'Worker abuse' report dampens news that cheap Apple iPhone is on way
Apple's new cheaper iPhone really is on the way, likely with plastic cases in different colours - but the shine was taken off that story from California with report that a human-rights group had infiltrated the Chinese factory making the new iPhone - and found dozens of violations of labour rights, according to a report the group released Monday.
One vision of the coloured i-phone
Apple has moved swiftly to stop abuses, telling the Wall Street Journal, "We will not tolerate deviations from our code."
The group, by China Labor Watch, had said, "At this moment, in Shanghai, China, workers in Apple's supplier factory Pegatron are monotonously working long overtime hours to turn out a scaled-back, less expensive version of the iPhone."
It details six-day work weeks of 11-hour days with pay of $1.50 an hour, which adds up to a salary less than half the average of Shanghai residents.
China Labor Watch, also reported, said the San Jose Mercury News, that Pegatron used labor agencies that charged illegal fees and kept the ID cards of workers it recruited to block them from resigning, along with other violations such as unpaid overtime, underage workers and discrimination against certain ethnic groups. In all, China Labor Watch reported 86 labor-rights violations, with 36 of those breaking laws.
Apple issued its a statement to The Wall Street Journal after it published news of the report saying Apple had audited Pegatron facilities 15 times in the past six years, and determined in June that Pegatron workers had an average workweek of 46 hours.
The company also said that it had approached Pegatron immediately after China Labor Watch uncovered that workers' ID cards were being held and forced the employer to stop the practice, adding that new revelations will be investigated in special inspections this week.
"We will investigate these new claims thoroughly, ensure that corrective actions are taken where needed and report any violations of our code of conduct. We will not tolerate deviations from our code," Apple's statement read.
Pegatron also said it would investigate the findings.
China Labor Watch reported that the Pegatron facility was building the plastic backed device: "During the period of our investigation, Pegatron Shanghai had begun producing the cheap iPhone."
"Today's work is to paste protective film on the iPhone's plastic back cover to prevent it from being scratched on assembly lines. This iPhone model with a plastic cover will soon be released on the market by Apple," the undercover worker recorded in the report.
Reuters reported in June that Apple was discussing the introduction of a lower-priced, plastic iPhone in five or six colors with a starting price of $99.
Apple stock, which has fallen 45 percent from highs reached around the time of the iPhone 5 launch in 2012,was up 1.5 percent on Monday to $447.79.