To: Knighty Tin who wrote (63919 ) 7/2/1999 6:21:00 PM From: RealMuLan Read Replies (1) | Respond to of 132070
Wonder how computer companies can survive? Friday July 2, 5:44 pm Eastern Time SAN JOSE, Calif., July 1 (Reuters) - U.S. federal and state officials will launch a probe into Silicon Valley labor practices over allegations that Asian immigrants are assembling electronics components at home -- sometimes for as little as a penny a part. ''We're talking about possible overtime violations, child labor violations and certainly record-keeping violations,'' George Friday, a regional administrator for the Department of Labor, told Thursday's San Jose Mercury News. The probe, the first major look at employment practices in California's high-tech heartland in 19 years, comes after the Mercury News published stories on Sunday and Monday detailing the practice of paying Asian immigrants to make electronic parts at home. The stories said that at least a dozen contract manufacturers, ranging from small firms to multibillion dollar giants, had been involved in piecework arrangements within the past year, possibly in violation of labor, tax and safety laws. Companies such Hewlett-Packard Co (NYSE:HWP - news)., Sun Microsystems Inc (Nasdaq:SUNW - news). and Cisco Systems Inc (Nasdaq:CSCO - news). were cited as examples of high-tech giants that outsource components to subcontractors which may use Asian at-home assemblers. The Mercury News said the use of at home labor by large companies had dwindled over the past two decades, but that it still remained an important strategy for keeping up production speed while holding down costs. In many cases, larger companies delegate the production of particular parts to smaller firms which specialize in assembly. These firms then subcontract that work out, where it sometimes ends up in the hands of at home workers who attach components by hand to printed circuit boards -- sometimes for as little as a penny per component. None of the workers interviewed by the Mercury News said he or she received overtime, as would be required by law. The newspaper said that the companies named in its report had declined to comment on the pending investigation, which officials will coordinate next week with the formation of a new joint task force. ''I believe most companies want to comply with the law,'' he was quoted as saying. "Some may be ignorant of what's going on at the lower levels of their own companies. Others may just see it as an industry practice. The last major investigation of at home contract work in 1980 quickly came to a halt after industry leaders and local politicians asked officials to let companies police themselves. Workers' rights advocates have slammed home electronics assembly as an egregious violation of labor laws as bad as any sweat shop. ''It appears the same thing that's happening in the garment and agricultural industries is happening in Silicon Valley,'' said Tom Rankin, president of the California Labor Federation. ''It's the misuse of independent contractors to avoid labor laws, to shield the real employer.'' biz.yahoo.com