Microsoft investigates working conditions at Dongguan factory

Microsoft (MSFT.NASDAQ) is investigating allegations of worker abuse at a Chinese factory which supplies it with devices including mice and cameras, the Wall Street Journal reported. According to a report published by the US-based human rights group the National Labor Committee, a factory in Dongguan, southern China’s Guangdong province, operated by Taiwanese KYE Systems (2365.TPE), overworks young employees and houses them in harsh conditions with the factory "run like a minimum security prison." KYE Systems rejected the accusations and said in a statement: "We regret that the NLC reported a one-sided story without offering us a chance to explain." Microsoft has sent a team of independent auditors to the factory to "conduct a complete and thorough investigation."