Apple major supplier, Foxconn Technology Group, the world largest electronic
manufacturer and technology company have problem in complying to Chinese labor law.
This recurring issue happening since early 2010 until the latest finding in end 2019. China
Labor Watch published a report on September 2019 claiming that the number of
temporary employees at Foxconn Technology is 50% which is exceed Chinese labor law
which is 10%. Apple and Foxconn also reported broke the maximum monthly overtime
which is 36-hour and unfairly compensate its employees (Hamilton, 2019)
In order for Apple to solve supplier issue in breaching the code of conduct while
maintaining the innovative company culture, Apple may consider one of three alternatives
as followed:
Option 1: Apple and Foxconn to comply to Chinese labor law. It means, they need to
reduce temporary employee to 10%. Foxconn often add on temporary employee to help