A watchdog group is calling on Amazon.com Inc. to improve conditions for factory workers in China who make Echo speakers and Kindle e-readers, renewing criticisms that CEO Jeff Bezos became the world’s wealthiest man on the backs of low-paid laborers.
The New York-based China Labor Watch released a report at the weekend following a nine-month investigation of working conditions at a factory in the city of Hengyang owned by Hon Hai Precision Industry Co., the company known as Foxconn, which manufactures products for Amazon. It offers the first behind-the-scenes glimpse of how Amazon produces voice-activated speakers that cost as little as $40.
The report, which paints a picture of low pay and intense working conditions, includes the following findings:
- Workers were required to work more than 100 hours of monthly overtime in violation of Chinese labor law that limits overtime to 36 hours a month.
- The factory uses more “dispatch workers,” similar to temporary staff in the U.S., than are allowed by Chinese law.
- Employees did not receive adequate safety training.
- Workers are required to arrive at work stations 10 minutes before their shift begins and they are not compensated for this time.
- Staff dormitories lack adequate fire-safety precautions such as fire extinguishers.
“All workers are subject to long hours and low wages,” the report stated. “As wages are low, workers must rely on overtime hours to earn enough to maintain a decent standard of living.”
Amazon completed an audit of the factory in March and found violations regarding overtime and the use of dispatch workers, which it has asked Foxconn to remedy, it said in an emailed statement. On Monday, Foxconn said in an exchange filing it’s begun its own internal investigation and will rectify any illegality it discovers. Hon Hai’s shares dipped as much as 1.4 percent in Taipei.