WINTEK Co. Offenses of Law & Code of Conduct

Translated by Timo

According to the Supplier's Code of Conduct outlined by Apple Inc., WINTEK, as one of Apple's suppliers, is obliged not only to obey local labour laws, but also to offer working conditions that meet the requirements of international labour rights principles.

However, we were shocked to find much of WINTEK's behaviour at its manufacture lines in Taiwan and China to be blatant violation of local laws, and of Apple’s Supplier’s Code of Conduct.

Apple Inc., as one company that has promoted Corporal Social Responsibility issues, should deal immediately with WINTEK's misbehavior. Apple Inc. is advised to demand WINTEK for prompt improvement, endorse a third party to thoroughly examine the working conditions at WINTEK, and reconsider its partnership with WINTEK. Listed below are WINTEK's offenses:

Table one: WINTEK’s offences of law in Taiwan

Facts	Details
1. Unlawful mass lay-offs.	Laid off nearly 700 employees while there still is a surplus of four billion TWD. (approx. $118 million USD) Taiwanese press also reported that WINTEK had received urgent orders, thus needed to hire a good number of new workers.
2. Demanding employees to work unpaid, meanwhile assigning unpaid leaves. (Confirmed and fined by Taiwanese labour administration)	Since November 2008, WINTEK began to force unpaid leaves on employees, meanwhile asking them to resume the work, unpaid.
3. Changing working hoursunilaterally	Asking the night shifts to work as many hours as the day shifts per month. The discrepancy was counted as a leave of absence, thus deduction of one day’s wages. Some got a monthly wage lower than the basic NT$ 17280/ month.
4. Demanding employees to catch up on working hours, resulting in more than ten consecutive working days. (Confirmed and fined by Taiwanese labour administration)	The 4-2 shifts were demanded to make up on their working hours, thus had to work 10 days in a row. This has constituted an offense of Article 36 of Labour Standards Law.
5. Forcing workers to work overtime	In order to meet deadlines, forcing workers to work 12 hours a day, 5 days a week, and forcing them to give up days off and national holidays. This has constituted an offense of Article 30, 32, 36, 37 and 39 of Labour Standards Law.
6. Forcing workers to sign the agreement, replacing overtime wages with days off.	Forcing workers to sign the agreement, replacing overtime wages with days off. This has constituted an offense of Article 24 of Labour Standards Law.

Table two: Unlawful actions of MASSTOP, WINTEK’s subsidiary in Dongguan, China.

Facts	Details
1. Cancelling full attendance rewards upon the raise of basic wage, without negotiation with employees.	Immediately after the Dongguan government raised the basic wage to $770 RMB (approx. $114 USD), MASSTOP canceled the full attendance rewards promised in the contract.
2. Unilaterally cancelling benefits without negotiation with employees	In October, 2008, MASSTOP posted a notice declaring the cancelling of performance rewards and year-end bonuses.
3. Adopting special working hours without the approval of Dongguan’s labour administration, reducing holiday wages from twice the normal wage to just 1.5 times of it.	On February 27, MASSTOP posted a notice, declaring a special working hours system has been approved by Dongguan City’s labour administration. However, the employees found out in March the administration has never approved such change. MASSTOP claimed it had been approved, while forcing employees to sign the agreement.
4. During the strike, unilaterally claiming that workers who failed to return before three in the afternoon, April 17, would be regarded as voluntarily ending their labour contracts.	Employees of MASSTOP in Dongguan went on strike for labour condition issues such as underpaid overtime. Though the company agreed that overtime wages would be handed out before April, 21, according to the Chinese labour regulations, workers have the right to continue the strike as long as they don’t have their wages. The company’s rules stated that workers who neglect work over 2 days might be sacked.

Table three: WINTEK (and MASSTOP) violations of the Apple Supplier’s Code of Conduct

Codes violated	Facts in Taiwan (WINTEK)	Facts in Dongguan, China (MASSTOP, WINTEK's subsidiary)
The code concerning overtime wages: “workers must be compensated for overtime hours at the premium rate required by applicable laws and regulations.”	forced employees to give up their overtime payment and holiday subsidies, opting for more days off instead.	Adopting special working hours without the approval of Dongguan’s labour administration, reducing holiday wages from twice the normal wage to just 1.5 times of it. (Later proved the administration has never approved such change.)
The code concerning fair treatment to employees according to applicable laws and regulations.	While the company still enjoys orders and surplus, it kept laying off workers illegally, cutting pays and benefits, forcing unpaid leaves, demanding work without pay, resulting in a monthly wage lower than the basic NT$ 17280/ month.	Unilaterally cancelled the full attendance rewards when Dongguan government raised the basic wages. In February, MASSTOP claimed that the adoption of special working hours system had been approved by the administration, to reduce overtime wages to 1.5 times of the normal wages instead of twice. Amidst the strike initiated by angry workers, the company unilaterally claimed that those who failed to return to work before three in the afternoon, April 17, would be regarded as voluntarily ending their labour contracts.
The code concerning dormitory and dining: “Suppliers must provide workers with clean toilet facilities, access to potable water, and sanitary food.”		Cut the expenses for daily meals from 8 RMB to 4.5 RMB. Some say the food is a far cry from edible. This issue directly resulted to the strike, but the company has not solved it yet. There was a mass ptomaine poisoning this April.
The code concerning whistleblower protection and anonymous complaints	While employees made legal attempts to appeal to labour laws and the public, WINTEK has filed a lawsuit against Wei-Li Chu, secretary general of the National Federation of Independent Trade Unions (Taiwan), who continuously helped WINTEK workers who tried to get their jobs back.	There is not yet an program through which employees can file complaints anonymously. After the strike, the company has been taking retaliatory actions, including admonishing strikeparticipants. As a result, other employees are being silenced about emerging problems in the company.
The code concerning a safe working environment	Workers at CG manufacture lines in WINTEK’s Tanzi factory, and those at the yellow light section in Huangchung and Chunggung factories are required to use organic solvent such as halftone detergent or etching solvent, but WINTEK did not provide masks or protective suits.