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Apple Is Making Life Terrible In Its Factories (theregister.co.uk)
An anonymous reader writes: Pressure from Apple to lower costs is driving worsening conditions for workers at the company's manufacturing partners.
This according to watchdog group China Labor Watch, which says that under CEO Tim Cook, the Cupertino giant has asked the companies that assemble its products to cut their own costs, and those demands have led them to cut back on worker pay and factory conditions. Specifically, the group reports that Pegatron has been passing on financial pressures from Apple by committing multiple violations of Chinese labor laws on fair pay and workplace safety.
"Working conditions are terrible, and workers are subject to terrible treatment," China Labor Watch writes. "Currently, Apple's profits are declining, and the effects of this decline have been passed on to suppliers. To mitigate the impact, Pegatron has taken some covert measures to exploit workers."
This according to watchdog group China Labor Watch, which says that under CEO Tim Cook, the Cupertino giant has asked the companies that assemble its products to cut their own costs, and those demands have led them to cut back on worker pay and factory conditions. Specifically, the group reports that Pegatron has been passing on financial pressures from Apple by committing multiple violations of Chinese labor laws on fair pay and workplace safety.
"Working conditions are terrible, and workers are subject to terrible treatment," China Labor Watch writes. "Currently, Apple's profits are declining, and the effects of this decline have been passed on to suppliers. To mitigate the impact, Pegatron has taken some covert measures to exploit workers."
see what the Union free work place get's you!
Greed, greed, human greed. Aren't Apple the company that has 150+B in the bank. Why do they need them all. Instead of working on 20% markup they are working on 400% markup. This should be outlawed. Limiting markup to 20% is the only thing communism got right.
Tim Cook should take his executive team to Asia and spend a week working and living in the Pegatron facility.
But at least the workers hearts will be warmed by the thought of Apple's profit margins, if not by their empty stoves.
Ezekiel 23:20
As long as the employees are not forcibly coerced to work there, I fail to be outraged.
I don't respond to or upvote ACs
I'm no Apple fanboy (just actually switched most my stuff away) but it's worth noting that the Register are well known for having an anti-Apple bias in their reporting.
Other companies use the same manufacturers - I would argue that consumers in general wanting lower priced tech is causing this, not specifically Apple - they just get a lot more scrutiny with being such a huge tech company.
Chinese products are like their workers, cheap, plentiful, and disposable.
I don't care. Whatever gets cheat Chinese crap into my hands faster and cheaper.
America needs more overpriced obsolete laptops!
SJW: Someone who has run out of real oppression, and has to fake it.
Is it possible this is gov't propaganda to benefit Chinese companies at the expense of Apple?
I'm sure a lot of factories don't follow written guidelines: it's still a 3rd world country with a lot of bribery and cruft. (Then again, I've seen abuse in USA cubicle-land also.)
There have been complaints from other co's that Chinese gov't inspectors inspect and/or publicize with double standard on foreign firms.
Table-ized A.I.
It makes sense, Apple is known to have the largest profit margin by far in the tech industry (close to 40% gross, 20% net), so there is no "room" for them, they have to pass on any drop in revenue to their suppliers. Well, I mean, there is no room if they are adamant at maintaining the largest, by far, profit margin...
Violence is the last refuge of the incompetent. Polar Scope Align for iOS
I am not supporting any worker abuse but lets at least get the facts right. Apple's profit margin is around 40%, not 400%. Many people around here make the mistake of looking at manufacturing costs but not factoring in the years of R&D that went into something, the overhead of a company, etc.
From what I understand these types of factories manufacture products for multiple customers. If that is the case then this is a non-Apple story and amounts to Apple bashing. So can anyone list manufactures other than Apple that Pegatron services?
I am Slashdot. Are you Slashdot as well?
No fair pay in China, different cost of living.
Nuf' said.
Don't you remember the good old days when companies would grow profits by innovating? Even Apple used to be there not too long ago. It seems the the whole world has run out of ideas and so there's one last idea to run into the ground: squeeze suppliers.
Romans Chapter 1 covers the multitude of sins surrounding the gay community. They only care about themselves.
If life in an Apple contracted factory is bad, it must be even worse working for lower margin companies. Where is the outrage about the working conditions in the factories that supply the thousands of other companies that source their manufacturing in China?
If the Chinese people are unhappy with their worker and environmental protections, the Chinese people need to make those changes. We, in the west, can not and should not change China to what we feel is the "right" way.
Pretty sensationalist to show pictures of laundry hanging up to dry indoors and call it "grim". I've traveled throughout China and this is actually a cultural norm, not a sign of squalor. Even in American Chinatowns, it's fairly commonplace to see hanging laundry. Not everyone in the world feels that its necessary to take advantage of that very expensive Western convenience appliance, the clothes dryer.
Apple is a consumer electronics company.
The label "technology company" is used when VCs want to get more money for their shit IPO and it's used as a justification by people to pay ridiculous prices for stock.
If we are going use the same metrics that is used to call Apple a tech company, then every damn list company is a "tech" company. Or to put another way, there is more tech in your economy car than there is in any of Apple's products.
Why do you need a union? As long as there isn't work coercion, if you don't like the pay rate, or the quality of the workplace, leave.
Unions are sometimes very good for society. Sometimes management is abusive or corrupt. Sometimes there aren't any good jobs available even if someone wants to leave. Sometimes the company is making excessive profits at the expense of workers. Sometimes unions can correct power imbalances. It's very trite to say "if you don't like the situation leave" but that's not realistic for many people. Many people cannot easily leave their job even if they want to. Unions can be very effective at correcting management abuses and protecting those who are likely to be taken advantage of. Many of the features of the modern working life exist thanks to unions including 40 hour work weeks, paid time off, worker safety laws, engineering standards, and much more.
Are unions always a good thing? Absolutely not. Sometimes unions forget about the health of the company and make excessive demands. Sometimes unions make the companies economically uncompetitive. Sometimes unions protect dead weight or problem workers who really shouldn't be protected. Sometimes unions engage in corrupt behavior.
Unions become a problem when they forget their purpose and get too greedy. Management gets unions when they forget about caring for their employees and get too greedy.
Apple should be negotiating the best rates it's from its suppliers. In fact, being publicly traded, it would be unethical not to.
Woah... hold on there. Just because a company can legally do something does not make it automatically ethical. Maximizing profit is routinely at odds with ethical and responsible behavior. The fact that Apple management has a fiduciary duty does NOT mean they have no other legal or ethical obligations. Fiduciary duty is merely one among many legal and ethical obligations of a company. In fact getting the best piece rate from a supplier often is actually counterproductive. Squeezing a supply chain for every penny actually results in unhealthy suppliers and is bad for the Apple in the long run.
Lesson here is to not feel bad about buying Chinese knock offs or pirating software from companies that pull this shit. Free market works both ways ass hats.
is released.
Why don't they do it earlier? Simply because it is a non event apart and won't be picked up by the news feeds at any other time.
Shame really because China Watch can do a lot to improve working conditions.
But they have to do it soon because all those workers will soon be replaced by Robots by the time the next iPhone is released.
Then there won't be any workers conditions to worry about now will there eh?
So, if it weren't for these factories, they'd be even worse off?
It sounds like these workers should be very grateful; it sounds like their anger is misdirected.
I'm a little skeptical of "western" sensibilities as to working and living conditions. I'm more interested in what a local would consider fair wages and fair living conditions than what a "westerner" says they should be. I'm very open to the idea that workers are abused, however is the abuse something like the number of hours scheduled or not being paid as promised? "Westerners" and locals may have very different opinions about what is a fair number of hours, if shared barracks-like lockerroom-like bathrooms and showers are OK, etc.
its not just apple — i think samsung and all the other manufacturers are always being driven by the american consumer credo 'the lowest price is the law' — forcing manufacturers to pay its people the least.
so long as 'the lowest price is the law' — this trend will continue for all manufacturers.
2cents
Man you've got to be pretty bad to violate Chinese labor laws.
"Pressure from Apple to lower costs is driving worsening conditions for workers at the company's manufacturing partners."
Funny, because I don't see their prices coming down as a result of the savings....
Wait...China has labor laws on fair pay and workplace safety?
Its funny how when it comes down to it, Apple is not very good at things like the environment, gender equality, and social responsibility when it comes to THEIR business. But, my God they sure are not shy about smugly commenting to others about how they handle issues like environment, gender equality, and social responsibility.
The main problem with our times is that so many people are willing to give a pass to those who say the "right" things instead of judging if they do them. But hey, does it really matter if they move manufacturing offshore to avoid environmental responsibility as longs they make an emoji about your favorite, pet cause?
"Liberalism is a very noble idea, currently controlled by some very bad people. Be sure you do not get the two confused.
What's that? You're saying they shouldn't voluntarily choose to work in conditions you, as a western liberal, find unacceptable?
Where independent unions are banned.
Basically when China and Russia gave up on socialism, they created a version of capitalism in the image of what they imagined capitalism to be; not the kind of liberal society you find in advanced Western democracies with their regulated market economies and worker's rights guarantees.
Intriguingly it's almost the very definition of Fascism. Mussolini preferred the term corporatism. But either way it's a paternalistic monopoly on power run in collaboration with corporations for the benefit of the common good. The problem of course is that monopoly on power thing sometimes gets in the way of common good and pateralism. But in the short run it's always produced world beating results. Until he invaded Ethiopia, il Duce's italian miracle in the midst of the depression was the envy of the world. Even FDR sent him mash notes.
SO it's more than ironic that China diverts socialism with Communism then bypasses capitalism for fascism.
Some drink at the fountain of knowledge. Others just gargle.
China needs to enforce its own labor laws.
We are not the world's police force.
and I'm more interested in what a human being would consider fair wages and fair living conditions. Yes, western culture is different in some ways, but all humans still have the same innate needs.
Did they change their name to one of the evil Transformers before or after starting to mis-treat their staff?
'an anonymous reader writes' is how this starts off.
it's appearance here gives it the gloss of fact.
here's one.... "an anonymous reader posts that slashdot is a satanic cult, run by the zodiac killer, and has aids."
how's that, kids?
Why stop at highschoolers? Kids love manufacturing things with their little hands too, it's like a game they can play 16 hours a day, 365 days per year.
They also love to be screamed at, fed bread and water and a being (gently) bonded to a stake and whipped from time to time. It's how they feel appreciated.
They like it so much that they don't even need to be paid! ain't free enterprise wonderful?
The bottom line is that Corporations don't want to pay for anything at all which includes; Taxes, Labor, Manufacturing, Equipment, etc.... They just want everything handed to them for free. If Apple, tomorrow, made $100 Trillion it still would not be enough because it never is. This is why we need to bring back heavy regulations for Wall Street and Corporations. Get rid of all those Tax loopholes. Not only would this bring back stability in our economy but it would destroy monopolies by reducing Corporations in size and letting small businesses compete. Corporations are nothing more than spoiled brats and it's time to bring back the paddle.
You are paying for someone's death. Nice job you selfish cunt :)
Manufacturing companies are plain stupid to allow themselves to take such tiny cuts of profit from the final product. When you undervalue yourself this is what happens.
"Pegatron Is Making Life Terrible In Its Factories"
There, fixed that for you.
One more thing to think about : Does it take in account the local diet? Whole fat milk might not be part of the general diet in that area of the world. Whole milk, while part of the common diet of US or Europe, might be a specialty item in that part of world.The website it points to is for expats who generally don't have the same diet and/or the same economic restrictions or status of the local population.
you get fucked in the ass
come on, dont tell me nobody saw that coming
I kind of think that all human beings are going to be ok with more comfort and security than less, and so your comparision essentially is invalid....which hypothetical group of humans will choose insecurity over security, discomfort over comfort, etc?
This report is based on too little data to mean anything, nor draw any conclusions. On page 1 of the pdf, "http://www.chinalaborwatch.org/upfile/2016_08_23/Pegatron-report%20FlAug.pdf", the report says "Pegatron is one of Apple’s major suppliers, employing almost one hundred thousand workers in Mainland China". Most of the numbers in the report are based on paystub data. However, on page 5, there is a table showing how many paystubs they analysed. Over 10 months, they collected 2015 paystubs. One month, Jun 2015, they got only 4 paystubs. The peak was 1064 in Oct 2015. The average number of paystubs they got per month was 202. That is only 0.20 % of the workforce. That is not enough data to be a worthwhile statistical universe.
I have no doubt Apple is pressuring them to reduce costs. Conditions there might well be awful. However, I can't tell one way or the other from this study, because it's statistics are insufficient.
Nonsense. In North America and Europe we have communism and socialism, for the rich. Everyone else can go f--- off.
If you cant compete.. then you dont get to.
Pegatron is providing horrible working conditions and their customer is to blame?
Apple doesn't have factories in China. Apple does subcontract manufacturing to Pegatron, the same company that make the Microsoft Surface. The same Pegatron that Microsoft is extorting the Android tax from. 'China Labor Watch' most probably a front for the Microsoft organization. ref ref ref
The only thing a labor union would do here is to drive the business elsewhere.
It costs a lot of money to relocate and retrain people. There's also the high potential of bad PR.
I kind of think that all human beings are going to be ok with more comfort and security than less, and so your comparision essentially is invalid
Sorry, the logic failure is yours. I did not write would they like "more", I wrote what do they consider "abuse". For example a sixty hour workweek may not be considered abuse, as many westerners might believe. As I wrote, perhaps the problem is not being paid as promised for those hours.
and I'm more interested in what a human being would consider fair wages and fair living conditions. Yes, western culture is different in some ways, but all humans still have the same innate needs.
The same innate needs but very different expectations. Its these expectations that I am referring to. Again, a sixty hour workweek may sound like abuse to many westerners but not to many local workers. For various reasons some seem to want extra hours in order to earn more, but often somehow get screwed out of actually being paid as promised. I want to hear **their** definition of abuse, not a westerner's bullet list of wages, scheduled hours, dorm-like living quarters, etc.
As a for profit company, they would definitely want to lower operational cost as far as they could. If they demand factories to lower costs, the factories could lower wages of people in higher positions rather than of workers but people in higher position would not let it happens. That is why workers would get lower wages. Should blame those factories rather.
Darwinism describes "survival of the fit enough" as a matter of fact, but then Social Darwinism uses it as an arrogant excuse for "we, the elite, shall purge the scums by ourselves".
Marxism describes "in the future as technology marches on human labour will become unnecessary, then the society would naturally evolve into communism", then the "communists" take that as ... you know the rest.
All the workers will soon be replaced by robots so no nee to worry about their safety and other working conditions.
Oh and don't worry about my or your job as we'll be replaced soon after
Pegatron has been passing on financial pressures from Apple by committing multiple violations of Chinese labor laws on fair pay and workplace safety.
I personally find this very hard to believe. China has labor laws? Not unless you mean laws mandating labor!
Pretty sure "fair pay" and "workplace safety" are expressions that can't even be rendered using Chinese writing. :-D Hahahahah j/k lol. j/k and lol about the j/k and the lol
'"Working conditions are terrible, and workers are subject to terrible treatment,"'
Why do they continue to work there then?
Better to bring all the work back to democratic Taiwan with robots than to worry about totalitarian China and it's manual labor.