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Apple Freezes New Business for Pegatron on China Labor Abuse

  • Apple says Pegatron violated rules for student worker program
  • Company says new business paused until corrective action taken
Workers Inside The Pegatron Corp. Factory in Shanghai
Photographer: Qilai Shen/Bloomberg
Updated on

Apple Inc. suspended new business with iPhone assembler Pegatron Corp. after discovering labor violations at a student workers’ program, taking strong action to clean up a Chinese-based production chain long accused of worker abuse.

The Cupertino, California-based technology giant said it discovered several weeks ago that the Taiwanese manufacturer misclassified student workers and allowed some to work nights and overtime in violation of Apple’s Supplier Code of Conduct. Employees then “went to extraordinary lengths” to cover up the violations. It’s since placed its partner on probation until corrective action is completed, the U.S. company said in a statement.