Apple has partially suspended its cooperation with Pegatron after the Cupertino-based company uncovered labor rights violations in China.
The news channel Bloomberg has confirmedthat Apple has temporarily suspended its cooperation with Pegatron in part because of labor rights violations. The supplier is said to have falsified documents to cover up violations of Apple's supplier code of conduct. The Taiwanese manufacturer misclassified student workers, allowing some of them to work nights and overtime. The employees then reportedly made "extraordinary efforts" to cover up the violations. Apple told Bloomberg:
Apple supplier: Pegatron has also already commented on this
Pegatron misclassified student assistants in its program and falsified paperwork to conceal violations of our Code, including allowing students to work nights and/or overtime and, in some cases, to perform work unrelated to their major. The individuals at Pegatron responsible for the violations went to extraordinary lengths to evade our oversight mechanisms.
Pegatron said the violations occurred at its Shanghai and Kunshan campuses in eastern China and that students working night shifts, overtime and in positions unrelated to their majors "did not comply with local rules and regulations." Pegatron has since fired the manager who oversaw the student worker program. The Pegatron statement said:
Upon discovery of this non-compliant activity, we immediately removed the student workers from production lines and worked with our clients and outside experts to make appropriate arrangements to enable them to return to their homes or schools with appropriate compensation and the necessary support and care.
Apple supplier: Not the first violation
Apple has put Pegatron on probation over the violations, and while the supplier's current iPhone business is not expected to be affected, it may lose some iPhone 12 orders to Luxshare next year. This is not the first time Pegatron has been accused of employee abuse. A 2013 report by China Labor Watch found evidence of unpaid overtime and underpayment of student workers at Pegatron's Shanghai assembly plant. Other companies in Apple's Chinese production chain, including Foxconn and Catcher Technology, have also flouted local regulations in the past, forcing Apple to tighten standards and review the companies that make components for the devices. Have you already discovered the early Black Friday offers on Amazon? It's worth being quick. (Image: Apple)
