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Seeking Labor Compliance, Apple Suppliers Curb Overtime For Factory Workers

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More hours, please (Image credit: AFP/Getty Images via @daylife)

Apple has been in the spotlight over conditions in its suppliers' far-flung factories, after critical news reports led to calls for greater oversight. A peek at Apple's website shows that it's now keeping closer tabs on what goes on in these factories. Its latest update states that it now receives weekly data on the work patterns of over 1 million employees, who are effectively sub-contractors in Apple's iEconomy. Among the largest clusters of such workers are Chinese employees of Foxconn, a unit of Taiwanese manufacturer Hon Hai Precision Industry. It alone employs around 1.5 million workers at several facilities in China, though not all work on Apple products (some may be assembling an Amazon smartphone) . One practice that Apple wants to curb in its supply chain is excessive overtime that could be framed as workplace abuse, particularly when workers have no say in the matter. The company's code of conduct says that working weeks for the supplier labor force shouldn't exceed 60 hours. So, are Apple suppliers following this code?

Going deep into our supply chain, we now follow weekly supplier data for over 1,000,000 workers. In November 88 percent of workweeks were less than the 60-hour maximum specified in Apple’s code of conduct. In limited peak periods, we allow work beyond the 60 hour limit for those employees that volunteer to do so.

via Apple - Supplier Responsibility - Code of Conduct - Labor and Human Rights.

One problem to this approach, however, is that factory workers have come to depend on overtime, particularly if they want to save for the future. This isn't just about Apple's code of conduct but also labor law in countries like China. The Wall Street Journal reports that workers at Foxconn's massive plant in Shenzhen are griping about curbs on overtime. The company has promised to limit overtime to nine hours per week, starting next year. This is in line with Chinese labor law (which specifies a 49-hour week) and would satisfy Apple and its auditors, the Fair Labor Association (FLA). However, unless baseline wages go up substantially, workers might not stick around to enjoy their extra leisure time. "I don't have much incentive to stay, since my wage probably won't rise much," one worker told the WSJ. Basic monthly pay before overtime is $355. The company won't say how much it plans to adjust wages once the new overtime policy is implemented. None of this means that Apple's code of conduct is wrong, just that the ethics of low-wage manufacturing are complex and socially-driven. For its part, the FLA also recognises that limits on working hours and overtime may run against the wishes of workers. The only thing worst than working long hours to assemble iPhones is not working long hours to assemble iPhones.