The Economy of Blood and Sweat

Last year marked Apple’s most successful financial quarter yet. According to the New York Times, Apple’s profits more than doubled during last year’s holiday season. The massive upturn was caused in part by the iPhone 4, which brought in thirty-seven million purchases during the holidays alone.

Peter Oppenheimer, Apple’s chief financial officer, informed the New York Times that the company is in the middle of making plans for the newly gained capital, stating, “We’re not letting it burn a hole in our pockets.” Once such potential plan includes further investing in Apple’s supply chains: the same supply chains that came under fire a couple of years ago for their horrible working conditions.

It has been over a year since the biggest news about Apple’s Chinese suppliers came to light. Apple has been accused of both polluting the environment and horribly mistreating its workers. Some of this mistreatment includes using the poisonous n-hexane to clean products, causing severe illness in the workers, and forced working well over the Chinese government’s overtime policy.

More recently, the New York Times published a lengthy report detailing the extent of the worker abuse in Apple’s supply chain. At the report’s start, the Times detailed how the choice to outsource jobs was made by Apple to ensure the greatest profit possible, with Apple executives praising the amazing speed and flexibility of overseas plants.

However, the report described the “human costs” of Apple development. Among other things, it detailed the horrible living conditions of workers in Apple’s supply chains and the ludicrous amounts of overtime. It also detailed explosions in multiple Apple plants: dangers a Chinese group had already warned the company about prior to the blasts.

The fight comes down to money versus ethics. The Times report mentioned that company executives want to improve the conditions of their supply chain factories, but falter when doing so would jeopardize the speed of the factories or their relationships with the factory owners.

One former executive said that the problems have been known for four years, yet Apple still works with them. The executive was quoted as saying, “Why? Because the system works for us. Suppliers would change everything tomorrow if Apple told them they didn’t have another choice.”

Some students are outraged at the horrible working conditions presented by sweatshops. Freshmen computer science major Angela Gustafson said she was appalled by the whole idea of sweatshops and the exploitation they cause. “The idea that a company would be willing to let their products be made in these sweatshops reinforces the idea that they’re willing to exploit people,” she said.

Freshman Chris Waddell had a similar sentiment. “They may be innovative, but they’re very unethical,” he said.

In line with these thoughts is the online campaign, Change.org. The online petition website calls for Apple to make its products ethically. It praises the technological advantages of Apple, but calls for the protection for workers so Apple fans can be proud of their allegiance again.

Others seemed resigned to the idea of sweatshops in China. Civil Engineering Sophomore Steven Kaylor did not seem overly concerned, stating, “They can do whatever they want in China. It’s up to the Chinese government to regulate that.” However, he did add that it was a question of supply and demand. Due to the sheer volume of people in China, the poor working conditions are no surprise because if one worker will not work, another will simply take that same job.

“It’s not very surprising because the point of us outsourcing was to get cheap labor,” Fullenkamp said in regards to Apple’s great financial success and their use of sweatshops.

Apple claimed to be fixing the issue in an official press release. Chief executive Tim Cook stated, “We’ve made a great deal of progress and improved conditions for hundreds of thousands of workers.” Cook went further to describe how dedicated Apple is ensuring its workers are safe.

With the recent New York Times report casting doubt on everything Apple says due to its exposure of Apple’s money oriented supply-chain use, it can be difficult to tell if the statement is sincere. Whatever the case, this is a dark spot on Apple’s record that is unlikely to be forgotten soon.