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Wednesday, 22 August 2012 - Apple, Foxconn improve plants in China; more left to do: audit |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Video Reuters TV Reuters News Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Dental health linked to dementia risk: study 20 Aug 2012 Nearly half of US doctors struggle with burnout: study 2:12am EDT Russia warns West over Syria after Obama threats | 5:46pm EDT Ethiopian strongman and Western ally, Meles, dies | 3:49pm EDT U.S. Army battling racists within its own ranks 9:56am EDT Discussed 138 Obama’s lead over Romney grows despite voters’ pessimism 122 Romney to announce vice presidential choice Saturday 94 Analysis: Are Israelis tough enough for a long war with Iran? Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography.  See more | Photo caption  Art of Damien Hirst A look at the unusual and controversial art of Damien Hirst.  Slideshow  Longest lived women: Hong Kong Hong Kong women are now the longest-lived women in the world, overtaking a record formerly held by Japan.  Slideshow  Apple, Foxconn improve plants in China; more left to do: audit Tweet Share this Email Print Related News Landings, protests stoke Japan-China islands dispute Sun, Aug 19 2012 Hopes dim for Sharp amid Japan's TV industry sunset Fri, Aug 3 2012 Analysis & Opinion Prostitution: their bodies, their rights China’s affluence crisis Related Topics Tech » Media » iPad » Workers walk out of the entrance to a Foxconn factory in Chengdu, Sichuan province July 4, 2012. Credit: Reuters/Stringer By Poornima Gupta SAN FRANCISCO | Tue Aug 21, 2012 5:43pm EDT SAN FRANCISCO (Reuters) - Apple Inc and Foxconn have improved work and safety conditions at the Chinese factories that make most of the world's iPads and iPhones, but the auditors they enlisted to monitor the process warned that the toughest tasks lay ahead. The Fair Labor Association said on Tuesday that the companies must reduce hours by almost a third for the hundreds of thousands working in Foxconn plants across Southern China to comply with local labor laws by 2013. Earlier this year, the association -- of which Apple is a member -- found multiple violations of labor law including extreme hours after launching one of the largest investigations ever conducted of a U.S. company's operations outside America. Apple, the world's most valuable company, and Foxconn -- whose clients also include Dell Inc, Sony Corp, and Hewlett-Packard Co -- agreed to slash overtime, improve safety, hire new workers and upgrade dormitories. In a report tracking the progress of those commitments, the FLA said it had verified that agreed-upon changes had been instituted and that Apple was trying to hold its partner, the world's largest contract manufacturer, accountable. "One of the sheer engineering challenges is being able to shorten the production cycle, so that they can get it all done in 49 hours instead of 60 hours. And the other part of the challenge then is workers' expectations," Auret van Heerden, president and CEO of the FLA, said in an interview. Global protests against Apple swelled after reports spread in 2010 of a string of suicides at Foxconn plants, blamed on harsh working conditions and alienation felt by migrant laborers, often from impoverished provinces, in a bustling metropolis like Shenzhen, home to two of the three factories the FLA inspected. Apple has tried to counter criticism that its products and profits are built on the backs of mistreated Chinese workers. The FLA's progress report comes a day after Apple's market value climbed past $623 billion, surpassing the record set by Microsoft Corp during the heyday of technology stocks in 1999. Protesters in the past year have kept up a small but regular presence at Apple events from iPad launches to shareholder meetings, holding up placards urging the $620 billion corporation to make "ethical" devices. OVERTIME HOURS The latest report card on Apple-Foxconn comes after first findings and a timeline for improvements were announced in March, though some industry observers said it was not entirely independent because of close ties with corporate members. Since that March audit, rights groups including China Labor Watch have conducted their own studies. Some factory workers at Foxconn - an affiliate of Taiwan's Hon Hai Precision Industry - have also protested potential lost wages as hours get cut. Both the FLA and Foxconn have tried to help employees through the transition. "A lot of workers have clearly come to Shenzhen to make as much money as they can in as short a period as they can, and overtime hours are very important in that calculation," Van Heerden said. "We are picking up concerns now on the microblogs about what's likely to happen as hours gets changed, and whether their incomes will be shaved as well," he added. Given a severe shortage of labor in China, it is likely that Foxconn would ensure that workers are happy with their compensation and avoid the risk of them leaving, he said. Apart from healthy and safety enhancements, Foxconn is offering up little enhancements to employee morale. For instance, Van Heerden said it is increasingly giving workers a choice of accommodation, such as by providing an allowance for housing and food if the workers choose to live off-campus. "If you reduce overtime significantly, you work that idea through with workers," he said. Foreign companies have long grappled with working conditions in China, dubbed the world's factory because of its low wages and efficient coastal transport and shipping infrastructure. In the 1990s, investigations targeted shoe and apparel maker Nike Inc, which eventually agreed to institute changes. The FLA's audit could have wider implications for foreign multinationals that enlist Chinese manufacturers. Foxconn alone is estimated to make half the world's consumer electronics. Apple CEO Tim Cook, who took over from the late co-founder Steve Jobs last year, has shown a willingness to tackle the criticism head-on. "We've been making steady progress in reducing excessive work hours throughout our supply chain. We track working hours weekly for over 700,000 workers and currently have 97 percent compliance with the 60-hour maximum workweek specified in our code of conduct," spokesman Steve Dowling said in a statement. (Editing by Edwin Chan, Matthew Lewis and David Gregorio) Tech Media iPad Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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