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May 13, 2012

Apple and Foxconn to share initial costs on improving Chinese factories

Aims to better working conditions

By CBR Staff Writer

Apple and Foxconn Technology, its manufacturing partner, have revealed a plan to share the initial costs of improving labor conditions at the latter’s Chinese factories that assemble iPhones and iPads.

Foxconn Technology chief executive Terry Gou was reported by Reuters as saying that the company has discovered that (improving factory conditions) is not a cost.

"I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs," he said.

The news agency did not reveal a figure for the costs to improve the factories that assemble iPhones and iPads.

Foxconn Technology said it has been spending enough to allay the perception that its plants have poor working conditions.

The companies were in the headlines following a probe by the Fair Labor Association (FLA), which said its survey of three Foxconn plants and over 35,000 workers had found labour laws being violated.

The FLA said that instances of child or forced labour were, however not found.

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In late March, Apple and Hon Hai Precision Industry, the subsidiary of Foxconn, have agreed to better working conditions at the Chinese factories and also hike workers wages.

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