Apple supplier Pegatron found using illegal student labour in China

Pegatron, which has headquarters in Taiwan but has operations in China, is one of Apples largest manufacturers, producing iPhones, Macs, iPads and other components for several years. It has also faced recurring allegations about working conditions from campaign groups such as China Labor Watch. Pegatron isnt like other factories. They will force you to work overtime: 12 hours per day, said one former worker, adding that this was to make up for rush orders or staff quitting. Until last month, thousands of student interns had assembled iPhones at Pegatrons Kunshan plant and illegally worked overtime and night shifts, according to former interns and workers at the plant. Chinese government regulations prevent students from interning in factories if the work is unrelated to their studies. The alleged coercive use of students during the factorys peak production periods mirrors the abuses previously found by the FT at Foxconn. Schools and local governments often collaborate to ensure labour supply for big companies in China. The latest disclosures follow the death last month of a worker in his mid-thirties after falling unconscious in a Pegatron dormitory. Apple has placed Pegatron on probation and Pegatron will not receive any new business from Apple until they complete all of the corrective actions required, Apple said. Apple did not explain how it defined new business, nor what the material impact of the probation, if any, would be on Pegatron. The iPhone maker sought to place blame for the abuses squarely on its manufacturing partner, saying: The individuals at Pegatron responsible for the violations went to extraordinary lengths to evade our oversight mechanisms. Pegatron has now fired the executive with direct oversight of the programme. However, despite saying it discovered the violations to its supplier guidelines several weeks ago, it only issued a public statement on the matter after being approached by the FT. Students told the FT they had been forced by their schools to intern at the Pegatron plant in order to graduate with degrees with little relevance to factory work, such as graphic design and computer science. We have a rigorous review and approval process for any student worker programme, which ensures the interns work is related to their major and prohibits overtime or night shifts. Page 2 of 4 Page 3 of 4 BUSS2421/June2021 Pegatron misclassified the student workers in their programme and falsified paperwork to disguise violations, said Apple. Pegatron said: During [a] recent monitoring programme conducted by our customer, some student workers at Pegatron Shanghai and Kunshan campus were identified working night shifts, overtime and in positions unrelated to their majors, which were not in compliance with local rules and regulations. Once you step on to the factory floor, you cant stop working until lunchtime. Sometimes you get orders you cant complete 600 to 1,000 [iPhones] per hour and then they dont let you eat lunch, said the former worker. Pegatron did not immediately respond to the FT regarding the workers claims. Apples annual new product launches are the busiest period for its suppliers in China, which have to rush to boost staff and working hours to meet a sudden increase in orders. Pegatrons Kunshan plant ordered students to stop working on October 23, according to a notice sent to one of the students. He said that his class of roughly 1,000 students had been transferred by their teachers to another electronics factory in the city of Chuzhou. After being interviewed by the FT over WeChat, one factory employee was warned by his manager. The incident suggested collaboration between Pegatron and local government bureaus with powers to surveil citizens communications. Pegatron declined to comment on the issue of surveillance. (Adapted from: https://www.ft.com/content/5b2af247-46fa-45de-94e1-b669bb0c3164, November 2020)

Question 1 Analyze Pegatrons action for the use of child labour based on Utilitarian views.

Question 2 Discuss Kants perception on the actions done by Pegatron.