Apple: Rotten to the Core?

Hi everyone!

As an Apple user, I was saddened and more than a little enraged to read an article in today's New York Times that documented the sub-standard and even fatal working conditions frequently found in the factories that supply and/or manufacture Apple electronics. The majority of these factories, perhaps not surprisingly, are in China where Western-based companies tend to look (there and Southeast Asia) for cheap labor.

The front-page article "In China, the Human Costs That Are Built Into an iPad" by Charles Duhigg and David Barboza cites numerous examples--from both former and current Apple employers and their suppliers--of situations where Apple has knowingly overlooked dangerous, if not illegal, conditions in these factories because the time it would take to improve the facilities would risk delaying the release of new Apple products.

One particular example of Apple's apparent disregard for the safety of its outsourced employees took place in Chengdu, China last May at an iPad factory. A series of explosions caused by a dangerous build-up of aluminum dust (a problem at many of these factories)  killed two workers on impact and injured more than a dozen others. A similar explosion at another iPad factory last year resulted in an equal number of deaths and injuries. Two years ago, the article states, 137 workers at another Apple supplier were sickened because they were asked to clean iPhone screens with a chemical known to be hazardous.

Not all of these conditions necessarily result in death, but are horrific nonetheless. In one factory, workers were forced to work 24-hour shifts without a break--and were then even asked to stay for an additional 24-hour shift to keep production flowing. Some of these workers suffered such severe swelling in their legs that they were unable to walk.

Depression is rife among these workers. One dormitory that houses employees of Foxconn, one of Apple's suppliers, had such a high rate of suicide attempts that its managers installed safety nets throughout the building to prevent workers from jumping.

According to the article, Apple does conduct audits of these factories and, since 2007, annually publishes the audit reports. These reports have shown widespread violations of Apple's code of conduct wherein more than half of the factories audited showed evidence that employees were working more than six days a week for less than minimum wage. In addition, audits have shown cases where suppliers have employed child laborers and then lied about their ages to avoid scrutiny. Other violations include employee record falsifications and mass exposure to dangerous chemicals that aren't properly disposed of.

Apple claims that it is doing all it can to minimize if not eliminate these problems. But many consultants who have worked with the company disagree. According to one, a consultant at BSR (Business for Social Responsibility) to whom Apple has twice turned to for counsel on labor issues: "We've spend years telling Apple there are serious problems and recommending changes. They don't want to pre-empt problems, they just want to avoid embarrassments."

A former Apple executive concurs: "If you see the same pattern of problems, year after year, that means the company's ignoring the issue rather than solving it. Non-compliance [at Apple] is tolerated, as long as the suppliers promise to try harder next time. If we meant business, core violations would disappear."

Because competition to land an Apple contract is fierce among these suppliers--and because Apple hires suppliers who charge the cheapest rates for their parts--there is demand to keep prices low. One supplier quoted in the article says that Apple frequently purchases its first order at one rate and then asks the supplier to further reduce their cost for all future orders. This results in a lowered bottom line for the suppliers which then reduces employee pay and, frankly, the ability to maintain safe working conditions at the factories. So what is the ultimate result?--more accidents like the one in Chengdu last May, more deaths.

The report is shocking but I'm not all that surprised by it. Sweatshops have always existed and will continue to exist as long as there is consumer demand, a cheap labor force, and corporate fat cats who care more about filling their pockets than human rights and basic decency. In the case of Apple, consumer demand is at an all-time high. They earned a record $46.2 billion in profits last year! Most people don't think about how or where their iPod, iPad, iPhone, or Macbook was manufactured. I certainly didn't, at least not until I read this article. But the really sad thing is, now that I know the chemical that was used to polish my iPod screen may have resulted in the premature death of some nameless Chinese worker, am I going to stop using it? Um...no. But it may make me think twice about whether or not to purchase an Apple product in the future.

I'll close with a quote from a current Apple employee that concludes the article: "...right now, customers care more about a new iPhone than working conditions in China."

It's sad, but oh so true. This is how technology has changed us. I'm afraid we've forgotten our compassion.

Ciao.