Foxconn, Apple, and the Fair Labor Association Respond to ABC News’ Exclusive Report

Karson Yiu/ABC News
On Monday, ABC News’ Bill Weir exclusively reported on the conditions inside Apple’s main Chinese manufacturer — Foxconn. For the first time ever, Apple allowed a journalist onto its production line and to witness the labor conditions inside Foxconn, which have sometimes been reported to be unfair and unsafe.
Last night’s special edition of Nightline expanded upon that original report, and included footage from inside the factory, interviews with the workers, and even a visit to a local village.
Since ABC News’ original report, Apple, Foxconn, and the Fair Labor Association have sent statements explaining a few sentences in the original report. We have posted the text of those statements below.
For the record, Apple and the Disney Corporation, ABC’s parent company, have strong ties. Disney CEO Bob Iger serves on the Apple Board of Directors and the Steve Jobs Trust is Disney’s largest shareholder. ABC agreed to report exactly what it saw at Foxconn.
From Apple, regarding Zhou Xiao Ying’s claim that she carves the aluminum shavings from 6000 iPad logos per day:
“In manufacturing parlance this is called deburring. Her line processes 3,000 units per shift, with two shifts per day for a total of 6,000. A single operator at Ms. Zhou’s station would deburr 3,000 iPads in a shift.”
Apple clarified that Zhou Xiao Ying couldn’t have been working a second shift since it would be impossible if she worked 8AM to 8PM, then worked 8PM to 8AM, and then worked her next day’s shift. Ying likely misunderstood Weir’s question about “how many Apples do you carve each day?”
From Foxconn, regarding starting pay being too low for a Chinese payroll tax withdrawal:
“We have over 75 percent of the employees in the category of earning at least 2,200 RMB ($349/month) basic compensation standard. That means they are earning 13.75 RMB ($2.18) per hour. If they work overtime on the weekend, they will earn 27 RMB ($4.28) per hour. In order to reach 3500 to be taxable, they will have to work 47 OT hours to reach 3,500.”
“If the overtime hours are in weekdays, they have to work around 63 hours per month to reach that level of salary to be taxable.”
“Your statement is only true when applying to the entry-level workers while over 75 percent are already over the probation and earning more than 2,200 RMB basic salary.”
From the Auret van Heerden, President and CEO of the Fair Labor Association, regarding the “five year conversation” with Apple:
“The discussions began in April 2007 but stalled in March 2008. We then resumed them in April 2009 and decided to do a small pilot survey so that Apple could get an idea of how our tools might add value to their program. That pilot led to a second activity that I believe contributed to the decision to join the FLA at the end of 2011. I, of course, cannot speak for Apple but I do believe that the decision to join was probably taken some months before (and therefore well before) the New York Times articles.”
Bill Weir contributed to this report.

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I am impressed with the FOXCOMM-Apple facility. Everyone looks good, healthy, the facility is about the cleanest anywhere in the world. Sure some of the workers looked quite young!!!
All I can say is WOW!!!
Posted by: Mahendra | February 22, 2012, 5:38 pm 5:38 pm
And this is why these jobs are not in the US. These people are paid a pitiful salary, and work long hours..even sleeping at the factory.
Cheap labor means more $ for Apple.
Tsk tsk.
Posted by: Michelle | February 22, 2012, 6:21 pm 6:21 pm
these workers are diligent and earnest in most respects, they have jobs that thousands of others envy. They work in pretty severe conditions, but it is clean and probably safe, and they get paid a salary that is not as bad as the thousands of sweat shops present in China. Sleeping at the factory in company dorms is the best option for many of these young folks, much better than finding a place on the economy (lot’s of rent predators out there) or trying to go home after work (migrant labor, remember). All in all, this is a better set-up for the majority of workers than they can find anywhere else in China. Try to find an American who would be willing to sit at a line like this for hours on end. American workers are better at other things, not rote repetition.
Posted by: Mad Dog | February 22, 2012, 8:36 pm 8:36 pm
@Michelle…1. These jobs provide a good living wage for China, especially the rural areas, where most of the employees come from. 2. It’s not Apple alone here, don’t forget, as virtually 80% of all consumer electronics are produced here, not just Apples products, but Samsung, etc., etc. 3. Do you really want to pay $1,000.00 at retail for a smartphone produced in the U.S., based on U.S. wages? And that is not just Apple, but all the others as well. They (Foxconn) have over 1 million employees at their manufacturing facilities, meeting a critical outsourcing need that benefits their employees as well as U.S. manufacturing as a whole!
Posted by: Tim | February 22, 2012, 8:38 pm 8:38 pm
“These people are paid a pitiful salary”
This is such an inaccurate statement. You can’t say it is pitiful if you have nothing to base it against. You need to look at the cost of living in China and how much the person can save. Take my example. I’m an Australian living in South Korea. I earn less than half of what I would earn in Australia, yet I can save twice as much. How can that be? The cost of living is far lower.
Now, I don’t know if the equivalent of US$2.28 is low or not. What I do know though is that a meal costs them US$0.70c and that they only have to work one shift to cover their rental for board and lodgings. In Australia people can pay up to 50% of their monthly salary in rental. In that respect, the Chinese workers are far better off.
Where I do agree with you is the hours are very long. But again, that could be quite the norm in China. Most people in Korea still work at least 9-10 hours a day.
As for Apple employing Chinese over US citizens, I don’t care. I don’t want to pay too much for electronic devices and definately don’t want to subsidise US workers by paying more. I am very happy that companies like Apple are using Chinese workers, paying them standard salaries, and giving decent conditions to work in and live in. I feel the alternatives for the chinese workers would be far worse if Apple were to move away from China. Did you see the lines of people wanting to get jobs at Foxxcon?
Posted by: MikeP | February 22, 2012, 8:59 pm 8:59 pm
For the people tsk tsking about not bringing the jobs here, sorry to say that there are MANY jobs like that here that are still open but are not being filled. Why did Alabama have a lack of workers after threatening to deport all illegal immigrants? There were jobs open by the hundreds. Lack of skilled workers, lack of workers willing to do mindless jobs that are hard, lack of diligent workers period, lack of scale that only China can bring. The lack of welfare in China means that people actually work harder to keep their jobs because they have no fallback plan. Welfare is great for social stability, but unfortunately has a side effect of creating lazy bums. They had 3000 people lining up for jobs at Foxconn. How many people do you think will line up here in the US for a job paying a little over minimum wage for 12 hour shifts and requires you to leave your family and friends and move to a remote industrial area and live in dorms simply because of the massive amount of people the factory requires? Oh, and no illegal immigrants since we know what kind of massive PR crisis and finger pointing the media will bring if Apple gets caught doing that. This is nothing more than a media blitz by people on high horses that are too lazy to do anything but talk.
Posted by: EugeneK | February 23, 2012, 12:10 am 12:10 am
I have seen some good commets from those knowing China reality. I hope you are not fooled by the media or the judgement with US criteria.
Here are the facts. Foxconn has about 1.3M worldwide employees. If Foxconn is as bad as Western media says, then no one is willing to work there. We all know China is short of labor these couple years along the coast. Workers have a lot of choices other than Foxconn. Foxconn’s salary is way above average factory labor’s. The wage in the report is not the cost for Foxconn wo also needs to pay for housing, food, social welfare, insurance, training, transportation.
Western media never reports the positive sides of this company. The economic impact brought by Foxconn’s investment to many inner poor areas was never mentioned. Yes, these workers are young, but do you know the average age in SZ (about 15~20M people) is about 29? The majority of people came here to work or look for opportunities, regardless as a worker, waitress, office lady, or doing business. Not only the local staff, over 10K Foxconn managers from Taiwan, US, SE Asia and even Europe also leave their families at home.
Make long story short, Foxconn creates much more value than the media telling you… If Foxconn doesn’t make these products, someone else in China will do it. Trust me, you just don’t want to see the real small factories in China.
(From a guy who really knows about Foxconn)
Posted by: Tim | February 23, 2012, 12:58 am 12:58 am
The ABC News report stated that Steve Jobs said he could never find enough manufacturing engineers to build these products in the US. That’s BULL. I have worked as a manufacturing engineer in domestic electronics production for 27 years. There is no shortage of engineers or technicians, and there never has been. Apple just wants to maximize their profits by using cheap labor. We all want inexpensive electronics, but at what cost to our own economy?
Posted by: Mark | February 23, 2012, 10:08 am 10:08 am
The conditions at the factory are ridiculous and, in fact unlawful in the US. Labor laws and unions have seen to that. Yet, in righting these wrongs in America, we have also served to do ourselves out of any chance at manufacturing electronics in the United States. We got rid of the slave labor environment, forced fair wages and conditions on manufacturers, and now it is so much cheaper to have things made in other countries (where such laws don’t exist).
So, what’s the answer? Do we allow manufacturers, such as Foxconn to continue to utilize their slave labor? Or do we outlaw such practices, thus driving up prices in China and other countries and thus give American factory workers a fighting chance at being competitive? Or, shold we do away with al of the laws that America has in place and allow slave condidtions to re-emege here?
Posted by: Buck | February 23, 2012, 1:06 pm 1:06 pm
I think that ABC did a good job showing the factory. We Americans have no idea what it is like in other countries, unless your job depends on you knowing. US labor laws do not apply in other countries.. so as harsh as it is to see how others work, our laws don’t apply.
Foxconn factory looks clean, well maintained. if anyone thinks this is bad, then find out what an apparel factory looks like, or any other item that is imported into the country.
Many American companies have standards that factories must abide by. US standards, not laws. To protect the workers, and of course the US companies.
it is true that most workers don’t see their families for a month at a time. that is sad, but that is the reality.
Americans are covered by Unions. China is not. Unions protect workers. and they should, but shouldn’t cripple manufacturing in the US. Wages are high here. Not saying that any one person isn’t worth it. We all want to make a good living. But this is what caused the jobs to go elsewhere. This is my opinion.
Posted by: Jane | February 23, 2012, 4:57 pm 4:57 pm
I think both news and Apple/Foxconn are telling the truth, these truths are just different faces of 1 fact in Foxconn. Working place is clean, for it is required for production, (if you go to see a LED panel shop floor, you will find it extremely clean, more than one human being can image). Electronics and apparel industry are different thoroughly, don’t compare how work place looks. Think about safety and work load. And more important, on this case, is human being working there, how they feel. what they give, and what they get.
Posted by: Faith | February 23, 2012, 8:20 pm 8:20 pm
Why are we STILL buying these products which are made in china? Americans love Apple, but what do they make in the states? The cheap labor doesn’t seem to be lowering the price very much. RIP OFF
Posted by: RAS | February 23, 2012, 10:00 pm 10:00 pm
First of all, as Japanse I must say millions of Japanse will envy Foxconn’s working place given the fact that wage is really based on local standards and market to decide, not American journalist who has no idea of runing business not passing global economy 101 like the host of this episode.
Second, like the host of this network, twisting story to what he want it viewer for shocking value, or should I say intentinal lost is translation should end in America before completely discrediting US journalism and American social value of behaving based on true not what I call Paris Hillton TV journalism of today in America.
Third, I give China a big point when comes to event like this one where American comes for a day to judge for poor people in developing country merciful attitude without any clue of reality in other country. First was Japan, then Korea, Tiawna, China, and soon to be Vietnam and India. Call their above average wage and compare with Amecian labor union jucked up wages which almost destoring US after Greek’s downhill.
After bashing Japan for working harder than American without any clue of Japanse culture, now China and still have no idea of how China’s social and business envirnment works and that is norm, America’s judgemental and wanna be HERO journalist still exist to destroy other’s life what many are good people not just employee but also as Foxconn to be one of the best company in terms of treating own people. By far far better than many American manufacture I know of in overseas and domestic in the US.
Lastly, for American people commenting about Foxconn as bad company from this report, please go check your local manufacure of any of product you buy. You will find, (1) American can not even product same quality product Foxconn does, (2) American does not have people can even start such facory to compete with Foxconn even with billion$ government subsidie, (3) please live in the real word, not like this journasit lives.
Thanks
Posted by: JAPANESE EXECTIVE | February 24, 2012, 12:57 pm 12:57 pm
Just one more. First sorry of my bad english… and mis spelling…
Just wanted to say, if American had an attitude of finding good from others, America’s golden time continued and today American’s are living in much better social environments not to mention financial.
If more American had brain, more American will think about learning good from Foxconn, what they are doing right to be so succesfull providng means to improve billions of human on the planet while giving means for millions of workers to work and live.
Democrat vs. Repblican… GM vs. Ford… I am good, others bad. American good China bad, Apple good Foxconn bad. What makes America evil and weak might be coming for each of American, not from others … you know? maybe…!?
some to think about from this Foxconn report….for those with brain!
Thanks again.
I love America and those part of America I love is less and less…
Posted by: JAPANESE EXECTIVE | February 24, 2012, 1:16 pm 1:16 pm
Americans ave been programmed over the last 30 years to fail, With the worst education , job training, real mentors & lack of proper parenting skills we have become one of the lowest ranked countries in the world in all of these categories.This is to the delight of the companies such as Apple & any company that is producing all of their products in China.
Walmart is the king of this , No one could compete with Walmart and thus 10s of thousands of people lost their businesses. The Ipones and Ipads would not have to cost $1k if built here if only the heads of the companies like Apple only needed to made $5 billion instead of $50 billion. Its all simple economics, when I here people say that Americans wont do the jobs, it is laughable, we have built & produced amazing products in this country for such a long period , it is only recently that this was all taken away and the Dumbing of America was put into affect over the last 30 years & it will take us 30 years to take back the country from the greedy CEOs currently in charge. If we had only taken the right path then we could have had millions of factories producing the finest most desirable products in the world. It would have offered millions of entrepreneurial ventures to American citizens of all race So say what you want but this was not the way capitalism was supposed to work, it has become so politically corrupted that the small guy barely stands a chance & if this continues at some point people will say enough
Posted by: Brett | February 26, 2012, 9:52 pm 9:52 pm
@Mad Dog
You say: “Do you really want to pay $1,000.00 at retail for a smartphone produced in the U.S., based on U.S. wages”
No, I dont. But would it kill Apple to not have an astronomically large profit margin? What if it cost them 5 times more to produce the phones in the US, but kept the prices the same…Apple would STILL be crazy profitable, and our country would be better off. The problem is GREED.
Posted by: Adam | February 28, 2012, 1:52 pm 1:52 pm