More suppliers violated Apple’s labour policies last year

SAN FRANCISCO: Apple Inc said it had found a higher number of serious violations of its labour and environmental policies for suppliers, such as falsifying work hours data, as it expanded the scope of its annual audit of conditions of workers making its iPhones and other products.

But the overall trend among 756 suppliers in 30 countries was towards higher compliance with Apple’s code of conduct, according to a new report by the company, which has been carrying out the audits for 12 years.

The latest annual supplier responsibility report includes 197 suppliers audited for the first time. Apple runs one of the largest manufacturing chains in the world, mostly factories owned by contractors.

Apple said in the report on Wednesday the proportion of “low performers”, or suppliers scoring less than 59 points on its 100-point scale, fell to one per cent last year from three per cent in 2016 and 14 per cent in 2014.

“High performers” with scores of more than 90 rose to a record high of 59 per cent from 47 per cent the year before.

Apple found 44 “core violations” of its labour rules last year, double the previous year. Those included three instances of employees forced to pay excessive fees for a job, a practice Apple banned in 2015.

In one case, more than 700 foreign contract workers recruited from the Philippines were charged a total of US$1 million (RM3.9 million) to work for a supplier. Apple said it forced the supplier to repay the money.

Compliance with Apple’s 60hour work week fell to 94 per cent of suppliers from 98 per cent in 2016. Apple said it uncovered 38 cases of falsification of working hours data last year, up from nine cases the year before.

“We’re committed to raising the bar every year across our supply chain,” said Apple’s chief operating officer, Jeff Williams, in a release.