Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China Sarah Puspa Sari Magister Ilmu Hubungan Internasional. Universitas Katolik Parahyangan E-mail: sarah_ps@unpar. Abstract: In 2010 there is several news about suicides at Foxconn's factory in Shenzhen. China, a plant that that assembles iPhones, iPods, and iPads for Apple. In order to fix this sweatshop practice in its chain. Apple make affiliates with independent labor monitoring organizations engaged by the Fair Labour Association (FLA) as participating company. In FLA charter stated that the member should adopted a AuWorkplace Code of ConductAy. The FLA Workplace Code of Conduct defines labor standards that aim to achieve decent and humane working conditions. FLA conducts independent assessments of a random sample of companies' supplier factories such as the three Foxconn facilities in Longhua. Guanlan and Chengdu to investigates the situation in Foxconn. Based on the assessment. FLA founded that the condition in Foxconn's factories, there is several violation on FLA Code Standard. FLA has made a series of recommendations to Apple and Foxconn, which is in immediate action required and sustainable remediation required. Thus. Apple released Supplier Responsibility Standards to make a standard for its own supply chain including Foxconn to meet several acquirements in order to prevent sweatshop's practice. Keywords: Labour. Fair Labour Association. Suplier Resposibility Standards. Code of Conduct. Foxconn. Abstrak: Pada tahun 2010 ada beberapa berita mengenai bunuh diri yang terjadi di pabrik Foxconn. Shenzhen. China, pabrik yang yang merakit iPhone, iPod dan iPad untuk Apple. Dalam rangka untuk memperbaiki praktek sweatshop ini dalam rantai produksinya. Apple membuat afiliasi dengan Fair Labour Association (FLA), organisasi independen dalam pemantauan tenaga kerja. Dalam piagamnya. FLA menyatakan bahwa seluruh anggota harus mengadopsi "Kode Etik Kerja". Kode etik kerja mendefinisikan standar perburuhan yang bertujuan untuk mencapai kondisi kerja yang layak dan FLA melakukan penilaian independen sampel acak dari pabrik pemasok perusahaan, seperti tiga fasilitas Foxconn di Longhua. Guanlan dan Chengdu untuk menyelidiki situasi di Foxconn. Berdasarkan penilaian. FLA menyatakan bahwa ada beberapa pelanggaran pada kode etik kerja di pabrik-pabrik Foxconn. FLA telah membuat serangkaian rekomendasi kepada Apple dan Foxconn, yang diperlukan tindakan segera dan perbaikan berkelanjutan. Dengan demikian. Apple merilis Supplier Responsibility Standards untuk membuat standar dalam rantai pasokan produksi termasuk Foxconn untuk memenuhi beberapa kriteria untuk mencegah praktek sweatshop ini. Kata Kunci: Buruh. Fair Labour Association. Supplier Responsibility Standards. Kode Etik Kerja. Foxconn. Worldwide attention thus concentra- China, have linked the suicides with the ted on Foxconn, a Taiwanese-owned inter- global sweatshop issue. From their point national operation that assembles iPhones, of view, the deceased represent a group of iPods and iPads for Apple, and produces Chinese migrant workers who travel from electronic components for Hewlett-Packard, rural areas to coastal cities to work in Fox- Dell. Sony. Nokia, and Nintendo. Activist conn factories for better life. Nevertheless, scholars particularly those from the US and most workers end up suffering minimal 2748704026204575267603576594936?mg=reno64 -wsj&url=http://online. com/art icle/SB10001424052748704026204575267603 html accessed on October 15th, 2014. Jason Dean. AuSuicides Spark Inquiries : Apple. H-P to Examine Asian Supplier After String of Deaths at FactoryAy. The Wall Street Journal. May 27, 2010. http://online. com/news/articles/SB1000142405 Sarah Puspa Sari. Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China salaries and harsh working environments. Companies accountable for monitoring At least 16 workers have taken their lives 100% of their own supply chains to ensure since the beginning of 2010 at Foxconn's that they meet FLA labor standards. factory in Shenzhen. China, a plant that employs hundreds of thousands of workers. assessments of a random sample of Another three have attempted to kill companies' supplier factories such as the themselves at the job site. Most of the Guanlan and Chengdu to investigates the buildings, leading the company to promise situation in Foxconn. This was action plan to install "suicide nets" to discourage Apple and Foxconn created in response to employees from jumping and announcing it the sweatshop accusation. Thus, through would offer a 20 percent wage increase to this paper the writer want to answer a some workers. Foxconn parent company, research question about AuHowAos AppleAos Hon Hai Precision Industries has been role through FLA in fixing FoxconnAos repeatedly accused of forcing employees to Sweatshop in China?Ay. FLA Foxconn Longhua, work long hours for low pay under stressful In order to fix this sweatshop ILO Declaration Fundamental practice in its chain. Apple make affiliates Principles and Rights at Work In order to understand sweatshop, organizations engaged by the Fair Labour first of all we must understand about Association principle in labor, which is root in ILO (FLA) Companies that have committed (International to FLA have to work with FLA to develop Declaration that covers four fundamental and improve social compliance systems that principles and rights at work. flag issues and lead to sustainable solutions ) Freedom of association and the when workers are at risk. Companies join effective recognition of the right to the FLA on a voluntary basis, but they must collective bargaining. meet strict labor standards for as long as The freedoms to associate and to bargain they are affiliated. FLA holds Participating collectively are fundamental rights. They Jay Greene. AuRiots, suicides, and other issues in Foxconn's iPhone factoriesAy. Cnet. September 25, http://w. com/news/riots-suicidesand-other-issues-in-foxconns-iphone-factories/ accessed on May 3rd, 2014. Kabir Chibber. AuFoxconn: 'Hidden dragon' out in the openAy. BBC News. September 24, 2012. ttp://w. com/news/business-19699156 accessed on May 29th, 2. Labor Organizatio. Final Foxconn Verification Status Report. Fair Labor Association. December 12, 2013. ttp://w. org/report/final-foxconnverification-status-report accessed on May 3rd, . AuILO Declaration on Fundamental Principles and Rights at WorkAy. International Labour Organization, . ttp://w. org/declaration/lang-en/index. htm accessed on May 3rd, 2. Sarah Puspa Sari. Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China are rooted in the ILO Constitution and the exploitation can occur in many forms. But Declaration of Philadelphia annexed to the forced labour . o use a short comprehensive ILO Constitution. Their core value has been ter. is something quite distinct. It occurs reaffirmed by the international community, where work or service is exacted by the notably at the 1995 World Summit on State or individuals who have the will and Social Development in Copenhagen and in power to threaten workers with severe the 1998 ILO Declaration on Fundamental deprivations, such as withholding food or The land or wages, physical violence or sexual recognition of the right to collective abuse, restricting peoples' movements or bargaining is the key to the representation locking them up. The ILO Declaration on of collective interests. It builds on freedom Fundamental Principles and Rights at Work of association and play an important role in obliges member States to eliminate forced enhancing enterprise performance, managing A work relationship should be change and building harmonious industrial freely chosen and free from threats. Collective bargaining is a way of ) Effective abolition of child labour. attaining beneficial and productive solutions Children should given to enjoy the same to potentially conflictual relations between human rights. But, lacking the knowledge, employersAo and workersAo. Its potential as experience or physical development of a powerful tool for engagement between adults and the power to defend their own employersAo and workersAo organizations to interests in an adult world, children also address economic and social concern. The have distinct rights to protection by virtue right of workers and employers to establish of their age. One of these is protection from their independent organizations is the basic economic exploitation and from work that prerequisite for collective bargaining and is dangerous to the health and morals of social dialogue. The right to strike has been children or which hampers the child's recognized internationally as a fundamental right of workers and their organizations. ) Elimination of discrimination in ) Elimination of all forms of forced or respect of employment and occupation. compulsory labour. Discrimination at work can occur in many Principles and Rights at Work. Economic circumstances can drive people to give away their freedom, and labour AuFreedom of association and the effective recognition of the right to collective bargainingAy. International Labour Organization, . ttp://w. org/declaration/principles/fre edomofassociation/lang--en/index. htm accessed on May 3rd, 2. AuElimination of all forms of forced or compulsory labourAy. International Labour Organization, . ttp://w. org/declaration/principles/eli minationofchildlabour/lang--en/index. htm accessed on May 3rd, 2. AuEffective abolition of child labourAy. International Labour Organization,1998. //w. org/declaration/principles/abolitionofchil dlabour/lang--en/index. htm accessed on May 3rd. Sarah Puspa Sari. Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China different settings, from high-rise office society organizations, and businesses. buildings to rural villages, and in a variety of forms. It can affect men or women on the adherence to international and national basis of their sex, or because their race or labor laws. The FLA was established in skin colour, national extraction or social 1999 and evolved out of a task force origin, religion, or political opinions differ created by President Bill Clinton following from those of others. Often countries decide a series of child labor and other sweatshop to ban distinctions or exclusions and forbid scandals involving major apparel and discrimination on other grounds as well, footwear brands. such as disability. HIV status or age. In FLA charter stated that the Discrimination at work denies opportunities member should adopted a AuWorkplace for individuals and robs societies of what Code of ConductAy. The Code gives a those people can and could contribute. Discrimination in employment or occupation Employment Relationship. Nondiscrimina- may be direct or indirect. Direct discrimina- Harassment or Abuse. Forced Labor tion exists when laws, rules or practices Freedom of Association and Collective explicitly cite a particular ground, such as Bargaining. Health. Safety and Environme- sex, race, etc. to deny equal opportunities. Hours of Work. Compensation. Indirect discrimination occurs where rules FLA believe to set standards that aim to or practices appear on the surface to be achieve decent humane working conditions. neutral but in practice lead to exclusions. The CodeAos standars are based on internati- onal Labor Organization standars and Fair Labour Association (FLA) Apple responded this issue through The FLA provides a model of the Fair Labor Association to conduct collaboration, accountability, and trans- special voluntary audits of AppleAos final parency and serves as a catalyst positive change in workplace conditions. suppliers, including Foxconn factories in Shenzhen and Chengdu. China, at AppleAos The Labor continuous improvement, the FLA strives Association (FLA) non-profit to be a global leader in establishing best Fair collaborative effort of universities, civil AuElimination of discrimination in respect of employment and occupationAy. International Labour O r g a n i z a t i o n , 1 9 9 8 . h t t p : / / w w w. org/declaration/principles/eliminationofdiscrimi nation/lang--en/index. htm accessed on May 3rd. AuHistoryAy. Fair Labor Association. ttp://w. org/history accessed on September 30th, 2. AuCharter Document Fair Labor AssociationAy,Fair Labor Association. As Amended. February 12, 2014. ttp://w. org/sites/default/files/fla_cha rter2-12-14. pdf accessed on September 30th, 2. Sarah Puspa Sari. Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China Child Labor treatment of workers, and in promoting No person shall be employed under the age of 15 or under the age for workers earn fair wages in safe and healthy completion of compulsory education, whichever is higher. Employment Relationship Freedom of Association and Collective Employers shall adopt and adhere to Bargaining rules and conditions of employment that Employers shall recognize and respect respect workers and, at a minimum, the right of employees to freedom of safeguard their rights under national and association and collective bargaining. international labor and social security Health. Safety and Environment laws and regulations. Employers shall provide a safe and Nondiscrimination healthy workplace setting to prevent No person shall be subject to any accidents and injury to health arising out discrimination in employment, including of, linked with, or occurring in the course of work or as a result of the discipline, termination or retirement, on the basis of gender, race, religion, age. Employers disability, sexual orientation, nationality, measures to mitigate negative impacts political opinion, social group or ethnic Harassment or Abuse employersAo Hours of Work Every employee shall be treated with Employers shall not require workers to respect and dignity. No employee shall work more than the regular and overtime be subject to any physical, sexual psych- hours allowed by the law of the country ological or verbal harassment or abuse. where the workers are employed. The Forced Labor regular work week shall not exceed 48 There shall be no use of forced labor. Employers shall allow workers at including prison labor, indentured labor, least 24 consecutive hours of rest in bonded labor or other forms of forced every seven-day period. All overtime work shall be consensual. Employers shall not request overtime on a regular AuEnhancing the FLA Workplace Code of Conduct and Compliance BenchmarksAy,Fair Labor A s s o c i a t i o n . J u n i 2 0 1 1 . ttp://w. org/sites/default/files/2011_c ode_enhancements. pdfaccessedon May 29th, 2. basis and shall compensate all overtime work at a premium rate. Other than in exceptional circumstances, the sum of Sarah Puspa Sari. Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China regular and overtime hours in a week Analysts estimate that about 70 percent of shall not exceed 60 hours. AppleAos products are manufactured there. Compensation Every Thought of primarily as an Apple supplier. Foxconn also builds products for Dell. HP, compensation for a regular work week Microsoft, and other U. tech companies. that is sufficient to meet the workerAos Owned by Hon Hai Industries which uses the trade name Foxconn, the supplier has discretionary income. Employers shall long been in the news over reportedly poor pay at least the minimum wage or the and restrictive factory conditions. appropriate prevailing wage, whichever Group is the most dependable partner for requirements on wages, and provide any joint-design, joint-development, manufac- fringe benefits required by law or turing, assembly and after-sales services to Where compensation does not global Computer. Communication and Con- meet workersAo basic needs and provide sumer-electronic (Ay3CA. Aided by its legendary green manufacturing execution, employer shall work with the FLA to uncompromising customer devotion and its take appropriate actions that seek to award-winning proprietary business model, eCMMS. Hon Hai has been the most Today. Hon Hai / Foxconn Technology trusted name in contract manufacturing compensation that does. ncluding CEM. EMS. ODM and Foxconn as Multi National Corporation CMMS) in the world. Taiwanese-owned Foxconn is the worldAos biggest electronics outsourcing manufacturer, operating 20 plants and Hon Hai FoxconnAos Business Philosophy employing more than 800,000 workers in Since 1974. Hon Hai / Foxconn had China. The Shenzhen plant in Guangdong province houses 400,000 workers, making products from iPhones and iPads to PlayStations for international brands like Apple. Sony. Hewlett-Packard and Dell. AuLight and death : A series of deaths expose a big computer-maker to unaccustomed scrutinyAy. The Economist. May 27th 2010. ttp ://w. com/node/16231. ,accessed on October 15th, 2014. Charles Duhigg and Keith Bradsher AuHow the U. Lost Out on iPhone WorkAy. The New York Times. J a n u a r y 2 1 s t , 2 0 1 2 . h t t p : ( / / w w w. com/2012/01/22/business/apple-americaa n d - a - s q u e e z e d - m i d d l e class. html?pagewanted=4&_r=0&pagew anted=al. , accessed on October 15th, 2014. Jason Dean. AuThe Forbidden City of Terry Gou : His complex in China turns out iPhones and PCs, powering the biggest exporter you've never heard ofAy. The Wall Street Journal. August 11th, 2007. ttp://online. com/news/articles/SB118677584 137994489?mod=blo. ,accessed on October 15th. Sarah Puspa Sari. Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China always been guided by three Foxconnian China Labor Watch Investigation on Through the most efficient "Total FoxconnAos Sweatshop Cost Advantages" to make comfort of Based on China Labor WatchAos electronic products usage an attainable press release on July 27,2012, they found reality for all mankind. Through the the following problems to be common in the ten factories: one-stop integrated eCMMS model to revolutionize Excessive Overtime: The the conventional inefficient electronics overtime in most of the factories was outsourcing model. Through the devotion between 100 and 130 hours per month, to greater social harmony and higher ethical and between 150 and 180 hours per standards to achieve a win-win model for month during peak production season, all stakeholders including shareholders, well above ChinaAos legal limits. employees, community and management. In most factories, workers generally Hon Hai / Foxconn business model work 11 hours every day, including weekends and holidays during peak Normally they can only take a monetary cost saving. The most important day off every month, or in the peak thing is eCMMS that stands for e-enabled season may go several months without Components, a day off. Modules. Moves Services. eCMMS is the vertical integrated Low wages compel workers to accept one stop shopping business model by long overtime hours. factories pay a basic salary equal to the optical capabilities altogether. It covers minimum wage stipulated by the local solutions ranging from moulding, tooling, law . round $200/mont. , so low that Most of the mechanical parts, components, modules, system assembly, design, manufacturing, maintenence, logistics, etc. Through the eCMMS model. Hon Hai / Foxconn's Southern China campus is not only the world's largest 3C manufacturing base, but also the shortest supply chain at the same AuBusiness PhilosophyAy. Foxconn Electronics Inc. ttp://w. com/GroupProfile_En/Busine ssPhilosophy. , accessed on May 3rd, 2014. AuBeyond Foxconn:Deplorable Working Conditions Characterize Apple's Entire Supply ChainAy. China L a b o r Wa t c h . J u l y 2 7 , 2 0 1 2 . ttp://chinalaborwatch. org/pdf/2012627-5. accessed on May 3rd, 2014. About China Labor Watch: Founded in 2000. China Labor Watch is an independent not-for-profit organization. In the past ten years. CLW has collaborated with labor organizations and the media to conduct a series of indepth assessments of factories in China that produce toys, bikes, shoes, furniture, clothing, and electronics for some of the largest companies. CLW's New York office creates reports from these investigations, educates the international community on supply chain labor issues, and pressures corporations to improve conditions for Sarah Puspa Sari. Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China workers have to work long hours to month . ffectively nine hours per support themselves. Workers are exposed to a variety of Foxconn factories exceeded This dangerous working condition. Workers confirmed by the worker survey that in all the factories reported safety have been done by FLA. The survey concerns such as metal dust and hazar- dous working environments. hours of 56 hours, average maximum All too often, workers find the food weekly working weekly working hours of 61 hours, and occasional long periods without a rest Their housing conditions nearly half of the employees are frequently overcrowded, dirty, and indicated that had been periods when lacking in facilities. they worked 11 or more consecutive Most workers are not familiar with unions and their function. They have Health and Safety little ability to push for reasonable There had been identified numerous working conditions. issues related to inconsistent policies. Some factories do not pay for workersAo The social insurance, work injury insurance, and other insurance required by law. considerable number of workers felt FoxconnAos investigation by Fair Labour Association (FLA) The FLA founded that the condition in FoxconnAos concern, as this was the cause of an explosion at the Chengdu facility last violation on FLA Code Standard, such as: FLA found that, one year after the Working Hours Chengdu There are two issues here Ae the FLA Code Standard of 60 hours per week in total measurement, and documentation to . egular plus overtim. and the Chinese reduce risk related to aluminum dust legal limits of 40 hours per week and a where Apple products are made. maximum of 36 hours overtime per Foxconn AuIndependent Investigation of Apple Supplier. Foxconn Report HighlightsAy. Fair Labor A s s o c i a t i o n . M a r e t 2 0 1 2 . ttp://w. org/sites/default/files/docume nts/reports/foxconn_investigation_report. accessed on May 29th, 2014. Industrial Relations Worker Au L a b o u r A c t Ay N AT L E X , 5 J u l i 1 9 9 4 , . ttp://w. org/dyn/natlex/docs/WEBTEXT/37 357/64926/E94CHN01. ,accessed on May 29th. Sarah Puspa Sari. Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China from which they do not benefit. Integration Investigators found that workers were largely alienated, in fact or in FLA perception, from factoriesAo safety and Remediation Plan Recommended FLA Actions confidence in the management of health recommendations to Apple and Foxconn in and safety issues. The assessment also two categories which is in immediate action suggests that if workers had more The recommendation was about hours of work. Foxconn has agreed to move procedures, many of the problems with beyond compliance with the FLA 60- implementation could be avoided. hour/week Compensation and Social Security compliance with Chinese law regarding Insurance hours of work . imit of 36 hours of While Foxconn wages are above the overtime per mont. by July 1, 2013. This Chinese means reducing overtime hours from 80 per minimum, the assessment found that 14 month to 36 while protecting worker pay. percent of the workers may not receive Foxconn will have to hire and train a fair compensation for unscheduled significant number of extra workers, build The assessors discovered that accomodation for them, and develop a unscheduled overtime was only paid in compensation package that addresses the 30-minute increments. This means, for example, that 29 minutes of overtime Furthermore, there is another action about work results in no pay and 58 minutes compensation. Foxconn has accepted that results in only one unit of overtime pay. Across China, all workers must have unscheduled overtime and work-related meetings outside of regular working hours unemployment, and maternity coverage, need to be changed. In the future, workers but the system is set up on a provincial will be paid for overtime in units of 15 and city basis. This means that workers minutes and for work-related meetings who migrate from other cities or pro- vinces canAot collect their insurance when Another aspect was industrial rela- they return home. Workers are further unmotivated to enroll because of a required co-pay into insurance programs Op. Cit. , page. Sarah Puspa Sari. Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China tions. Foxconn has agreed to develop an documentation is maintained. action plan to align union activities with the Thus. Apple make a standard for its provisions of the Shenzhen Municipal own supply chain including Foxconn to Implementing Regulations for the Trade meet several acquirement in order to Union Law, sweatshopAos Apple participation in committees and other union released Supplier Responsibility Standars structures, to ensure that nominations and more than 100 pages of comprehen- elections take place without management sive requirements our suppliers involvement and to engage committees in follow to do business with Apple. Its decision making processes. Workers will also made a high-level Code of Conduct all receive a copy of the Collective Bargaining Agreement and new workers requirements our suppliers must follow in will receive information about the union 20 key areas under labor and human rights, and union activities during their orientation management systems, and ethics. 237 Also The last thing was health, safety standards by and environment. The key to improved performance in this area is to enhance workersAo engagement in the health and dormitory space and occupancy, emergency safety committees and to make those more minerals, environmental topics, and more. implementation of policies and procedures. The turnover of workers makes it necessary Conclusions The FLA investigation reports We will continue to make depicting the Foxconn plants as inhumane periodic checks on the implementation and sweatshops prompted Apple Inc. to hold its review of the standard operating procedures foreign contractors to higher standards. by Foxconn in order to ensure that the workers involved have the appropriate training and personal protective equipment, that the dust concentrations are measured at the appropriate times and remain within Ibid. ,page 3. Ibid. ,page 12-13. Ibid. , page 13. AuSupplier Responsibility StandardsAy. Apple. Inc. 2 0 1 3 . , ( h t t p s : / / w w w. a p p l e . c o m / s u p p l i e r responsibility/pdf/Apple_Supplier_Responsibility_ Standards. , accessed on May 29th, 2014. Au Supplier ResponsibilityAy. Apple. Inc. ttps://w. com/supplier-responsibility/), accessed on October 15th, 2014. AuApple Supplier Code of ConductAy. Apple. Inc. 2 0 1 3 . ( h t t p s : / / w w w. a p p l e . c o m / s u p p l i e r responsibility/pdf/Apple_Supplier_Code_of_Cond pdf ),accessed on May 29th, 2014. Sarah Puspa Sari. Apple Role through Fair Labour Association (FLA) in Order to Fixing FoxconnAos Sweatshop in China FLA found that foxcon had been violated several labour right in its plant, such as requirements our suppliers must follow to working hours, health and safety, industrial do business with Apple. Its also made a high-level Code of Conduct that showed the compensation and social security insurance. The suppliers must follow in 20 key areas under realeased in order to fix Foxconn. Apple labor and human rights, health and safety, and Foxconn agreed in FLA investigations environment, management systems, and and remedial actions. The remedial actions that FLA recommended to Apple were reducing overtime hours from 80 per month Bibliography