Apple’s Jobs Dismisses Foxconn ‘Sweatshop’ Claims

Apple’s chief executive Steve Jobs has defended iPhone manufacturer Foxconn, after it was reported that the living and working conditions of some of its Chinese factory workers were tantamount to slave labour, and had led to a string of employee suicides.

“We are all over this,” Jobs told delegates at the D8 technology conference in California. “We look at everything at these companies, and I can tell you a few things that we know: Foxconn is not a sweatshop.”

Jobs acknowledged that the recent spate of suicides and attempted suicides was “troubling”, but said the rate was below the US rate. Ten employees have committed suicide this year at the complex, operated by the Hon Hai Precision Industry in Shenzhen, which employs around 400,000 people.

“It’s a difficult situation,” said Jobs. “We’re trying to understand right now, before we go in and say we know the solution.”

Ensuring fair working conditions

As well as Apple, Foxconn counts Dell, Nokia and Hewlett-Packard among its customers. All of the companies have said they are concerned about the situation, and that they are working to ensure that conditions at the plants are healthy.

It has previously been reported that workers at the complex are paid a base salary of the legal minimum wage – about $132 a month – but many employees work overtime for the additional pay. However, executives at Hon Hai today announced that the cash component of wages would rise by 30 percent – a significant jump from the 20 percent rise the company had talked about last month.

“[Foxconn] has to do this as a more aggressive measure to prevent the company’s reputation from being hurt more. But it’s unlikely the whole thing will calm down because of the raise,” said Sean Chen of Cathay Securities Investment Trust in Taipei, speaking to Reuters. “The move will sure put increasing pressure on other manufacturers in southern China. Keep in mind, though, it’s been China’s policy to improve wages for its workers. It’s just the Foxconn incident that might have accelerated that.”

Foxconn itself has been keen to point out that it does not operate a sweatshop. Workers have received financial incentives to report fellow staff who look troubled and management have introduced exercise rooms where frustrated employees can let off steam. However, conditions at Shenzhen are still a world away from the kind of home-from-home conditions that their tech clients provide for western workers.

Microsoft faces similar problems in China

In April this year, Microsoft was also called upon to investigate allegations of worrying treatment of staff at the KYE factory in Dongguan City, China, where many of its products are built. The investigation followed a report by the National Labor Committee – a non-profit non-governmental organisation (NGO) dedicated to drawing attention to labour and human rights abuses – which found that workers were paid 65 cents an hour before deductions for food.

Workers at the KYE factory were apparently prevented from talking, listening to music, or using the bathroom during their shift – while also enduring harassment by security guards, lack of air conditioning during the hotter months, 15-hour shifts and restricted freedom of movement.