Apple and Foxconn are making changes after one of the largest investigations ever conducted of a U.S. company's operations outside of America turned up some major labor law violations. Apple was almost forced into allowing the Fair Labor Association in to conduct a probe by the mounting complaints of Americans who wanted to see better working conditions.
Some of the issues included extreme overtime and unpaid overtime. Foxconn is cutting the maximum working hours from 60 to 49 a week and hiring thousands of new employees to cover the demand. "If Foxconn's labor cost goes up ... that will be an industry-wide phenomenon and then we have to decide how much do we pass on to our customers versus how much cost do we absorb," HP Chief Executive Meg Whitman told Reuters in February.
The cutting of the hours without any sort of pay increase is not something that the workers themselves want, because they need the hours in order to subsist on the low wages. "Until Apple shares a larger proportion of its profits with its supplier factories, workers will receive the same pittance for a salary while working around the clock," Li Qiang, the director of China Labor Watch, said in an emailed statement.
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