Foxconn says investigating labor circumstances at China manufacturing facility used for Amazon

NEW YORK (Reuters) – Contract producer Foxconn stated on Sunday it’s investigating a plant in China that makes units for Inc (AMZN.O), after a U.S. watchdog group criticized what it described as harsh working circumstances on the manufacturing facility.

A 94-page report by New York-based China Labor Watch that adopted a nine-month investigation cited extreme hours, low wages, insufficient coaching and an overreliance on “dispatch” or non permanent employees in violation of Chinese language regulation on the Hengyang Foxconn plant in Hunan province, which makes Echo Dot good audio system and Kindle e-readers.

“We’re finishing up a full investigation of the areas raised by that report, and if discovered to be true, speedy actions shall be taken to deliver the operations into compliance with our Code of Conduct,” Foxconn Expertise Group stated in a press release emailed to Reuters.

Taiwan-based Foxconn, recognized formally as Hon Hai Precision Trade Co Ltd (2317.TW), is the world’s largest contract electronics producer and employs greater than one million folks.

Foxconn, which additionally makes Apple Inc (AAPL.O) iPhones, got here below fireplace in 2010 for a spate of suicides at crops in China. Foxconn pledged to enhance working circumstances.

China Labor Watch stated its investigation discovered that about 40 p.c of employees on the plant have been dispatch employees, far exceeding the 10 p.c restrict below Chinese language regulation. Dispatch employees have been paid on the similar fee for normal and extra time hours, reasonably than time and a half as required, stated China Labor Watch Program Officer Elaine Lu.

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“They have been underpaid,” Lu stated. “That’s unlawful.”

Dispatch employees earned 14.5 yuan ($2.26) per hour, the report stated. Employees additionally put in additional than 100 extra time hours per thirty days throughout peak season, excess of the 36 hours allowed by regulation, and a few labored for 14 consecutive days.

Amazon stated it audited the manufacturing facility in March and located extra time and use of dispatch employees have been “problems with concern.”

“We instantly requested a corrective motion plan from Foxconn,” Amazon stated in a press release. It stated it’s monitoring Foxconn’s response and “compliance with our Provider Code of Conduct. We’re dedicated to making sure that these points are resolved.”

    Foxconn stated in an earlier assertion that it “works laborious to adjust to all related legal guidelines and rules” the place it operates and conducts common audits. “If infractions are recognized, we work to instantly rectify them,” it stated.

    Reporting by Alwyn Scott in New York and Reuters Beijing bureau; Enhancing by Chris Reese and Sandra Maler

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