some factories for four years - ‘and they’re still going on because the system works for us’.
Suppliers are only allowed the smallest margins on what they produce for Apple, and executives at the Cupertino company always ask them for details on part costs, worker numbers and salary sizes.


But workers at a factory of Apple partner Wintek went on strike after rumours that employees were exposed to toxins because they evaporated three times faster than alcohol when rubbing screens.


Treatment: A victim injured by an explosion at a Foxconn factory in May arrives at a hospital in Chengdu

Treatment: A victim injured by an explosion at a Foxconn factory in May arrives at a hospital in Chengdu

Panic: Smoke rises as police and onlookers stand near at a Foxconn factory in Chengdu, China, last MayPanic: Smoke rises as police and onlookers stand near at a Foxconn factory in Chengdu, China, last May

Apple’s late co-founder Steve Jobs, who died last October, said two years ago that Apple is a worldwide leader in ‘understanding the working conditions in our supply chain’.


'We’re trying really hard to make things better. But most people would still be really disturbed if they saw where their iPhone comes from'


Former Apple executive

He said many of the factories have restaurants, cinemas, hospitals and swimming pools. While staff say they appreciate these facilities, the working conditions are still seen as relentless.


Foxconn said conditions are ‘anything but harsh’, just one in 20 workers assembly line workers must stand to do their jobs and the firm has a ‘very good safety record’, reported the New York Times.


But the Mail on Sunday visited a Foxconn factory making iPods in Shenzhen, China, in 2006, and our reports on long hours, crowded accommodation and punishments shocked Apple executives.


‘We’re trying really hard to make things better,’ one former Apple executive told the New York Times. ‘But most people would still be really disturbed if they saw where their iPhone comes from.’

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