VIDEO: Here Is What Unregulated, Non-Unionized Capitalism Looks Like: Apple’s iFactory In China
Conservatives have long derided organized labor and business regulations as some sort of insidious ‘socialist’ cancer that stymies innovation, fleeces hardworking business owners, crushes prosperity and investment capital, and dampens economies with high inflation and high unemployment.
They contend that when corporations are left unburdened by oversight and regulations, to pursue their own profit-maximizing interests, that this will always — as if by an invisible magical hand — optimize the interests of the society in which they operate.
Obscenely naive or deeply disingenuous, this ideology has been disproved over and over again, since the beginning of the industrial age. In a global economy, the moment a nation catches on — usually when its citizens’ quality of life deteriorates to the point of social unrest — and moves to remedy the situation with more regulations, and by easing organized labor restrictions, the corporations begin to look around to other developing countries for exploitative opportunities.
This now familiar business cycle is especially prominent in sectors that require an educated and highly skilled workforce. This is because higher education is generally funded, not by corporations or government, but by labor itself. This limits the supply of skilled labor, and forces corporations to compete with one another for these self-educated workers, thereby pushing wages upwards.
But unlike labor, who are restricted by national borders in search for employment, corporations are free to roam the world for cheap labor. And corporations have no loyalty to the citizens who reside within the countries they operate. Why pay a premium for an employee with a unique level of expertise, when potential employees with similar skill-sets are being grotesquely undervalued overseas? After all, a corporation’s charter commands it to exploit resources and labor as cheaply as is possible in order to maximize profits.
At the moment, China happens to be one of those developing nations with a massive poverty-stricken population — ripe for corporate exploitation.
And what better iconic ‘American’ corporation, but Apple — manufacturer of the world’s most beloved technology products and gadgets — to demonstrate this corporate flight towards labor-exploitative opportunities.
China is a country which conservatives would consider an ideal, unregulated, business-friendly environment. Rather than demanding China raise its labor standards, conservatives would rather weaken U.S. labor standards to be more like China. The conservative plan for bringing jobs home is little more than a race to the bottom. By union busting, cutting government jobs, and further deregulation, American workers will find themselves as powerless and exploitable as our counterparts in developing countries. This, they believe, will make America more ‘competitive.’ This is their ‘free market’ ideology, in a nutshell.
In the following video, ABC’s Nightline was granted unprecedented access to Apple’s factories (owned by FoxCon) inside China. When you see the conditions in which these employees operate, you realize why decent paying American jobs are disappearing, and, as Apple’s recently-deceased CEO admitted to President Obama, “they aren’t coming back.” You begin to understand why young Americans are now questioning whether it even makes economic sense to assume huge amounts of debt in pursuit of higher education.
If you take one thing away from this video, I hope it is that this is not merely an American problem. It is a world problem. The only way to raise the living standards of Americans will be to raise it for everyone else in the world, because this is truly a global economy. And that process begins with rewriting all of our trade deals in ways that empower workers in every single nation, across the world.
Some highlights from Nightline’s reporting:
- Apple’s Chinese employees work 12-hour shifts, broken up by two-hour meal breaks, and often seven days per week.
- Employees work so long and so hard on the assembly line, that most eat their 70 cent meals at the company canteen quickly, so they can catch up on lost sleep at their work stations. (the video shows them all sleeping side-by-side during their lunch break)
- Many employees live in dorm rooms, shared by seven other workers, and will each pay $17.50 per month for this. This allows Apple to have workers on-call 24-7, in case they ever need to quickly scale-up production, at a moment’s notice.
- Most employees have left their families to work here.
- ‘Suicide nets‘ have been installed under the windows of all FoxCon employees to prevent them from killing themselves. A year ago, nine employees jumped to their deaths in the span of 3 months.
- Last year, poorly ventilated aluminum ducts, which the company had been warned about by human rights groups (an accusation the company does not deny), caused two separate explosions in iPad polishing stations, killing four employees and injuring seventy-seven.
- Literally thousands of people (over three thousand on this particular Monday) line up daily at FoxCon’s recruitment center, waiting hours on end, and many carrying suitcases. They are desperate to work there for $1.78 per hour. Demand for Apple products is so high, that FoxCon will hire 80% of them.
- To help manage the controversy that erupted after the NY Times’ recent article, In China, Human Costs Are Built Into An iPod, Apple joined the Fair Labor Association. But Apple paid the group $250k to join, and also pays for all its pre-arranged — never by surprise — audits, leading many to believe there is a deep conflict of interest, and is little more than a ploy to whitewash their labor practices.
- ABC revealed most all of the employees they spoke with complained about their low-pay, expensive lunch prices, and crowded dorms, but there was nothing they could do about it, as unions don’t exist there.
Sounds like a Conservative Utopia!