Apple vows labour abuse probe

Apple will investigate allegations by advocacy group China Labour Watch that factories run by Taiwanese supplier Pegatron use underage workers, pay insufficient wages and force employees to work overtime.

The New York-based group found at least 86 labour rights violations while investigating three Pegatron factories from March to July, it said in a report. Apple has been in close contact with the group for several months, yet the report contains “claims that are new to us”, and those will be probed immediately, Carolyn Wu, a Beijing-based spokeswoman for Apple, said in a phone interview yesterday.

Apple became the first technology company to join the Washington-based Fair Labour Association last year after criticism by human rights organisations about conditions at suppliers including Foxconn Technology Group. Pegatron factories “are even worse than those at Foxconn”, CLW executive director Li Qiang said in a statement yesterday.

“We will investigate these new claims thoroughly, ensure that corrective actions are taken where needed and report any violations of our code of conduct,” Wu said. “We will not tolerate deviations from our code.”

Pegatron will investigate the allegations, president and chief executive Jason Cheng said. Pegatron hasn’t seen the China Labour Watch report, Pegatron plants in China haven’t hired any underage workers, and weekly work hours during the past two to three months have averaged 45-50 hours, chief financial officer Charles Lin said by phone.

“Pegatron’s problems have become a reflection on Apple,” said Colin Gillis, BGC Partners analyst in New York.

“Consumers will get to vote with their wallets if it’s that much of a concern, but they’re not necessarily voting with their wallets right now.”

Apple has conducted 15 audits at Pegatron facilities since 2007, covering more than 130,000 workers making the company’s products, Wu said. The most recent survey in June found that Pegatron employees making Apple products worked 46 hours per week on average, she said.

China Labour Watch said the 86 infractions include 36 violations of the law and 50 ethical breaches. The group said its findings are based on almost 200 interviews with workers outside the factories.