iPhone assembler Pegatron's labor violations put it in Apple's bad books

Pegatron (Image credit: Reuters)

What you need to know

  • Apple has told iPhone assembler Pegatron that it won't be getting new business.
  • Pegatron was found to be violating labor rules relating to student workers.
  • The company did its best to cover its violations up, too.

Apple has taken the decision to suspend new business with iPhone assembler Pegatron, according to a new report. The move came after Pegatron was found to be flouting local labor rules.

The news came via a Bloomberg report that noted a violation of Apple's Supplier Code of Conduct was discovered weeks ago. While Pegatron now won't be picking up any new Apple business, existing contracts are unchanged.

The Cupertino, California-based technology giant said it discovered several weeks ago that the Taiwanese manufacturer misclassified student workers and allowed some to work nights and overtime in violation of Apple's Supplier Code of Conduct. Employees then "went to extraordinary lengths" to cover up the violations. It's since placed its partner on probation until corrective action is completed, the U.S. company said in a statement.

Apple says that documentation was falsified in an attempt to cover the situation.

"Pegatron misclassified the student workers in their program and falsified paperwork to disguise violations of our Code, including allowing students to work nights and/or overtime and in some cases to perform work unrelated to their major," it said in its statement. "The individuals at Pegatron responsible for the violations went to extraordinary lengths to evade our oversight mechanisms."

Pegatron confirmed that its Shanghai and Kunshan factories had students working nights and longer hours than they should have. They were also found to be working jobs that were "unrelated to their majors," something that was "not in compliance with local rules and regulations."

The manager responsible for overseeing students has now been fired, Bloomberg's report notes.

Oliver Haslam

Oliver Haslam has written about Apple and the wider technology business for more than a decade with bylines on How-To Geek, PC Mag, iDownloadBlog, and many more. He has also been published in print for Macworld, including cover stories. At iMore, Oliver is involved in daily news coverage and, not being short of opinions, has been known to 'explain' those thoughts in more detail, too.

Having grown up using PCs and spending far too much money on graphics card and flashy RAM, Oliver switched to the Mac with a G5 iMac and hasn't looked back. Since then he's seen the growth of the smartphone world, backed by iPhone, and new product categories come and go. Current expertise includes iOS, macOS, streaming services, and pretty much anything that has a battery or plugs into a wall. Oliver also covers mobile gaming for iMore, with Apple Arcade a particular focus. He's been gaming since the Atari 2600 days and still struggles to comprehend the fact he can play console quality titles on his pocket computer.