This document is part of a digital collection provided by the Martin P. Catherwood Library, ILR School, Cornell University, pertaining to the effects of globalization on the workplace worldwide.  Special emphasis is placed on labor rights, working conditions, labor market changes, and union organizing.Chinese version also available.FLA_2012_Apple_VR_China_Foxconn.pdf: 267 downloads, before Oct. 1, 2020

Fair Labor Association

English

DigitalCommons@ILR

 Foxconn Verification  
Status Report
August 2012
Improving Workers’ Lives Worldwide
Remediation PRogRess at thRee Foxconn Facilities suPPlying aPPle
www.fairlabor.org 1
In February 2012, the Fair Labor Association 
(FLA) assessed working conditions and the 
treatment of workers at three Chinese factories 
manufacturing Apple products, which are owned 
and operated by Hon Hai Precision Industry 
Co., Ltd. (Foxconn) in Shenzhen and Chengdu.  
Apple requested this independent investigation 
ahead of the regular schedule of assessments 
usually conducted for FLA-affiliated Participating 
Companies.
The assessments were conducted by Openview 
and SCSA – two local, independent labor 
monitoring organizations accredited by FLA – 
and overseen by FLA staff.1
On March 28, 2012, FLA published detailed 
reports on each of the three factories along 
with recommendations for improving conditions 
for workers, and a complete remediation plan 
prepared by Apple and Foxconn to address 
each issue identified during the FLA assessment.  
Each remedial action item included a description 
of the steps to be taken, the name of the unit 
within Foxconn responsible for implementation, 
and a timeline for completion.  The action plan 
stretches over a period of 15 months, from April 
1, 2012, through July 1, 2013, with deadlines for 
many of the action items set in the first three 
months. FLA scheduled follow-up verification 
visits to track remediation and verify progress 
reported by Foxconn and Apple.
1.  Details of FLA’s investigation, along with the complete report and the original remediation plan, can be found at www.fairlabor.org/report/foxconn-
investigation-report.
Table 1: STaTuS of RemediaTion aT ThRee foxconn facToRieS Supplying apple, aS of June 30, 2012
GuAnLAn LonGhuA ChenGDu ToTal
Total number of remedial actions 119 113 128 360
Percent 33 31 36 100
number of remedial actions due to be completed by May 31, 2012 69 56 70 195
Percent of remedial actions due by May 31 that were completed and verified by 
FLA
100
Number of remedial actions to be completed and verified between June 1, 2012 
and July 1, 2013
50 57 58 165
Number of remedial actions to be completed and verified between June 1, 2012 
and July 1, 2013, which were completed and verified ahead of schedule
31 29 29 89
FLA VeRiFicAtion oF 
RemediAtion PLAn 
imPLementAtion
From June 25 to July 6 2012, Openview and 
SCSA returned to each of the three Foxconn 
facilities to verify the implementation status of 
remedial action items through June 30.  FLA’s 
independent external verification process 
evaluates progress by affiliated companies 
and/or factories to remediate issues identified 
during an FLA assessment or investigation. 
FLA’s verification process includes a review 
of documentation such as policies and 
procedures, time and payroll records, etc.; visual 
inspection of applicable facilities; and interviews 
with workers and management. Foxconn 
management provided full cooperation and 
unrestricted access to the facilities throughout 
the verification process. 
As shown in Table 1, the remediation plans 
developed by Apple and Foxconn consisted of 
360 individual action items, of which 119 (33 
percent of the total) pertained to the Guanlan 
factory, 113 (31 percent) to Longhua, and 128 (36 
percent) to Chengdu.  
Remediation PRogRess at thRee Foxconn Facilities suPPlying aPPle
www.fairlabor.org 2
During FLA’s verification visits, assessors 
confirmed that:
•	 Foxconn	has	completed	100%	of	the	
195 remedial tasks that were due to be 
completed by May 31.
•	 Foxconn	is	ahead	of	schedule	in	a	number	
of areas, having completed an additional 89 
action items that were due between June 1, 
2012 and July 1, 2013.
•	 Implementation	continues	on	the	76	
remaining action items due between June 
1, 2012 and July 1, 2013, which will be 
subsequently verified by FLA.  
•	 The	remediation	plan	developed	following	
FLA’s original investigation outlined a total 
of 360 remedial action items, of which 284 
have been completed and verified, for an 
overall	completion	rate	of	nearly	79	percent.	 
Individual detailed tracking charts for each of 
the three factories are posted at http://www.
fairlabor.org/report/foxconn-remediation-
verification.  The tracking charts contain the 
following information:
•	 Columns	A	–	H	describe	the	original	findings,	
recommendations and remediation plan 
details published on March 28 following 
FLA’s investigation.  
•	 Column	I	indicates	the	deadline	for	
completion of the remediation items.
•	 Column	J	shows	the	progress	update	
provided by Apple and Foxconn. 
•	 Column	K	provides	FLA’s	verification	
notes and the steps taken by Foxconn to 
implement the remedial measure.
•	 Column	L	indicates	FLA’s	method	of	
verification.
º Not due for verification indicates that the 
remediation item’s due date has not yet 
occurred.
•	 Column	M	shows	the	status	of	the	
remediation item as assigned by the 
verification team.
º Completed indicates that FLA has 
verified completion of a remedial action 
item.
º Pending indicates that the remedial 
action item is due at a future date.
RemediAtion HigHLigHtS
Many physical changes to improve worker 
health and safety have been made since the 
investigation, including the enforcement of 
ergonomic breaks, changing the design of 
workers’ equipment to guard against repetitive 
stress injuries, updating of maintenance policies 
to ensure equipment is working properly, and 
testing of emergency protective equipment like 
eyewashes and sprinklers. Foxconn has also 
engaged consultants to provide health and 
safety training for all employees.
The most significant commitments made by 
Foxconn following FLA’s original investigation 
were related to union elections and worker 
representation, and compliance with Chinese 
labor law regarding hours of work.  Deadlines 
for remediation of these items continue through 
July 2013; however, Foxconn has taken initial 
steps toward fulfilling these commitments. The 
company has reduced hours to 60 per week 
(including overtime) with the goal of reaching 
full compliance with the Chinese legal limit of 
40 hours per week plus an average of 9 hours of 
overtime per week while protecting worker pay. 
Foxconn also helped to extend unemployment 
insurance coverage for migrant workers working 
in Shenzhen by advocating for legislation that 
will allow them to access the unemployment 
insurance scheme, effective January 1, 2013. 
This change has implications not only for those 
employed at Foxconn, but for all other migrant 
workers in Shenzhen.
Remediation PRogRess at thRee Foxconn Facilities suPPlying aPPle
www.fairlabor.org 3
Significant improvements were found regarding 
Foxconn’s internship program, which affects all 
Foxconn facilities. The company now ensures 
that student interns do not work overtime; that 
their work has a more direct connection to their 
field of study; and they understand that they are 
free to terminate the internship if and when they 
wish.  At the time of verification there were no 
interns at the Guanlan and Chengdu facilities; 
there were, however, 46 interns at Longhua and 
implementation could be verified at this facility 
through worker interviews. See Appendix 1 for 
a detailed description of remediation activities 
regarding the internship program.
concLuSion And next 
StePS
Foxconn and Apple are carrying out the robust 
remediation plan developed following FLA’s 
investigation, published on March 28, 2012. Over 
the past three months, steady progress has 
been made at the three facilities employing an 
estimated	178,000	workers,	and	all	remediation	
items due within the timeframe have been 
completed, with others ahead of schedule.  
Some of the most challenging action items 
– such as compliance with Chinese labor law 
regarding hours of work – are yet to come, and 
FLA will continue to engage with Apple and 
Foxconn to monitor and verify progress.


Foxconn Verification Status Report

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