By Ellen Rosskam and Peter L.
Schnall
We thought that the interested reader
might want to know a bit more about the Fair Labor Association (FLA) which has
been retained by Apple Corporation to evaluate whether Apple’s suppliers are
adhering to Apple’s standards for the proper treatment of their workforce. This
standard is outlined in the Apple Supplier Responsibility Progress Report (Apple_SR_2012_Progress_Report) We quote
from the report … “We require that our suppliers provide safe working
conditions, treat workers with dignity and respect, and use environmentally
responsible manufacturing processes wherever Apple products are made”. Unfortunately,
as many readers are certainly aware questions have been raised about several
companies that supply Apple as to whether or not they are in violation of these
policies. Among the issues raised are excessive overtime (more than 60 hours of
work per week), crowded dormitories, military like working conditions, lack of
breaks, mental harassment, etc. (the list goes on and the reader should refer
to earlier blogs posted here). Foxconn itself acknowledges turnover rates in
excess of 75% per year (Walmart which is considered a terrible U.S. company to
work for has a turnover rate of 50 to 60%). High turnover rates are considered
a good indicator of the stressfulness of a company to work for.
Apple has responded to the barrage of
news and criticisms about Foxconn ( a major Chinese supplier of Ipads and
Iphones) by releasing for the first time a list of its official suppliers. More
importantly, on January 13, 2012, Apple joined The Fair Labor Association (FLA)
as a Participating Company (PC) -
the first technology company to join the FLA. The FLA works to end sweatshop
working conditions around the world. As a PC, Apple commits to bringing their
entire supply chain into the FLA program. This means FLA will visit, inspect
and evaluate companies like Foxconn as to their adhearance to Apple and FLA
standards.
FLA’s
Goals
The FLA promotes core
international labor standards. Details of the FLA’s Code of Conduct based on
core international labor standards are provided below.[1]
The
Fair Labor Association is a non profit organization that combines the efforts
of socially responsible companies, civil society organizations and colleges and
universities to protect workers’ rights and improve working conditions
worldwide by promoting adherence to international labor standards. The FLA
conducts independent monitoring and verification to ensure that the FLA’s
Workplace Standards are upheld where FLA company products are produced. Through
public reporting, the FLA provides consumers with credible information to make
responsible buying decisions. FLA Participating Companies agree to uphold the
FLA Workplace Code of Conduct throughout their supply chains and commit to the
FLA’s Principles of Fair Labor and Responsible Sourcing...Like all new
affiliates, Apple will align its compliance program with FLA obligations within
the next two years.[2]
Well yes, but as they say the devil is in
the details. It seems fair to ask if FLA is truly an independent organization
able to carry out the mandate outlined above. The problem is that the monies for
the extensive audits, salaries of staff, etc. required by FLA to conduct their
evaluations all come from the companies that are members of the FLA. This means
Apple is paying for its own audit. Obviously, this is a less than optimal
situation.
The FLA Workplace Code of Conduct
The FLA Workplace Code of Conduct defines
labor standards that aim to achieve decent and humane working conditions. The
Code’s standards are based on International Labor Organization standards and
internationally accepted good labor practices. These include practices
generally considered for corporations that want to be recognized as “socially
responsible.” PCs are expected to comply with the relevant laws and regulations
of the country in which workers are employed and to implement the FLA Workplace
Code in their applicable facilities. The FLA accredits independent
third-party monitors and engages them to conduct un-announced audits annually
of a group of randomly selected factories that supply products to
FLA-affiliated brands and universities.
What
is wrong with FLA’s Code of Conduct
These standards are good as
far as they go but they are 25 years out of date. A great of research has
been undertaken examining not just the role of the physical environment in
causing ill health but also the psychosocial work environment (e.g., job
strain, ERI, social isolation, injustice, lack of mobility, etc.). Psycho-social
work hazards are not even mentioned in any international labor standards
related to occupational health and safety nor are they part of the FLA’s
evaluation of the workplace.[3] This
is not surprising. Science evolves faster than the international standard
setting process, which is long and arduous - even updating international labor
standards can takes years. Needless to say, the FLA’s Code of Conduct also does
not address psycho-social work hazards. This is why the director of the FLA –
Auret Van Heerden could visit Foxconn, look at the well lit and clean factory
floors and declare that “facilities are first-class” and “Foxconn is really not
a sweatshop”. Yes it is first class and not a sweat shop compared to other
Chinese companies but this does not make it a healthy place to work.
Given the FLA’s flexibility
it would be good if its Code were revised to address psycho-social stressors. Implementing
the FLA’s Code is no easy undertaking in countries where labor laws are weak
and not enforced, such as in China, or where there are no protective labor laws
at all.
[3]http://www.ilo.org/global/standards/subjects-covered-by-international-labour-standards/occupational-safety-and-health/lang--en/index.htm
