Apple supplier Foxconn said this morning that it welcomes the results of a Fair Labor Association audit that found problems with excessive overtime and unsafe working conditions, among other things, and pledged to implement the group's suggestions.
"Foxconn has participated fully and openly in this review of Apple-focused business groups at our Longhua and Guanlan campuses in Shenzhen and our campus in Chengdu and this process is part of our long-standing commitment to working together with our customers to ensure that our employees are treated fairly and their rights are fully protected," Foxconn said in a statement.
Yesterday afternoon, the FLA released an Apple-commissioned report that said Foxconn was skimping on overtime, overworking its employees, under-reporting accidents at its plants, and not allowing worker-led unions to flourish. The FLA said it has been working with Foxconn and Apple to implement changes that will solve these issues in the coming years.
"We are committed to work with Apple to carry out the remediation program, developed by both our companies, that has been presented along with the FLA audit findings and we will continue to support Apple's initiatives to ensure that its business partners are in compliance with all relevant China laws and regulations and the FLA's Workplace Code of Conduct," Foxconn said today.
That remediation program includes a pledge to cut down on hours to a maximum of 49 hours per week, including overtime, by July 2013. Given that reduced overtime will result in less pay, the FLA said Foxconn will develop "compensation packages" to make up for it. The company will also hire more workers and build more housing and cafeterias to keep up with production needs.
But as Reuters reported today, some workers are skeptical that reduced hours will not result in a lighter paycheck. "We are worried we will have less money to spend. Of course, if we work less overtime, it would mean less money," a 23-year-old worker told the news wire.
On the business side, an IDC analyst told IDG News that the changes are unlikely to affect the price of an iPhone or iPad since labor costs are a "small fraction" of the cost.
Apple has not yet commented publicly on the FLA report. The company asked the FLA to conduct audits of Apple's final assembly suppliers, including Foxconn last month. The issue made headlines after a series of articles in the New York Times questioned whether Apple products are manufactured under safe and humane conditions. Concerns about Foxconn, however, have been going on much longer, with reports about worker suicides making news since at least 2010.
Apple CEO Tim Cook said at a recent Goldman Sachs event that Apple cares about every worker. Cook this week actually visited China, where he toured a Foxconn factory.
One group that has been critical of Foxconn is China, Students & Scholars Against Corporate Misbehaviour (SACOM). Their May 2011 report about conditions at the company's factories highlighted long hours for little pay, exposure to dust and harmful chemicals, and "military style" training sessions.
In a Friday statement, SACOM said the FLA report omitted details about harsh management and work stress, and glossed over intern abuse.
For more, see the FLA's full report.
For more from Chloe, follow her on Twitter @ChloeAlbanesius.
