China Labor Watch says Apple makes big profits but Chinese workers' wage are on the slide
NEW YORK, Aug. 25, 2016 /PRNewswire-USNewswire/ -- Along with Apple's decline in profits, the working conditions in Apple's suppliers have also deteriorated, according to an investigation by China Labor Watch on Apple's supplier Pegatron Shanghai in the past year. The investigation includes a collection of 2015 Pegatron workers' paystubs in one year, workers' interviews and in-factory investigations.
Our investigation reveals:
- In 2015, workers' hourly wage was $1.85 USD. In 2016, workers' hourly wage increased to $2.00 USD. After deductions, this amounts to only $1.60 USD.
- Of the 2015 paystubs, 62% had over 82 hours of overtime work per month. One worker put in 109 hours of overtime work per month, working 293 hours in total.
- Chinese law forbids companies from asking interns to work overtime, however, interns at Pegatron had overtime work amounting to 80 hours per month on average. This is roughly the same amount as full-time employees.
- Workers must rely on overtime pay to support themselves as the base wage is too low. Workers who don't work overtime only earn around $213 USD after deducting expenses.
- Workers in most production lines must arrive at work 10 minutes earlier than the regular schedule, but the 10 minutes are unpaid.
- Workers spend about 60 minutes each day, passing through the security procedures and ID Checks before entering the workshop. This encroached on workers' rest time.
- The factory forces workers to work overtime. Asking for leave during peak season is usually not approved.
- Workers are exposed to potential occupational injuries without proper protection.
Improvements require a certain amount of economic cost and Apple has up to $233 billion USD in cash reserves. Therefore, they have the ability to improve labor rights. Executive Director of China Labor Watch, Li Qiang states: "Currently, Apple is hindering the improvement of labor conditions within the whole smartphone industry. Apple alone claimed more than 90% of the smartphone industry's aggregate profits, while a majority of other firms were operating at a loss. If Apple does not take on responsibility commensurate with its status, other companies will not have the ability to make improvements either."
Through comparing Apple's profits with workers' wages, our investigation reveals that Apple is the real source behind the issues surrounding the mistreatment of Chinese workers.
SOURCE China Labor Watch
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