Apple Share Price: Alleged Labour Violations at Chinese iPhone Plant

on Sep 6, 2013
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iNVEZZ.com, Friday, September 6: China Labor Watch published yesterday a report claiming labour violations at a factory in Wuxi, China which manufactures components for Apple Inc’s (NASDAQ:AAPL) new low-cost iPhone. The plant is owned by a Florida, US-based company, Jabil Circuit Inc.

After the report came out, Apple said that it had already dispatched a team to the facility in question to investigate the claims in the report. In today’s pre-market trading, Apple shares were up 0.44 percent at $497.44 as of 10:55 BST.

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**Labour violations claims**
China Labor Watch, a non-profit organisation founded in 2000, alleged that during an undercover investigation it had found “a series of ethical and legal labour violations” in the manufacturing facility. Amongst the transgressions were millions of dollars in unpaid overtime wages, forced overtime – three times in excess of legal limits, hiring discrimination, and overcrowding. Additionally, workers were required to work standing up for more than 11 hours a day and required supervisor permission to use the toilet.

“Apple’s products are manufactured at the expense of Chinese workers, labouring in factories owned by Taiwanese, Hong Kong, and, in the case of Jabil, U.S.-owned companies,” China Labor Watch said in the report.
**Damaging the image**
CLW’s report is an embarrassment for Apple, which has faced numerous allegations of worker abuse in its supply chain in recent years and has been working on improved work conditions at its outsourced manufacturing plants.

!m[China Labor Watch: Apple products manufactured “at the expense” of Chinese workers](/uploads/story/5320/thumbs/pic1_inline.png)
“We take any concerns about our suppliers very seriously, and our team of experts is on-site at Jabil Wuxi to look into the new claims about conditions there,” Bloomberg quoted Kristin Huguet, a spokeswoman for Apple, as saying. Huguet continued: “Jabil has a proactive auditing program of their own and they have an excellent track record of meeting Apple’s high standards.”

Jabil also issued a statement, saying that it had sent an audit team to investigate the claims. The company professed its commitment to “ensuring every employee is provided a safe working environment where they are treated fairly, with dignity and respect”.
Jubil owns 60 manufacturing plants in 33 countries and has a turnover of $17 billion.
**As of 12:10 BST buy Apple shares at $498.25**
**As of 12:10 BST sell Apple shares at $497.52**

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Apple Share Price to Rise on New Products Apple Share Price: New iPhones to Make Debut at Cupertino Event

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