For the past months, Apple is at the heart of a controversy about its subcontractor manufacturer Foxconn iPhone, MacBook and iPad , accused of making its employees work in China in inhumane working conditions.
Shaken by accusations of reviving old debates, whose cause was the daily New York Times denouncing excessive hours of work, Tim Cook has therefore commissioned independent association Fair Labor Association, an audit in the Shenzhen factory to resolve different problems. The report is expected in spring. Note however that it would seem that these inspections were already scheduled before the lighting of the case.
It is true that for multinationals, China is one of the most attractive countries with respect to the cheap labor , but it is important for large companies to monitor the activities of its subcontractors, not only on the quality of manufactured products but also on working conditions (Foxconn employees are sometimes very young, some employees would handle highly dangerous products unprotected risking their lives and health conditions would be catastrophic). It is in the interests of Apple and its image to stop the controversy. Obviously, it is also unusual to exploit people regardless of their physical integrity. Of wage increases of up to 25% have already been implemented and possible overtime by employees has been limited.
However, up to one quarter the salary of staff Foxconn over a million employees will certainly have a significant impact on the manufacturing costs of existing equipment and of course the upcoming iPhone, the iPhone 5. We know in advance that the price of the iPhone 4S will not be impacted by rising production costs, but it is anticipated an additional cost on the next model of the apple sizeable Apple will not take his expense if it does not want its margin decline. Buying the iPhone 5 could therefore cost significantly more than expected.
What is the best according to you: pay less for iPhone 5 to the detriment of workers in China or accept without flinching to pay more?
Shaken by accusations of reviving old debates, whose cause was the daily New York Times denouncing excessive hours of work, Tim Cook has therefore commissioned independent association Fair Labor Association, an audit in the Shenzhen factory to resolve different problems. The report is expected in spring. Note however that it would seem that these inspections were already scheduled before the lighting of the case.
It is true that for multinationals, China is one of the most attractive countries with respect to the cheap labor , but it is important for large companies to monitor the activities of its subcontractors, not only on the quality of manufactured products but also on working conditions (Foxconn employees are sometimes very young, some employees would handle highly dangerous products unprotected risking their lives and health conditions would be catastrophic). It is in the interests of Apple and its image to stop the controversy. Obviously, it is also unusual to exploit people regardless of their physical integrity. Of wage increases of up to 25% have already been implemented and possible overtime by employees has been limited.
However, up to one quarter the salary of staff Foxconn over a million employees will certainly have a significant impact on the manufacturing costs of existing equipment and of course the upcoming iPhone, the iPhone 5. We know in advance that the price of the iPhone 4S will not be impacted by rising production costs, but it is anticipated an additional cost on the next model of the apple sizeable Apple will not take his expense if it does not want its margin decline. Buying the iPhone 5 could therefore cost significantly more than expected.
What is the best according to you: pay less for iPhone 5 to the detriment of workers in China or accept without flinching to pay more?
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