Apple Suspends Business With iPhone Supplier Pegatron for Labor Violations

Apple has suspended its partnership with Pegatron after it discovered that the major iPhone supplier was committing labor violations at a student workers' program.

pegatron logo
Bloomberg reports that several weeks ago Apple found Pegatron had been falsifying paperwork to cover up the violations of Apple's code of conduct for suppliers. Specifically, the Taiwanese manufacturer had misclassified student workers, which allowed some to work nights and overtime. Employees reportedly then "went to extraordinary lengths" to cover up the violations.

"Pegatron misclassified the student workers in their program and falsified paperwork to disguise violations of our Code, including allowing students to work nights and/or overtime and in some cases to perform work unrelated to their major," Apple said in a statement to Bloomberg. "The individuals at Pegatron responsible for the violations went to extraordinary lengths to evade our oversight mechanisms."

Pegatron said the violations took place at its Shanghai and Kunshan campuses in eastern China and that students working night shifts, over-time, and in positions unrelated to their majors were "not in compliance with local rules and regulations." Pegatron has since fired the manager who oversaw the student worker program.

"Upon discovery of this non-compliant activity, we immediately took the student workers off production lines and worked with our customer and third-party experts to make appropriate arrangements for them to return to their homes or schools with proper compensation alongside all necessary support and care," Pegatron said in a statement.

Apple has put Pegatron on probation as a result of the violations, and while supplier's current ‌iPhone‌ business is not expected to be affected, it could lose some iPhone 12 orders to Luxshare next year.

This isn't the first time Pegatron has been accused of worker abuse. A 2013 report by China Labor Watch found evidence of unpaid overtime and underpayment of student workers at Pegatron's Shanghai assembly plant. Other companies in Apple's Chinese-based production chain including Foxconn and Catcher Technology have also flouted local regulations in the past, forcing Apple to tighten standards and audit the companies that manufacture components for its devices.

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Top Rated Comments

spyguy10709 Avatar
25 months ago
I don't see how


Apple has put Pegatron on probation... business is not expected to be affected
translates into


Suspends Business
Score: 17 Votes (Like | Disagree)
ian87w Avatar
25 months ago

It is crazy how we perceive Apple as a premium brand, but they are really products being manufactured by cheap Chinese labor.

I love my iPhone 12 Pro, but stories like these make me feel gross about supporting a company like Apple. It is time to invest in the country that made them rich, or get out.
Wait, isn't this actually a good thing for Apple since they actually put efforts to curtail naughty suppliers? Pegatron made a ton of other stuff, including laptops and components, yet we don't see other brands (I'm looking at you Asus) putting the same scrutiny as Apple.
Score: 14 Votes (Like | Disagree)
citysnaps Avatar
25 months ago

It is crazy how we perceive Apple as a premium brand, but they are really products being manufactured by cheap Chinese labor.

I love my iPhone 12 Pro, but stories like these make me feel gross about supporting a company like Apple. It is time to invest in the country that made them rich, or get out.
Maybe you should instead purchase your tech products from companies not using Chinese suppliers and contract manufacturing? Or companies looking the other way when labor violations are discovered with their suppliers/contract manufacturers? And then you wouldn't need to feel gross.

Hat-tip to Apple and Mr. Cook for not looking the other way and instead taking action. I suspect many tech companies simply look the other way out of convenience.
Score: 14 Votes (Like | Disagree)
neuropsychguy Avatar
25 months ago

Shocker, China abusing their workers ?‍♀️
That's not what it looks like. It looks like the students wanted to work more hours or different hours than they were allowed to and a manager helped them do it and falsified paperwork: "Apple said it didn’t find evidence of forced or underage labor in Pegatron’s case".

There are plenty of worker abuses (and forced labor) in China [not to mention this is Taiwan] but this doesn't appear to be one of those cases.
Score: 12 Votes (Like | Disagree)
farewelwilliams Avatar
25 months ago

It is crazy how we perceive Apple as a premium brand, but they are really products being manufactured by cheap Chinese labor.

I love my iPhone 12 Pro, but stories like these make me feel gross about supporting a company like Apple. It is time to invest in the country that made them rich, or get out.
apple would gladly sell you a $1.5k entry level iPhone
Score: 10 Votes (Like | Disagree)
roxygal9 Avatar
25 months ago
Shocker, China abusing their workers ?‍♀️
Score: 8 Votes (Like | Disagree)

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