Amazon Blasted Over China Echo Factory Conditions

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.
“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.
“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,” Amazon said. “We are committed to ensuring that these issues are resolved.”

Salary reviews are conducted regularly and all full-time and temporary employees receive “both pre-job training and additional training in their assigned departments,” Foxconn said in a June 10 statement. China’s largest electronics manufacturer and employer has been criticized in the past for poor working conditions at factories where Apple Inc. devices were made, leading to the company installing safety netting to prevent worker suicides. The findings at the Amazon device factory were similar, but less severe.