Apple Finds iPod Supplier Violated Work Code

By Ed Oswald, BetaNews

August 18, 2006, 1:30 PM

Apple said late Thursday that it had taken steps to address claims of worker abuse at one of its major manufacturers of the iPod music player, noting it found that the supplier was in compliance with most of Apple's Supplier Code of Conduct. However, Apple did say its investigation uncovered some troubling issues.

The Cupertino company mandates that its suppliers follow a set of rules "designed to safeguard human rights, worker health and safety, and the environment." Apple said it takes any violation of these policies very seriously. In the investigation, the company interviewed over 100 employees in a variety of positions with Foxconn, a major iPod supplier.

While it found no evidence of child or forced labor, the company did take issue with some of Foxconn's policies. It said that the pay structure was unnecessarily complex and difficult to understand, which violated the section of the Code that require clear policies for compensation. The supplier has since remedied the situation.

It also found that Foxconn's system of paying overtime manually was questionable, and that some employees were working more than the 60 hour per week maximum with one day off. Apple said it understood the company's need for overtime during certain periods, but its research found it to be "excessive."

Workers were generally happy with their jobs and workplace, Apple found. However, employees did complain about the lack of overtime during non-peak periods and transportation from off-campus dorms.

Additionally, Apple found rare occurrences of possible worker abuse. Two of the employees interviewed were disciplined by being made to stand at attention, which the company strongly objected to.

"Apple has a zero tolerance policy for any instance, isolated or not, of any treatment of workers that could be interpreted as harsh," it said, reporting that Foxconn had made changes to its management training program to convey this policy.

Finally, the company also said it found issues in three off-campus dormitories where employees were housed, supposedly on an interim basis. In some areas, several beds and lockers were in a single open space, which Apple called "too impersonal." To remedy this, Foxconn is building new on-campus housing.

In any case, the Cupertino company said it would always act proactively to remedy issues like working conditions when it sees it as appropriate. "Apple is committed to the highest standard of social responsibility in everything we do and will always take necessary action accordingly," it said in a statement.

"We are dedicated to ensuring that working conditions are safe and employees are treated with respect and dignity wherever Apple products are made," the company continued.