Cross-posted from In These Times.
Apple presides over a global technology empire, but the economic landscapes it shapes around the world are strangely uneven. With its hundreds of thousands of employees worldwide, Apple’s manufacturing partner Foxconn works very differently in two hemispheres of the Global South.
The think tank Economic Policy Institute recently hosted a forum to discuss a tale of two Foxconns: between Foxconn and Apple workers in China and Brazil, the contrast is as crisp as a touchscreen icon.
According to EPI, Chinese workers at Foxconn in Shenzhen earn less than US $290 per month, while in Brazil the basic monthly wage is about twice that. A maximum work week for Chinese workers, in theory (though employers regularly violate labor laws), can be up to 60 to 70 hours per week, with five days vacation after a year. Work weeks for Brazilian employees are capped at 44 hours, with 30 days of paid vacation, plus other perks like a profit-sharing deal for workers.
Clearly, some of the differences can be attributed to regional economic disparities, but Brazil and China are often seen as twin examples of “emerging economies.” So why would employees of the same company fare so differently?
There have been reams of reports of abuses and exploitation in Foxconn facilities in China, ranging from militaristic work regimens to psychological trauma afflicting exhausted young workers. Apple and Foxconn has vowed to improve conditions by stepping up inspections and offering mediagenic amenities like factory tennis courts. But the contrasting example of Brazil might show how working conditions might change from the bottom up, through a strong labor movement.
Luis Carlos de Oliveira, vice president of the Metalworkers Union of Jundiai, spoke at the EPI event about his experience with Foxconn’s operations in Jundlai, Brazil, near the city of Sao Paolo. When Foxconn first arrived in 2007 to launch manufacturing operations for Dell, HP and Motorola, he recalled, there was a massive hiring spree and accelerated factory production. Inevitably, labor problems followed, such as conflicts with supervisors and high risks of workplace injuries. Then labor organizers got involved, backed by a broad (though by no means perfectly constructed) Brazilian labor law.
In an interview with In These Times, de Oliveira explained that even though the union initially did not have a strong base within the Foxconn facility itself, the labor struggles still gathered steam, primarily by organizing outside the factory grounds:
we quickly decided that what we needed to do was have assemblies, rank-and-file meetings, at the factory gate when the people were coming on and off shifts. And that we we could start to generate some union action to try and correct the situation. And only through those series of assemblies at the factory gates did we generate the beginning of some changes, the beginning of the company accepting that there was a role for the union.
At first, the management resisted the union pressure, de Oliveira said:
their attitude at the very beginning was very rigid, and maybe this is about Chinese culture, but they thought that they could just come in and do what they wanted since they were the owners. So if we didn’t have mobilization, if we didn’t successfully reach dialogue through these series of assemblies at the factory gate, we told them that we were going to have some strikes.
De Oliveira recalled an initial “cultural shock period,” when the Taiwan-owned company was introduced to a workforce accustomed to a strong welfare state and labor apparatus. Then things started to change for Foxconn workers: improvements in the supervision system, better transportation for workers, and more protective occupational health safeguards to protect against injury.
More recently, when Apple came to town (also using Foxconn as a contract manufacturer, though on a smaller scale), de Oliveira said the union could build on its early organizing experiences and keep on the pressure to provide decent working conditions.
Assuming that Foxconn has the same incentive to maximize exploitation in both of these relatively cheap labor pools, at least some of the contrasts might be traced to what labor activists call “the union advantage“: the link between unionization and higher pay, better benefits, and fairer treatment on the job.
Brazil and China do of course diverge sharply in their political systems (democracy vs. one-party state) and the the state’s relationship with labor (China clearly lacks Brazil’s robust trade unions). But both have undergone labor struggles and political upheaval in their modern history, and it’s not impossible to envision an independent labor movement emerging in China, particularly as multinationals continue to expose global economic disparities.
According to the standard neoliberal talking points, the law of the “free market” seems to be the only universal principle governing the economic fate of the working masses. But the struggles of Brazilian Foxconn workers speak to another universal: the potential of a strong labor movement to lift up workers and their surrounding communities.
One Chinese Foxconn worker interviewed by NPR’s Marketplace tried to put his expectations and aspirations in the context of China’s economy.
I’ve got a cousin who lives in the U.S., and from what I understand, the U.S. is a very rich country, at its peak; I can only dream of what it must be like. But China is so poor. I think it’s useless for us to judge each others’ countries without truly understanding the realities on the ground.
But as long as corporations can freely cross national boundaries, workers’ rights should be just as global. In terms of the disparities between working conditions in China and Brazil, De Oliveira said:
Obviously, we need to respect the national and regional differences wherever these companies are working to a certain degree, yes. But… wherever this work is going on, these are human beings that are doing it. These are people.
And that means that they have rights and deserve to be treated with dignity, no matter where they live.




19 Comments

Shouldn’t this article be titled “Foxconn’s Two Faces: Power Gaps Between Brazil and China Foxconn Workers”? Plus, you “forgot” to mention every other Foxconn and Chinese manufacturers’ partner on Earth.
I wouldn’t let Apple (or any other US company) off the hook. They could tell Foxconn, China, that they’d cancel their contract if they did not improve working conditions. If they were truly a progressive-minded company they’d do just that.
Better still, they could have made their products intended for the US market in the US. What I have heard is that this was not only possible, but possible for a large profit. Instead, they contract the work overseas, where (working conditions aside) they can only come here at the cost of burning up more of the world’s oil.
That’s the neoliberal economy for you–don’t build things in the US, where labor is underutilized, and burn scarce oil in the process. The neoliberal economy is based not on “efficiency”, it’s about *power*.
-stewartm
Can you imagine how much$$$$$$$$$$$$$$$$$$$$$$$$ Apple is making off the slave labor in China?
They would NEVER close that plant down.
The Chinese culture is really different than the West’s, they have always been authoritarian and the people, expendable.
Such an odd amalgamation of “communism” and “capitalism”
And, I think the desired Neoliberal paradigm for the rest of the world’s citizens….to one degree or another.
They may make it too with their combination of Financial, Hot and Climate warfare.
I’m wondering how much a plane ticket costs to Sao Paolo.
China has always had a big underclass of effectivley slave labor. Foxconn is nothing new. Over history every foreign national government — Britain, Germany, France, Japan, the U.S. and others always sought to exploit China’s seemingly endless reserve of wealth. This is why the treaty ports on the coasts of China still exits.
Before WW II the prevailing political sentiment in the U.S. is that China should have a strong democratic government of its own, but that couldn’t happen for a variety of reasons. Anyone interested in the back story about how Foxconn and the myriad others that are really the same but not as visible came about I recommend Stilwell and the American Experience in China, 1911-45.
Apple is culpable, but by no means the source of the problem.
Do you know what ‘Hong Kong’ essentially means? ‘Red Factory’ (Actually the ‘kong’ is more of an English lack of ear, as factory in Chinese is pronounced more like ‘chee-ong’ and became bastardized into simply ‘kong’) This is a very old city and the worker exploitation has been going on for decades.
The much venerated (but loathed by me) Steve Jobs had a viable plant in Elk Grove south of Sacramento, where they made a number of Apple products. But hey! You know the schmancy Mr. Jobs just sadly didn’t have quite enough money for himself, so he closed down a lot of operations in Elk Grove and shifted them to the Foxxconn plant in China.
Mr. Jobs’ “justification”??? Why doncha know, it was bc the Chinese
slavesworkers were just “much more efficient” than their dreadful, horrid, contemptuous US counterparts. Or, in other words: Mr. Jobs – whom we’re all now supposed to bow down to his memory of vast greatness, even though it was Steve Wozniack who did most of the inventing thing – was TOO FRICKIN’ GREEDY and wanted MORE MONEY for HIMSELF.Neoliberal to the core, and stupid US citizens don’t want to get it, including friends of mine (Dem voters) who live in Elk Grove & know all about workers losing their jobs when Jobs off-shored the work to China.
Bah humbug. Yeah: slave labor in China (agree: been going on for centuries); the 1% getting ever more wealthy in Team USA; the world’s dwindling oil supply burned up madly for no real reason; and USA workers are spit on & reviled by the 1% and their co-dependent brainwashed Ayn Rand panty sniffers in the 99%.
Go figure.
If the Brazilians are organizing labor unions to better their working conditions & pay, etc, then they’d better watch out… no doubt, their jobs’ll be just off-shored to some other slave-labor economy.
I hear-tell (but have no links) that the Chinese are prepping Africa to be the next great slave-labor country…. wouldn’t surprise me. Stay tuned…
Vastly simplifying the difference between China and Brazil: both have huge markets, but Brazil’s labor pool is proactively protected, while China’s is not.
“Brazil currently puts a hefty fee on imported goods. Despite these (which reportedly can triple prices) iPhone already accounts for an estimated 10 percent of local smartphone sales.”
“There are some countries in the world that have protectionalist type of structures where the prices of the goods are extremely high if there’s not local content involved. And so we’ll assess each of those and decide what’s in our best interest,” said Apple CEO, Tim Cook.’
http://blogs.computerworld.com/19332/brazil_goes_nuts_for_iphone_as_apple_foxconn_get_local
For more on Brazil’s import policies:
http://www.sice.oas.org/ctyindex/USA/USTR_Reports/2011/NTE/BRA_e.pdf
For more on Apple’s labor, etc. practices:
“Apple’s supplier responsibility group reports that overtime compliance among a set of 500,000 workers it collects data on reached 95 percent in March, up from 89 percent in February.”
http://www.appleinsider.com/articles/12/04/19/apple_supplier_monitoring_shows_95_overtime_compliance_in_march.html
http://www.marketplace.org/topics/world/apple-economy/people-behind-your-ipad-workers
http://bits.blogs.nytimes.com/2012/04/08/disruptions-on-worker-conditions-apples-rivals-are-silent/?smid=tw-nytimes&seid=auto
At one point Apple built its stuff almost entirely here in the US and could not effectively compete with other companies because the prices were “too high and the quantities available to businesses were too low”. I do not agree with all or actually many of the points this author makes, but he raises some ideas that have to be confronted:
http://pandodaily.com/2012/04/09/apple-should-keep-the-jobs-in-china/
What about Dell? What about HP? What about the clothes you’re wearing right now? Or the shoes wrapped around your feet.
It’s a sham to focus on Apple – it makes this issue a gimmick.
There should be tarrifs on anything coming in from China… or Vietnam… or India… or Mexico – to name just a few.
But to single out one company turns this issue into a single company issue and it’s much more important than that.
Finally, I have never seen Apple claim to be Progressive politically. They do like to pretend to be environmentally sensitive but that’s a far cry from being a progressive company.
The tale of the de-industrialization and looting of America is a complex one, and a sad one. It is true that some of those industries were under competitive pressure, and that they did what they did simply to survive.
But Apple? Apple’s one of the most profitable companies in the world, with a capitalization that has exceeded Exxon-Mobil’s. They could easily afford to put their money where their mouth is (and yes, I think that they do tend to want to be seen as ‘hip’, which is not the same as progressive per se, but sure smacks of it).
Since they manufacture devices built to discourage owner tampering or repair, I can’t see how that even fits. We have enough of a problem with people throwing fixable computer devices into landfills w/o discouraging them to fix them themselves.
-stewartm
They do have progressive personnel policies, relatively speaking.
> But to single out one company turns this issue into a
> single company issue
Exactly. So the only real solution is for Apple to take over the governments in China and Brazil, merging corporation and state, and decree fairness forevermore, which hopefully will someday trickle down to the U.S. work force.
> They could easily afford to put their money where their mouth is
Maybe, maybe not. The whole supply chain is now over there, not here. This is why a systemic solution is required — of all companies and governments, not just the ones you find it hip to hate.
> Since they manufacture devices built to discourage owner
> tampering or repair
You have a hard time applying these concepts to every other company and product on earth, don’t you? I like tampering and repairing, but it’s not practical for the vast majority of technology and components manufactured today. The only real solution to current manufacturing practices is to not use the technology at all.
Didn’t you read one of the earlier posts? Apple *used* to have plants in the US, but closed them. That helped move the supply chain “over there”.
And besides, as I have said, they stil could have made their products in the US, at a significant profit as well.
http://www.fair.org/blog/2012/02/13/for-nyt-apple-making-less-profit-is-not-even-an-option/
With the markets for a computer OEM like Dell on low-end machines, on clothing, and other items imported from China it could be a case where the compeition on price is ferocious and the margins small. But that’s *clearly* not the case with Apple. They have HUGE margins and could ahve easily made the IPhone in the US–paying American wages would have added only an estimated $65 to the cost.
That is simply not true. Lots of people fix their own things, from their own cars to computers.
Apple goes to some pains to discourage even users *replacing their own battery* on their mobile devices:
http://www.cultofmac.com/77814/is-apple-guilty-of-planned-obsolescence/
Surely a battery replacement is something that even grandma could do?
-stewartm
> Apple *used* to have plants in the US, but closed them. That
> helped move the supply chain “over there”.
That change occurred long before Apple’s help.
> they stil could have made their products in the US, at a
> significant profit as well
Profit is not the only advantage of a supply chain. The entire design and development cycle depends upon it too. (If you’re doing it right.)
> Lots of people fix their own things, from their own cars to computers.
I disagree. The vast majority of people don’t write their own software, manufacture their own hard drives or RAM chips, or even repair their cars or washing machines these days. They used to be able to fix some things, but now you need all the modular components, which you also cannot manufacture. Everything is headed in this direction. Things aren’t as simple as they used to be. It’s the system. I prefer the simplicity but that’s not where we are.
> Surely a battery replacement is something that even
> grandma could do?
I doubt it. The devices are crammed full of the battery. It’s not like dropping a D-cell into a flashlight tube. And then you have to put the device back together. There are a lot of trade-offs in the case of batteries and other internal parts, from manufacturing to servicing and warranties.
“Planned obsolescence” didn’t originate with Apple, by a long shot. Nobody likes the idea, although they often like the “benefits” or features it brings. I appreciate that you hate Apple, but I feel you should look to change the system in which all these companies exist and not pick on one tech company whose history, practices and technology you don’t fully understand.
The IPhone costs an estimated $188 to make in China. Its cost of making it in the US would be (maybe) $150 more (some say less than that). It sells for c. $650. That’s figuring in everything.
It doesn’t make sense from any evalation and design of any supply chain in the long-term to locate manufacturing sites far away from the customers, in a world of peak oil moving to post-peak oil. It only makes sense in the pursuit of short-term profit.
I can only conclude that Apple is not doing it right. Nor are most other manufacturers. Pursuit of power and short-term profit trumps everything. Apple’s got plenty of company, true, but unlike them has a LOT of cash on-hand. So they could be doing it differently
(Nor, of course, are many others).
You can do it with any other smart phone, insofar as I am aware. They can do in tablets, though the job is harder in some (the THrive tablet actually supposedly made it fairly easy).
-stewartm
I do not ‘hate’ Apple anymore than I ‘hate’ Microsoft.
However, while Microsoft has well-deserved reputation of being a corporate evil empire, Apple gets off scott-free for doing things as bad or worse. In some ways, Microsoft doesn’t (yet) follow Apple’s footsteps, not because of some goodness of their heart, but because of fear of a number of consequences.
Apple could mightily improve their rep with me (not that they care) by simply opening up their devices, both hardware-wise and software-wise. That would be cool. I don’t demand that they be open-source (though that would be cooler) but just to give users of their mobile devices the same power and control as they have over their desktop/laptop devices.
-stewartm
On the contrary, the motherboards in the Xbox and Xbox360 were manufactured by Foxconn and ECS. In fact, 90% of computer or console motherboards end up going through ECS’s plant in Taiwan because ECS owns companies that manufacture such things as diodes, resisters, mosfets, and capacitors — especially low quality junk capacitors with high ESR and can’t withstand environments above 80 degrees Celsius. Rarely do so see motherboards with high quality capacitors from Rubicon, Nichicon, and Sanyo/Panasonic on them …
I’m surprised that somehow ECS has been dodging the bullet considering they are far more larger and have a higher production volume than Foxconn, and were the sub-contractor of first resort for a heck of long time for Sony, HP, Dell, Gateway, Nintendo, etc. ASROCK is another one — the company is a joint venture between ASUSTek and ECS: the former does all the in-house design, engineering, tape-outs, and warranty/repair while ECS handles every step of the manufacturing, the shipping, the marketing, and the distribution. It’s helped both companies so much that ASUS’s own line of budget/value boards (i.e. less than $120 retail) are no longer manufactured by ASUS – ECS handles that.
> That’s figuring in everything.
No. If you need 3,000 engineers to make a new part for testing in two weeks, you can’t do that in the U.S. (or anywhere else). You can’t get the people and the materials in the time frame.
> I can only conclude that Apple is not doing it right.
Your conclusion does not follow. Apple’s design process is more iterative than others, and allows them to produce the best quality integrated devices. (Which I call doing it right; I prefer quality.)
> You can do it with any other smart phone, insofar
> as I am aware.
You are not adequately aware. A simple google will verify this.
> In some ways, Microsoft doesn’t (yet) follow Apple’s footsteps
Microsoft is worse.
> Apple could mightily improve their rep with me
> (not that they care) by simply opening up their devices,
> both hardware-wise and software-wise.
It is true that they don’t produce their products for everyone; nor do they focus-group their decisions. They have many good reasons to follow their path, from commercial, aesthetic, efficiency and usability perspectives. Thus is the nature of modern business. The success and quality of their products testifies to the value proposition of their approach in the current system. But I’d like an iPony too.