Apple uncovers labour violations in supply chain

SAN FRANCISCO — Apple has uncovered labour violations in its supply chain, including the use of underage workers and abuses of migrant labourers lured by recruiters to work in factories making its devices.

Apple conducted 451 reviews of multiple levels in its supply chain covering facilities where nearly 1.5 million people work, according to its eighth annual internal audit.

The report reveals the behind-the-scenes work that goes into making the company’s gadgets, from the mining of minerals used in components to assembly lines in China where a final product is put together.

Apple sold a record 150.3 million iPhones and 71 million iPads in its latest fiscal year, putting pressure on suppliers such as Foxconn Technology Group to manufacture enough devices fast enough to keep up with demand.

Apple said it found 23 workers who were under the age of 16 when hired, a drop from last year when 74 children were found to be employed by one manufacturer. The facilities that employed the children in 2013 did not have adequate policies to catch falsified documents, Apple said.

Discrimination of women was found at four facilities, which Apple said conducted pregnancy tests.

Apple also addressed the issue of student workers in supplier factories, requiring that internships match educational goals and working hours do not conflict with class attendance. Foxconn, Apple’s largest supplier, said in October that it is investigating practices at one China plant after finding instances of interns working night shifts and overtime.

Apple said it is working with Stanford University and PC-maker Dell to evaluate the education and internships of more than 12,000 students from over 130 schools to track the quality of education for interns, it said in yesterday’s report.

The company also found several instances of workers being tricked into paying excessive fees to recruiters in exchange for a job with its suppliers. The workers, typically from Cambodia, Indonesia, Myanmar and Vietnam, are then forced to work to pay off the debt, a violation of Apple’s policies that limit how much money recruiters can collect. BLOOMBERG