Apple (AAPL) claims progress in supply chain, no child labor cases

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Apple Inc., which has been criticized for the behavior of its suppliers, has reported progress among its manufacturing partners during the tumultuous year of the coronavirus pandemic as it releases supply chain responsibility report.

The Cupertino, Calif.-Based company said the improvements included a reduction in major violations of its code of conduct and no cases of child labor. The 113-page report covers a range of issues, from the treatment of workers to energy use and infectious disease policies in the aftermath of Covid-19. He cited several examples of suppliers failing to meet their obligations and comply with Apple’s working time policy.

The company also stopped providing specific addresses for supplier facilities in the last list of the subcontractors he works with, information he provided in the past for transparency purposes.

During the pandemic year, Apple conducted 1,121 assessments in 53 countries, covering suppliers and assemblers as well as foundries and refiners. The company interviewed 57,618 workers to confirm their experience matched what management had reported and followed up with the majority of them to ensure there was no retaliation. It has also performed over 100 assessments without prior notice to the supplier.

After discovering a case of underage labor in 2019, the company reported no such case in 2020. However, it did find a case where a “supplier misclassified student workers in its program and falsified documents. to cover up violations, “including allowing students to work nights and work overtime. Apple placed the supplier on probation and suspended “Apple’s new business until it has completed all required corrective actions.”

In November, Apple announced that it has suspended new business with iPhone assembler Pegatron Corp. after discovering labor law violations in a student worker program.

Apple freezes new business for Pegatron over labor abuse in China

In 2020, Apple rejected 8% of potential suppliers – covering both new suppliers and new installations from established partners – due to potential compliance concerns. The company said it was 93% in compliance with its working time code, which stipulates that working weeks should not exceed 60 hours and that overtime should in all cases be voluntary.

Apple’s most serious code of conduct violations fell to nine cases in 2020, up from 17 in 2019 and a significant improvement from 48 in 2017. Seven of the most recent cases related to working hours or tampering labor data, one was a sewage violation. and another was an air emissions offense.

An Apple supplier, Ofilm Group Co., has been criticized for allegations that it is involved in a Chinese government program that transfers ethnic minorities from Xinjiang to other parts of the country for work. Bloomberg News reported in March that Apple had severed ties with Ofilm.

Apple should cut that of China Ofilm On the work of Xinjiang

Six iPhone manufacturing plants reduced their power consumption by 20% in 2020 compared to 2017. Apple said it was developing similar initiatives to improve the production efficiency of its other popular products.

Apple has trained 21.5 million supplier employees on their rights since 2008, and over the past year it has started developing a mobile platform to deliver such training directly to workers’ phones. The training will be given in their mother tongue. Apple also convinced suppliers to take 3,173 actions to respond to feedback collected by surveypeeping their employees – this included adding shuttles, reducing work-related grievance response times, and increasing bonuses. “

In one case, Apple claimed it pressured a supplier to reimburse workers for recruiting fees they paid to employment agencies, a practice prohibited by Apple standards. The contractor agreed to reimburse nearly $ 3.4 million to 10,570 workers and put in place systems to stop such behavior in the future.

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