Apple made zero-profit deal with Foxconn, say activists

Summary:A Hong Kong-based worker rights activist group has written an open letter to Apple chief Steve Jobs regarding working conditions at the Foxconn plant

Apple secured a 'zero profit' deal to receive iPhones from Chinese technology manufacturer Foxconn, according to a worker rights activist group, which has linked the factory's poor wages and working conditions with a number of young worker suicides.

Apple, the world's biggest technology company by market capitalisation, and Foxconn made headlines after a number of young workers committed suicide, which labour groups and unions have attributed to the long hours of repetitive work for very low income.

"Industry sources suggest that Apple awarded 2009 iPhone orders to Foxconn when Foxconn agreed to sell parts at 'zero profit'," Hong Kong-based Students and Scholars Against Corporate Misbehavior (SACOM) wrote in an open letter to Apple chief Steve Jobs. "Under the direct pressure of Apple and other buyers, Foxconn pays production line workers at its Shenzhen plant only 900 yuan (£90) a month for a 40-hour week. This subsistence level wage is not enough to meet workers' needs and compels workers to work up to 100 hours of overtime a month."

For more on this story, see Foxconn makes no profits on iPhones: activists on ZDNet Australia.

Topics: IT Employment


Mahesh Sharma earned his pen licence in his homeland, where he covered the technology industry for ZDNet, SMH, Sky Business News, and The Australian--first as an FTE, and later as a freelancer. The latter fueled his passion for startups and empowered a unique perspective on entrepreneurs' passion to solve problems using technology. Armed... Full Bio

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