A workers’ rights organization looking into abuses in Chinese manufacturing plants uncovered a host of violations in a facility turning out Apple Inc. (NASDAQ:AAPL) handsets and what appears to be plans for a cheap plastic iPhone.
China Labour Watch is a New York-based non-profit organization focused on defending workers’ rights in China. It was founded by labour activist Li Qiang in 2000.
The investigators reported they had discovered 36 legal violations and 50 ethical violations.
They also turned up what appears to be work on a prototype for a low-priced iPhone.
The report quoted an unnamed worker who discussed his duties:
There have been numerous reports circulating that Apple is poised to release a cheaper iPhone this year. The rumoured iPhone 5s is expected to run on a new iOS version and is aimed squarely at countering lower-cost Android phones.
Apple has responded to the allegations by China Labour watch with a statement indicating that it conducted 15 audits including surprise visits and spot checks of the Pegatron facilities since 2007.
Apple said it worked closely with its suppliers to prevent excessive overtimes.