Report Examines Labor Violations at Apple Supplier's Malaysian Plant

In a lengthy piece detailing the hardships that workers in Apple's supply chain can face, Bloomberg follows the story of a factory worker at Flextronics International, a contract manufacturer based in Singapore and Kuala Lumpur that produced camera parts for the iPhone 5.

Ahead of the launch of the iPhone 5, Flextronics had to significantly ramp up production, hiring a 1,500 new employees via brokers and recruiters in Nepal, Malaysia, and surrounding areas. Because factory jobs are highly desired, many families pay upfront fees to brokers to acquire the positions, resulting in loans that can take "imported" workers years to pay off, with factory managers controlling when workers are able to leave.

flextronics

Inside a Flextronics factory in Fort Worth, Texas. Courtesy of The Wall Street Journal

For the iPhone 5 rollout, a recruiter working for Flextronics contacted four brokers in Kathmandu, Nepal's capital, in late August and early September, urgently seeking 1,500 men to make cameras, according to three of the four brokers. The pressure to move so many men so quickly was unprecedented. "The recruitment agency was telling me, 'We need these workers, you have to send them by today,'" says Rajan Shrestha, managing director of a small company called Sharp Human Resources.

The frenzy to hire workers was how one Nepalese man, Bibek Dhong, found himself paying $250 and handing over his passport to a recruiter who promised him a good job. Dhong was forced to pay another $500 to a broker (6 months of his wages from his former job as a dairy farmer) and sign a debt agreement stating he would pay $400 more. Dhong was told to keep his broker fees secret, as Apple has a policy that prevents excessive charges by recruiters.

Last year [Apple's] audits turned up $6.4 million in fees paid by workers beyond the company's prescribed limit—compared with $6.7 million in the previous four years combined. And Apple audited fewer plants last year than it did in 2011. The company orders its suppliers to refund workers charged beyond its limit.

The Flextronics plant where Dhong was inspecting cameras experienced high failure rates before slowing and shutting down production. Because Flextronics retained Dhong's visa, he was unable to leave, stuck in a hostel in Malaysia with no food. After two months, he was permitted to return home, where he had to sell off much of his land to pay his debts and take a low paying job to continue to pay off the rest of the money for the factory job he didn't get to keep.

According to an Apple spokesman, Apple aggressively investigates claims of bonded labor where Apple products are made, and has mandated reimbursement to employees charged excessive recruitment fees.

"We aggressively investigate any claims of bonded labor where Apple products are made, and our team is continuously auditing deeper into the supply chain. We recently updated our code of conduct to require our suppliers to directly interview workers who are hired through labor brokers, as another way of eliminating unethical practices. Although Flextronics's Bukit Raja facility is no longer in Apple's supply chain, we take these allegations extremely seriously."

Apple has frequently been in the spotlight over the conditions at the factories where its products are made and the company has low tolerance for factories that violate its rules. For example, in January, Apple dropped one supplier for using underage workers. It is, however, an ongoing battle for Apple, as many factories are aiming to produce high volumes of products at low costs, often defying labor rules to keep profits high.

Earlier this year, Apple formed a Supplier Responsibility Academic Advisory board to work on providing "safe and ethical working conditions" wherever Apple products are made. The company also maintains an annual Apple Supplier Responsibility report [PDF] tracking its efforts to improve working conditions for factory employees.

Flextronics remains an Apple partner, and will run an Austin plant that will be responsible for the production of Apple's upcoming Mac Pro.

Popular Stories

Apple Shopping Event 2025

Apple Announces 2025 Black Friday Event, Here's What You Can Get

Thursday November 20, 2025 6:28 am PST by
Apple's annual four-day Black Friday through Cyber Monday shopping event is returning on Friday, November 28 through Monday, December 1 in many countries, including the United States, Canada, Australia, New Zealand, France, Germany, Italy, Spain, the United Kingdom, Belgium, the Netherlands, Sweden, Thailand, and others. During the shopping event, customers can get an Apple gift card with...
iPhone 17 Pro Cosmic Orange

10 Reasons to Wait for Next Year's iPhone 18 Pro

Wednesday November 19, 2025 4:00 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models at the same time, which is why we often get rumored features months ahead of launch. The iPhone 18 series is no different, and we already have a good idea of what to expect for the iPhone 18 Pro and iPhone 18 Pro Max. One thing worth...
iOS 26

Everything New in iOS 26.2 Beta 3

Monday November 17, 2025 3:20 pm PST by
Apple provided developers with the third beta of an upcoming iOS 26.2 update, and there are still new features that are being added with each beta that we get. We've rounded up all of the changes that Apple made in beta 3. AirDrop Apple added new AirDrop functionality, providing a way for two people to share files temporarily without having to add one another as contacts. iOS 26.2...
applecare apple care banner

Apple Brings New AppleCare+ Options to India

Tuesday November 18, 2025 8:42 am PST by
Apple today announced an expansion of AppleCare+ coverage in India, with new options for monthly and annual plans, and the addition of Theft and Loss for iPhone for the first time. Options for monthly and annual AppleCare+ plans in India provide more choice and flexibility, allowing users to keep coverage for as long as they require. Apple's vice president of Worldwide iPhone Product...
ipad mini 7 feature red and blue

iPad Mini 8: Four Major New Features to Expect

Wednesday November 19, 2025 7:50 am PST by
Apple's eighth-generation iPad mini is highly likely to arrive next year, offering a significant refresh of the device with at least four major new features. OLED Display The next-generation version of the iPad mini could feature an OLED display, as part of Apple's plan to expand the display technology across many more of its devices. Apple's first OLED device was the Apple Watch in 2015, ...
iOS 26

iOS 26.2 Adds These New Features to Your iPhone

Thursday November 20, 2025 10:50 am PST by
iOS 26.2 is currently in beta testing. The upcoming update includes a handful of new features and changes on the iPhone, including a new Liquid Glass slider for the Lock Screen's clock, offline lyrics for Apple Music, and more. In a recent press release, Apple confirmed that iOS 26.2 will be released to all users in December, but it did not provide a specific release date. Keep reading...
iPhone 17 Pro and Air N1 Feature

iPhone 17 vs. iPhone 16 Wi-Fi Speeds: New Study Reveals the Winner

Tuesday November 18, 2025 10:53 am PST by
A new study has revealed that the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and iPhone Air achieve significantly faster average Wi-Fi speeds compared to the iPhone 16 series, thanks to Apple's custom-designed N1 chip. The study was conducted by Ookla, the company behind the popular Speedtest website and app. It said the results are based on global, crowdsourced Speedtest user data...
Apple Wallet ID Illinois

iPhone Driver's License Feature Launching in Illinois

Tuesday November 18, 2025 8:47 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Starting this Wednesday, November 19, the feature will be available to residents of Illinois. The announcement confirmed that the...
macbook black friday

The Best Early Black Friday Mac Deals

Tuesday November 18, 2025 7:32 am PST by
We're getting closer to Black Friday, which lands next week on Friday, November 28. In the lead-up to the shopping holiday, we're tracking a few lowest-ever prices on Apple's most popular Macs, including the M4 MacBook Air and brand new M5 MacBook Pro. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small payment,...
watchos 26 workout app

Apple Watch Users Claim Workout App Is Now Worse in Every Way

Thursday November 20, 2025 7:01 am PST by
Apple Watch owners have been voicing their frustration online over changes to the Workout app that Apple introduced in watchOS 26, with many finding the redesigned interface makes starting exercises difficult and exasperating. When Apple launched watchOS 26 in September, the Workout app went from large, easily tapped workout tiles to a scrolling, corner-button interface. Instead of tapping a ...

Top Rated Comments

Chupa Chupa Avatar
157 months ago
Funny how all these labor violation stories always single out Apple even though the facilities produce products for other top end electronics companies. Then there are companies that produce in other facilities and never called out. And finally, all these facilities are in countries that are U.N. members and supposedly pledged to the U.N's Universal Declaration of Human Rights, yet its condemnation is as loud as a sugar ant. Makes you think it's more about trying to knock Apple down than actually help abused workers.
Score: 19 Votes (Like | Disagree)
Sodner Avatar
157 months ago
Ya, Apple is the only one using these plants to build products. :rolleyes: :rolleyes: :rolleyes:

It's all Apple's fault. HP, Samsung, Acer, Moto, etc., etc., all use air conditioned plants in the US where emplyees work from the comfort of a Lazy Boy reclinder for $60 an hour working just three 7 hour days a week but get paid for 40 hours.
Score: 17 Votes (Like | Disagree)
likemyorbs Avatar
157 months ago
Good. For what I pay for my products they damn well better be made with sweat shop labor and children's tears.
Score: 13 Votes (Like | Disagree)
mbh Avatar
157 months ago
Funny how all these labor violation stories always single out Apple even though the facilities produce products for other top end electronics companies. Then there are companies that produce in other facilities and never called out. And finally, all these facilities are in countries that are U.N. members and supposedly pledged to the U.N's Universal Declaration of Human Rights, yet its condemnation is as loud as a sugar ant. Makes you think it's more about trying to knock Apple down than actually help abused workers.

Put "Apple" in the headline: more attention, more hits, more $$$.

Put "Asus" in the headline: who?
Score: 12 Votes (Like | Disagree)
Rogifan Avatar
157 months ago
how does tim sleep at night ? besides on his million dollar bed sheets

How about all the people who complain about this yet continue to purchase Apple products. Put your money where your mouth is if it bothers you so.
Score: 10 Votes (Like | Disagree)
IbisDoc Avatar
157 months ago
Ya, Apple is the only one using these plants to build products. :rolleyes: :rolleyes: :rolleyes:

It's all Apple's fault.

As the industry leader, which they happily celebrate, they should be setting an example for everyone else. Not to mention their CEO is happy to support liberal ideas and individuals when it suits him.
Score: 10 Votes (Like | Disagree)