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Amazon is in Hot Water Over China Factory Working Conditions


According to China Labor Watch, Amazon (NASDAQ:AMZN) hasn’t been offering its factory workers in China the greatest environment to work in.

(NASDAQ:AMZN) is the world’s second largest company by market cap and they have been under scrutiny by President Trump these last couple months about how they are trying to branch away from Fedex’s services. Now they are being accused of having factories in “non-workable” conditions.

China Labor Watch, a New York-based non-government organization founded by labor activist Li Qiang in October 2000, is calling for the e-commerce giant to improve the conditions for factory workers who make the company’s Echo speakers and Kindle e-readers.

The organization released a report over the weekend that was published on China Labor Watch’s website. The report followed after a nine-month investigation, from August of 2017 to April of 2018.

China Labor Watch alleges multiple violations of Chinese labor law at a factory in the city of Hengyang, which is owned by Hon Hai Precision Industry Co., otherwise known as Foxconn. Foxconn is the world’s largest contract electronics manufacturer and has over a million people employed.

Some of the poor working conditions include 60-hour work weeks during peak season and workers not receiving adequate compensation for working overtime.

The report reads, “Amazon’s profits have come at the expense of workers who labor in appalling working conditions and have no choice but to work excessive overtime hours to sustain a livelihood.”

The report also states, “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.”

It adds, “All workers are subject to long hours and low wages. As wages are low, workers must rely on overtime hours to earn enough to maintain a decent standard of living.”

Amazon (NASDAQ:AMZN) had asked Foxconn to fix the violations that it had found at the factory in March. The company issued a statement and said, “We immediately requested a corrective action plan from Foxconn Hengyang detailing their plan to remediate the issues identified, and we are conducting regular assessments to monitor for implementation and compliance with our Supplier Code of Conduct. We are committed to ensuring that these issues are resolved.”

Foxconn said to Reuters, “We are carrying out a full investigation of the areas raised by that report, and if found to be true, immediate actions will be taken to bring the operations into compliance with our Code of Conduct.”

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