Apple Won’t Turn ‘Blind Eye’ to Supply-Chain Problems, Cook Says

[onehandle]

Apple Inc. (AAPL) is “attacking problems” with conditions at its supply factories and is committed to educating workers about their rights, Chief Executive Officer Tim Cook said in an e-mail to his employees.

The letter, carried on the website 9to5mac.com, comes amid criticism of conditions at plants in China that help make Apple devices such as iPhones and iPads. Employees work excessive overtime, have died in factory explosions and live in crowded dormitories, the New York Times reported on its website Jan. 25.

“We will continue to dig deeper, and we will undoubtedly find more issues,” Cook said in the e-mail, which the website said was sent to all employees. “What we will not do -- and never have done -- is stand still or turn a blind eye to problems in our supply chain. On this you have my word.”

http://www.bloomberg.com/news/2012-01-27/apple-won-t-turn-blind-eye-to-supply-chain-problems-cook-says.html

Tim Cook has been called the 'Most Powerful Gay Man in America.' Since taking the CEO role, he has initiated new charitable programs and recently had Apple join 'The Fair Labor Association.' Apple is the first and only tech company to do so.

Apple Joins The Fair Labor Association To Help Improve Factory Working Conditions Overseas

http://www.democraticunderground.com/1002165463

[leveymg]

1. China is one giant Shirtwaist Factory Fire waiting to happen. Until they comply with US standards

for health, safety, hours and benefits, US corporations -- such as Apple -- and their suppliers should have to leave.

[Maven]

33. Well, too often "US Standards" don't even work in the US

Amazon warehouse workers complain of harsh conditions

http://articles.latimes.com/2011/oct/01/business/la-fi-1001-amazon-allentown-20111001

[Kolesar]

2. In my 27 years of consumerism, I still have not purchased one Apple product

Not even a 99 cent download from iTunes.
I am a tightwad.

[denem]

3. And you torrented Windows right?

... or not.

Hint: Linux is free.

[FailureToCommunicate]

6. So...is that because of their business model or

because you're "a tightwad"?

Apple stuff is pricier because Apple stuff works better, looks better, lasts longer, etc...

Now Apple is doing something about the ethics of it's supply chain -(CEO "Tim Cook...recently had Apple join 'The Fair Labor Association.' Apple is the first and only tech company to do so&quot

If the Foxconn (the world’s largest contract manufacturer of electronics) workers that assemble Apple products get higher wages and better conditions, Apple stuff will cost even more than other's similar products...

[ForgoTheConsequence]

11. Give me a break.

Last edited Fri Jan 27, 2012, 12:47 PM - Edit history (1)

Give me a break. Why would they have to charge more? Their profits are enormous, they are sitting on 100 BILLION in cash reserves and they just gave their CEO a 2012 compensation package of 378 MILLION dollars.


Quit regurgitating CATO institute talking points. The only reason products would HAVE to be more expensive is to maintain their massive ridiculous profit margin.

[FailureToCommunicate]

21. Sure, I'll give you a break...

since you asked twice.

[Kolesar]

12. My Compaq has lasted eight years and it runs all this software that my family already owns

I went to the Apple store years ago and found no compelling reason to buy their PC instead.

I don't even know what an iPad or a Blackberry does.

If Apple can certify that their labor conditions were humane, I might buy from them in the future.

[ChromeFoundry]

32. Apple stuff is pricier because of Greed.. nothing else.

How much does a iPhone 4s cost?
$680.00 (on sale from $800.00)
Source: http://www.newegg.com/Product/Product.aspx?Item=N82E16875100034

How much does it cost Apple to build this same phone?
$196.00
Source: http://www.isuppli.com/Teardowns/News/Pages/iPhone-4S-Carries-BOM-of-%24188%2C-IHS-iSuppli-Teardown-Analysis-Reveals.aspx


Don't even try the argument that all companies use this same profit model:

Amazon Kindle Fire costs?
$199.00
Source: http://www.amazon.com/dp/B0051VVOB2

How much does it cost Amazon to build this device?
$202.00 - they sell it at a loss.
Source: http://www.isuppli.com/Teardowns/News/Pages/Amazon-Kindle-Fire-Costs-%24201-70-to-Manufacture.aspx

[DireStrike]

36. Lol

Works better - nope. Lasts longer - nope. Looks better - maybe. Keep paying extra for fashion and status.

It will cost even more if wages are raised? Get real. The prices are 99% markup.

Not that any of this is an exclusively apple problem. It's just funny to see rich, fashionable "progressives" squirm over their cozy product. It's as if they just noticed their shit stinking and are horrified!

[bread_and_roses]

41. LOL +++ yep ...

doesn't quite fit with the deification of Jobs, either.

[ForgoTheConsequence]

4. They already have turned a blind eye.

More troubling, the groups say, is some suppliers’ disregard for workers’ health. Two years ago, 137 workers at an Apple supplier in eastern China were injured after they were ordered to use a poisonous chemical to clean iPhone screens. Within seven months last year, two explosions at iPad factories, including in Chengdu, killed four people and injured 77. Before those blasts, Apple had been alerted to hazardous conditions inside the Chengdu plant, according to a Chinese group that published that warning.

http://www.nytimes.com/2012/01/26/business/ieconomy-apples-ipad-and-the-human-costs-for-workers-in-china.html?_r=2

[onehandle]

5. The OP is a response to that report.

'the New York Times reported on its website'

[ForgoTheConsequence]

8. I realize that.

And I also think its lip service.

Just like the Nike scandal in the 90's, people cared for about a month. The problem isn't just Apple or Nike its the American people. When no one is held accountable corporations (who no matter how "progressive" their image only care about their cash intake) don't have a reason to change. Americans are going to keep buying crap made in sweatshops whether they're iphones, droid phones, nike shoes, whatever. What we need is stronger legislation requiring more products be made in the United States, because China doesn't care about these workers either.

[alfredo]

10. From a link in the OP

Apple Joins The Fair Labor Association To Help Improve Factory Working Conditions Overseas

Last edited Fri Jan 13, 2012, 06:53 PM USA/ET - Edit history (2)

First Tech Company to Join.

WASHINGTON, Jan. 13, 2012 The Fair Labor Association today announced that Apple will join the FLA as a Participating Company, effective immediately. The FLA will independently assess facilities in Apple's supply chain and report detailed findings on the FLA website. Apple becomes the first technology company to join the Association as a Participating Company.

FLA Participating Companies agree to uphold the FLA Workplace Code of Conduct throughout their supply chains and commit to the FLA's Principles of Fair Labor and Responsible Sourcing. In 2011, the FLA worked with Apple to assess the impact of Apple's training programs which help raise awareness of labor rights and standards among workers in its supply chain. Like all new affiliates, Apple will align its compliance program with FLA obligations within the next two years.

Has Microsoft, Dell, HP, or other tech companies made the same commitment?

[ForgoTheConsequence]

13. Nope.

But the other companies weren't called out and they should be. As far as the FLA, its the fox guarding the hen house.

[alfredo]

15. Apple and the FLA can only do so much. The Chinese workers need to organize to push

for better conditions.

I haven't heard Michael Dell showing any concern for the workers.

[ForgoTheConsequence]

20. This isn't Michigan or Ohio its China.

Do you know anything about the history of Unions in "communist" China? Unions simply aren't tolerated unless they part of the All-China Federation which is a joke and often run by members of the company. Why do you think workers in China have threatened mass suicide? They don't have options, they live under an authoritarian regime!

[alfredo]

25. Americans died on the streets and in prison when they fought for the right to organize.

These are WHO numbers:

China has a 13 per 100,000 suicide rate. At foxconn they had 14 suicides. They employ 400,000.

The US has appox 11 per 100,000.

[ForgoTheConsequence]

31. Oh wow.

I can tell where this is going. That was a different time, and you attempting to place the blame on the Chinese workers for not organizing is disgusting.

When talking about China you're talking about a government with secret prisons, secret police, secret executions, etc.

When American workers organized (bravely) they also had the benefit of living in a democracy and having multiple outlets to force change, the Chinese don't have that.

I don't know if you have ever spent time in China or dealt with Chinese political refugees but I have and saying "well Americans did it" is pure ignorance and totally diminishes the the complexity and seriousness of the problem.

[alfredo]

34. I'm just saying we can't impose our system from outside. It has to come from within.

I have lived in theocratic dictatorship in Africa, I know how hard it is. I also know if we try to push another country into complying, they will see it as a threat and will swing rightward. Iran is a good example.

An old saying: A good imposed on another becomes an evil.

[ChromeFoundry]

16. Yes, other tech companies committed long before Apple...

Microsoft has committed (over a year ago) to the following:
http://www.microsoft.com/about/corporatecitizenship/en-us/reporting/working-responsibly/responsible-sourcing/

Out of Dell, HP & NEC... Dell's efforts are the weakest.

Dell is all lip service, no audits (as of Feb, 2011):
http://www.ebnonline.com/author.asp?section_id=1071&doc_id=204287

[Critters2]

27. My Blackberry was made in Canada. You know--a country with labor protection laws.

My only worry is where I'll be getting my next smartphone from, if Blackberry goes under. It irritates me that unethical companies like Apple are touted as "cutting edge" or just "cool", when they mistreat human beings in this way. For profit.

[alfredo]

29. They didn't respond to competition, made some mistakes like the way they handled

the service outage.

[onehandle]

38. Blackberry's components are manufactured in China.

The parts are imported and assembled in Canada. At least they were a few years ago.

95% of their construction happens in China.

If you have a phone, or a computer, or a tablet. It's made in China. Period.

[alfredo]

18. The iPhone screens are now Gorilla Glass, made by Corning.

Apple, and other companies sign contracts, that's why suppliers are called "contractors." In those contracts are codes of conduct. That gives an out. One problem is finding an alternate source if the contractor doesn't live up to the contract. It took years for Apple to move from Motorola to Intel chips when it appeared that Motorola could not keep up production and was falling behind in innovation.

[ChromeFoundry]

23. Not really

"Gorilla Glass" is a Corning Brand and it is not used on any iPhones. Apple has never stated that they use "Gorilla Glass" this is pure consumer speculation.

It is used on the Droids and Samsung models and is advertised as such.

The iPhone 4 uses aluminosilicate glass... regular glass that is doped with aluminum oxide to make it stronger and scratch resistant.

The iPhone 4 screens are made by several companies:
Corning has a contract with Apple but subcontracts the work to third parties.
Asahi in Japan produced the majority of iPhone 4 screens.
Schott in Germany, but has not been verified.

[alfredo]

26. Thanks for the correction.

[ChromeFoundry]

7. A quick fix...

move the jobs back here. Our laws already control these problems.

[ForgoTheConsequence]

9. Right on.

And anyone who says its "not possible" needs to looks at the earnings report Apple just released.



When Apple says they can't afford to manufacture here, what they mean is that they're not allowed to make people stand for so long that their feet and ankles swell up.

[alfredo]

14. First we need to stop giving tax breaks to companies that abandon us.

[onehandle]

17. That would be my preference. nt

[OhioChick]

19. Not going to happen....Too many greedy, capitalistic bastards

I found these to be of interest:

Corporations pushing for job-creation tax breaks shield U.S.-vs.-abroad hiring data

August 21, 2011

Some of the country’s best-known multinationals closely guard a number they don’t want anyone to know: the breakdown between their jobs here and abroad.

So secretive are these companies that they hand the figure over to government statisticians on the condition that officials will release only an aggregate number. The latest data show that multinationals cut 2.9 million jobs in the United States and added 2.4 million overseas between 2000 and 2009.

Some of the same companies that do not report their jobs breakdown, including Apple and Pfizer, are pushing lawmakers to cut their tax bills in the name of job creation in the United States.

But experts say that without details on which companies are contributing to job growth and which are not, policymakers risk flying blind as they try to jump-start the hiring of American workers.

http://www.washingtonpost.com/business/economy/corporations-pushing-for-job-creation-tax-breaks-shield-us-vs-abroad-hiring-data/2011/08/12/gIQAZwhqUJ_singlePage.html

Barack Obama and Steve Jobs argued over outsourcing

22 Jan, 2012

WASHINGTON: Barack Obama and the late Steve Jobs had a terse exchange last February, over Apple out-sourcing the manufacturing of its famous products.

The New York Times had reported on this matter last February, and had said that when Jobs was about to give an answer, Obama interrupted him with a query and asked 'what would it take to make iPhones in the United States?'

It wasn't long ago that Apple used to brag about its products being made in America, but nowadays almost none of the 70 million iPhones, 30 million iPads and 59 million other products sold last year, are made in America.

According to an insider, Obama had asked, "Why can't that work come home?" and Jobs' reply was clear-cut, "those jobs aren't coming back".

http://articles.economictimes.indiatimes.com/2012-01-22/news/30652794_1_apple-founder-steve-jobs-barack-obama

[Blue_Tires]

22. good PR quote...

“We will continue to dig deeper, and we will undoubtedly find more issues,” Cook said in the e-mail, which the website said was sent to all employees. “What we will not do -- and never have done -- is stand still or turn a blind eye to problems in our supply chain. On this you have my word.”

--Which says NOTHING about actually leaving the place or improving worker conditions with a bit of that $13 billion in profits last quarter...

[hughee99]

24. Not sure how the phrase "continue to" didn't make it into the headline

As in "Apple won't CONTINUE TO Turn Blind Eye..."

This has been known by most people for some time.

[madrchsod]

28. ya right...

[Snake Alchemist]

30. Sounds like a bunch of platitudes to me Tim. nt

[GeorgeGist]

35. If you hold your tongue ...

and say Apple, it still sounds like Asshole.

[Kelvin Mace]

37. Cook can start with the CEO of Hon Hai (Foxconn)

who sees his employees as "animals".

http://www.pcmag.com/article2/0,2817,2399109,00.asp

[matt819]

39. They may not turn a blind eye

But they will pay lip service. After all, $13 billion in quarterly profits, contractor issues probably aren't at the top of their list. In short, nothing will be done, and anything the federal government tries to do will be sent off the rails by lobbyists.

[high density]

40. This isn't just an Apple problem

There are cheap Chinese OEMs building just about every piece of electronics we buy. There is no "slave labor free" option available for most of these items. That's unlikely to change as long as the Wal-Mart "cheap as possible" and/or Apple "most profits as possible and then some" ideas rule the decision making process throughout Corporate America.