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Pegatron caught off-guard by news that the Fair Labor Association is auditing Apple's suppliers

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Pegatron caught off-guard by news that the Fair Labor Association is auditing Apple's suppliers
Apple's supplier Pegatron, which assembles iPad and iPhones like Foxconn, has reportedly not been notified that the Fair Labor Association started inspecting dorms and manufacturing facilities yesterday, and interviewing employees about working conditions.

Charles Lin, Pegatron's CFO, commented in a phone interview that his company is fully aware and compliant with Apple's Corporate Social Responsibility Policy, but the client didn't notify them of any pending audits, like those currently ongoing at Foxconn City, for instance.

Rumor has it that Pegtaron has been forced by Apple to quit the assembly of the Asus Zenbooks ultrabook devices, since they are too similar to Apple's own MacBook Air, and Pegatron allegedly complied, transferring production elsewhere. This is the kind of power Apple wields over its suppliers, so if it is really serious about improving working conditions, and the FLA finds discrepancies in that respect, it will probably be able to work it out with Foxconn and Pegatron.

source: Bloomberg

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