Foxconn breached labor laws and standards, says NGO

Inspectors from the non-profit Fair Labor Association found Foxconn (also known as Hon Hai Precision; HNHPF.Nasdaq, HHPD.LSE, 2038.HKG, 2317.TW), maker of Apple (AAPL.Nasdaq) products, committed violations of Chinese labor laws and industry standards, The Wall Street Journal reported. Apple contracted the FLA to audit Foxconn’s labor conditions after persistent allegations of mismanagement. The audit surveyed some 35,500 workers and found at least 50 violations of either Chinese law or FLA standards. For example, workers at Foxconn factories averaged more than 60 hours per week of work during some periods in the past year, and the majority of employees at its facilities exceeded 36 overtime hours in some months, a violation of Chinese labor laws. The FLA said that Foxconn agreed to hire more workers to bring workweek hours down to 40, and no more than 36 hours overtime each month by July 2. Apple’s stock price fell 1.3% after the report was released.