iPods: Made for kids, by kids

Summary: Apple's annual report has revealed that some of its suppliers have been breaching the company's "Supplier Code of Conduct" by using child labor and carrying out other dubious practices.

Apple's annual report has revealed that some of its suppliers have been breaching the company's "Supplier Code of Conduct" by using child labor and carrying out other dubious practices.

The most shocking of the revelations is that three factories responsible for manufacturing parts had 11 minors employed. These minors were 15 years old, but the minimum working age in the countries in question was 16.

Another 50 factories were found to be keeping workers on for longer than the maximum 60 hour work week, while another 24 were paying workers less than the minimum wage.

Other issues that were uncovered was that 39% of the factories involved in making Apple products weren't following correct safety regulations and only 43% didn't have the necessary environmental permits.

There's no word on the location of the factories that were found to be breaking the code of conduct.

The good news here for Apple is the fact that these discoveries were made as a result of Apple's own audits of facilities, which means that the company is taking its own code of conduct seriously. Also, as a result of this audit, the child laborers are no longer employed. However, it seems that all the factories discovered to be violating the code of conduct are still being used by Apple.

While Apple should be praised for carrying out the audits, it seem that the company is unable or unwilling to take a "follow the rules of lose the contract" approach. Given Apple's track record on supply chain issues, this is disheartening.

Topics: Banking, Apple, CXO, IT Employment

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62 comments
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  • Cheap Labor/Cut Costs - That's All that Counts

    Overseas cheap labor - "Outsource and Offshore", the mantra of American corporations. It saves huge amounts of money, but at what price? Just more greedy, shameful behavior. And not just Apple. There are many corporations who do the same thing.
    jpr75_z
    • Did you read the article?

      Yes Apple (along with many others) does out source its labor. Nothing new there. But they were not pocketing the price savings of the child labor. The manufacturing company was. Apple pays them X dollars for each iPod/iPhone made. But Apple has an extremely strict code of conduct which these other companies were breaking.

      Your statement of "Cheap Labor/Cut Cost - That's all that Counts" is more true for the manufacturing companies.
      Stuka
      • Um, so don't contract to countries where it happens.

        Oh yeah, that would cut into Apples profits. Never mind.
        No_Ax_to_Grind
        • profits

          you mean that would cut into the profits of all companies having
          suppliers there? or do you blame only apple?
          bannedfromzdnetagain
          • I agree, it happens with far too many companies

            No argument there.
            No_Ax_to_Grind
          • I see your point too.

            I mean, Apple supplies those companies because
            they're probably cheap and efficient. Even if they
            don't earn more money out of the cut labor costs
            for those companies, they still won't change the
            manufacturer because that would probably turn out
            to become a higher cost for them too.
            ZaiberVaireus
          • Including HP, Acer, Lenovo, etc...

            In other words, anything with "Made In China" slapped on to it.
            Wintel_BSOD
        • So, Apple should leave the US?

          Wal-mart was found to have hired employees underage in the US.

          I guess we don't want to have those jobs here in this country.
          nucrash
          • They left a long time ago. US is just a sales territory.

            And saying "the other kids did it" only works if you are 6 years old.
            No_Ax_to_Grind
          • 30.000

            only about 30.000 of the 35.000 apple employees work in the u.s.

            i know, never let the facts get in the way of an argument.
            bannedfromzdnetagain
          • @elllroy

            If Apple Inc. has any Shills, one would be you. As you say, it's disgusting.

            As far as facts getting in the way, it's only a fact if you can back it up.

            Let me help you: http://seekingalpha.com/article/115797-apple-inc-f1q09-qtr-end-12-27-08-earnings-call-transcript?source=front_page_transcripts&page=-1

            That backs up your claim of 35k employee's but it also states that lots of emoployee's are in at least 10 other countries, so I highly doubt that 30k employee's are in the US. Thats also early 09, after more research I found the Apple was set for layoffs and more were coming (didn't research what else happened). Refrence for this fact (try a refrence sometime yourself if you can) http://www.macworld.com/article/139365/2009/03/layoffs_enterprise.html

            Get some real facts and refrences then come back.
            Cobra7fac
          • facts

            thanks for the flowers...

            apple had a layoff? on which planet? apple is shuffling headcounts as
            any other company on a regular basis as they adjust their business
            strategies. two weeks ago 40 people from the final cut devision had to
            go. that is not a layoff. microsoft axing 5000 and more jobs to reduce
            costs - that is a layoff.

            most of apple's employees work in cupertino and their stores (most of
            the stores are in the u.s.). in addition to it apple has offices in 10
            more countries, most of them smaller (a few hundred people) and
            bigger ones in ireland and singapur. 30.000 in the us is a guess
            based on these facts. the exact number is not known, but it should be
            roughly 30.000 based on the number and size of offices and stores
            around the world and in the u.s.
            bannedfromzdnetagain
          • Nice strawman

            But that's a stupid, juvenile argument.

            Wal-Mart could be hiring underages in the US, but that's a US company hiring in the US. You slap them on the wrist, and make them stop. They're still hiring Americans.

            In these places overseas, these are jobs that SHOULD go to Americans. They're not, so not only are these companies undercutting us on our own products, with our own companies, and costing us our jobs, they're breaking the rules to do THAT.

            But from the looks of this, you're going to pick out one sentence in this three paragraph post, and nitpick it. You don't have much to say otherwise.
            superbus
          • Allow me to nitpick

            Apple is not breaking the rules. According to
            the posts by ellroy (who has reviewed Apple's
            report and linked to it) what Apple is doing is
            <i>enforcing the rules</i> on their
            subcontractors. Apparently - based on what
            those contractors' employees told Apple - Apple
            is the only one actually doing that.

            On to sentence number two: You can make the
            argument that US workers should be doing the
            jobs, I won't try to convince you otherwise.
            The facts of life are that we live in a global
            economy and global supply chains are to be
            expected. The best we can hope for is
            accountability.

            I never thought I would be doing this, but let
            me link to a comment by <i>honeymonster of all
            people</i> about this point. If you read a lot
            of ZDNet you will recognize Honey as someone
            who is not a big Apple fan but I think he puts
            the situation into perspective well.
            http://bit.ly/ciMzAT (link leads to comments on
            The Apple Core blog here on ZDNet)
            use_what_works_4_U
          • Well, yes.

            I agree with you 100% on point #1. Apple's doing a good job here. My issue with the comment I responded to was that that one person made a completely diversionary argument about something that had no effect on the conversation.

            Point #2... it sucks. This is a global economy, and by that happening, companies that stay 100% American are usually screwed. But that's a conversation for another time and place, really, as it's not the crux of the point.
            superbus
    • but

      How many of those other corps have the same mark up as Apple?
      Al_nyc
      • Well, to start off with.

        Microsoft has higher markups than Apple. And the Majority of their
        manufacturing is in fact done in China. You don?t believe that all those
        xboxes, mice, office suites, operating systems, etc. are made in the
        United States? Do you? It is a sad fact of life that American companies are
        only a shadow of their former self.
        Rick_K
  • There is nothing shocking about it !

    >> The most shocking of the revelations is that three factories responsible for manufacturing parts had 11 minors employed. These minors were 15 years old,

    If you have ever visited few developing countries and bothered to get out of the way that was paved for impressing tourists, and seen the harsh realities of life, you wouldn't feel it shocking to know that 15 year old kids are working in factories.

    Lot of these manufacturing companies hide the fact that minors are working for them. It has nothing to do with Apple or iPod. It is just that they bothered to do an audit by themselves and found out
    mKind
    • Shocking no, Disgusting yes! (nt)

      .
      No_Ax_to_Grind
      • I guess I'm not seeing what's shocking about

        A 15-year old sitting in a chair snapping computer components
        together. It's less dangerous than a paper route for crying out loud.

        But I guess we've all been indoctrinated into thinking that underage
        worker means a 6-year old crawling inside a stamping machine in 1905
        to clean out a jam.
        frgough