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Strategies & Market Trends : Greater China Stocks

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From: Julius Wong2/19/2012 1:27:01 PM
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Apple Manufacturer Foxconn Has ‘Tons of Issues’ to Remedy at Chinese Plant
By Peter Burrows - Feb 17, 2012

The Fair Labor Association, a watchdog monitoring working conditions at makers of Apple Inc. products, has uncovered “tons of issues” that need to be addressed at a Foxconn Technology Group plant in Shenzhen, China, FLA Chief Executive Officer Auret van Heerden said.

Van Heerden made the comments in a telephone interview after a multiday inspection of the factory. Apple, the first technology company to join the FLA, said on Feb. 13 that it asked the Washington-based nonprofit organization to inspect plants owned by three of its largest manufacturing partners.

“We’re finding tons of issues,” van Heerden said en route to a meeting where FLA inspectors were scheduled to present preliminary findings to Foxconn management. “I believe we’re going to see some very significant announcements in the near future.”

He declined to elaborate on the findings. The FLA plans to release more information about its inspection in the coming weeks. By then, the company will have had a chance to contest or agree to steps to prevent further violations.

“Foxconn is cooperating fully with this audit and we will review and act on all findings and recommendations,” Foxconn said in an e-mailed statement today. “This is a very professional and thorough review and any deficiencies the FLA might find in the implementation of customer or Foxconn policies will be addressed.”

Steve Dowling, a spokesman for Cupertino, California-based Apple, referred to the company’s Feb. 13 statement about the audits.

bloomberg.com
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