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Apple and Labor

Following a scathing report, Apple CEO Tim Cook gets defensive.

David Zax 01/27/2012

  • 15 Comments

The New York Times has published a lengthy report titled “In China, Human Costs Are Built Into an iPad.” It begins with a scene that no Apple employee could feel particularly proud to read: “The explosion ripped through Building A5 on Friday evening last May, an eruption of fire and noise that twisted metal pipes as if they were discarded straws.” The story goes on to relate that the explosion came from an area of a Foxconn factory in Chengdu, where workers did nothing but polish iPad cases, thousands of them each day. Two workers died instantly in the blast, with more than 12 others injured.

Apple has had a number of gadflies biting at it lately, little voices of conscience telling it, and the world, that it could do more to improve the conditions of its workers. Mike Daisey, whose investigative monologue “The Agony and Ecstasy of Steve Jobs” he then turned into a This American Life report, is one of the more prominent ones. Though Daisey’s monologue ended with an exhortation for his audience members to reach out to Apple, Steve Jobs was reportedly nonplussed about Daisey’s work: “Mike doesn't appreciate the complexity of the situation,” Jobs was reported to have said about the monologue.

This week, the factors in the equation are different. The particularly withering report is in the Paper of Record--and Apple has a new CEO at the helm. It’s not clear which factor here is more salient, but what’s certain is that Apple’s response this week is uncharacteristic.

9to5Mac says it has an email that CEO Tim Cook sent out to all of his employees. “As a company and as individuals, we are defined by our values,” begins his letter. “Unfortunately some people are questioning Apple’s values today, and I’d like to address this with you directly. We care about every worker in our worldwide supply chain. Any accident is deeply troubling, and any issue with working conditions is cause for concern. Any suggestion that we don’t care is patently false and offensive to us.”

The email is long--certainly longer than one of Steve Jobs’s characteristic brief emails--and markedly defensive in tone. “Every year we inspect more factories, raising the bar for our partners and going deeper into the supply chain... We are attacking problems aggressively with the help of the world’s foremost authorities on safety, the environment, and fair labor... We are focused on educating workers about their rights, so they are empowered to speak up when they see unsafe conditions or unfair treatment.” And for employees who were still a little bit troubled, Cook referred them to a section of the company website: http://www.apple.com/supplierresponsibility/

The email did not mention the New York Times report directly ("some people"), nor did it directly dispute some of the more troubling bits of that story. One of the most damning quotes came from a former Apple executive (whom the Times unfortunately wasn’t able to get to go fully on the record with his or her name). Said this source: “We’ve known about labor abuses in some factories for four years, and they’re still going on... Why? Because the system works for us. Suppliers would change everything tomorrow if Apple told them they didn’t have another choice... If half of iPhones were malfunctioning, do you think Apple would let it go on for four years?”

It may well be, as Cook says, that Apple has displayed “the actions of a leader” and that Apple “was in a unique position to lead the industry” by allowing the Fair Labor Association to begin evaluating the company’s supply chains. But, to judge from recent reports, just because Apple is leading doesn’t mean that it doesn’t have a long way to go, and that it couldn’t move a little faster.

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S0ma

90 Comments

  • 480 Days Ago
  • 01/27/2012

yeh

"see right here on line 46-b3?
it says we enforce fair labor...

by enlisting foxconn to do all our
labor; it isnt our fault that china
has different labor laws. even tho
we reap ridiculous profits. we stand
by and defend our reputation [since
our profit depends on it]

we wash our hands of it..."

like Rome, your fall is inevitable...

Reply

alfaeco

4 Comments

  • 480 Days Ago
  • 01/27/2012

Pact with the devil

They made a pact with the devil, an the devil is coming back to get its due.

Maybe Steve died in time.

Reply

HappyCanadian

1 Comment

  • 480 Days Ago
  • 01/27/2012

Cheap labour

It's a shame that with the amazing profits Apple has made last year, upwards of 9 billion dollars, they can't employ more Americans to get the U.S. out of this recession. Put money in the pockets of the people and they will have more to spend on their products, too. Basic economics. They are helping China on their way to unseating the U.S  as a world superpower. Chinese oil companies already own most of the oil industry in oil rich Alberta....

Reply

ptmmac

7 Comments

  • 477 Days Ago
  • 01/30/2012

Re: Cheap labour

Apple made 13 billion last quarter, and over 30 Billion last year.  Money is not the main issue here.  The problems with American Manufacturing run much deeper than wages.  The cost and complexity of regulations, lack of trained and educated workers, lack of economies of scale, other manufacturers are located in China and a far more flexible labor force are all factors keeping Apple and all the other American tech companies producing products in China and other far eastern countries.  The final conclusion in this article is correct.  Apple could be moving faster than they are.  The problem is that Apple is already moving faster than any other manufacturer and uses the least abusive of the current choices in China.  Apple also recently posted a list of all the companies in its supply chain and begun more regular audits of the current labor situation. 

Apple is being blamed for cultural problems in China that it does not control.  Apple had the wages raised for the workers in its contracts and one unfortunate result has been that supervisors and management have found ways to get that money back into the corporate pockets.  The rule of law in China is weak at best.  There is no check on the power of your boss or company other than other corrupt politicians and competition.  Wage employees are from a separate class of people who have no rights to food, health care, or housing that the local Chinese have.  The situation is very similar to illegal aliens here in the US.  Except that there is no rule that can over come a stiff bribe to the local politician. 

Reply

Spicoli

166 Comments

  • 477 Days Ago
  • 01/30/2012

Re: Cheap labour

I see no evidence Apple is doing anything different than anyone else.  There's certainly not a relative problem with workforce education. As far as regulatory issues, I don't believe the US is any worse than several European countries and Japan that lead per capita manufacturing. 

The problem I see is the social status of manufacturing in the US, and it carries into government support for it.  You'll get city council falling all over themselves to bring a convention center into the area but no one cares about the place making plastic towel holders.  In fact people tend to fight against new manufacturing plants in their area.

Reply

Curt2004

90 Comments

  • 477 Days Ago
  • 01/30/2012

Re: Cheap labour

"In fact people tend to fight against new manufacturing plants in their area."

Maybe in more affluent areas or prior to the recession, but it's hard to believe they do it now.

Reply

Spicoli

166 Comments

  • 477 Days Ago
  • 01/30/2012

Re: Cheap labour

It hasn't changed over the other recessions, so I don't see why it would now.

Reply

ptmmac

7 Comments

  • 476 Days Ago
  • 01/31/2012

Re: Cheap labour

Apple needed 8500 engineers in one week, not 9 months.  That is your problem with education.  It is a matter of scale.  We can't hire that many people to work that quickly.  In fact, getting engineers is hard with just the current level of manufacturing in the US.  Also, Apple did offer Foxconn employees a 20% raise a couple of years ago (through contract provisions).  Apple is the only company which is using audits to focus on the problem of labor abuse.  None of those countries you are talking about have factories on the scale of Foxconn.  The issue with regulations is also one of cost.  Intel estimates that an American fab costs an average of $5 billion more to open than fabs in other countries.  This is not a small expense even for a company the size of Apple.  That is also for just one factory not the dozens needed to produce all of Apples products.

Your other point about social status and Nimby is not in conflict with the above problems I have raised.  These problems just serve to reinforce a lot of the regulatory hurdles for American factories.  It costs a lot of money and involves far more risk to break ground on a factory in America because of our attitudes towards manufacturing.  There is no guarantee that there won't be some local opposition group that springs up that doesn't want a factory in their back yard. 

Reply

Spicoli

166 Comments

  • 476 Days Ago
  • 01/31/2012

Re: Cheap labour

What could you possibly do with 8500 engineers at one company?  Are they calling people polishing cases engineers?

Reply

leader95949

2 Comments

  • 478 Days Ago
  • 01/29/2012

Watching Big Brother

Isn't it time for the wonders of  digital technology to be employed to turn the tables and watch the employers on behalf of the workers?! Why couldn't CCTV cameras be installed on the factory floor and controlled by outside inspectors that would record worker/manager interactions and show when and how workers are being mistreated? In China, India and , yes, in the USA.

Reply

Curt2004

90 Comments

  • 477 Days Ago
  • 01/30/2012

Re: Watching Big Brother

It's called property rights.

It would have to be the government doing this and they are already the worst offender when it comes to invasion of privacy.

Reply

Spicoli

166 Comments

  • 477 Days Ago
  • 01/30/2012

Re: Watching Big Brother

It would be a good government job.  You could get all kinds of kick backs.  I'm not sure why people think working for the government makes people infallible.

Reply

CurtHowland

69 Comments

  • 476 Days Ago
  • 01/31/2012

Re: Watching Big Brother

Well said, Curt2004.

Most abuses can be traced to violations of property rights, especially by government with which there is no recourse.

The answer to practical problems can usually be found in better enforcement of the rights to individual property. Pollution is a great example of this.

Reply

leader95949

2 Comments

  • 475 Days Ago
  • 02/01/2012

Re: Watching Big Brother

Curt2004...don't think Big "Gubment", think umpires in baseball, watching both offense AND  defense or even better the Instant Replay.

My subject title is meant to suggest that the issue we have yet to tackle in all areas of our lives where we contract with each other and therefore have duties of disclosure is.... Transparency. That would, of course, include Government itself.

So, having a CCTV camera in the room when any government official is doing the People's Business is what will help keep Government from getting too intrusive into our lives with sneaky legislation like SOPA and PIPA.. Those CCTV tapes would belong to and be freely accessible by The People just as the transcripts  for sessions of Congress are.

It may sound preachy..but we must realize that if we fear government the game is lost. The govern,ent is Us or it must be made so that it expresses our Will.

Reply

Spicoli

166 Comments

  • 475 Days Ago
  • 02/01/2012

Re: Watching Big Brother

That sneaky legislation that was published like all other bills?  Requiring cameras would be like gun control laws.  Anyone that is trying to get away with something wouldn't follow the rules.  All the official debate is already published along with every piece of proposed legislation.  Cameras tend to cause the debate to morph into lowest common denominator theatrics rather than technical argument.  You can already see that in the laughable TV "debates" between candidates.

Reply

Bio

Hello World covers products that contain important new technologies.

David Zax has contributed to Fast Company, Wired, Smithsonian, The Wall Street Journal, Slate, and other publications.

He lives in Brooklyn, New York.

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