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Apple Clears iPod Factory |
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Written by Adam Gosling
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Monday, 21 August 2006 |
Following allegations that the people who make theworld's
iPods are being treated like battery hens, Apple has completed and issued an
audit of the OEM factory owned by Foxconn.
Foxconn is a division of Hon Hai,
the world's second largest IT company. The manufacturing facility where the
iPods are made is the workplace to some 200,000 Chinese, although Apple only
uses less than 15 per cent of the capacity for its productions lines.
Following the allegations Apple dispatched an audit team to
find out what was going on at Foxconn and has recently posted a report to its
website.
The company found that in general conditions met its "Code
of Conduct" standards. There were one or tow areas that need improvement,
however.
Apple says that violations to its Code of Conduct and some areas
requiring improvement are being addressed.
The audit team looked at labour standards, working and
living environment, compensation, overtime and worker treatment at the factory.
They interviewed 100 employees, inspected factory floors,
dormitories, dining halls, and recreation areas and reviewed thousands of
documents including personnel files, payroll data, time cards, and security
logs.
The campus includes factories, employee housing, banks, a
post office, a hospital, supermarkets, and a variety of recreational facilities
including soccer fields, a swimming pool, TV lounges and Internet cafes.
Apple says its audit team found the living conditions were generally
pretty good, although one off-campus dormitory had triple level bunk beds and
another two were just large open spaces filled with beds and lockers. Apple
says Foxconn was already in the process of building new dormitory living
quarters before the allegations of mistreatment were made.
Apple says the employees earn "at least the local minimum
wage", with more than half earning above minimum wage. They also have access to
a free medical plan including annual checkups.
Apple did feel that the pay structure was unnecessarily
complex, with each employee's wage determined through a combination of base
pay, skill bonus, attendance bonus, housing allowance, meal allowance and
overtime.
As this does not meet Apple's "Code of Conduct" the company
has simplified this structure following the audit. There will also be changes
made to the manual monthly reporting of overtime which has led to disputes due
to memory loss.
Apple found no instances of forced overtime and employees
confirmed in interviews that they could decline overtime requests without
penalty. However, the audit discovered that 35 per cent of the time employees were
working more than the Code's acceptable level of no more than 60 hours and 25%
of the time did not get at least one day off each week.
However, a fair few were not happy with the lack of overtime
during non-peak periods and a small handful complained about the transportation
schedule for employees living off-campus.
Apart from one or two complaining they were made to stand at
attention as a punishment, most were pleased with the work environment and
specifically noted the opportunity for advancement, widespread year-end
bonuses, and the reputation of the supplier in the industry.
Additionally, employees said they felt safe and secure in
both the workplace and the dormitories.
Apple says the employees work in factories that are
generally bright, clean and modern with air-conditioned assembly line areas,
and are provided with protective gear.
There's an employee grievance process in place, including a
telephone hotline, a CEO mailbox for complaints and employee suggestion boxes.
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