Apple Inc vs China
I came across a Bloomberg article that I found absolutely tantalizing. Apple Inc. is forcing Chinese companies that make their Ipods and other products, to pay workers overtime that they deserve. It seems that some Chinese companies routinely agree to pay their workers overtime when they negotiate with Western partners but then “forget” about it.
Apple Inc., which relies on Chinese manufacturers for its iPhones and iPod music players, found 45 of the 83 factories it audited last year didn’t pay proper overtime and 23 provided less than minimum wage, according to its 2009 progress report on supplier responsibility. The Cupertino, California-based company required them to adjust practices to ensure correct payments, it said in the report. [via Bloomberg]
Almost half of the companies that Apple deals with have been promising to pay overtime and then scamming their employees. Now Apple is getting pissed and forcing those companies to make good on their promises. I suspect at first the companies won’t comply so Apple will have to pull out and move their manufacturing elsewhere. Once that happens, the other Chinese companies will likely comply rather quickly.
Everyone always complains that China is too strong, have crappy products, poison their food, and manipulate the world politically and economically, forget that we feed them lots of money for their products. If you hit them in their money belt, just a wee bit, they’ll listen really fast and do whatever it takes to earn your money.