New York-based China Labor Watch said Apple contractor for iPhone, Foxconn, hired too many dispatch or temporary workers in its facility in Henan province, China.
The labor watchdog is claiming that 50 percent or half of the total workforce in Foxconn’s factory in Zhengzhou City are temporary hires — a violation of Chinese labor laws that stipulates that dispatch workers shall not exceed the 10 percent of the total employed workers, and monthly overtime working hours must not go beyond 36 hours.
Foxconn Zhengzhou, located in China's central Henan, is Apple’s largest manufacturing plant for iPhones. Half of all iPhones being sold worldwide are produced in the facility that was dubbed as the "iPhone City."
Student Workers In iPhone Manufacturing
The 51-page report that was made public ahead of the scheduled Apple iPhone event alleges that student workers have been forced to work overtime hours and complete internships at the factory that are unrelated to their degree.
"To manage the influx of orders during peak season, Foxconn employs student workers and dispatch workers," the report stated. Dispatch workers earn an estimate of $1.68 per hour standard and $2.52 per hour for overtime. China Labor Watch said this pay range is insufficient to sustain the livelihood for a family living in Zhengzhou City.
The organization further said that Foxconn rarely recruited dispatch workers prior to 2016. However, they now make up half of the total workforce because they help fulfill Foxconn’s labor shortage during the peak production season for Apple’s products.
Apple Refuted Claims
While Foxconn confirmed its over-reliance on temporary workers, it said that the number of hours of overtime work carried out by employees was always voluntary and not consistent with company guidelines.
Apple, on the other hand, said it looked into the claims and found most of the allegations as untrue.
"We have confirmed all workers are being compensated appropriately, including any overtime wages and bonuses, all overtime work was voluntary and there was no evidence of forced labor," the Cupertino-based company said in a statement.
The company said the number of dispatch workers indeed exceeded their standard and is closely working with Foxconn to resolve the issue.
iPhone 11 Launch
Apple is set to unveil the much-anticipated iPhone 11 series in a launch on Sept. 10. Based on initial specs gathered on the new flagship models, the iPhone Pro Max will have a 6.5-inch OLED display, the iPhone Pro will feature a slightly smaller 5.8-inch screen while the iPhone 11 screen will measure 6.1 inches. Shipment of the new iPhones will start on Sept. 20.