Canaccord Genuity Morning Coffee on Apple (AAPL): I Make Electronics!
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Price: $309.35 -0.63%
Rating Summary:
45 Buy, 28 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
45 Buy, 28 Hold, 9 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Apple (Nasdaq: AAPL): I make electronics!
Apple and Taiwan-based Foxconn have agreed to improve working conditions at Foxconn’s assembly plants in China, a decision that could change the way business is done overseas. The move is in response to an investigation by the Fair Labor Association of three Foxconn plants and 35,000 employees. The investigation found several violations, including excessive work hours and unpaid overtime. FLA President Auret van Heerden commented, “Apple and Foxconn are obviously the two biggest players in this sector. Since they’re teaming up to drive this change, I really do think they set the bar for the rest of the sector.” Several large firms work with Foxconn, including Dell (Nasdaq: DELL), Hewlett-Packard (NYSE: HPQ), Amazon (Nasdaq: AMZN), Motorola Mobility (NYSE: MMI), Nokia (NYSE: NOK) and Sony (NYSE: SNE). Van Heerden went on to say, “Foxconn is proposing this better deal. Their competitors will be obliged to offer a similar package just in order to get enough workers.” Under the agreement, Foxconn will reduce the number of working hours to 49 per week, including overtime, while keeping total compensation at current levels. During the investigation workers were found to be working as much as 60 hours per week. To keep up with the demand, Foxconn will be hiring tens of thousands of new workers.
Apple and Taiwan-based Foxconn have agreed to improve working conditions at Foxconn’s assembly plants in China, a decision that could change the way business is done overseas. The move is in response to an investigation by the Fair Labor Association of three Foxconn plants and 35,000 employees. The investigation found several violations, including excessive work hours and unpaid overtime. FLA President Auret van Heerden commented, “Apple and Foxconn are obviously the two biggest players in this sector. Since they’re teaming up to drive this change, I really do think they set the bar for the rest of the sector.” Several large firms work with Foxconn, including Dell (Nasdaq: DELL), Hewlett-Packard (NYSE: HPQ), Amazon (Nasdaq: AMZN), Motorola Mobility (NYSE: MMI), Nokia (NYSE: NOK) and Sony (NYSE: SNE). Van Heerden went on to say, “Foxconn is proposing this better deal. Their competitors will be obliged to offer a similar package just in order to get enough workers.” Under the agreement, Foxconn will reduce the number of working hours to 49 per week, including overtime, while keeping total compensation at current levels. During the investigation workers were found to be working as much as 60 hours per week. To keep up with the demand, Foxconn will be hiring tens of thousands of new workers.
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