Contract manufacturer Foxconnsaid on Sunday it is investigating a plant in China that makes devices for Amazon.com Inc (AMZN.O), after a us watchdog group criticized what it described as harsh working conditions at the factory.
This is, of course, not the first time labor issues at Foxconn, one of the largest electronic OEMs in the world and the main supplier of Apple'siPhones, have been scrutinized.
Released this weekend, CLW's report is the result of 'several investigators' who infiltrated the Hengyang Foxconn facility, responsible for producing Amazon-branded devices including Echo smart speaker systems and Kindle tablets and eReaders.
While factories are required by Chinese laws to limit dispatch workers to 10% of the staff, the Foxconn plant had 40%.
It was also noted that the workers at Hengyang were being paid significantly less than workers at other Foxconn factories.
Alexa, for example, is paid 14.5 yuan an hour (£1.69), with frequent overtime paid at the same rate, even though both the Chinese labor law and Amazon's code of conduct dictate that overtime has to be paid at a 150% rate. Foxconn is considering building a display-manufacturing plant in the US, the value of which could exceed $7 billion. The report also highlights how wages are deducted as penalty when these workers take leave or "unexcused absences".
Amazon said it has called on a supplier to clean up its act at a Chinese factory where a watchdog group says it observed harsh conditions and mistreatment of workers.
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During each month of peak production season, workers have to put in over 100 hours of overtime.
The report alleged the Foxconn factory often exceeded the number of dispatch workers allowed, and those workers were asked to work ridiculous hours for less pay.
Amazon said that it found issues at the Foxconn factory during an audit in March, and the company "immediately requested a corrective action plan from Foxconn Hengyang detailing their plan to remediate the issues identified".
In light of these allegations, Amazon has said that it completed an internal audit of the factory, and found "two issues of concern".
The report noted staff were also subject to verbal abuse.
Amazon said it will also be "conducting regular assessments to monitor for implementation and compliance with our Supplier Code of Conduct". "We are committed to ensuring these issues are resolved".
Foxconn said it didn't comment on matters involving current customers or products, but promptly claimed that it "works hard" to honor the law and that it will "rectify" violations if they're found.
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