--Nonprofit's interim report finds Apple supplier Foxconn
meeting deadlines
--Foxconn plans to meet remaining goals by July
--Audit follows criticism of Apple supply chain
By Drew FitzGerald
A top Apple Inc. (AAPL) supplier has fixed some of the most
pressing workers' rights violations at three of its Chinese
factories and is on track to address other problems by mid-2013,
according to a progress report by the electronics giant's
industry-backed auditor.
The Washington-based Fair Labor Association said manufacturing
facilities run by Hon Hai Precision Industry Co., known by its
trade name Foxconn, already have benefited from physical
improvements such as ergonomic breaks and better maintenance of
safety equipment, and the company is backing a local law adjustment
that will extend unemployment insurance to more workers.
The electronics supplier also identified 89 tasks it completed
ahead of schedule, though the FLA said some of its most challenging
goals--which include lowering overtime hours for more than 170,000
employees to within legal Chinese limits--remain a work in
progress.
Foxconn said the report proved its facilities are reaching their
targets, calling the review "the largest and most comprehensive
assessment of an electronics manufacturing operation ever
undertaken by any independent audit organization in China."
Apple spokesman Steve Dowling said the company was proud of the
progress it has made so far with FLA.
Apple launched the overhaul after its report in January found
only 38% of its suppliers last year met its requirement for a
maximum 60-hour workweek and at least one day off every seven days.
Amid mounting criticism of its supply chain, the Cupertino, Calif.,
company in February became the first electronics company to join
the FLA, which garners support from contributing corporations and
nonprofit organizations.
The organization's spring audit reviewed practices at the three
Foxconn facilities that make products like iPhones, iPads and
MacBooks for Apple in Shenzhen and Chengdu. The investigation,
which used local inspectors and surveyed about 35,500 workers,
flagged dozens of labor-standard violations, including employees
who worked as many as 70 hours a week during peak production,
sometimes under unsafe conditions. The long workweeks violated
Apple's guidelines as well as Chinese law, which caps overtime at
36 hours a month.
Foxconn has committed to meeting that requirement and 75
remaining improvements by July 1. FLA's affiliation requirements
give members like Apple up to two years to meet all of its
workplace standards.
Write to Drew FitzGerald at andrew.fitzgerald@dowjones.com
Order free Annual Report for Apple, Inc.
Visit http://djnewswires.ar.wilink.com/?link=AAPL or call
1-888-301-0513
Subscribe to WSJ: http://online.wsj.com?mod=djnwires