Tech giant Apple halts collaborations with hardware partner due to alleged labor abuse issues
In a recent development, technology giant Apple has put its manufacturing partner, Pegatron, on probation following the discovery of student labor violations in multiple China-based facilities.
Pegatron, a key supplier for Apple's gadgets such as iPhones, Macbooks, and iPads, has been found to be misclassifying student interns, allowing them to work nights, perform overtime, and do duties unrelated to their major. These practices are clear breaches of Apple's Code of Conduct for its supplier partners.
The violations came to light several weeks ago when Apple was reviewing its own student work programs in the region. The Shanghai-based outlet The Paper reported these findings, stating that Pegatron was covering up the offenses.
In response, Pegatron has removed the students from its production lines and has fired the manager responsible for the student work program, who was found to have forged documents to cover up the company's violations of Apple's guidelines.
However, Pegatron has not responded to requests for comment regarding the current labor issues at its facilities. Apple, too, has remained silent on the matter.
This is not the first time Apple has faced problems with worker abuse within its supply chain. In 2010, more than a dozen suicides at Foxconn, another key hardware partner, prompted Apple to address the working conditions in its warehouses.
Since 2007, Apple has been publishing an annual supplier responsibility report, detailing the progress or lack thereof in some of these facilities. The report for 2012 marked the first time Apple released a full list of its supply-side partners.
The labor issues at Pegatron's facilities extend back to at least 2013, as reported by China Labor Watch. In 2013, the watchdog group reported that Pegatron was underpaying at least 100 interns in its Shanghai facilities.
To address these issues, Apple has taken measures against Pegatron by requiring its suppliers, including Pegatron, to invest significantly in automation and robotics in their manufacturing lines starting 2025. This move is aimed at reducing labor issues, likely responding to reports of student workers doing undeclared overtime in China-based factories.
Despite the ongoing labor issues, Apple could not find evidence of forced or underage labor in either of Pegatron's facilities. The mistreatment of interns at Pegatron's Shanghai facilities continued well into 2015, according to China Labor Watch.
Apple's decision to place Pegatron on probation is a step towards ensuring compliance with its Code of Conduct. However, the specific punitive actions against Pegatron have not been publicly detailed. The technology giant has not responded to requests for comment regarding the current labor issues at Pegatron.
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