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Cutting the human cost of technology

child labour

By Nicole Kobie

Posted on 7 Sep 2010 at 11:21

Apple has had a bumper year of iPad and iPhone sales, but a string of suicides and tales of terrible working conditions have cast a shadow over its success.

Since the beginning of this year, ten factory workers have died after throwing themselves off the roof of the Foxconn facility in Shenzhen, China, which manufactures for Apple as well as for HP and Dell.

Microsoft and other tech firms also came under fire this year after a report showed the China-based KYE factory, which manufactures some Microsoft – branded peripherals, had children as young as 14 working 15-hour shifts in silence without breaks for just 65¢ an hour.

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“We are like prisoners,” one worker told the National Labor Committee, the charity that published the report. “We do not live a life, only work.”

Both firms have promised investigations, with Apple’s Steve Jobs saying: “We are all over this.” But what can actually be done?

“Many of the big electronics brands have codes of conduct that state that their suppliers should respect workers’ rights, but the implementation is quite a difficult task,” admits Irene Schipper, a researcher at campaign group makeITfair. She said many tech firms have joined forces to create working groups to produce codes of conduct.

Teaming up also means competing companies can take action at the same time, making pricing pressures less of an issue, explains Randall Weston, a supply chain expert with Gartner.

Auditing and investigating

One such group is the Electronics Industry Citizenship Coalition (EICC), which produces a code to “improve working and environmental conditions”. Admirable goals, but it’s questionable how well it’s enforced, given that the EICC counts among its members Apple, Microsoft and even Foxconn.

So membership isn’t enough; companies need to ensure enforcement. Apple produces an annual CSR report detailing the hundreds of annual audits it takes of its partner factories, but hasn’t released details of its plans for Foxconn.

Microsoft promised to have auditors at the KYE plant the week after the report was released. But months on, the firm hasn’t yet made any results public. A spokesperson sent this statement to PC Pro: “Microsoft takes these types of claims seriously, and takes appropriate measures in regard to any findings of vendor misconduct.”

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User comments

For very high tech products like iPhones the assembly cost is often

By milliganp on 7 Sep 2010

PC Pro posting system not working - Again!

What I posted was:-
For very high-tech products like iPhones, Tablet PCs &c the labour cost is only .5%-1% of manufacturing cost. Thus ethical products do not have to cost 10% more. Weston says most people won't pay 10% more but 1% to 2% more is only £5-£10 for a laptop -and less for a phone. I would happily pay up to 5% more for a product with a meaningful assurance behind it.
At 5% uplift we could start making this stuff in the UK ans support our own economy too.

By milliganp on 7 Sep 2010

Scale

While 10 people committing suicide in a company sounds a lot, if you work in a company with 50 employess, or even a thousand, the scale of the Chinese factories puts this into perspective.

The factory has a "population" near the size of Birmingham, how many people have committed suicide in Birmingham, since the start of the year?

I agree, an investigation into the working conditions is warranted, especially with minors doing shift work, and 15 hours shifts are also bad (that said, what shifts do student doctors in the UK work? 48 hours?).

So long as consumerism increases in the West and nobody is prepared to pay realistic prices for satiate their addiction to tech, the situation isn't really going to change.

By big_D on 8 Sep 2010

Thus ethical products do not have to cost 10% more

Except....
all the people in the chain will work on percentages. If you are having to employ more capital (to pay 'fair' prices), you need to make the same return or it will be less/not worthwhile.
It would be cheaper if pricing remained the same but the retailer offered to send a 'donation' to the employees (like airlines adding carbon-offset to your fare), so your 1-5% extra really does get through.

Alternatively companies could get out of countries where 'individuals' do not exist, so do not need rights.

By davidsoap on 8 Sep 2010

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