Foxconn broke Chinese labour laws-rights group

Credit Reuters

Amazon said it had discovered "two issues of concern" at the Foxconn factory in Hengyang earlier this year.

The Amazon Kindle line of e-readers is made by illegal underpaid workers at Foxconn, according to China Labor Watch.

"Amazon has the ability to not only ensure its supplier factories respects the rights of workers but also that there is equal pay for equal work", said China Labor Watch on its site.

Foxconn did not immediately respond to requests by Bloomberg News for comment.

A report about the investigation, which was carried out between August 2017 and April 2018, published on China Labor Watch's website Sunday.

The tactic allows factories to dodge some provisions of China's labour laws, critics say.

The investigation found that workers put in over 100 hours of overtime a month during peak production season, violating Chinese law which says monthly overtime can not exceed 36 hours. "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".

"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", wrote Amazon.

Foxconn, a consumer electronics manufacturer, said it's "aware" of the report and is conducting a "full investigation". It said it is monitoring Foxconn's response and "compliance with our Supplier Code of Conduct". In 2010, Shanghaiist reported that security guards at an Apple iPhone factory run by Foxconn regularly beat workers. Dispatch workers were also treated very differently than regular workers, receiving far less safety training and no overtime wages. Instead, workers were compensated at the normal hourly rate. "We are committed to ensuring these issues are resolved".

"Such remuneration includes basic wages, payments for any overtime work, housing and other allowances, and other financial incentives and bonuses", the company said.

Contract manufacturer Foxconn said on Sunday it is investigating a plant in China that makes devices for Amazon.com Inc (AMZN.O), after a US watchdog group criticized what it described as harsh working conditions at the factory. Dispatch workers didn't receive higher wages for overtime hours and were offered only unpaid sick leave, and were required to cover their own fees for a physical examination when starting work at the factory.

Other issues included employees not receiving adequate safety training, being required to arrive at their stations 10 minutes before their shifts begin and not being paid for this time, and a lack of fire safety precautions in staff dorms.

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