Apple Inc. (NASDAQ:AAPL)’s Chinese Supplier face unsafe working conditions – U.S. watchdogs

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By Thomas Copeland on September 5, 2014 Company

It was reported by the U.S labor watchdogs on Thursday that the working environment at Apple Inc (NASDAQ:AAPL)’s Chinese supplier for MacBooks and iPads parts is highly hazardous. The complaint was registered a year ago and since then no marked improvement in the conditions has been observed.

Apple Inc. (NASDAQ:AAPL) authorities however said that many of the problems that were reported have been addressed. China Labor Watch that is US based and Green America issued a joint statement that said Catcher Technology Co Ltd was investigated last month and found the working conditions to be dangerous for the labor force working there. Windows and fire exits of the factory were locked whereas alloy fillings of aluminum- magnesium that are highly flammable were all over the floor. Factory workers have dangerous exposure to toxic chemicals and lacked any protective equipment.

This investigation report is just one of the many problems that Apple Inc. (NASDAQ:AAPL) is facing just before its high-profile 9^th September event. The event has also been overshadowed by the recent iCloud hacking incident that has raised questions about the company’s ability to provide user security.

Apple Inc. (NASDAQ:AAPL) Company was informed by China Labor Watch back in 2013 to deal with obvious security/safety lapses. The follow on report in 2014, regarding the same issue did not prove to be much satisfactory. In fact many other safety slip-ups were observed. This proved that the overall safety rules and regulations are being ignored completely.

There has been an obvious contradiction in the statements that have followed the China Labor Watch investigations. Catcher stated that they take this allegation seriously and will ensure that Apple Inc. (NASDAQ:AAPL)’s supplier follows the proper code of conduct. Whereas in another statement Apple Inc. (NASDAQ:AAPL) applauded Catcher for having an international safety standard.

According to the statement by Apple Inc. (NASDAQ:AAPL) Catcher after the quarterly inspections for fire-safety did a few repairs to expired and broken fire extinguishers, unblocked the fire exits and corridors.

Apple Inc. (NASDAQ:AAPL) reported that back in the month of May, some very obvious areas were pointed out that were to be dealt with by working with Catcher. In the month of June, a follow on meeting was scheduled but before things could be rectified the investigation team had finalized its report.

The history of Apple Inc. (NASDAQ:AAPL)’s China based supply chain that is owned by Taiwan’s Foxcoon has a history of incidents that indicate lack of workers safety. Back in the year 2011 a few worker suicides occurred along with 3 other deaths due to a chemical explosion.

Working conditions in general have raised serious issues and concerns in China. Jiangsu, China had the worst incidents related to factory chemical outbursts. In the most horrible incident, 75 people were killed and 185 were reported injured in the eastern province of Jiangsu. This happened in a factory that made auto parts for General Motors Co; incidental fire in a room filled with metal dust resulted in the massive explosion.

Such lapses need to be taken seriously by the parent companies that spend billions of dollars otherwise on their production and growth.