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Foxconn, Apple Agree To Change Labor Practices

3/30/2012 11:04:56 AM Eastern

Washington - The Fair Labor Association (FLA) reported that
Apple and its supplier Foxconn will upgrade factory worker conditions to comply
with FLA and Chinese legal standards.

Under the agreement, Foxconn has committed to reducing
worker hours without sacrificing pay levels and improve safety conditions. The
FLA said it will continue to monitor the situation at Foxconn's plants to
ensure compliance.

The FLA conducted a 3,000-hour-long investigation that
included surveying 35,000 Foxconn employees on working conditions at three
plants. The FLA report found that during the 12 -month investigation, all three
factories exceeded Chinese and FLA limits on hours worked of 40 hours of
regular plus 36 hours of overtime per week. The FLA said plant workers
regularly clocked 60 hours per week, and there were periods when staffers
worked more than seven consecutive days without the required day off.

The FLA said Foxconn will comply with the legally set work
periods by July 2013. To keep pay levels at their current levels, Foxconn will
adjust its compensation package to protect workers from losing income due to
working less overtime.

Other Foxconn practices uncovered by the FLA included not
paying workers properly for overtime. The company paid overtime in 30-minute
increments, so a worker putting in 29 minutes of overtime would not get paid at
all, and an employee working 58 minutes would only be paid for 30. Foxconn
promised to remedy this situation, the FLA report stated.

The workers survey also found that 64 percent said their salary
does not meet their basic needs and there is a great deal of concern over
safety and health issues in the factories.

A full copy of
the report is available at www.fairlabor.org/transparency/complaints-investigations.