With demand at its zenith during peak season, dispatch workers are commonly set up with Apple suppliers by agents who act as middlemen. But Apple said it conducted its own investigation and found that "most of the allegations" in the report, "are false". However, this practice is highly illegal.
Apple's supply partner Foxconn said in a separate statement that it did identify "some" compliance issues. Previous year iPhone XS models were more complicated to build than the iPhone X, requiring more workers, the group additionally mentioned.
Apple and Foxconn conceded Monday that employed too many temporary workers.
Under Chinese law, only 10% of a workforce can be temporary. "Hence, the cost of employing dispatch workers is lower than recruiting more regular workers".
While the students left Apple's workforce in February, the company still had 30 percent dispatch workers in its workforce which is still not safe with the Chinese government's labor laws. Student workers have been forced to work overtime hours, completing internships at the factory that are unrelated to their degree.
Apparently, Foxconn workers were often hired temporarily were not well rewarded for their work, were not getting bonuses, and were often working overtime, according to a report.
Apple has announced that, after conducting an investigation, it found the "percentage of dispatch workers exceeded [its] standards" and that it is "working closely with Foxconn to resolve this issue".
"We did determine that the affected workers were paid all earned overtime and related bonus payments", the company wrote. Thirty-six hours of overtime a month is the maximum allowed under Chinese law.
Pricing is yet to be confirmed for the platform, which could be discussed alongside more details on another subscription service in the pipeline, the gaming-based Apple Arcade.
CLW was founded in 2000 as a 501 (c)(3) organisation to investigate Chinese factories that make toys, shoes, electronics and other products for some of the world's largest multinational companies. By recruiting these laborers, "the factory does not need to increase the wages for all regular workers", it said.
Work injuries are not reported by the factory, and verbal abuse is common there.
When we find issues, we work with our suppliers to take immediate corrective action.We looked into the claims by China Labor Watch and most of the allegations are false. Foxconn says that overtime is voluntary, however. One investigator worked in the plant for four years and found other lapses as well including harsh working conditions.