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Mon Jan 23, 2012, 07:35 AM

Apple's Foreign Suppliers Demonstrate Widespread Scamming and Horrific Abuse of Employees

http://www.alternet.org/story/153824/apple%27s_foreign_suppliers_demonstrate_widespread_scamming_and_horrific_abuse_of_employees?page=entire

Apple's Foreign Suppliers Demonstrate Widespread Scamming and Horrific Abuse of Employees
Apple's bombshell report on its suppliers shows anti-employee practices as common as iPods. White collar criminologist William K. Black investigates.
January 20, 2012

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...Apple calls its inquiries “audits” and it is apparent that most of its information comes from reviewing written and electronic records at its suppliers. That is exceptionally revealing. The suppliers know that they can defraud their employees with such impunity that they don’t even bother to get rid of records that prove their frauds. Apple has resisted making public its suppliers and the report refused to identify which suppliers committed which violations – often for years despite repeated, false promises to end their anti-employee control frauds. Two other facts are evident (but not reported). First, Apple rarely terminates suppliers for defrauding their employees – even when the frauds endanger the lives and health of the workers and the community – and even where Apple knows that the supplier repeatedly lies to Apple about these fraudulent and lethal practices. Second, it appears unlikely in the extreme that Apple makes criminal referrals on its suppliers even when they commit anti-employee control frauds as a routine practice, even when the frauds endanger the worker’s and the public’s health, and even when the supplier repeatedly lies to Apple about the frauds. Apple’s report, therefore, understates substantially the actual incidence of fraud by the 156 suppliers (accounting for 97% of its payments to suppliers). From the New York Times:

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And though Apple said it mandated changes at those suppliers, and some facilities showed improvements, in aggregate, many types of lapses remained at levels that have persisted for years.

The New York Times, the Wall Street Journal, and the Washington Post articles on the Apple report are all lengthy, but none of them has any input from a criminologist and each of the articles misses most of the significance of the report. The most fundamental flaws have to do with why anti-employee control fraud is the norm at Apple’s suppliers and why the suppliers typically don’t even take the inexpensive efforts necessary to avoid holding a paper trail that makes the frauds obvious even to a not terribly vigorous audit that they know is coming.

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These frauds take place abroad, but they harm employees at home. Mitt Romney explains that Bain had to slash wages and pensions to save firms located in the U.S. who had to meet competition from foreign anti-employee control frauds. The damage from foreign anti-employee control frauds drives the domestic attack on U.S. manufacturing wages. Bad ethics increasingly drive good ethics out of the markets and manufacturing jobs out of the U.S. and into more fraud-friendly nations.

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Reply Apple's Foreign Suppliers Demonstrate Widespread Scamming and Horrific Abuse of Employees (Original post)
Karmadillo Jan 2012 OP
onehandle Jan 2012 #1
Atman Jan 2012 #2
HopeHoops Jan 2012 #4
Atman Jan 2012 #5
HopeHoops Jan 2012 #6
Atman Jan 2012 #7
HopeHoops Jan 2012 #8
Blue_Tires Jan 2012 #3

Response to Karmadillo (Original post)

Mon Jan 23, 2012, 07:59 AM

1. A few companies who use the same suppliers:

Acer Inc.
Amazon.com
ASRock
Asus
Barnes & Noble
Cisco
Dell
EVGA Corporation
Hewlett-Packard
Intel
IBM
Lenovo
Logitech
Microsoft
MSI
Motorola
Netgear
Nintendo
Nokia
Panasonic
Philips
Samsung
Sharp
Sony Ericsson
Toshiba
Vizio

All electronics, be it in your computer, your phone, your car, or even your refrigerator, are overwhelmingly made in China.

Wish it was otherwise.

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Response to onehandle (Reply #1)

Mon Jan 23, 2012, 08:17 AM

2. How many of those companies are addressing this, as Apple is?

Uhm...uh, let's see...I've heard of NONE doing so. But it's always Apple in the headlines.

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Response to Atman (Reply #2)

Mon Jan 23, 2012, 12:11 PM

4. That's because most of the suicides are at Apple plants.

 

I can't figure out why, but they are. You can't build a "US Made" electronic device because we don't have any factories left that make the key components. Even New Balance had to fight over the "US Made" label because NOBODY in the US made the souls for shoes that they make here in the states. Our manufacturing base has been exported and isn't likely to come back.

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Response to HopeHoops (Reply #4)

Mon Jan 23, 2012, 12:17 PM

5. Okay, are you paying attention at all?

These aren't "Apple plants." They are Foxconn plants, and Foxconn is making the electronics for all of those other companies listed. There isn't a specific "Apple" plant. One day a line runs iPhones. Maybe the next it makes Samsung phones. One line is running HP products. It's not like all the people on the Apple line are running and jumping out the windows while the HP and Samsung guys whistle while they work. It's is one company -- Foxconn -- manufacturing products for many other companies, of which Apple is but one.

.

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Response to Atman (Reply #5)

Mon Jan 23, 2012, 12:23 PM

6. True, but Foxconn has somehow become associated primarily with Apple.

 

Go figure. I don't know why it was singled out. On the other hand, if YOU were making iPhones all day, wouldn't YOU consider suicide?

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Response to HopeHoops (Reply #6)

Mon Jan 23, 2012, 12:44 PM

7. But YOU just made that association!

It's been posted many, many times on DU, and featured in several articles, that Foxconn makes most of the electronics for most of America's major brands. Yet YOU said the story was important because it was people "at the Apple plant" that were committing suicide. That simply isn't the case. Why perpetuate the bullshit when you yourself admit it isn't true...this is NOT an "Apple plant." It is a vendor who manufactures product for Apple, among MANY others.

.

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Response to Atman (Reply #7)

Mon Jan 23, 2012, 12:47 PM

8. Okay, fair call. But Foxconn did put up nets to catch the slave labor trying to escape life.

 

Yes, I'm guilty too. The association is prevalent and I perpetuated it with my post. Agreed. But you still can't build a computer with US made parts anymore. They just don't exist. That's sad, but true.

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Response to Karmadillo (Original post)

Mon Jan 23, 2012, 12:06 PM

3. ttt

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