Foxconn workers in Brazil threaten strike over working conditions

Jordan Kahn

Following audits and a major overhaul of workers’ rights at Foxconn factories in China, a report from newspaper Jornal de Jundiai (via Evertiq) claimed 2,500 workers at a Foxconn plant in Jundiai, Brazil are threatening to strike if the company does not meet their demands by May 3. The plant in Jundiai is currently responsible for the assembly of some of Apple’s iPhone 4 and iPad 2 units:

Newspaper Jornal de Jundiai reports that workers at the plant will strike if issues surrounding severe water shortages, food, and transportation of employees are not resolved… In a statement the United Steelworkers of Jundiaí and Region said workers decided to give 10 days (from the Monday) for the company to resolve the issues raised in a meeting on Monday… According to the report by Jornal de Jundiai, a spokesman from the union said that lack of water as well as poor quality food was an issue for workers. As the number of employees at the plant grows, workers also complain that the infrastructure for transport has remained the same size, causing overcrowding in buses. Read more

Apple chip supplier TriQuint having ‘challenging quarter’ due to its biggest customer

Jordan Kahn

According to a report from The Oregonian, power amplifier specialists TriQuint Semiconductor is facing a “challenging” quarter due to a temporary drop in revenues from its biggest customer, Apple. The report noted the company’s CEO Ralph Quinsey did not mention Apple by name, but that Foxconn was responsible for 35 percent of TriQuint’s revenue during 2011:

TriQuint said sales in the current quarter will fall at least 19 percent to the lowest point in at least two years… While Quinsey wasn’t specific about where the problem lies, Apple has incorporated TriQuint chips in the last several generations of the iPhone. Apple is approaching its annual iPhone upgrade — the last upgrade took place in October — and sales tend to fall off before new products launch.

We know from teardowns that Apple included TriQuint chips in many generations of the iPhone and iPad, including the most recent iPhone 4S and third-generation iPad. When iPhone component supplier Qualcomm announced last week it was having “trouble meeting demand” for LTE chips likely to end up in a next-gen iPhone, many analysts speculated that was a clear indication of an October iPhone launch.

Quinsey said in a statement to the publication that he expects to return to normal revenue and growth numbers in the second half of this year:

“I believe this dip will be temporary and remain confident about our long term position,” Quinsey said in a written statement. “We have achieved design win success with our new products and I believe we will return to normal revenue levels and growth in the second half of 2012.”

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First look at the assembly process of an iPad at Foxconn factory

Jake Smith

Marketplace reporter Rob Schmitz is the second reporter ever to get an inside look at Foxconn, the manufacturing plant where Apple’s products are made. Today, Schmitz posted a video showing our first-ever look at the assembly process of an iPad as it goes down the assembly line at the Foxconn plant in Shanghai, China. It is interesting to look at how machines streamline some of the process. Schmitz also noted a few other interesting points, such as workers switching positions every few days while making $14 a day when first starting.

 

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Foxconn employee manning this booth likely doesn’t know when Apple will start selling the next iPhone

9to5 Staff

A Japanese TV crew approached a booth at the Foxconn plant in the suburbs of Taiyuan in Shanxi Province and asked a woman manning the booth about the 18,000 people Foxconn is recruiting for the next iPhone (video here at 7:10 via Macotakara). She said something about “being built for June.”

That plant is hiring many workers (and facing strikes from current workers) for iPhone production, according to local reports.

While she seems to imply that Foxconn is ramping up for a June production or release (or it may not), we are not convinced this is a credible source with knowledge of Apple’s plans.

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FLA president says Apple/Foxconn agreement raises bar, but will it raise prices?

Jordan Kahn

The results of the Fair Labor Association’s investigation into Apple’s suppliers beginning with three Foxconn facilities officially published yesterday. While finding excessive working hours and many violations of Chinese labor law, Foxconn and Apple agreed to reduce workweek and overtime hours within Chinese law to 49 hours per week and 36 overtime hours per month based on the FLA’s recommendations. Foxconn will also hire tens of thousands of new employees and implement a compensation package to make sure workers’ salaries remain the same amid reduced working hours.

In the interview above with Reuters, head of the FLA Auret van Heerden talked about the investigation and noted the agreement could set a new standard for working conditions throughout China. One unanswered question is whether the agreement will lead to higher prices for consumers (which is not necessarily a bad thing)…

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Fair Labor Association publishes findings of Apple/Foxconn Investigation

Jordan Kahn

We knew the Fair Labor Association would publish the initial findings of its investigation into Apple’s Foxconn facilities, and now the report is officially available through the organization’s website. The full report released today and is here. The press release outlining the investigation is below. According to the recommendations, Foxconn committed to “bring its factories into full compliance with Chinese legal limits and FLA standards on working hours by July 2013.”

The last we heard from the FLA about its audits into Apple’s Foxconn facilities was that it found “tons of issues.” Apple became the first technology company accepted as a member into the organization after controversies surrounding working conditions in Apple’s supply chains abroad became mainstream. As for what the FLA found in its audits of the three Foxconn facilities, here is an excerpt from the report:

FLA’s investigation found that within the last 12 months, all three factories exceeded both the FLA Code standard of 60 hours per week (regular plus overtime) and the Chinese legal limits of 40 hours per week and 36 hours maximum overtime per month. During peak production periods, the average number of hours worked per week exceeded 60 hours per worker. There were periods in which some employees worked more than seven days in a row without the required 24 hours off.

The FLA said Foxconn’s commitment will “reduce working hours to legal limits while protecting pay, improve health and safety conditions, establish a genuine voice for workers, and will monitor on an ongoing basis to verify compliance.” This will lead to a maximum 49-hour workweek, including overtime for employees and a decrease in monthly overtime from 80 hours to 36 hours. While we reported some workers were unhappy with working fewer hours, Foxconn also committed to a compensation package for workers with reduced overtime:

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