Apple partner Foxconn used too many temporary workers during iPhone ramp-up

Foxconn is based in Taipei

Foxconn is based in Taipei

But, according to China Labor Watch, roughly 50 percent of workers at the Zhengzhou Foxconn factory are employed on a temporary basis. Workers earn roughly $1.68 USA per hour standard and $2.52 U.S. per hour for overtime, a wage, "insufficient to sustain the livelihood for a family living in Zhengzhou city", says China Labor Watch.

Apple pushed back strongly versus the majority of the promises on Monday, expressing it had carried out its very own investigation and uncovered that "most of the allegations are fake".

Foxconn also told CNN Business it had conducted a review of its operations in Zhengzhou, which turned up "some workforce compliance issues" but did not find "any evidence of forced labor". Apple also said that less than 1 percent of workers were student workers, and that a small percentage of them voluntarily worked overtime or night shifts. It added that when it finds issues, it works with suppliers to "take speedy corrective action". "This issue has been corrected". During the peak production seasons, workers at Zhengzhou Foxconn put in at least 100 overtime hours a month regardless.

Taiwan-based manufacturing giant Hon Hai Precision Industry Co. said Monday that it has been gradually adjusting the dispatch workers ratio in its factories in China to meet legal requirements, in response to accusations that it was hiring too many temporary workers.

The work rights bunch China Labor Watch (CLW) distributed a report on Sunday (Sept. 8) enumerating work infringement at a Foxconn processing plant in Zhengzhou that makes items for the Apple organization.

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Why it's important: This is not the first time Foxconn, China's largest private sector employer, has broken Chinese labor laws.

Spokespeople for both Apple and Foxconn confirmed in statements to Bloomberg, the Washington Post, and CNBC that the proportion of dispatch workers had exceeded the limit allowed by Chinese law. By recruiting these laborers, "the manufacturing unit does not want to maximize the wages for all normal staff", it said.

Foxconn was as of late scrutinized by CLW for work rights infringement at a plant in Hengyang, China which makes items for Amazon.

CLW's list of alleged violations is rather long and includes things like work injuries going unreported, verbal abuse being "common at the factory", a lack of fire safety training, workers sometimes not being paid for overtime hours, unsafe working conditions, and more.

"Chinese labor law mandates that workers must not work more than 36 overtime hours a month", China Labor Watch said. Apple has responded to the report admitting the number of temporary staff "exceeded [its] standards" but it denied other claims that the workers were not getting bonuses and that they were being made to work overtime.

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