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Apple Supplier Pegatron Still Using Low Pay and Excessive Overtime


Apple Supplier Pegatron Still Using Low Pay and Excessive Overtime


According to a Bloomberg report released last week, China Labor Watch (CLW) collected a total of 1,261 pay stubs from Pegatron between September and October of 2015, which they say indicate an ongoing trend of extreme overtime. Pegatron is insisting that the CLW miscounted, owing to that period of time including state holidays, when pay was 3x standard. CLW has countered saying that is has collected a further 441 stubs from employees since March, which indicate the same ongoing trend.


Pegatron now uses an intricate system of face scanners, badges, and iPads to track staff punch-ins, something supposedly intended to comply with multiple standards — including Apple's, which limit workers to 60 hours per week. Pegatron said it follows Electronic Industry Citizenship Coalition guidelines, which limit overtime to 80 hours per month. Chinese law normally limits overtime to 36 hours per month, but Pegatron states that it's officially exempt.


In its Supplier Responsibility Report for 2015, Apple claimed that following 640 audits of the supply chain, compliance with its hourly standards was at 97 percent. Activist groups have argued though that suppliers can sometimes pull deceptive tactics when an audit is incoming.


Both Pegatron and Apple's main manufacturing partner, Foxconn, have come under regular scrutiny in the past several years. Activist groups and media reports have called attention to issues including not just poor wages and excessive hours, but underage labor, terrible dorm conditions, and lax safety standards. While the situation has generally improved — partly due to companies like Apple responding to the media — problems have not been fully stomped out.



Original article credit: Roger Fingas, Apple Insider

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