Amazon Blasted Over China Echo Factory Conditions
Amazon Blasted Over China Echo Factory Conditions
China Labor Watch cites low pay, long hours, safety
concerns
Amazon says it identified concerns and is addressing them
By Spencer Soper June 10, 2018, 12:50 AM PDT Updated on
June 10, 2018, 1:44 AM PDT
A watchdog group is calling on Amazon.com Inc. to improve
conditions for factory workers in China who make Echo speakers and Kindle
e-readers, renewing criticisms that CEO Jeff Bezos became the world’s
wealthiest man on the backs of low-paid laborers.
The New York-based China Labor Watch released a report at
the weekend following a nine-month investigation of working conditions at a
factory in the city of Hengyang owned by Hon Hai Precision Industry Co., the
company known as Foxconn, which manufactures products for Amazon. It offers the
first behind-the-scenes glimpse of how Amazon produces voice-activated speakers
that cost as little as $40.
The report, which paints a picture of low pay and intense
working conditions, includes the following findings:
·
Workers were required to work more than 100
hours of monthly overtime in violation of Chinese labor law that limits
overtime to 36 hours a month
·
The factory uses more “dispatch workers,”
similar to temporary staff in the U.S., than are allowed by Chinese law
·
Employees did not receive adequate safety
training
·
Workers are required to arrive at work stations
10 minutes before their shift begins and they are not compensated for this time
·
Staff dormitories lack adequate fire-safety
precautions such as fire extinguishers
“All workers are subject to long hours and low wages,”
the report stated. “As wages are low, workers must rely on overtime hours to
earn enough to maintain a decent standard of living.”
Amazon completed an audit of the factory in March and
found violations regarding overtime and the use of dispatch workers, which it
has asked Foxconn to remedy, it said in an emailed statement.
“We immediately requested a corrective action plan from
Foxconn Hengyang detailing their plan to remediate the issues identified, and
we are conducting regular assessments to monitor for implementation and compliance
with our Supplier Code of Conduct,” Amazon said. “We are committed to ensuring
that these issues are resolved.”
Salary reviews are conducted regularly and all full-time
and temporary employees receive “both pre-job training and additional training
in their assigned departments,” Foxconn said in a June 10 statement. The major
electronics manufacturer in China, was criticized for poor working conditions
in factories where Apple Inc. devices were made, leading to the company
installing safety netting to prevent worker suicides. The findings at the
Amazon device factory were similar, but less severe.
Amazon, the world’s biggest online retailer, sells a
variety of devices. Kindles and tablets help it sell more digital books. It has
sold tens of millions of Echo voice-activated speakers, which can be used to
dim lights, stream music and order pizza.
Amazon also has faced criticism for working conditions in
its U.S. warehouses. One lawsuit alleged Amazon cheated workers out of pay by
making them clock off before standing in security lines for theft-prevention
measures before leaving the building. Amazon prevailed in that case before the
Supreme Court, which ruled the workers were not entitled to payment for
security screenings.
— With assistance by Debby Wu, and Divya Balji
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