The US watchdog criticized Amazon.com and the Foxconn contract for practicing complex working conditions at the plant in China, which makes smart speaker Eco Dot and Kindle e-book reader.
A report of the Chinese Labor Office of 94 pages in New York stated low wages, excessive hours, insufficient training, and extreme dependence on shipping or temporary workers that violate the law at the Hengyang Foxconn plant in the province of Hunan.
Foxconn, headquartered in Taiwan and officially known as Hon Hai Precision Industry Co. Ltd. 2317.TW, is the largest foreign electronics manufacturer in the world and employs more than a million employees.
China Labor Watch reported that in a nine-month survey, it was determined that about 40% of the plant workers work under dispatch section surpassed the 10% limitation considerably, according to Chinese law. The workers in dispatch sections were paid the same rate for overtime hours and regular hours, and not more than that, according to Elaine Lu, China Labor Watch Program Officer.
“They were paid with very low wage,” said Lu. “It is against the law”.
According to the report, workers in dispatch section received 14.5 Yuan approximately, $2.26 per hour. Employees also spend more than 100 hours per month during the season at work, while some worked for 14 consecutive days, which surpasses the limit of 36 Hours allowed by law.
“We have requested for a CAP (corrective action plan) from Foxconn,” Amazon mentioned in a statement. Amazon is also supervising Foxconn’s response to its Code of Conduct for suppliers and that is trying to ensure that these problems are resolved soon.
Foxconn stated in an e-mailed statement that, “It does everything it can to adhere to the important laws and regulations”, where it is active in conducting regular audits.
Foxconn, which also produces Apple iPhones, received criticism in 2010 on the wave of suicides in factories in China. Foxconn promised to make the working conditions better.