By: Gigaom
March 29, 2012 at 16:42 PM EDT
Auditors find “significant issues” at Foxconn factories
The Fair Labor Association listed excessive overtime, proper compensation, health and safety risks and communication problems as problems uncovered at three Chinese factories that make Apple products. Foxconn has now agreed to build more housing for employees and reduce working hours and overtime.

Auditors investigating three Apple third-party factories have published their first report, saying it uncovered “significant issues” with the working conditions. The Fair Labor Association, of which Apple is a member, listed excessive overtime, overtime compensation, health and safety risks and communication problems as the issues that have “led to a widespread sense of unsafe” conditions at all three Foxconn factories that make Apple products.

At the same time, the FLA said it has secured a commitment from Foxconn to build more housing for employees and reduce working hours to meet the legal Chinese limit of 49 hours per week, which includes overtime. Overtime hours will be cut from 80 to 36. Though they’ll be working less, Foxconn will “develop a compensation package that protects workers from losing income.” The manufacturer will also hire more people to make up for reduced labor hours of its current employees.

President and CEO of the Fair Labor Association Auret van Heerden said in a press release:

“The Fair Labor Association gave Apple’s largest supplier the equivalent of a full-body scan through 3,000 staff hours investigating three of its factories and surveying more than 35,000 workers. Apple and its supplier Foxconn have agreed to our prescriptions, and we will verify progress and report publicly.”

More to come.

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