Christian Zibreg on November 9, 2020
Apple has suspended its partnership with Pegatron, a major iPhone supplier, after finding labor violations at a student workers’ program. Pegatron will be banned from new Apple contracts until it takes action to resolve the violations of Apple’s code of conduct for suppliers.
“We are working on the corrective actions and are confident that we will complete it soon,” said a Pegatron spokeswoman, adding the company fired the manager who oversaw the student worker program. Pegatron was found to have falsified paperwork to hide that students at its Shanghai and Kunshan campuses in eastern China worked night shifts, over-time and in positions unrelated to their majors.
Debby Wu and Mark Gurman, writing for Bloomberg:
The Cupertino technology giant said it discovered several weeks ago that the Taiwanese manufacturer misclassified student workers and allowed some to work nights and overtime in violation of Apple’s Supplier Code of Conduct. Employees then ‘went to extraordinary lengths’ to cover up the violations. It’s since placed its partner on probation until corrective action is completed, the US company said in a statement.
Apple said in a statement:
Pegatron misclassified the student workers in their program and falsified paperwork to disguise violations of our Code, including allowing students to work nights and/or overtime and in some cases to perform work unrelated to their major. The individuals at Pegatron responsible for the violations went to extraordinary lengths to evade our oversight mechanisms.
Pegatron is a contract manufacturer that Apple commissions to assemble some iPhone models. Apple relies on other partners to assemble its products, including Taiwan-based Foxconn which has been the target of criticism by labor activists over the years.
Pegatron’s statement:
Upon discovery of this non-compliant activity, we immediately took the student workers off production lines and worked with our customer and third-party experts to make appropriate arrangements for them to return to their homes or schools with proper compensation alongside all necessary support and care.
This suspension won’t impact Pegatron’s work with Apple on expanding iPhone assembly outside of China because it only covers new business. As a result, however, rival Luxshare Precision Industry could become the first mainland company to assemble the iPhone in 2021.
Apple suspends business with its 2nd-largest iPhone manufacturer, Pegatron, after discovering student-labor violations in China
Kate Duffy NOV 9, 2020
Kate Duffy NOV 9, 2020
Employees before their shift starts at a Pegatron Corp. factory in Shanghai. Qilai Shen
Apple said Monday it had halted business with its supplier Pegatron after discovering labor violations in a student-worker program.
Pegatron, the second-largest iPhone manufacturer, misclassified students, allowed them to work night shifts and overtime, and let them perform work "unrelated to their major," Apple said.
An Apple spokesperson said: "Apple has placed Pegatron on probation and Pegatron will not receive any new business from Apple until they complete all of the corrective actions required."
This isn't the first time Apple has faced supply-chain trouble — in September 2019, it emerged that Apple and Foxconn, its biggest supplier, broke Chinese labor laws by employing too many temporary workers.
Apple said Monday it had suspended business with its second-largest iPhone supplier, Pegatron, over labor violations in the manufacturer's student-worker program.
The tech giant said that several weeks ago, it discovered the Taiwanese manufacturer "misclassified" student workers and let them perform work "unrelated to their major" at its plant near Shanghai.
Apple said the company also allowed students to work night shifts and overtime, which violated Apple's supplier code of conduct.
The news was first reported by The New York Times.
"Apple has placed Pegatron on probation and Pegatron will not receive any new business from Apple until they complete all of the corrective actions required," an Apple spokesperson said.
Apple said Pegatron falsified paperwork to hide the labor violations.
"The individuals at Pegatron responsible for the violations went to extraordinary lengths to evade our oversight mechanisms," the spokesperson said.
Apple found no evidence of underage or forced labor, the spokesperson added.
Pegatron has fired the executive of the student program, and students have safely returned to their homes with financial compensation, Apple said.
Pegatron did not immediately respond to a request for comment.
Apple relies on companies such as Pegatron, and its larger Taiwanese rival Foxconn, to assemble its products, such as the iPhone.
Apple has run into trouble with Foxconn, too.
In September 2019, a report published by China Labor Watch found that the US tech company and Foxconn broke Chinese labor laws by employing too many temporary workers at the largest iPhone factory in Zhengzhou, China.
Undercover investigators said they discovered that 50% of the factory's workforce was made up of temporary workers, even though Chinese law caps the proportion of temporary workers at 10%.
In October, Apple unveiled its latest lineup of new phones. The iPhone 12 and iPhone 12 Pro are available to buy now, while the iPhone 12 Mini and iPhone 12 Pro Max became available for preorder on November 6 and will ship on November 13.
Apple said Monday it had halted business with its supplier Pegatron after discovering labor violations in a student-worker program.
Pegatron, the second-largest iPhone manufacturer, misclassified students, allowed them to work night shifts and overtime, and let them perform work "unrelated to their major," Apple said.
An Apple spokesperson said: "Apple has placed Pegatron on probation and Pegatron will not receive any new business from Apple until they complete all of the corrective actions required."
This isn't the first time Apple has faced supply-chain trouble — in September 2019, it emerged that Apple and Foxconn, its biggest supplier, broke Chinese labor laws by employing too many temporary workers.
Apple said Monday it had suspended business with its second-largest iPhone supplier, Pegatron, over labor violations in the manufacturer's student-worker program.
The tech giant said that several weeks ago, it discovered the Taiwanese manufacturer "misclassified" student workers and let them perform work "unrelated to their major" at its plant near Shanghai.
Apple said the company also allowed students to work night shifts and overtime, which violated Apple's supplier code of conduct.
The news was first reported by The New York Times.
"Apple has placed Pegatron on probation and Pegatron will not receive any new business from Apple until they complete all of the corrective actions required," an Apple spokesperson said.
Apple said Pegatron falsified paperwork to hide the labor violations.
"The individuals at Pegatron responsible for the violations went to extraordinary lengths to evade our oversight mechanisms," the spokesperson said.
Apple found no evidence of underage or forced labor, the spokesperson added.
Pegatron has fired the executive of the student program, and students have safely returned to their homes with financial compensation, Apple said.
Pegatron did not immediately respond to a request for comment.
Apple relies on companies such as Pegatron, and its larger Taiwanese rival Foxconn, to assemble its products, such as the iPhone.
Apple has run into trouble with Foxconn, too.
In September 2019, a report published by China Labor Watch found that the US tech company and Foxconn broke Chinese labor laws by employing too many temporary workers at the largest iPhone factory in Zhengzhou, China.
Undercover investigators said they discovered that 50% of the factory's workforce was made up of temporary workers, even though Chinese law caps the proportion of temporary workers at 10%.
In October, Apple unveiled its latest lineup of new phones. The iPhone 12 and iPhone 12 Pro are available to buy now, while the iPhone 12 Mini and iPhone 12 Pro Max became available for preorder on November 6 and will ship on November 13.
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