On Thursday, May 10, 2012, Apple and Foxconn, the company’s
main supplier, agreed to share the costs related to improving working
conditions in factories that make iPads and iPhones.
Background Information
Apple and Foxconn have garnered media attention in the past
months regarding working conditions in some of its Chinese factories. In April
2012, 200 employees threatened to commit suicide over low wages. The same
factory dealt with a similar threat in January 2012 when 300 employees threatened
to commit suicide over conditions related to working on Microsoft Xbox 360
consoles.
In January 2012, Apple entered into a partnership with the
Fair Labor Association (FLA). As part of the partnership, Apple must uphold the
FLA’s ethics code. Based on the FLA’s inspection of Foxconn, and now its
recommendations, Apple has to make improvement by July 1, 2013.
At this time, the companies have not disclosed the exact breakdown
of who will pay for what costs.
Concluding Thoughts
Apple had no choice but to publicly say it will remedy
conditions because of media attention, its relationship with the FLA and its
reliance on China to manufacture parts.
The improvements do not just benefit Apple and Foxconn. They
will benefit companies such as Dell and Amazon who also rely on the same worker
base and plants to manufacture parts.
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