Apple In The Middle Of Another Sweatshop Labor Dispute
Does Apple have another PR nightmare on its hands thanks to flat-panel supplier Wintek? The manufacturer is being accused of exploiting workers and providing unacceptable labor conditions in Taiwan and China, and local labor groups are putting pressure on Apple to do something about it.
Story from Ars Technica
Apple may have found itself in the middle of another labor dispute in Asia. Wintek, a manufacturer of flat-panel displays that often supplies parts to Apple, has been accused by local labor groups of exploiting workers in its Taiwanese and Chinese factories. The groups are now putting pressure on Apple in the hopes of resolving the issue sooner than later.
Wintek allegedly fired a number of workers after 7,000 employees protested poor working conditions in April (PDF). Additionally, Wintek supposedly cut workers' salaries (sometimes without notice or negotiation) and stopped paying benefits, and forced workers to work unpaid overtime. When the company decided to lay off more than 700 workers, workers claim that it targeted pregnant women and veteran employees, immediately hiring on cheaper staff to replace them.
The Taiwan-based National Federation of Independent Trade Unions says Apple should do something about Wintek's actions because Wintek is in violation of Apple's Supplier Code of Conduct. Apple requires its suppliers to compensate workers for overtime hours at the "premium rate required by applicable laws and regulations;" provide workers with clean toilet facilities, access to water, and sanitary food; and give "fair treatment" to employees.
"We want to go through Apple to put pressure on Wintek," Taiwan-based National Federation of Independent Trade Unions secretary general Chu Wei-li told the GlobalPost.
Wintek, however, insists that it hasn't done anything wrong and that layoffs were required due to the recent economic downturn. The company says that it gave compensation packages to laid off employees and that all of its policies are in line with local laws and code of conduct agreements. Still, Wintek doesn't take kindly to anyone talkin' trash. "We hope ... certain persons or groups do not [make] unfounded allegations to harm Wintek's reputation and affect the normal business activities of a law-abiding company," Wintek spokesperson Susie Lee told GlobalPost. "Wintek shall take relevant necessary steps including legal action in order to protect company and stakeholders interests."
This isn't the first time such a complaint has become a thorn in Apple's side. In 2006, Apple was heavily criticized for the conditions of the Chinese factories owned by Foxconn, Apple's iPod manufacturer. Foxconn first denied the sweatshop claims, but Apple launched an investigation anyway, forcing Foxconn to admit that it had broken some of China's labor laws. Apple did eventually release its official report on the iPod factory conditions, noting that Foxconn had indeed violated some of the company's Code of Conduct. Foxconn agreed to make changes immediately in order to better comply.
Whether Wintek violated labor laws in China and Taiwan remains to be seen, but at the very least, things aren't looking very rosy. If the Wintek situation blows up to something bigger than it already is, Apple will need to pull out its magic wand and make it all better before the companies supposedly partner up to debut the ever-mythical Apple netbook.
