The Blood Cost of Apple's Success
On a Friday night in May 2011, an explosion rocked Building A5. Flames erupted and the sound was deafening; twisted metal pipes lay scattered like discarded straw. Workers eating in the cafeteria ran out onto the grounds, watching as windows shattered and thick black smoke billowed from inside. The explosion happened in a polishing workshop that produced iPad components. There, workers daily polished thousands of aluminum casings for iPads.
Two deaths were confirmed on the spot, with over ten injured. The wounded were rushed to ambulances, one particularly grievous case among them: his face was unrecognizable, bloodied and burned by the force and heat of the explosion. His features were indiscernible, only a red-black mass where his nose and mouth once were.
Far away, at home, the injured worker's father received a call. Six months prior, 23-year-old Lai Xiaodong had moved from his hometown of Mianyang to Chengdu, three hours away by car. There, he became part of the world’s largest, most efficient, and most sophisticated manufacturing system—a system capable of producing electronics for Apple and hundreds of other tech companies faster than they could imagine. Lai Xiaodong became one of millions of "human gears" keeping this vast system running.
"Are you Lai Xiaodong's father? Something has happened to your son. Please come to the hospital immediately," said the voice on the other end of the line.
Over the past decade, Apple has become one of the largest, wealthiest, and most successful companies in the world, largely due to its control over global manufacturing. Through skillful cost management by relocating production sites, Apple and other American high-tech companies, along with various American industries, have achieved unparalleled growth in innovation industries in modern history. However, according to interviews conducted by The New York Times with workers and industry analysts, as well as related company documents, workers assembling and manufacturing products such as iPhones and iPads often work in harsh, even fatal conditions. Some workers reported leg swelling from standing for long periods, making walking difficult; others died or were hospitalized due to industrial accidents or exposure to toxic chemicals. (Related report: Apple CEO responds to The New York Times' "sweatshop" report)
According to reports from labor rights organizations and Apple itself, there have been instances of child labor used in the manufacture of Apple products. Some suppliers illegally discharged harmful waste and then tampered with data to cover it up. Two years ago, at an Apple supplier factory in eastern China, 137 workers suffered nerve damage after using toxic n-hexane to clean iPhone screens. Last year, two factories producing iPads experienced similar explosions, including one in Chengdu. In total, four people died and 77 were injured in these incidents. An organization warned Apple beforehand that the working environment at the Chengdu facility was dangerous; however, according to the organization, Apple did not insist on strengthening safety measures at the plant.
"If someone warned Apple in advance and it did nothing, that behavior is condemnable. But it is precisely because what is unacceptable in one country is acceptable in another that these companies benefit," said Nick Ashford, former chairman of the National Advisory Committee on Occupational Safety and Health, which provides policy recommendations directly to the U.S. Department of Labor.
Apple is not the only electronics company with poor working conditions in its supply chain. Dell, HP, Lenovo, Sony, Motorola, Nokia, and others have also been found to have harsh working environments in their production facilities. Moreover, both former and current Apple executives have stated that in recent years, Apple has made significant progress in improving working conditions at its overseas factories. For example, it launched an aggressive audit program, requiring immediate corrections when problems are found in supplier factories. Just this month, Apple published its list of major suppliers for the first time. Its annual supplier responsibility progress report frequently discloses situations where workers' rights are not protected. Apple executives are also heavily involved in eliminating child labor and involuntary overtime.
However, many key issues remain unresolved. Apple's supplier code of conduct details regulations regarding labor issues, safety protection, and many other areas. According to Apple's reports, since 2007, at least half of the suppliers reviewed by Apple have violated at least one guideline, some even breaking local laws.
"Apple basically only cares about two things: improving quality and reducing costs. Whether or not the workers are well taken care of has little to do with the company's interests," said Li Mingqi. Li worked as a senior manager at Foxconn, Apple's most important manufacturing partner, until two months before the explosion. Li once assisted in the construction of the new Chengdu facility, the same one where the May explosion occurred.
Some former Apple executives revealed that violations continue to occur because Apple has not resolved the conflict between managers who genuinely want to improve working conditions and those who hesitate when conflicts arise with core suppliers or when new product launches are affected. The existing system is far from perfect, former executives say, but substantial reforms would inevitably slow down product innovation and threaten Apple's competitive advantage.
"If half of the iPhones were faulty, do you think Apple could ignore it for four years? We've known about some labor conditions in certain factories for more than four years, but they remain unchanged. Why? Because this system benefits us. If Apple says it must change, the suppliers will comply overnight," said a former Apple administrator who wished to remain anonymous. Many interviewees in this article also requested anonymity due to confidentiality agreements.
Apple publicly claims that if a supplier violates regulations, Apple will terminate its relationship with that supplier. However, several former Apple executives privately admitted that finding new suppliers is both time-consuming and expensive. Foxconn is one of the few suppliers with the workforce and technical advantages needed to manufacture iPhones and iPads. Harvard scholar Cici White believes that "Apple will never leave Foxconn, nor will it leave China. Apple's management has not truly spent time delving into the realities of the factories. In the short term, neither Apple nor Foxconn will make concessions on critical issues, and there are many reasons for this." White was once a representative of the National Academy of Sciences International Monitoring Labor Standards Committee.
The New York Times contacted Apple and provided a summary of most of the content of this article, but Apple adhered to its usual secretive style and refused to comment. The interview content comes from 36 current or former Apple employees and Apple suppliers, six of whom have firsthand information about Apple's supplier responsibility team.
Former Apple CEO Steve Jobs, who passed away in October last year, discussed Apple's relationship with its suppliers at an industry conference in 2010: "I believe Apple's understanding and efforts regarding the working conditions of the companies in its supply chain are probably the best in the industry."
"For instance, if you visit a factory, yes, it's a factory, but my goodness, you'll see they have restaurants, cinemas, hospitals, and swimming pools. For a factory, if it has all these facilities, it's quite a good factory."
Respondents (including those who work in these factories) acknowledged the existence of dining facilities and medical equipment but denied that the factories could be considered "good."
A former Apple executive said, "We have indeed made great efforts to improve working conditions. However, if the owners of iPhones could personally witness the conditions under which their phones are produced, most people would likely feel very uncomfortable."
This article is excerpted from www.nmny.cn. Please credit the source if reprinted. Related thematic articles: World Health Organization recommendations for infant feeding, Pharmaceutical packaging and regulations.