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Apple Admits Using Child Labor: 15-Year-Olds Worked In Factories

JORDAN ROBERTSON   03/ 1/10 03:51 PM ET   AP

Steve Jobs

SAN FRANCISCO — Apple Inc. said it found more than a dozen serious violations of labor laws or Apple's own rules at its suppliers that needed immediate correction.

The findings were outlined in a company report on audits of 102 supplier facilities conducted in 2009. That was a year in which questions about the practices of one of Apple's suppliers came into focus after the suicide of a Chinese worker who held a sensitive job handling iPhones.

Along with many other technology companies, Apple, based in Cupertino, Calif., relies heavily on foreign contractors to build its products. Monitoring their labor practices be difficult, and Apple has caught heat in the past on this issue.

The company said in its latest report that "by making social responsibility a fundamental part of the way we do business, we insist that our suppliers take Apple's code as seriously as we do."

Apple said it found 17 "core" violations, the most serious type.

Those included three cases of underage workers being hired; eight instances of workers paying "recruitment" fees that were above the legal limits in those countries; three cases in which suppliers used non-certified vendors to dispose of hazardous waste; and three others in which the companies gave false records during the audits.

In the cases involving underage workers, Apple said three facilities had hired a total of 11 workers who were 15 years old in countries where the minimum employment age is 16. Apple noted that the workers were no longer underage or weren't working for the facilities anymore when the audits were undertaken.

Apple has been pressured before to answer questions about its suppliers' practices.

Last July, a 25-year-old Chinese worker whose job involved shipping iPhone prototypes to Apple killed himself by jumping from the 12th floor of his apartment building amid an investigation into a missing iPhone. The worker, Sun Danyong, worked for the Foxconn Technology Group, a Taiwanese manufacturer that has long been one of Apple's key suppliers.

The suicide, and allegations that Foxconn security guards roughed up the worker before his death, prompted a reply from Apple that all of its contractors "must treat workers with respect and dignity."

In 2006, Apple found that workers in a Chinese iPod factory were in many cases exceeding the company's limits for overtime. Apple ordered the factory to comply with its limits. Apple was responding to news reports at the time that workers at the factory were paid as little as $50 a month and were forced to work 15-hour shifts.

___

On The Net:

Apple's report on its suppliers:

http://bit.ly/c9eKbT

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SAN FRANCISCO — Apple Inc. said it found more than a dozen serious violations of labor laws or Apple's own rules at its suppliers that needed immediate correction. The findings were outlined in...
SAN FRANCISCO — Apple Inc. said it found more than a dozen serious violations of labor laws or Apple's own rules at its suppliers that needed immediate correction. The findings were outlined in...
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HUFFPOST SUPER USER
Dave Bee
A robot in disguise
07:01 AM on 03/04/2010
LOL between this and the anti-green effort by the Apple board, It looks like the company that prides itself on being tailored for the youthful, inspired, artistic, 21st century bohemian geek is nothing more than a front for run-of-the-mill corporate pigs. They might as well replace the Apple with a Wal-Mart logo.... I wonder how their core audience will take the news? Will they revolt, or strain themselves rationalizing and then continue their blogs about factory farms and indie bands on their macbooks. Hmmmm....
01:22 PM on 03/03/2010
Is that stupid headline still on this article? Get a life HuffPost! Apple didn't "admit" to anything, they investigated and reported abuse. C'mon, see if you can rise above Inquirer-type hype.
05:30 AM on 03/03/2010
Hahaha! We Americans don't care where it's made, cuz we love it. Go China!
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Eris23
Justice is in indefinite detention.
04:46 PM on 03/02/2010
So, just to strip everything being said here down to it's most basic, rather than "think different" it's now "but everyone else is doing it." :)
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HUFFPOST SUPER USER
Ryan Magdangal
Pirate Satellite
02:59 PM on 03/02/2010
that's why you should bring those jobs back to America!
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disgustedwithall
USA a Dalton Abbey, 1-2% up, 98% work downstairs
02:43 PM on 03/02/2010
Yep you bet "monitoring our suppliers is difficult" for the very hi tech companies like Apple et al. I mean even the concept of placing a remote control camera connected to the net is a concept they probably are now just working on.. yep. really difficult to monitor when the ole wallet is bulging in back pocket and applying pressure to their brains.
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HUFFPOST COMMUNITY MODERATOR
SoCalNick
Former 99er, Business Owner, Proud Veteran 101st
10:04 AM on 03/02/2010
This is in response to the GANG of Apple Tr0lls who did everything BUT PROVE I was lying but just called me every name in the book.

APPLE PRODUCTS ARE WAY OVERPRICED by almost TWICE the Industry Standard!!!! The Iphone 3TIMES.

TI am SURE not NONE of you will Man up and apologize because

1) Reading this will PROVE you were wrong

2) That you have been wrong calling EVERYONE liars

3) Have to deal with the fact that Apple marks its products 2 to 3 times higher that ANY other manufacturer.

I bet MAYBE 2 of you will have the guts to read this. The rest will just leave .

Here is the first paragraph or so for those who do not know how to click a link.

The new iPad tablet priced at $499 actually runs Apple about $270 in materials and manufacturing costs, a Wall Street analyst said today.

According to a bill of materials (BOM) analysis by Brian Marshall of BroadPoint AmTech, the cost of goods inside Apple’s 16GB WiFi-only iPad totals $270.50. that figure includes a $10 line item dedicated to manufacturing, but doesn’t include another $20 set aside for under-warranty service costs. Adding the latter makes Marshall’s bottom-line total $290.50.

The IPhone is even WORSE LOL

http://www.vx50.com/latest-news/apple-makes-208-on-each-499-ipad/

ENJOY : )
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01:05 PM on 03/03/2010
You are my hero, fanned!
01:24 PM on 03/03/2010
Dude, Apple is a for-profit business. Get a life! No one is forcing anyone to buy Apple products.
09:09 AM on 03/02/2010
Deceptive headline, Huffpost! Should read "Apple investigation exposes" rather than " Apple admits".
12:27 AM on 03/02/2010
Apple is one of the only tech companies to AUDIT its suppliers and pursue REAL results! The headline is incredibly misleading.

For a clearer view on this story read here:
http://www.appleinsider.com/articles/10/02/27/apple_taken_to_task_for_reporting_partners_child_labor_violations.html
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HUFFPOST COMMUNITY MODERATOR
lukebenward
03:47 AM on 03/02/2010
Tunnelvision, anyone?

It's like saying "Walmart's great and I urger you to go to WalmartFanSite.com to find out why".
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01:06 PM on 03/03/2010
Haha, just what I was thinking. No offense but I don't want to hear Apple's PR Propaganda when they are in trouble in the same way that I ignore Microsoft when they defend their monopolistic policies.
11:25 PM on 03/01/2010
Oh boo hoo.

Anyone who was raised on the farm as I was know exactly what it's like to be a child laborer.

I started working and helping at the age of 5 and was doing heavy labor by the time I was 11 or 12. And I got paid essentially nothing aside from it helping out my parents.

People need money in these countries, Apple and others provide it.
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01:07 PM on 03/03/2010
Then you change the laws. If the min age is 16, you have to hire 16+. Its that simple! No company can break the laws because they feel like it or it increases efficiency.
10:52 PM on 03/01/2010
Horribly inflammatory and misleading headline/article. Apple does NOT use child labor. Amazing this kind of thing can be reported as such without repercussions.
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HUFFPOST COMMUNITY MODERATOR
lukebenward
03:48 AM on 03/02/2010
Would you extend the same artistic license to Microsoft? Mmm-hmm.
10:50 PM on 03/01/2010
Was Apple originally aware that its suppliers violated its cooperate ideas by hiring child labor. The bigger a company is the harder it is to manage.
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drjasonmd
Shalom, compa!
10:21 PM on 03/01/2010
So slave wages are paid, children are employed, hazardous waste gets dumped into the local environment, and the parent company in a rich western country gets to claim plausible deniability and make huge profits without ever being held accountable because everything was outsourced.

Globalization is better than colonialism. You get all the benefits without having to use your military!
10:07 PM on 03/01/2010
They Admitted nothing of the sort: that they found during a routine audit of their sub contractors out that they had companies under contract who were using underage workers. They addressed the issue. Worst headline of the day.
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LightShadow62
The answers are not found in the extremes
08:53 PM on 03/01/2010
2 points:

1) Apple will 'fix' this issue by tightening security so that nothing will leak out.

2) This story fits with Apple's standard business model: 75% marketing, 25% substance. They control the release of the story, the content of the story and when the story dies. Meantime nothing changes at the factories.
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11:08 PM on 03/01/2010
Incorrect. Apple were the ones that decided to release the info during an audit THEY decided to have. They had no legal reason to do the audit (something few others in the tech industry ever does) nor mention it publicly (something they don't usually do themselves, and even though it has caused this confusion). They actually are fixing the issue by back-paying what the workers are actually owed that the supplier was cheating them (Apple and the employees) out of, by ridding themselves of the supplier (unless massive overhauls are done to be compliant with Apple's own guidelines), and as noted, these were their own voluntary audits that they decided to have. They are voluntarily making changes, something I note no other company has or is doing.

The content of the message has actually been corrupted by the linked article (if you even read that) as well as those mentioning it without doing their research, so containment is barely an option, if it ever was (again, Apple were the ones who decided to tell everyone about it rather than try to claim ignorance or even the "everybody does it" defense).