Apple Inc. (NASDAQ: AAPL) is investigating labor conditions at Foxconn’s Zhengzhou facility following new allegations by China Labor Watch (CLW) of persistent worker mistreatment.
The company said its teams were already on-site and reiterated its commitment to upholding high standards for labor, human rights, and ethical conduct, the Financial Times reported Friday.
Foxconn, formally Hon Hai Precision Industry Co., is a Taiwanese multinational and the world’s largest contract electronics manufacturer.
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It produces devices for global technology companies, most prominently Apple’s iPhones, with Zhengzhou serving as a critical hub in the U.S. company’s supply chain.
Foxconn rejected the allegations, citing compliance with independent third-party audits conducted over the past two years. CLW, however, maintained that conditions remain problematic.
The watchdog accused Foxconn of relying on disposable temporary labor despite Apple’s decade-long pledge to improve standards.
According to CLW’s six-month investigation, workers routinely face long hours and heavy overtime, with managers frequently pressuring them to increase output.
Interviews conducted by the Financial Times painted a mixed picture: some employees noted that Foxconn provided better benefits than other local manufacturers, such as subsidized meals, hot water, and recreational facilities, but many said they worked 60 to 75 hours per week to compensate for low base pay.
CLW further highlighted Foxconn’s reliance on temporary contracts to cope with Apple’s fluctuating production schedules, a challenge compounded by the ongoing U.S.-China trade war.
Worker conditions in tech supply chains have faced mounting scrutiny beyond Apple. Amazon.com Inc. (NASDAQ: AMZN), for example, has been criticized for safety concerns at its warehouses.
A University of Illinois Chicago study published in October 2023 found that while Amazon employees acknowledged safety initiatives, many still reported injuries and burnout linked to the company’s demanding workplace culture.
Apple’s response to the CLW report underscores the company’s sensitivity to reputational risks tied to its global manufacturing network.
The Zhengzhou facility, often referred to as “iPhone City,” has been central to Apple’s output but has repeatedly faced criticism over labor conditions during production surges.
AAPL Price Action: Apple shares were trading lower by 0.32% to $256.06 premarket at the time of publication on Friday.
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