Apple Rivals Silent on Supply Chain Issues

International Herald Tribune

April 10, 2012

Apple’s rivals are quick to say how much better, faster, cheaper or more popular their smartphones, computers and tablets are. Yet when it comes to working conditions in the Chinese factories that build these competing products, Apple’s electronics rivals have been silent lately.

In recent months, Apple has come under heavy scrutiny for working conditions in the overseas factories it uses, specifically those of Foxconn, the Taiwan contract manufacturer of electronics. Amid criticism it had not been vigilant enough, Apple announced it would use the Fair Labor Association, an independent auditor, to review the manufacturing plants it uses and to identify publicly the factories where worker abuses had taken place.

Apple, no paragon of communication, has been publishing reports of the practices of its vendors since 2007, and after numerous requests by advocacy and news organizations, it eventually shared the names of 156 direct suppliers. It has pledged to go “deeper into the supply chain” in its own published audits.

Over the space of a week, I asked Hewlett-Packard, Samsung, Microsoft and others about their reports on labor conditions. Most responded with a boilerplate public relations message. Some did not respond.

The answer from Barnes & Noble, the maker of the Nook e-reader, was typical. Mary Ellen Keating, a senior vice president, said only, “We don’t comment on our supply chain vendors.” Lenovo emailed a general report on sustainability. Samsung, which sells more cellphones than Apple, gave no response.

Although some technology companies, such as Microsoft, share some information about their audits, none go into detail about the violations they find inside specific facilities. Microsoft, which says it works with the Fair Labor Association to perform worker surveys, says it conducts regular audits of its supplier factories and takes “corrective action” where necessary. The reports are made public, but they are summarized.

Amazon, maker of the Kindle e-reader, declined to comment specifically about worker conditions in the factories of its suppliers, which include Foxconn, but it pointed to a section of its site that mentions audits by a third party, which are not made public.

David Frink, a senior public affairs manager at Dell, said the company was assisting Foxconn to “improve the wages and reduce overtime hours” of its factory workers. A report on Hewlett-Packard’s website details working conditions from 2010 but has not been updated since. In the detailed report, the company notes that more than 51% of the factories it works with were in violation of working-hour labor laws.

Foxconn has vowed to fix problems the Fair Labor Association disclosed for its facilities, including reducing worker hours and increasing pay.