policy will help to ensure future compliance. Many of Foxconn’s health and safety violations, including blocked exits, lack of or faulty personal protectiveequipment, and missing permits have already beenremedied. Additionally, Foxconn has agreed to changethe system by which accidents are recorded. In the past,only those accidents that caused work stoppage wererecorded as accidents. Moving forward, all accidentsthat result in an injury will be recorded and addressed.
C) Industrial Relations and Worker Integration
Investigators found that workers were largely alienated,in fact or in perception, from factories’ safety and
health committees and had little condence in the
management of health and safety issues. The assessmentalso suggests that if workers had more involvement with developing and monitoring health and safety procedures, many of the problems with implementationcould be avoided.It should be noted that committees may not be truly representative of the workers, becausemanagement nominates candidates for election. Theresult is committees composed not by those whoneed representation, but instead are dominated by management representatives. Moreover, committeesare largely reactive, failing to monitor conditions in arobust manner. As a result, workers remain generally unaware of committees’ existence or role, while factories’communications are almost entirely top-down.
Foxconn has agreed to enhance workers’participation in committees and other union structures.In keeping with local laws, Foxconn has agreed toensure elections of worker representatives withoutmanagement inteference. All workers will receivea copy of the Collective Bargaining Agreement andnew employees will receive information about unionactivities during their orientation process.
D) Compensation and Social Security Insurance
While Foxconn wages are above the Chinese averageand the legal minimum, the assessment foundthat 14 percent of the workers may not receive faircompensation for unscheduled overtime. The assessorsdiscovered that unscheduled overtime was only paidin 30-minute increments. This means, for example,that 29 minutes of overtime work results in no pay and58 minutes results in only one unit of overtime pay. Across China, all workers must have health, accident,social security, unemployment, and maternity coverage, but the system is set up on a provincial and city basis.This means that workers who migrate from other citiesor provinces can’t collect their insurance when they return home. Workers are further unmotivated to enroll because of a required co-pay into insurance programs
from which they do not benet.
Foxconn has agreed that the policy and practice relating to such situations warrantsimprovement; workers will be paid fairly for allovertime and work-related meetings that occur outsideregular working hours. After extensive discussions,Foxconn will offer a two-track remedial strategy:to investigate alternative private options to provideunemployment insurance to migrant workers, and work with government agencies to expedite the
transportability of benets. FLA will conduct a cost of
living study in Shenzhen and Chengdu to assist Foxconnin determining whether worker salaries meet FLA requirements for basic needs, as well as discretionary income.
As an afliate of the Fair Labor Association, Apple has
committed to ensuring that the FLA code standardsare upheld in its supply chain. This investigation was
the rst of an ongoing series of FLA investigations and
assessments into Apple’s supply chain. FLA will reportperiodically on the progress of Foxconn and Apple intaking steps to meet FLA’s remedial recommendations.