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Pegatron investigated for labor violations – cheap iPhone discovered

News   •   Jul 31, 2013 03:02 BST

Pegatron is being investigated by China Labor Watch, a New York-based non-profit organization, for suspected labor violations. In its report, it details the company’s work on the iPhone C (known in the past as the iPhone Light), the rumoured cheaper version of Apple’s flagship.

According to the report, “Apple is preparing to release a cheap iPhone. Just how does a prosperous company like Apple produce a discounted version of its phones?

“At this moment, in Shanghai, China, workers in Apple’s supplier factory Pegatron are monotonously working long overtime hours to turn out a scaled-back, less expensive version of the iPhone. Six days a week, the workers making these phones have to work almost 11-hour shifts, 20 minutes of which is unpaid, and the remainder of which is paid at a rate of $1.50 an hour ($268 per month) before overtime. This is less than half the average local monthly income of $764 and far below the basic living wage necessary to live in Shanghai, one of costliest cities in China. So these workers rely on long overtime hours. If a worker does not finish three months at Pegatron, the dispatch company that got the worker hired will deduct a large portion of his wages.”

It added, “So what is the competitive advantage that Pegatron has utilized to win Apple’s order of the cheap iPhone? Extensive labor violations and suppressed wages that cheat workers of a living wage, a healthy working environment, and a voice. As Apple launches its cheaper iPhones, it continues to profit while cheapening the value of the workers in its supply chain.”

We’re excited the cheaper iPhone has been spotted, but it saddens us that it comes at the expense of laborers.

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