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The ICT Sector in the Spotlight

The ICT Sector in the Spotlight

Improving working conditions in the global

The ICT sector in the spotlight

Leverage of public procurement decisions on working conditions in the supply chain 2 The Electronics Watch Consortium isdriven by: circumstances beregarded asreflecting the position of the funders. of this documentare responsibility the sole of WEED e.V. and can under no Union and Stiftung Umwelt und Entwicklung Nordrhein-Westfalen. The contents basis of research by WEED e.V. and with the assistance financial of the European beenproducedThis documenthas by the Electronics Watch Consortium onthe Copyright-free photos Photo credits: www.conceptegrafic.com Layout: Berlin, 2014 WEED e.V. Copyright: their helpful comments and editingnotes. We would like to several thank partners from the Good Electronics Network for Acknowledgements: Martin Braun, Moritz Böttcher, Ulrike Tradowsky, Markus Henn Contributors: Annelie Evermann Author: www.weed-online.org [email protected] Fax: +49 (0)30-275 96928 Tel.: +49 (0)30-275 82163 Germany Eldenaer Straße 60, 10247 Berlin WEED e.V. –World Economy, Ecology &Development [email protected] www.electronicswatch.org Electronics Watch Consortium, c/o WEED e.V. Publisher: conditions chain inthe supply Leverage of publicprocurement decisions onworking The ICTsector inthe spotlight

The ICT sector in the spotlight Electronics Watch 3 4 Contents

III. II. I. 5. The leading companies5. The leading chains supply 4. Global 3. Production types of contract manufacturing 2. Contract manufacturers: actors key with low profit margins 1. From integration to verticalisation Company-based mapping buyer of sector:Public ICTproducts Amajor Introduction b. Contract manufacturers a. Brand companies iv. Manufacturing facilities of contract manufacturers iii. Aggregated ranking of contract manufacturers by revenue (10) ArimaCommunications Corp. Communications(9) Compal Inc. (8) QisdaCorp. (7) Lite-On ItCorp. Electronics(6) Cal-Comp (Thailand) PCL (5) Inventec Corp. (4) Corp Electronics(3) Compal Inc. (2) Corp. (1) Inc. ii. Top ten ODM providers by revenue (10) Universal ScientificIndustrial, Inc.(USI) Corp.(9) Plexus (8) BenchmarkElectronics (7) Shenzen Kaifa Technology Co. Ltd. (6) Sanmina Inc. (5) (4) New KinpoGroup Circuit Inc. (3) (2) Flextronics International Ltd. (1) HonHaiPrecision Industry Co. Ltd. () i. Top ten EMSproviders by revenue brands byii. Therevenue major (4) (3) Monitors (2) Server market (1) PCmarket: notebooks and desktop PCs brands relatedi. The major to products 13 30 30 20 20 29 29 29 29 26 26 26 24 24 24 24 28 28 28 28 23 25 25 25 22 1 2 27 27 27 27 27 14 19 19 19 13 15 15 9 7 inthe electronics industry VII. VI. References V. Conclusion IV. Country-based mapping 3. Conclusion and further trends 2. Country portraits 1. Top countries by ICTexports Appendix: n. SriLanka m. l. k. Indonesia j. Philippines i. h. Thailand g. Mexico f. e. d. c. Japan b. Singapore a. Selected literatureSelected onsubcontracting 40 65 33 53 1 4 44 44 50 46 49 48 57 43 34 34 42 39 38 33 47 37

TheThe ICTICT sectorsector inin thethe spotlightspotlight ElectronicsElectronics WatchWatch 5 6 I. Introduction specialised manufacturer.specialised refers1 ‘Fabless’ to the business methodology of outsourcing the fabrication of products and components to a of production to outsourcing and in complex specialisation networks of ‘fabless’ manufacturing, whichisthe focus of this report, emerged from integrated forms exploitation of workers inthe ICTsector throughout ICThardware chain. the supply As inother sectors, unfortunately with inhand goeshand globalisation the with avery rapid life-cycle. returnillegal of e-waste problematic to Asiaand West Africa –aresult of products of products.assembly Then, at the very end of process, the whole there is the to the worldwide manufacturing of various components rightthrough to the final crisscrossingchains the globe–from the extraction and processing of raw materials The ICT hardware sector a complex is also and diversified industry with supply procurers spend billions of euros onICThardware every year. countries. procurers Public consumers of are ICT. major InEurope public alone, as well asfor publicpurchasers, inindustrialised countries aswell asindeveloping – both inour private and professional lives. This istrue for both private consumers inour lives role interms ofmajor communication global and providing information archetypal examples of world. our globalised increasingly ICT products a play Information and communication (ICT) products and the ICT industry itself are supply chain. The complex falling prices products chain. for is prompted highly supply by a and rapid turnover of products inthe sector; and alack of transparency inthe exploitative conditions: the pricing competition inthe market; the highflexibility these issues, there are three fundamental structural features causingthese Apart from the indifference of both companies, consumers and financiers towards substances. and migrant workers; and alackof safety precautions for the useof hazardous due to the increase of temporary workers; agency student discrimination against have incommon is:poor excessive wages; working hours; risky working conditions The working conditions differ from country to country, countries most butwhat deliberate)due to a(partly lackof controls and sanctioning. (e.g. inChinaor Vietnam), there is ahugediscrepancy between theory and practice, and the China)rule sector. Even incountries with strict labour laws and regulations trade union policies(e.g. inthe Philippines) and dormitory regimes (e.g. inMalaysia in several countries, where tax working reliefs, not only harsh conditions, butalso no being and interests of workers. Thisisrife inthe problem export production zones development intheir countries. This often todisregards apolicy that leads the well- Many developing countries consider the presence of the ICTindustry for asachance component suppliers inlow-cost countries. brands, largecontract manufacturers and a variety of and small- medium-sized 1

The ICT sector in the spotlight Electronics Watch 7 8 responsible ICTsector, publicpurchasers. particularly overarching conclusions for consumers whoare interested inseeingasocially importantmost countries the ICTsector. supplying And Chapter Vpresents some brand namesto contract manufacturers. Chapter IVprovides of the an analysis procurers. Chapter IIIturnsthe ICTcompanies spotlight onthe –from leading Chapter of IIincludes ashort ICThardware analysis products bought by public knowledge of specific countries. This was supplemented by interviews with experts onICTproduction or with reviews, current market research, and annual reports financial companies). of major The methodology usedto compile this report included desk research (e.g. literature procurers inEurope, the have to exploitative change conditions inthis industry? for question A key this report leverage doconsumers, is:What includingpublic are• What the issues inthese mainsocial countries? • Inwhichcountries dothese companies and their suppliers operate? • WhichICTcompanies are companies (currently) the–both leading atthe level following questions: This report turnsthe spotlight onthe ICTindustry by lookingatsomeof the this, disclosure and transparency are elements. key to along-term of change working conditions inthis industry. to butalso beadriver chain, of supply areformglobal programme mightlead that countries, to monitor the aimisnot the only production of ICTproducts intheir purchasers inEurope and the USand labour organisations inthe producing organisation for ICThardware global production. With the helpof both public The new initiative global Electronics Watch developing iscurrently amonitoring insightyet.change awareness of the exploitative conditions inthis sector. However, there isnoreal transparency to more led This has publicand chain. corporate inthe supply global been trying for many years to improve working conditions and to provide more severalend of chain, the supply non-governmental organisations (NGOs) have also and through other means. Both in producing countries and in countries at the buying In several countries, workers have begun to fightfor their rights by goingonstrike products intheir chains. own supply and complexeven that brand companies are claimthey to retrace unable the hiring of temporary workers. issodiversified chain and The soconfusing supply in factories isnot fixed, causingextreme demands for overtime and increased launch of new products and demands seasonal are common; thus the workload to ICT suppliers and their workers. Regular peaks in production due to the for the brand companies, to price this pressures leads are that passed on directly software and telecommunication contracts. Combined with highprofit margins business model where the hardware products get cheaper inreturn for selling 2 For more details, seewww.electronicswatch.org. please of brands and atthe level of contract the influential increasingly manufacturers? 2 Inorder to achieve ICT products buyer of A major sector:II. Public less by publicpurchasers. less In contrast to private consumers, phonesand mobile tablets are bought significantly Source: TED2013, cf. ted.europa.eu/ Table procurement 1:Public of ICThardware (expressed innumber of for calls tenders) media storage and reader devices and magnetic or readers. optical portable computers and printers, followed by screens, display desktop computers, (Tenders Electronic Daily), the main products by purchased public procurers include According of to our the analysis European publicprocurement journal TED-database billion for IThardware (Bitkom 2013a) growing and continuously (Bitkom 2013b). ICT spending of the publicsector inGermany isaround € (including services) and around £2.1 billion onICThardware (OFT 2014: 29).Annual thedata that UK suggest public sector spent around £13.8 states show the ongoingenormous ICTspending annual of the publicsector. Current € is not available onthe total publicICTspending inEurope, estimates are around buyerThe publicsector of inEurope ICTproducts. current isamajor While data Storage media Mainframe computers Magnetic or readers optical Product Media storage and reader devices Desktop computers screensDisplay ters for printingvector graphics) Printers and plotters (computer prin- Portable computers 94 billion in 2007 (European Union 2012: 4). Two examples of European member calls forcalls tenders 1.5.12-1.5.13) 1-year period (number of 1,930 1,830 1,016 640 605 984 879 672 20 billion and around € calls forcalls tenders 1.5.09-1.5.13) billion onICT products 4-year period (number of 3,050 3,204 5,850 2,544 6,397 3,547 1,965 2,153 2.4 2.4

The ICT sector in the spotlight 9 Electronics Watch 10 and more are publicentitiesthat joiningthe new Electronics Watch initiative. Figure procurement 1:Public of tablets and phoneover mobile five years workers are receiving from business mobiles their employers. phones over the five last years. more This reflects the gradually fact public that Figure 1illustrates the growing increase inpublicprocurement of tablets and mobile Table procurement 2: Public of phonesand mobile tablets (expressed innumber of for calls tenders) 4 www.electronicswatch.org Ansvarstagende3 Socialt iOffentlig cf. Upphandling, http://www.hållbarupphandling.se/ and seehttp://www.youtube. councils, joinforces.position whenthey Someexamples of this include the Swedish county buyers are realising strengthen they that their market power and their bargaining gives an extra economic weight to their tenders. Furthermore, public increasingly public procurers often ICTproducts purchase through long-term contracts, which in the paragraph below –donot want to miss out stems on.Italso from the fact that their spending largeannual onICThardware, whichbrand companies –asshown The leverage of the publicsector over the ICTindustry derive doesnot only from Source: TED2013, www.ted.europa.eu/ (illustration by WEED) due to the mixed recovery, global in the EMEA particularly region” (HP2013: 43). other countries, inthe United particularly Kingdom,and weak IT services spend weak public sector spending inthe and austerity measures in by severalbe challenged factors impactthe that demand environment, including Report:Annual “Revenue performance inES[=Enterprise Services] continues to public sector performance and strategies to the enhance numbers inits2013 a detailed breakdown of itscustomers, butthe company discusses its explicitly 2012: 40)and thus 26%of itstotal segments(Ibid:41). global HPdoesnot provide yearfiscal 2012, US $16 billion of ’s net revenue came from public buyers (Dell brandthat companies regard public sector buyers as important customers. In the its modular composition of ICTproducts, and of also Hewlett-Packard (HP),shows The example of Dell, oneof the popular most brands inthe public sector dueto takespublic purchasing issues into social account. Accordingly, innovative suppliers sellsocially products that are encouraged, since Source: TED2013, cf. ted.europa.eu/ Product Tablets cell phonesand carphones) phones(includingsmartphones, Mobile com/watch?v=JiXoLwURueo (example atminute 10:20). 3 the Northern federal states inGermany (Hooper 2014: 8)and more 1-year period (number of calls for tenders 1.5.12-1.5.13)

303 377 4-year period (number of calls for tenders 1.5.09-1.5.13) 908 692 4

chain of thechain product are whenitcomes influential to winning bids. distributors aware criteria social that regarding working conditions inthe supply intermsaction by publicpurchasers, particularly of makingICTcompanies and as and Cisco (Fujitsu 2013: 97; Cisco 2013: 12).This shows the importance of the publicsector market intheir investment brands reports such include major drivers in this 2012: 110-111). regard Other companies discuss (Raj-Reichert that governance, chain supply and ranks publicprocurers asoneof the significant most statedmanager inan interview HPfaces that pressure for ongoingand improved accountability, contracting practices and pricing” (Ibid: 63). Nevertheless, an HP initiatives targeted atimproved execution inthe areas performance of sales and “includes acostreduction initiative to our align coststo our revenue trajectory and Noticeably, the strategy discussed to overcome weak publicsector spending,

The ICT sector in the spotlight 11 Electronics Watch 12 III. Company- 13

based mapping Electronics Watch The ICT sector in the spotlight The ICT sector in the spotlight

1. From integration to verticalisation

ICT production has been characterised by several significant developments in the past 30 years. Until the 1980s, companies like IBM, offering more or less closed systems with integrated hardware and software, dominated the market. These companies controlled a large number of steps involved in creating ICT hardware. This so-called vertically integrated production process was replaced by another model in the 1990s: the rise of specialised companies. In particular, and , which provided key components for personal computers (PCs), grew bigger and changed the market with their rapid innovation cycles.

As the market concentration of these key component producers grew, they were able to set new standards. A major characteristic in this process was the separation from product innovation and product manufacturing. While the vertical disintegration of ICT production continued, more and more production steps were outsourced to contract manufacturers (Beck 2012: 12). Contract manufacturers without their own brands such as Flextronics and Solectron (which was bought by Flextronics in 2007) from the US or Quanta and Honhai/Foxconn from Taiwan became gradually more important. These companies offered cheaper production conditions. Meanwhile IBM, and other brand companies sold their own manufacturing facilities – including machinery, inventory and employees – to contract manufacturers (Van Liemt 2007: 1) in order to cut their labour costs down and to concentrate on new business models like marketing or consulting.5

Thus many brands do not manufacture (or even design) their own products any more. The majority of PC brands have very limited or no production facilities. In the case of notebooks, as long ago as 2006 Dell, HP, Acer and Apple no longer had their own notebook manufacturing operations. At the same time, was partly manufacturing its , and only , Fujitsu-Siemens and /Asustek owned manufacturing plants (Manhart/Grießhammer 2006a: 27).

The mobile phone market shows similar structures. Only a few brands still have their own production facilities, e.g. (a subsidiary of Samsung), LG Electronics and (Wu 2013).

In spite of the global trend of extensive outsourcing, some brand companies still have their own production facilities, often owned by their subsidiaries. These companies produce in a vertically integrated way, thus reducing their dependence on contract manufacturers.6 This is especially true for the South Korean company

5 For example, IBM acquired the consulting arm of PriceWaterhouseCooper; HP acquired EDS consulting; Dell acquired Perot Systems (Sodhi/Tang 2012: 9). 6 See Lüthje et al (2013a), p. 144, with examples of Samsung’s manufacturing complexes in China in Tianjin and Suzhou and additional mentions of newer Chinese multinationals such as Haier, TCL or Konka (mainly producing ). 14 are 2012: 69). inAsia”(Apple located primarily the Company’s hardware products are manufactured by outsourcing partners that needs” (Cisco 2013: 12).The sameistrue of all for “Substantially US-basedApple: Report:2013 Annual “We oncontract rely manufacturers for of all our manufacturing South Africa and SaudiArabia. Instark contrast to this, US-basedCisco states inits Americas (includingBrazil and Mexico), inPoland, butalso , Russia, Egypt, have production facilities over all the world –with ten sites inAsia,four inthe worldwide with 87,000 roughly executives and employees. LG Electronics, headquartered inSouth Korea, controls subsidiaries 114local the Philippines (Calamba) and (Szigetszentmiklós). , Suzhou, Thailand Bangpakong), , Binhal), (Nakhon,Ratchasima, production takes place, i.e. in China (Dongguan, Tianjin, Kunshan, Goaxin, Shenzen, (Sejong and Buson)aswell asabroad, where 80%of Samsung Electro-Mechanics’ Pfanner 2013). Samsung owns production market linesinitsdomestic inSouth Korea by Apple)their and own assembles smartphonesand other devices (Chenn and (chips, panels anddisplay other electronic parts; e.g. are chips that purchased also Samsung with itsseveral affiliated companies. Samsung manufactures components 8 Seehttp://www.lg.com/global/about-lg/corporate-information/global-operations 7 Seedetails onhttp://www.samsungsem.com/support/place_overseas01.jsp?lang=en and http://www.chinalaborwatch. (Froud chain etthe 2012: 17-18, al supply 20). tosuppliers, low and whichleads wages work pressure for ITworkers further down Brazil (Ibid:5).Another strategy isto pass the price pressure onto their respective Dell and anew plant inBrazil in2005to support the expansion plans of Nokiain Foxconn established anew plant customers inIndia like in2006to supply HPand their risksisto develop along-term partnership with the brand companies. Thus One strategy to increase the marginsfor contract manufacturers and to minimise prevent their investments and upward mobility (Froud et 2012: 15-16). al low profit margins for contract manufacturers is an instrument of subordination to amounting to US$137 billion (Postinett 2013). Someresearchers ensuring that suggest 2012: 4).Inthis context the itisnotable that brand liquidassets company has Apple profit had margins between2009 – only 2%and 3% from 2004 to 2009 (Sodhi/Tang (USA) –whichaccounted for 70% of the market share over the period from 2001 and Flextronics (Singapore), (Canada) Circuit and (US),Celestica Jabil Sanmina-SCI Electronics Manufacturing Services (EMS)companies suchasFoxconn (Taiwan), are reserved for brand companies (Van Liemt2007: 23;Ojo2013). Thus the leading the profit margins for contract manufacturers are low, the large profit while margins Although contract manufacturing inthe plays asignificant role production process, $360 billion in2011 to more US$400billion than in2015 (Ibid). growing revenues of electronic global contract manufacturers and arisefrom US of manufacturing all revenue in2011 (Dinges2012). Market researchers still expect manufacturers (Holdcroft 2009).And contract manufacturers accounted for 20% Brand companies outsource closeto 75% of their production to contract Contract manufacturers have become actors key in the electronics market. margins 2. Contract manufacturers: actors key with low profit org/pro/proshow-177.html 7 8 These subsidiaries brands HP, Acer, Dell,, Toshiba, Asus and Apple. example of notebook production inthe following notebook schemeof the major across different brand companies. This isillustrated inFigure 2,whichusesthe manufacturers try to diversify their business relations by spreading their networks All brand companies work with several contract manufacturers. the contract Equally are chains characterisedICT supply by across-interlocking of business connections. chains supply 4. Global mentioned unequal distribution of profits. with Firefox (Santos 2013). This development a consequence of is partly the above- Honhai/Foxconn, which announced it was launching its own tablet in cooperation own products (Van Dijk/Schipper 2007a: 8).And this bethe mightalso casewith from contract manufacturing before 2000to the development and branding of its market. Acer gonethrough has suchatransformation, as the company changed and distribution their capacitiesand products supply with their own nameto the ODMs and brand companies vanish whenODM companies broaden their research and further expand their business segments. However, the differences between blurred (Beck2012: 13),assomeEMScompanies their enhance design know-how In practice, the lines between EMS- and ODM contract manufacturers are often companies are reduced to marketing of and brand elements key development. their manufactured ‘ready-to-go’ products (Sodhi/Tang the 2012: brand 7),while manufacturers are responsible for the design, the development and testing final of technical system development and the product design (Beck2012: 13).ODM contract The ODM contract manufacturer offers acomprehensive service inboth the inventedThe ODM model, initially by Taiwanese companies, goesonestep further. Thus have comprehensive, they independent production know-how. engineering, componentfrom purchasing sub-suppliers and after-sales services. and controls of all the manufacturing processes, includingproduction-related itself still stays with the brand company. The EMScontract manufacturer coordinates manufacturers coordinate the production themselves, the product while development contract manufacturers like Flextronics, or Sanmina – the Celestica EMScontract EMS model (Electronics Manufacturing Services) goesbackto –amodel US that out by contract manufacturers. Today the outsourcing goesmuchfurther. Inthe control the product and technical manufacturing are specifications that carried outsourcing model, the brand company isthe customer. determine They and companies, inthe OEMmodel (Original EquipmentManufacturer) asthe ‘classic’ OBMWhile (Original Brand Manufacturer) isthe ‘classic’ own production by brand (Electronics Manufacturing Services) and ODM (Original DesignManufacturer). (Original Brand Manufacturer), OEM(Original EquipmentManufacturer), EMS The commonof most distinction production types differentiates between OBM 3. Production types of contract manufacturing

The ICT sector in the spotlight 15 Electronics Watch 16 Source: Research inChina notebook relationshipsFigure supply –brands 2:Major and contract manufacturers 2010 11 Seehttps://www.nager-it.de/static/pdf/en_lieferkette.pdf 10 Another company with aspects of transparency isNetherland FairPhone, whichdiscuss afew details onthe supply 9 Seehttp://www.researchinchina.com/Htmls/Report/2011/6038.html Source: 2014 ©NagerIT for computerFigure chain 3:Supply mouse of German company NagerIT transparency (see Figure chain 3). initssupply NagerIT. This company isan exception inthe ICTsector, asitstrives for absolute IT product such as the computer mouse provided by the German company This complexitychain. isillustrated by the example of and asmall relatively simple Beyond the layer first of contract manufacturers, there isafurther complex supply fairphone.com/2013/12/20/production-photo-blog/ initsblog:http://www.fairphone.com/2013/12/10/made-with-care-social-assessment-report/;chain http://www. Quanta HP Compa l Acer 11

9 (illustration by WEED) Wistron Dell Inventec L enovo Toshiba 10 HonHai

Flextronics A sus Apple Pegatron

parts. For example, hundreds of components are necessary for diskalone. ahard components themselvesmechanic (Ibid).The components consistof further small ofmanufacturepurchasing components most and partly printed circuit boards or contract manufacturers offer the assembling of the notebooks and coordinate the components’ like central processing units (CPUs), disks and hard graphic chips.The The brand company covers marketing activitiesand ‘strategic and purchases sales Source: 2006b:24 ©Manhart/Grießhammer Figure 4:Typical of manufacturing anotebook chain manufacturing chain. manufacturing steps. Figure 4 illustrates asimplified version of the typical 2006a:24).(Manhart/Grießhammer These components are produced inseveral As afurther example, notebooks are composed of approximately 2,000 components 15 See selected literature15 Seeselected inthe Appendix. 14 Seehttp://www.eiccoalition.org/ 13 Seehttps://sourcemap.com/view/4776 (2006a:24):12 SeeManhart/Grießhammer “The doesnot diagram show the relationships between the vertical levels. Electronic Industry Citizenship (EICC) Coalition certification companies like TCO Development and the company-driven initiative Both the auditsof brand companies themselves, external auditcompanies or Haan/Schipper 2009:17). replaced by others ifnecessary and thus have very little power and leverage (De of component suppliers –apartfrom –are specialised thoseare that easily highly These components are manufactured by adiverse range of suppliers. The majority and complexity: level of disclosure across these companies is very different with regard to detail which isan important step towards transparency. more chain supply However, the Furthermore, afew companies Dell,HPand –Apple, their IBM–list suppliers online, Some research literature goesdeeper the tier than first of chain. the supply (see below) aswell opportunities ashighlightpossible for improving the status quo. However, the report can pointout responsible brands and contract manufacturers restricted to the tier, first too. This report cannot overcome these shortcomings. inliteraturestudies and NGO reports about labour issues inthe ICTsector are mostly code with 2012: 127). Thus their case itisnot suppliers surprisingthat (Raj-Reichert not brands,that butfirst-tier suppliers are responsible for the EICC implementing i.e.in the tier first ofthe chain, assembling factories. the supply The EICC logicis impossible in the presentimpossible context.” […] Inparticular, the relationships between tiers 2,3and 4are sodiverse asto render agraphical representation 12 14 usually only monitor the companies only usually 13 15

The ICT sector in the spotlight 17 Electronics Watch 18 It isoften even saidthat the brand companies themselves donot know do not appear. Guangdong Province, are China) that partof the Chicony Power Technology Group Province,Mingshuo (Suzhou, Jiangsu China)and Hipro Electronics (Dongguan, Guangdong Province, was visited) are mentionedinthe Delldisclosure list. and Group (whosesubsidiaryTaida Electronics inDongguan, published in2013 (Stracke MSI(,Guangdong Province) et 2013), only al by Danwatch and criticisedfor their lackof labour rightsinan investigative report HonHai (Foxconn), Pegatron and Wistron. From the four suppliers were that visited manufacturing and assembly. our products worldwide in2012”. of procurement expenditures for materials, manufacturing,of and assembly suppliers, includingcomponent providers and others “representing 97% atleast production publishedin2013). This in2012 (list includes the company’s top specific products and where this isdone. HP Apple 20 SeeDellwebsite, http://www.dell.com/Learn/us/en/uscorp1/corp-comm/cr-ca-list-suppliers?c=us&l=en&s=corp19 SeeIBMwebsite, http://www.ibm.com/ibm/responsibility/2011/supply-chain/ 18 SeeHPwebsite, http://h20195.www2.hp.com/V2/GetPDF.aspx/c03728062.pdf website,17 SeeApple http://www.apple.com/supplierresponsibility/our-suppliers.html. website16 SeeApple athttp://images.apple.com/supplierresponsibility/pdf/Apple_Supplier_List_2013.pdf. Aninterac- Dell IBM Apple states that it has direct statesApple ithas contracts that with and negotiates prices with almost as the second or third tier. Given these statements, atleast itisremarkable that suppliers know further suppliers or only they downasfar chain, down the supply Foxconn, Circuit and Jabil Celestica. IBM works together with contract manufacturers like Flextronics, Wistron, HonHai/ containslist 50suppliers of the company’s hardware and procurement. logistics HP products at final assembly supplier facilities.HP products assembly atfinal the numbersharing of reported employees dedicated hourly to the production of Thailand; and the Venture Corp., HPis whichproduces Additionally inMalaysia. with factories inChina;the New KinpoGroup, whichmanufactures inChinaand andMalaysia Singapore; HonHai/Foxconn with their Circuit plants inChina;Jabil suppliers for HPprinters are: Flextronics with production facilities inBrazil, China, of the suppliers and linksto corporate responsibility social reports. For example, It contains further information about the product type, the production address includes contractpartly manufacturers and commodity and component suppliers. assembly facilities. assembly suppliers are not provided inthis butinaminor of list, list 17of Apple’s final 46 inEurope. Further details about from whichproductspurchases these Apple the Philippines, Singapore and Thailand. 84 suppliers are listed in the US and (148),South KoreaJapan (38),Taiwan (35) and (27), Vietnam, butalso Malaysia Asia, with 331suppliers inmainland alone China.Other mainsites inAsiainclude available. responsibility reports and information about sustainability programmes, if not-just-china-interactive-map tive map basedonApple’s supplier 2013 isto list befound here: http://www.chinafile.com/who-supplies-apple-it-s- provides represents that alist 95% of itsprocurement spend for materials, provides of alist suppliers accounts that for 90%of spending. itsglobal lists its“95-percent-spend lists partners” and chain linkssocial and supply key lists 748 lists suppliers with addresses inan updated suppliers’ for list 20 Dell lists about Delllists 130suppliers Electronics, includingCompal Flextronics, 17 This specifies whichcontract manufacturers the assemble 18 The list includes final assembly suppliers, which The includes assembly list final 16 The more majority, 600, than are basedin their 19 This sub- chain. conditions (and environmental also issues) are to befound further down the supply for labour rightsinthe electronicschallenge industry. Often the worst working The lackof publicknowledge about isakey further chain tiers inthe supply tier suppliers, 2012: 176). e.g. atPenang sites (Raj-Reichert inMalaysia suppliers and places them onapproved vendor whichare lists, handed over to first- HP doesnot have direct contracts with itssub-contractors, the company pre-selects documented26). Itisalso for , HPand Siemens(Lüthje 2006:22).Although impactonthe components key with price 2006a: (Manhart/Grießhammer major ofpurchasing components by brand abrand companies for isgenerally principle products 2012: 56).The final sub-assemblies for or (Apple direct assemble Apple fromdirectly suppliers and sellsthem to manufacturing vendors manufacture that 23 The following statisticsare based onfigures from fourth quarter of 2012, whichshow aconsistent trend in 22 For et phonecompanies, the (2008: mobile seeChan al 18); for the printed circuit board industry, (2012: 17). seeRaj-Reichert 21 Meeting by SOMO’s Irene Schipper with Apple’s Labor &Human RightsManager, Supplier Responsibility, 1November procurers. brands inthe market related to someof the products key bought by public The following sectionprovides information about market shares of the biggest brands relatedi. The major to products a. Brand companies companies5. The leading itssuppliersall and sub-suppliers directly. calling forcalling the brand companies to acknowledge their responsibility. for wider and more efficientaccess to the lower and tiers ofby chain the supply public procurers an can important play and catalysing leveraging by role calling and temporary Consumers vialabour and agencies. employment particularly low prices and the needfor flexibility are linked directly to all low overtime wages, 2012: 126). Short product life the cycles, competition(Beck 2012: 11; Raj-Reichert on the existing fact that labour conditions inthe ICTsector are not aby-product just 2012: 129).The transfer of effective, responsibilities less ignores butalso isnot only an overall governance gapinthe production GPN[global network]” (Raj-Reichert tier suppliers are out of left the governance efforts by HPand fall into […]they in the tier. first Asshown inresearch the consequence onMalaysia, “second isthat tier suppliers in terms of compliance with the EICC code with contractual partners of initiators the of leading the EICC initiative, still leaves responsibility for second donot they have directthat contracts with their sub-contractors. Thus HP, asone Brand companies cannot absolve themselves of their responsibilities by stating 2013, inAmsterdam. comparison with the fourth quarter of 2011. 22

23 21 Thus Apple purchases components components purchases Thus Apple

The ICT sector in the spotlight 19 Electronics Watch 20 million/9.5%) and Asus(6.5million/7.2%) followed behind. closely and held10.2% of the market share inthe sametimeperiod. The Acer Group (8.6 PCs soldand aworldwide market share of 15.5%.Dellsoldaround 9million PCs amarketPCs and had share of 16.2%. Lenovo follows behind with closely 13.9million in recentstable years. Inthe fourth quarter of 2012, HPsoldmore 14million than (Taiwan). Inspite amongthese of companies, changes small this trend been has market share: HP(US),Lenovo (China), Dell(US),Acer Group (Taiwan) and Asus share around 10%of the market. areThey followed atsomedistance by Fujitsu Oracle, and Cisco, whichtogether a revenue of more US$2.2billion than accounting for 15.1% of the market share. Figure 5:Worldwide PCvendor unit shipments,4 The mainfive companies onthe PCmarket (1) PCmarket: notebooks and desktop PCs 28 Allfigures from the fourth quarter of 2012, consistent with the rating in2011. 27 Gartner February 2013, www.gartner.com/newsroom/id/2337015 26 Seehttps://technology.ihs.com/417277/fast-facts-on-apples-pc-outsourcing 25 Seehttp://www.gartner.com/newsroom/id/2301715 24 PC market isunderstood asincludingdesk-based PCsand PCs,butdoesnot include mobile media tablets. 36.5%. arevenueIBM, had around US$5.3 billion amarket and had share of around (US),Fujitsu(US), DellOracle and (Japan) Cisco (US).The company, biggest companies account for 90% of almost the worldwide market share: IBM(US),HP A few companies dominate the server market, whichisworth US$15billion. These Fujitsu(4.3 %), Sony (2.3 %)and (1.7 finally %). was sixth,Apple with amarket share of 5.8%,followed by Toshiba (4.5 %),Samsung (2) Server market market share. dominate the market, an even HPhas while clearer positionwith leadership 21.5% atthe marketLooking specifically shares inWestern Europe, the samecompanies 28 Source: 2013), Gartner (January HP follows with US $3.6 27

billion and a market share of 24.8%, Dell had while 25 illustration by WEED th quarter 2012 24 account for 60% of almost the global 26

30 Worldwide PCmonitor vendors, 4th quarter 2012. http://www.idc.com/getdoc.jsp?containerId=prUS24029213 29 Worldwide server systems factory revenue, 4th quarter 2012. http://www.idc.com/getdoc. Source: IDC’s Worldwide PCMonitor Quarterly Tracker, March 2013 Figure 7:WorldwidePCmonitorvendors,4 of around 9.7% and 9.6% respectively. HP follows with amarket share of 10.8%. Lenovo and LGasimilar market had share a market share of 15%.Dellsold4.6million units amarket and had share of 12.7%. company soldaround 5.4 HP (US),Lenovo (China) and LG (South Korea). Samsung asthe worldwide leading The top five worldwide PCmonitor vendors are: Samsung (South Korea), Dell(US), (3) Monitors Source: IDC’s Worldwide Server Quarterly Tracker, February 2013 Figure 6:Worldwide server systems factory revenue, 4 (accessed inDecember 2012) jsp?containerId=prUS23974913 (accessed inDecember 2012) million units inthe fourth quarter of 2012, accounting for th quarter 2012 th quarter2012 29 30 (illustration by WEED) (illustration by WEED)

The ICT sector in the spotlight 21 Electronics Watch 22 with cheaper smartphones,e.g. (Kan 2013; Shu2013). trend isthe appearance of upstarts small from China,which are gainingground their lost marketradically share inrecent years (Chenn and Pfanner 2013). Anew Samsung, Motorola, while especially Ericsson, HTC, Nokiaand BlackBerry have Nokia 2013). Thus the providers largest onthe market rightnow are and Apple in September 2013 inorder to concentrate onnetwork technology (Rother 2013; Nokia () phones division to US software sold its mobile company Microsoft The smartphonemarket isstill growing rapidly. The former producer mobile biggest Figure 8:Worldwide smartphonevendors, 4 market share eachof about 4-5%. distancedistinct with 30million smartphonessoldinthis period altogether and a a market share of 21.8%. (China), und (China) Sony (Japan) follow ZTE ata accounted for 29% of the market. (US) sold around Apple 48 million units and had quarter of 2012, Samsung (South Korea) 64million smartphonesand soldalmost Together, account they for more of the market half global than share. In the fourth The smartphonemarket dominated Samsung. iscurrently byand Apple especially (4) Smartphones 32 Gartner (November 2013), http://www.gartner.com/newsroom/id/2623415 UQIPbh0qaSp (accessed inDecember 2012) 31 Worldwide smartphonevendors, 4th quarter 2012. https://www.idc.com/getdoc.jsp?containerId=prUS23916413#. followed by Lenovo, LG Electronics and Huawei ataround (all 5%). amarketSamsung had remained share of Apple 32%,while with 12%,now only become theSamsung worldwide. top has smartphoneseller In2013 (third quarter), and Apple SamsungWhile were closeinterms of market share in2012, since 2013 Source: IDC’s Worldwide PhoneTracker, Mobile 2013 January th quarter 2012 31 (illustration by WEED e.V.) 32

Sources: Fortune 500(http://fortune.com/global500/2013/) Global and companies’ reports annual Figures for year fiscal 2012. European countries (1inthe Netherlands, Sweden, Finland and Germany). South Korea (4),China(3)and Taiwan (2),with companies headquartered single in there isaconcentration brands (9)and the inJapan US(7),followed of major by distribution brand of companies theproducing major ICThardware. At the sametime Electronics (South Korea), and Apple HP(both US).Table 3shows awide geographical In terms of revenue, there are several bigplayers inthe ICTsector, by Samsung led brands byii. Therevenue major Table 3: Fortune 500–ICThardware Global brands by revenue 2012 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 ZTE Inc.) Asus (ASUSTeK Computer Acer LG Display Fujifilm Holdings Sharp Royal Royal LM Ericsson Lenovo Huawei Investment &Holding NEC Oracle Nokia Canon LG Electronics Fujitsu Intel Dell Toshiba Sony IBM SK Holdings(incl.Hynix) Hitachi Siemens Hewlett-Packard Apple Samsung Electronics Company Shenzhen, China , Taiwan Taipei, Taiwan Seoul, South Korea Tokyo, Japan Osaka, Japan Amsterdam, Netherlands Stockholm, Sweden Beijing, China Shenzhen, China Tokyo, Japan Redwood City, CA, USA Espoo, Finland Tokyo, Japan Seoul, South Korea San Jose, CA, USA Tokyo, Japan Santa Clara, CA, USA Round Rock, TX,USA Tokyo, Japan Tokyo, Japan Osaka, Japan Armonk, NY, USA Seoul, South Korea Tokyo, Japan Munich, Germany Palo Alto,Palo CA, USA Cupertino, CA, USA Seoul, South Korea Head Office Revenue 104,500 108,989 156,508 106,259 108,875 million) 120,357 178,555 56,940 33,644 43,607 69,848 36,989 29,848 38,780 26,670 45,246 33,873 52,766 87,945 32,579 34,901 46,061 14,388 26,130 13,835 53,341 81,897 13,557 (US $ 37,121 12,650 (-) 9,083 (-) 3,992 (-) 6,567 (-) 2012 million) 878 (-) 20,586 16,600 41,733 11,005 (US $ 2,435 Profit 5,782 2,372 8,041 9,981 2,814 1,180 290 654 207 635 853 933 367 2,111 319 831 931 518 59 Employees 206,000 370,000 236,000 466,995 323,540 323,540 105,000 150,000 169,000 146,300 331,800 293,742 196,968 115,000 102,375 110,050 86,980 110,638 118,087 66,639 50,647 35,026 80,322 86,697 97,798 76,100 21,360 55,621 7,894

The ICT sector in the spotlight 23 Electronics Watch 24 and 32,59% for others (Foxconn 2012: 73). 57,19% of total compared net sales, with 10,22% for the next customer biggest Report shows onecustomer Apple) asignificant with share (presumably of only Since several Foxconn workers’ suicides in2010 becamepublic, are produced inChengdu,iPhonesZhengzhou (Perlin 2013: 47). Chinese factories tend to bemore their than specialised other factories, e.g. branch offices inAsia,the Americas and Europe (Foxconn 2012: 4).Foxconn’s of “ChinaRooted, Footprint”, Global set they upmore 200subsidiariesand than Huadong, Huazhong,Huabei,Dongbeiand Xinan. Following an expansion plan morehas 30industrial than parksand production sites inChina,e.g. inHuanan, 2009: 1061). Foxconn’s Chinainvestment started in1988and the today company beenthe company largest has inTaiwangrown that soquickly since 2005(Chu Set upin1974 company asasmall producing TVtuner knobs,Foxconn has (Perlin 2013: 46). 1,1 million employees, Foxconn oneof isalso the employers biggest inthe world subsidiaries and divisionsinvarious countries (Culpan 2013). With more than manufacturer by far. more Ithas 200different than holdingcompanies, affiliates, Industries, known also by itstrading nameFoxconn, isthe EMScontract largest With arevenue of US$132billion (2012), (1) HonHaiPrecision Industry Co. Ltd. (Foxconn) Singapore (1),US(4),China(2)and Canada (1). The top ten EMScompanies (by revenue, 2012) are basedinTaiwan (2), i. Top ten EMSproviders by revenue (EMS) and original design manufacturers (ODM). are presented here, differentiated between Electronics Manufacturing Services manufacturers (Holdcroft 2009).The contract largest manufacturers by revenue Brand companies outsource closeto 75% of their production to contract b. Contract manufacturers 35 Seehttp://www.isuppli.com/Manufacturing-and-Pricing/MarketWatch/Pages/Outsourced-Manufacturing- 34 Seefor more details SACOM, “Foxconn should keep itspromise; we neednofake trade unions” (including 33 For following all revenue figures, cf. Table 4 Liemt 2007: 17). Flextronics isnow operating onfour continents more and has to lower costlocations,closingdown factories inNorth America and Europe (Van manufacturing. From 2001 onwards, Flextronics shifted operations from higher it isregistered inSingapore and isoneof players the global biggest incontract $23.6 billion. Starting in1969 asacircuit board inSilicon assembler Valley, today The second EMSby biggest revenue isFlextronics, with a2012 revenue of US (2) Flextronics International Ltd. many more are customers of Foxconn (Kan 2012). brand deals withmajor the EMS. Companies like HP, Dell,Acer, Sony, Cisco and Foxconn presented supplier ismostly asan Apple every inthe media,almost forbecome the asymbol attitudes ICTsector’s harsh towards workers. While Industry-Set-to-Enjoy-Modest-Lift-This-Year.aspx promise-we-need-no-fake-trade-unions/ appendix onrecent suicides 2013, http://sacom.hk/statement-foxconn-should-keep-its- to 2013), 30May 33 Taiwan-based HonHaiPrecision 35 Still, Foxconn’s 2012 Annual 34 Foxconn has (Shah Alam,Senai),Singapore,(Shah Philippines, Mexico, US,and Brazil. Wujiang, Petchaburi, and Malaysia Ayuthaya), Guangdon), Thailand (Mahachai, by Electronics Cal-Comp and Communications –inChina(Dongguan, Jiangsu, owned factoriesbillion by in2012. Ithas –partly KinpoElectronics owned and partly in St. Petersburg inFlorida. In2012, itsrevenue amounted US$17,2 to almost billion. The third contract biggest manufacturer Circuit, headquartered isUS-basedJabil Circuit, Inc. (3) Jabil Blackberry) accounted for more 10%of than in2012 (Ibid). itsnet sales HPandfor Research and more of inMotion especially (now its sales, ahalf than for Xerox (Flextronics 2012: 97). Ten of Flextronic’s customers largest account products for Microsoft, smartphonesfor Research inMotion and office equipment notebooks and desktop computers for Lenovo, consumer electronics gaming telecommunications infrastructure and smartphonesfor Huawei Technologies, Ericsson, notebooks, printers and storage devices for HP, wireless and enterprise systems for Alcatel-Lucent, routers and switches for Cisco, radio basestations for desktop computers and tablets for as well Apple, as business telecommunications Flextronics produces alargevariety of products like smartphones,notebooks, suppliers of components located inthe immediate area (Van Liemt2007: 17). and operations logistics are co-located with strategic suppliers, with third party integrated industrial parkse.g. inBrazil, Chinaand Mexico, where manufacturing Poland, Brazil, Mexico and the US (Flextronics 2012: 97). It operates with fully 200,000than workers. Flextronics facilities Hungary, inChina,India, has Malaysia, and a total of 80.000 employees”. to KinpoGroup, “23subsidiaries,7of listed whichare ithas corporations, publicly Technology, Precision Cal-Comp and EMSCal-Comp), and Compal Vibo. According New others Kinpo(includingamongst KinpoElectronics, AcBEL, XYZ Printing,Qsan established in1973. According to itsown website, the New Kinpo Group consistsof The New KinpoGroup isalargeconglomerate located inTaipei, Taiwan, and was (4) New KinpoGroup 41 Seewww.celestica.com/worldwide/worldwide.aspx, order seealso by square Report Annual footage inCelestica 40 Seehttp://www.newkinpogroup.com/english/global.html 39 Seewww.newkinpogroup.com/english/about_intro.html 38 Seehttp://www.jabil.com/locations/ 37 website, Jabil’s www.jabil.com/about_us/jabil_overview; details of these plants are 51of given for these sites, only 36 Seehttp://www.hoovers.com/company-information/cs/revenue-financial.Jabil_Circuit_Inc.4cdfa6f13c11bbb1.html in the USand inChina. and Europe (Austria, Ireland, Romania, Spain,Switzerland), with afocus by numbers and South US), Asia (China, Korea, Japan, Singapore, Malaysia, Taiwan, Thailand), and more 20manufacturing than and design facilities inAmerica (Canada, Mexico revenue was US$6.51billion 2012: 4).The (Celestica company30,000 has workers The ishead-quarted EMScompany inToronto, Celestica Canada. In2012, its Inc. (5) Celestica 1, Hungary 1,Netherlands 1). and incountries of the European Union(France 3,Austria 1,Poland 1,Scotland 2, Italy (1), Ukraine (1)Mexico (3),Brazil (1),Vietnam (2),Japan (3) (1),India (1),Malaysia According itsmanufacturing to factories Jabil, are inChina(7),the US(8),Russia about Circuit 175,000 has Jabil employees inmore 60plants than in33countries. 2012: 35 see http://www.jabil.com/locations/ 41

38 39 The company a joint revenue had of US $6.62 40

36 37

The ICT sector in the spotlight 25 Electronics Watch 26 Europe (Romania and the Netherlands). Asia (China, Singapore, Thailand), Malaysia, the US,Canada and Mexico, and in engaged inmanufacturing andengaged operations. year (Ibid). customerand represented 2010 asingle more 10%of than the ineach net sales US-based Alcatel-Lucent represented 10%or more of the and for net also 2011 sales, forour net 2012, 2011 and sales 2010, respectively.” (Ibid:12).In2012, French- and to our ten Sales customers largest net represented sales. approximately 50% of numbersmall of generated customers have historically asignificant portion of our Also for Sanmina, acertain dependency onspecific brands isobvious: “A relatively 2012: 30). are over basedall the world, butwith afocus inthe US,Chinaand Mexico (Sanmina countries onsixcontinents (Sanmina 2012: 3).Sanmina manufacturing facilities ZTE, Longcheer andZTE, Huaqin. 47 http://www.bench.com/WorldwideLocations/Pages/Overview.aspx; for facilities sorted by square meters seeAnnual 46 Seehttp://www.hoovers.com/company-information/cs/revenue-financial.Benchmark_Electronics_ 45 BenchmarkElectronics (2012: 2) 44 Company’s website, http://www.kaifa.cn/en/yewu/dianzi.aspx?menuid=140101 43 Company’s website, http://www.kaifa.cn/en/about/index.aspx?menuid=1201&firstno=12 42 Seehttp://www.hoovers.com/company-information/cs/revenue-financial.Sanmina_Corporation.9623bce45c7875ce.html in 2012 and approximately 44,000 employees worldwide. Another US-basedEMScompany is Sanmina-SCI with arevenue of US$6.1 billion (6) Sanmina represented more 10%of than total revenue from 2012 (Ibid:48). of the total revenue (Ibid:25).Two of their customers, RIMand Cisco Systems, represented 67% of revenue in2012 and their customer largest represented 12% portion of their revenue. In the aggregate, their important most ten customers depends uponarelatively numberCelestica small of customers for asignificant Company 2012: 30).Inspite (Celestica of this widespread range of customers, Honeywell, IBM, Inc.,NEC, and Polycom Oracle, Raytheon Alcatel-Lucent, Cisco, EMCCorporation, HP, Hitachi Storage Global Technologies, supplies products andCelestica services to over 100customers. These include million in2012 US-based BenchmarkElectronics, founded arevenue in1986,had of US$2.5 (8) BenchmarkElectronics Dongguan, Huizhou and Shenzhen. By 2015, Kaifa plans to set upitsfour mainproduction and R&DbasesinSuzhou, (2014) and branches inChina,HongKong, Singapore, Italy, the USand Australia. research & development (R&D). The company more has 18,000 than employees components of Hard DiskDrive (HDD) and SolidState Drive (SSD) etc. Aswell as US $2.6 billion. Itsproduction includes advanced of manufacturing and sales headquartered inShenzhen,Guangdong, China.The company’s revenue isaround Chinese EMSShenzen Kaifa Technology Co. Ltd. was founded in1985.Itis (7) Shenzen Kaifa Technology Co., Ltd. union” (Benchmark2012: 15). statesexplicitly “Noneof that our employees are domestic represented by alabour Report 2012, p. 21 Inc.98a5ebcd19e6c7fe.html and Report Annual 2012, p. 15 45 and around 10,000 employees, of whommore 7,000 than were 44 43 Itworks with companies includingSamsung, 47 In its 2012 Annual Report, Inits2012 Annual the company 46 BenchmarkElectronics operates in 42 They operate They in25 2012 itsrevenue was around US$34.4billion. manufacturing sites are situated inTaiwan (2),China(3)and Mexico (1). company, whichstands for ODM and EMS. a third from Malaysia. market researcher Hoover, from of UScustomers itgarners and itssales about half companies emerging and technology smaller companies (Ibid:7).According to company’s approximately 140customers in2012 are both largemultinational arevenueaerospace had 2012: 2).Plexus (Plexus of US$2.3billion in2012. The markets: networking/communications, healthcare, industrial products and security/ wasUS-based Plexus established in1979 and offers EMSservices inthe four main Corp.(9) Plexus represented (Ibid:13). 21%of our sales” 2010, respectively. to International In 2012, sales Business Machines Corporation customerslargest represented 56%,53% and 47% in2012, 2011 of and our sales haveof beenmade to number asmall our to of sales our ten customers. Sales With regard to their customers, Benchmarkstates “a substantial that percentage 58 Seehttp://www.quantatw.com/Quanta/english/about/company.aspx See http://www.hoovers.com/company-information/cs/company-profile.Quanta_Computer_Inc.b031066122cd3ed9.html 57 56 SeeTable 4for ODM all revenue figures. 55 Seehttp://www.quantatw.com/Quanta/english/about/company.aspx 54 Seehttp://www.aseglobal.com/en/About/StructureOrganization.asp 53 Seewww.usi.com.tw/global.html 52 Seehttp://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=36046 Seewww.usi.com.tw/overview.html51 50 Seewww.usi.com.tw/history. html 49 SeePlexus-website, www.plexus.com/global-locations/all-locations; for order by square meters Report seeAnnual 48 http://www.hoovers.com/company-information/cs/revenue-financial.Plexus_Corp.8a1f29244cc1ab3b.html 2012: 106).Pegatron arevenue had of US$29.8 billion in2012. The company company 177,948 had another employees and itssubsidiarieshad 112,318(Pegatron Taiwan-based Pegatron was founded in2007 asaspinoff from Asus.In2012, the (2) Pegatron Corp. Quanta Computer is a Taiwan-based company, which was founded in1988. (1) Quanta Computer Inc. ii. Top ten ODM providers by revenue transformed into an EMSprovider in1988. Universal ScientificIndustrial was established in1976 asacomponent supplier, but (10) Universal ScientificIndustrial, Inc.(USI) 2010 USIisowned by the ASE Group (Advanced). and HP. (via RoyalTek company). Itscustomers include brand companies suchasDell,Apple Quanta Storage), and personal navigation devices aswell asother GPSproducts electronics, set-top boxes, monitors, LCD TVs, data storage products (via computers, netbooks, network servers, automotive smartphones, handhelds, notebooksit produces aswell mainly asvarious other products suchaspersonal Europe (3:Scotland, England and Romania), Mexico (2)and the US(6). has aroundhas 60,000 employees. 2012, p. 20 57 It has operation Ithas centres across Asia,America and Europe. 48 It has manufacturing facilities It has (4), China (3), in Malaysia 52 In 2012, it had arevenue In2012, ithad of US$2.15 billion. Its 51 The company issituated inTaiwan and 50 Today, itdescribes itselfasa‘DMS’- 56 With its121,917employees (2012), 54 58 49

53 Since Since 55 In In

The ICT sector in the spotlight 27 Electronics Watch 28 Electronics’ revenue US in $22,9 2012billion. was Its customers almost include HP, (Brazil and Mexico), aswell asservice centres inEurope and the US. and ChongQuing;Vietnam)(China inChengdu, and and Indiana inthe US). Republic) aswell asSouth and North America (SãoPaulo inBrazil, Juarez inMexico, Taipei and Taoyuan in Taiwan; Tokyo Europe (Ostrava in Japan), in the Czech Its operation sites and are ChongquinginChina; basedinAsia(Suzhou, Shanghai accounting for 60%of itsnotebook shipments, LCD TVs, portable and consumer handheld electronics, and other devices. (2012), ,Compal founded in1984,isbased Taiwan. Electronics(3) Compal Inc. more. networkinggame consoles, equipment,set-top boxes, multimedia, LCD TVs and produces motherboards, desktop PCs,notebooks, broadband, wireless systems, 73 Seehttp://taipei.calcomp.co.th/english/about_intro.html and seefurther information onNew KinpoGroup above. http://www.inventec.com/english/about/about_content_c01.htmSee 72 HPWebsite, supplier 1 2013, http://h20195.www2.hp.com/V2/GetPDF.aspx/c03728062.pdf list 7 70 Seehttp://www.hoovers.com/company-information/cs/company-profile.Inventec_Corporation.a866cdc1b5c64898.html 69 Seehttp://www.inventec.com/english/about/about_content_f01.htm 68 Seehttp://www.bloomberg.com/quote/2356:TT 67 Seehttp://www.wistron.com/about/company_profile.htm 66 Seehttp://www.compal.com/CompalContent.aspx?MenuID=aboutcompal&MenuItemNo=8; http://www.compal.com/ 65 Dellsupplier 2013, http://www.dell.com/learn/us/en/uscorp1/corp-comm/cr-ca-list-suppliers?c=us&l=en&s=corp list 64 HPsupplier 2013, http://h20195.www2.hp.com/V2/GetPDF.aspx/c03728062.pdf list 63 Seehttp://www.compal.com/CompalContent.aspx?MenuID=aboutcompal&MenuItemNo=6 62 Seehttp://www.crmz.com/XMLGateway/NewsFeedXML.asp?BusinessId=5492788 61 See http://www.bloomberg.com/quote/2324:TT 60 Seehttp://www.pegatroncorp.com/company/businessOperation.php 59 Seehttp://pegatroncorp.com/company/whoWeAre.php by New KinpoGroup. ElectronicsCal-Comp company, isaThai-based founded in1989, whichiscontrolled Electronics(6) Cal-Comp (Thailand) PCL Inventec was established in1975. (5) Inventec Corp. Wistron was founded in2001 inTaiwan (4) Wistron Corp. Dell, China and Taiwan. Further manufacturing sites are inthe US,Mexico, the UK, the , Europe (Wistron 2012: 8). communication products. Its offices and operations cover Asia, North America and storage systems, IA(information appliances), devices, handheld networking, and and after-sales support services for notebook PCs,desktop systems, server and With around 60,000 employees (2012), Wistron provides design, manufacturing 2006a:26).In2012 theGrießhammer company arevenue had of US$20billion. the Czech Republic. subsidiariesinlocationsincluding HongKong, NorthIt has and America, Japan calculators, smartphones,modems and portable computing and media devices. producing notebooks and desktop computers, designs butalso and produces index.php/en/about-compal/global-operation 65 Acer, NEC, Nokia, Invent and Lenovo. manufacturing facilities It has in Asia 59 62 Pegatron’s customers include Microsoft, Dell,HPand (Sawall Apple 2013). it primarily produces notebook itprimarily computers, computer butalso monitors, 72 69 Itscustomers include Acer, Toshiba Apple, and HP–the latter 73 60 With its16,937 employees (2012), produces Cal-Comp 68

It had a revenue Ithad of US$10.7 billion in2012,

67 (asaspin-off of Acer, seeManhart/ 70 whichare produced inChina. 61 With its67,156 employees 66

63 Compal Compal 64 71

employees, service (GPRS), multi-band systems for global communication mobile (GSM)/ general packet radio and other products. employees (Compal CSRReport 2012: 7),itmanufactures phones,tablets mobile by Electronics Compal (see above) and isnow their subsidiary. With its5,000 Taiwan and China,and manufacturing global sites inChina,Mexico and Taiwan. Its revenue in2012 amounted R&Dcentres to US$2.8billion. Qisdahas located in devices, e-Readers, digital photo frames/albums, eNote/tablet and mediarouters. gateways,medical and telecare, imaging medical infotainment automobile displays, projectors, scanners, multifunctional printers, 3G/ smartphones, and produces LCD monitors, and PCs,digital professional all-in-one signage 86 Seehttp://www.arimacomm.com.tw/english/about01.html 85 Seehttp://en.wikipedia.org/wiki/General_Packet_Radio_Service 84 Seehttp://www.hoovers.com/company-information/cs/sales-preparation.ARIMA_COMMUNICATIONS_ 83 Seehttp://www.bloomberg.com/quote/8101:TT; http://www.arimacomm.com.tw/english/Milestone.asp82 Seehttp://www.compalcomm.com/OWS/Content.aspx?UID=45D31433869C4CFF See http://www.bloomberg.com/quote/8078:TT81 80 Seehttp://qisda.com/page.aspx?uid=7 79 Seehttp://www.bloomberg.com/quote/2352:TT 78 Seehttp://www.liteonmobile.com/eng/contact-us/locations 77 Seehttp://www.hoovers.com/company-information/cs/sales-preparation.LITE-ON_IT_CORPORATION. 76 See http://www.liteonit.eu/en/company-profile 75 Seehttp://www.reuters.com/finance/stocks/2301.TW/key-developments/article/2751139; http://www.liteonit.com/74 Seehttp://taipei.calcomp.co.th/english/about_profile.html Arima Communications, basedinTaiwan, was founded in1999. (10) ArimaCommunications Corp. Communications,Compal basedinTaiwan, was founded in1999. Communications(9) Compal Inc. Qisda,basedinTaiwan, was founded in1984. (8) QisdaCorp. but in2014 itwas acquired completely by the mother company. Lite-On ITwas asubsidiaryof formerly the Taiwanese Lite-On Technology Corp, (7) Lite-On ITCorp. facilities inTaiwan, Brazil, Malaysia, Mexico, US,Singapore and the Philippines. and Nikon. Itsfactories basedinChinaand are Thailand, with mainly smaller include , Seagate, Advance Digital Broadcast, HP, Panasonic, Motorola products suchasset-top boxes, phonesand mobile headsets. Itsclients printers, external HDD, printed for circuit board HDD, assembly telecommunication computer peripherals suchasink-jet printers, multi-function printers, dot-matrix employees (2012), Finland, Japan, India,Finland, Korea, Japan, Taiwan, Sweden and Singapore. billion. Its production in China, butare locations are found also mainly in Brazil, and R&Dcentres inChinaand Taiwan. to US$697 manufacturing million. sites Ithas inMexico, Brazil, Chinaand Taiwan, entertainment electronics and other markets. cd079e90060ad837.html aboutus.html CORP.631bfc4a0e5a3c19.html 76 itproduces storage, optical consumer electronics, automotive 85 3G mobile phonesand 3Gmobile smartphones.Itsrevenue in2012 amounted 84 82 itmanufactures communications mobile products suchas 86

77 In 2012 it had arevenue In2012 ithad of US$4.1 79 It has about 8,000 employees Ithas 78 75 81 83 With its35,000 Itwas acquired With its4,459 74 80

The ICT sector in the spotlight 29 Electronics Watch 30 Sources: Fortune 500(http://fortune.com/global500/2013/) Global and companies’ reports annual Figures for year fiscal 2012. Table 4: Fortune 500-contract Global manufactures ICThardware Ranking by revenue (2012) iii. Aggregated ranking of contract manufacturers by revenue sites. main locationsfor the above-mentioned top contract manufacturers’ manufacturing (94), the US(47), Mexico (25),Brazil (15)and (16),Malaysia Singapore (13)are the Table 5shows the countries where these contract manufacturers operation: China iv. Manufacturing facilities of contract manufacturers 10 14 16 18 13 15 17 12 11 4 9 6 8 5 3 7 2 1 Arima Communications Universal ScientificIndustrial Plexus Benchmark Electronics Shenzhen Kaifa Technology Qisda Lite-On IT Sanmina Celestica New KinpoGroup Inventec Jabil Wistron Compal ElectronicsCompal Flextronics International Pegatron Quanta Computer conn) Hon HaiPrecision Industry (Fox Contract manufacturers - Taipei, Taiwan Shanghai, China Shanghai, Neenah, WI, USA Angleton, TX,USA Shenzhen, China Taoyuan, Taiwan Taipei, Taiwan San Jose, CA, USA , Canada Taipei, Taiwan Taipei, Taiwan St. Petersburg, FL,USA Taipei, Taiwan Taipei, Taiwan Singapore Taipei, Taiwan Taiwan Hsiang,Kuei Shan New Taipei, Taiwan Head office (US $mil- Revenue 132,076 20,052 22,870 29,825 23,610 34,412 10,723 4,069 2,500 6,620 6,093 2,306 6,507 2,829 2,635 17,152 2,147 lion) 697 million) 2012 (US $ 3,205 Profit 469 206 438 220 824 779 252 277 241 177 9 ------Employees 1,290,000 149,000 10,000- 60,000 60,000 80,000 43,000 43,000 121,000 177,948 29,000 35,000 121,917 8,000 4,459 3,729 - -

Others Western Europe and North America East Europe and Russia Americas excl. USA Aisa South Korea Japan Japan Vietnam Thailand Sri Lanka Singapore Philippines Malaysia Malaysia Indonesia India Taiwan China Romania Ukraine Republic Czech Russia Ireland Finland Spain Germany Sweden Italy Austria France Poland US Turkey Hungary UK Netherlands Puerto Rico Canada Australia Turkey Israel Argentina Mexico Brazil details of the manufacturing sites are available atWEED e.V. contact (please [email protected]) Source: Information by reports). annual companies (especially The data of the detailed locationand contact companies’ publications, May 2013) companies’ publications,May ICTcontractTable 5: Major manufacturers –manufacturing plants (according to

3 1 1 Universal Sci-entific Industrial Co. Ltd. China

3

1 Shenzhen Kai-fa Tech-nology Co. Ltd. 28

6

5

5

2 2

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Foxconn/Honhai

2 1

1 New Kinpo Electronics, Inc. Kinpo

3

2 3

1 1 Group 1 1 Cal-Comp Electronics & CommunicationsCo., Ltd.

2

1 Acbel Polytech Inc.

3

1 Quanta Computer

3

3 1 1 1 Pegatron Taiwan

4

2 1 1 1 Compal

4

1 1 1 1 Wistron

2

3 1 1 1 Inventec

2 6

1 1 1 1 1 Lite-On Mobile Lite-On Technology

2 1 Optoelectronics Corporation

1 1 1 Qisda

3

1 1 1 Arima Communications

3

5

2 2 4

7 1 1 1 1 1 1 1 1 1 Jabil

4 2

2

2

3

5 1 1 1 1 1 1 1 1 1 US

3

2

1 1 1 1 1 1 Benchmark Electronics

5

2

2 1 1 1 Plexus Canada

4

4 4

2

1 1 1 1 1 Celestica Singapore 15 4 3 4

2

3

8

4

5 2 3

2 2 4

1 1 1 Flextronics

The ICT sector in the spotlight 31 Electronics Watch 32 based mapping IV. Country- (accessed inDecember 2012). 96 Seehttp://www.dti.gov.ph/uploads/DownloadableForms/Phl%20Exports%20to%20the%20World%20FY%202012.pdf 95 Seehttp://www.customs.gov.vn/English/Document%20Library/Customs%20Statistic%20Data/2012/2012-T12T- 94 Seehttp://www.bot.or.th/English/Statistics/EconomicAndFinancial/ExternalSector/Pages/StatInternationalTrade. 93 Seehttp://global.kita.net/ (basedonSITC 75-77). 92 Seehttp://www.matrade.gov.my/en/component/joomdoc/doc_download/1404-trade-performance-2012 Seehttp://www.singstat.gov.sg/publications/publications_and_papers/reference/mdscontent.html#external_trade91 90 Harmonized Commodity Descriptionand Coding System (HS).Multipurpose international product nomenclatu- 89 SITC: Classification system for international merchandise trade statisticsby the United NationsStatistical Commis - 88 Numbers basedonown classification by the country, not defined whichproducts are included 87 Countries state their figures are basedonStandard International Trade Classification (SITC), butdonot clarify countries whennecessary (see footnotes). Sources: UN Comtrade http://comtrade.un.org/db/ (asof 2013), completed July by information from Table 6: Exports of electronics in2012 by country finishing upwith SriLanka with an export value of US$211,239 million in2012. figures are to befound inThailand, Vietnam, Philippines aswell asIndonesia, India, similar figures. followed are Inturn,they closely by South Korea and Mexico. Smaller Table 6shows. Chinaisfollowed by Singapore, Taiwan Japan, and with Malaysia The top electronics exporting country in 2012 is China by a substantial margin, as 1. Top countries by ICTexports Sri Lanka Brazil Thailand Mexico Vietnam Indonesia Indien Philippines China Countries Category/ South Korea Japan Singapore Taiwan Malaysia hs_nomenclature_2012/hs_nomenclature_table_2012.aspx and accessories Source: of sucharticles. http://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/ parts thereof; sound recorders and reproducers, and television sound image recorders and reproducers, and parts nery appliances, and mechanical data processing machines.Chapter 85:Electrical machinery and equipmentand Reproducers, and Partsand Accessories reactors, Including:Chapter of 84:Nuclear SuchArticles. machi- boilers, Electrical Equipment;PartsThereof; Sound Recorders and Reproducers, Television and Sound Image Recorders and re developed by the World Customs Organization (WCO). SectionXVI: Machinery Appliances; and Mechanical 2X%28EN-FL%29.pdf Source: http://unstats.un.org/unsd/cr/registry/regcst.asp?Cl=28 and electrical partsthereof (includingnon-electrical counterparts, n.e.s., of electrical household-type equipment). recording and reproducing apparatus and equipment.77:Electrical machinery, apparatus and appliances, n.e.s., sion. Category 75: Office machinesand automatic data-processing machines.76: Telecommunications and sound- which categories have included. they Appliances aspx; total Value and Quantity of Exports Classified by Product Group (US$),categories: Electronics +Electrical

Country’s own figures, US $153,270.40 million US $128,519.54 million RM 231,225.40million based onSITC

87 classification 92 93 91

US $44,534.46 million US $36,235.09 million US $21,951.31 million Country’sown

88

96 95 94

US $697,656.97 million US $137,469.30 million US $132,822.69 million US $137,425.44 million US $48,602.98 million US $94,838.72 million US $95,624.21 million US $13,173.06 million US $10,174.17 million US $3,657.21 million US $211.24 million SITC (75-77)

89

US$136,980.81 million-$ Yen 9,358,226.52 million HS (84-85) US $27,826.49 million US $296.36million

90

The ICT sector in the spotlight 33 Electronics Watch 34 Techfaith (chip and software design) (Ibid:140-141). and medium-sized, including successful Semiconductor start-ups like Celestial and Huawei, TCL ZTE, Chineseprivate small- and SMIC;and companies, finally mostly with capital from international markets financial viaHong Kong suchasLenovo, Chinese state-owned enterprises and hybrid enterprises, i.e. state-owned hybrids foundry) and TSMC, Mediatek and ASE (development companies); and assembly Foxconn (contract manufacturer), ECS(component supplier), AU Optronics (chip Intel; overseas Chinesecompanies from Taiwan, HongKong or South Asialike East kinds of companies: foreign multinational companies like Samsung, Nokia,IBMand Chinese capital inthe ITsector (Ibid:139). More specifically, there are the following from Taiwan, HongKong or South Asia,whichgives East astrong positionto non- 72.5% of revenue isheldby foreign investors or overseas Chinese companies although the market domestic gainedinimportance rapidly has (Ibid:135). Also, Until now, produced the for ICTindustry international mostly markets, inChinahas total imports (Ibid:2010 figures). components isvery high:US$377 billion, whichaccounts for 30%of the country’s hub”(Ibid:138).Accordingly,the asa“global assembly role China’s import of IT There and components focus manufacturing, onassembly and isaclear Chinahas and components for electronic devices (Lüthje et 2013a: 139). al China 2010 were communication electronics, computers, electronic components (New Earth/Sustainability Consortium 2012: 11). The subgroups largest produced in more 85%of than notebooks all were manufactured inthe greater area Shanghai 2. Country portraits and Cambodiaseekto lure business away from more expensive areas inChina”. as Thailand aspire to compete low-cost globally, while producers suchasVietnam own prosperous increasingly consumers. Established manufacturing countries such more important producers of goodsand commodities, both for export and for their In 2011, market predicted analysts “countries that of Southeast Asiaare becoming electronicsa small component and re-import larger the component. assembled them within the cluster inthe samecountry; onthe other countries hand, export may produce for their markets domestic and many produce components, butdeliver exportone hand, beincomplete numbers may or inaccurate, since alot of countries exportWhen analysing figures, the following should be taken into account: on the 98 SeeTable 6. 97 PricewaterhouseCoopers Co., Ltd., Southeast Asia’s Next Step, 2011, cf. http://www.pwc.com/jp/ja/japan-knowledge/ billion (Lüthje et 2013a: 138).In2012, exports al stoodatUS$697.6 billion. industry. In2010, the export volume of ITproducts inChinastoodatUS$534.8 a centralproduction location forChina has the electronics position as major Facts and figures a. China issues ineachcountry. and figures about these countries’ ICTproduction and highlightsthe labour key liesbehind theseWhat statistics? The following country portraits contain short facts archive/assets/pdf/archive_se_asia_report_en.pdf 98 In 2006, In2006, 97 agency workers,agency butobservers (China query changes Labor essential Bulletin 2008 and was revised in 2013 with the aim of preventing the exploitation of are often not implemented. China’s Labour Contract Law was implemented in strongChina has labour laws inplace, intheory. However, inpractice rights social Labour issues manufacturing, and costsof building new factories. adirectMekonnen 2011), whichhas impactonthe water-dependent semiconductor is the water shortage insomeof these areas inNorth and West China(Hoekstra/ new economic model with increased (see wages below). Aconcern for of all China fear for ininland risingwages Chinaaswell asChina’s five-year plan includinga facilities to inner Chinato the samedegree. beboth Reasons may the reasonable inthe semiconductorsuppliers –especially fabrication –have not moved their (Sung 2012). However, unlike several factories, component assembly Foxconn, HP, Quanta Computer and Inventec now all have production facilities in Chongqing, Chengduor (Lüthje et 2013a: 141; al Kameny 2013). towards new production sites inWestern and Central China,suchasinSichuan, Guangdong (e.g. Province Shenzen), Jiangsu around and Shangdong Shanghai is atrend to move away from the large, established clusters inthe Pearl River Delta to an increased led settlinghas of production facilities ininterior China.Thus there 10%higherthan work costsper annum (Sodhi/Tang 2012: 4;Worstall 2012). This inthe coastal regions, to more inChina,especially risingwages have led Currently Chongqing, compared with the along coast,like wages Shenzhen(Kameny 2013). The inChinaismuchlower minimumwage inthe interior regions of China,like capacity within reach. in terms of Chinesecompanies demand, that will local itislikely keep production supplied Western mainly past countries, this picture recently. changed has Thus by agrowing demand for electronics products. the Chinesefactories While inthe become the demand largest China itselfhas market worldwide and ischaracterised production network with the Foxconn factories inShenzhen(Kameny 2013). near the border of Southern China,closeto the cluster inGuangdong, and create a operates five facilities inBacGiang and BacNinhprovinces. Still, these factories are establishedalso amanufacturing baseinNorthern Vietnam in2010 and presently countries like Brazil, where are they building their fifth plant (Luk2012). Foxconn in Indonesia (Handrahan 2012). Foxconn expanding isalso out of Chinato other announced Foxconn that wants to invest US$1 billion inanew production line increasing trend to move away from Chinadueto risinglabour costs.Plans were Recent investments by the contract largest manufacturer Foxconn reveal an which isdominated by multinational brand companies (Ibid). (7,6%)Shandong (10,2%) inthe Yangtze atthe coastor East Shanghai River Delta, are (23,7% revenue) Jiangsu with many Taiwanese contract manufacturers and by HongKong- andmostly Taiwan-owned companies. Other important locations ofthe electronics assembly contract components and large-scale manufacturing, share of revenues from ICTmanufacturing (31,6%).Guangdong isdominated by Delta in the South of China. This includes Guangdong Province with the highest Today, the locationfor largest export-oriented ICTmanufacturing isthe Pearl River

The ICT sector in the spotlight 35 Electronics Watch 36 2011: 2). workers donot accept exploitation and poor policiesanymore wage (Traub-Merz by unorganised migrant workers, as many of the second generation of migrant increasing number of strikes. These were not organised by trade unions, but inthe exportCompanies inChina,especially zones, have beenfaced with an suppliers to recruit and retain employees. of power, as it becomes more and more difficult for contract manufacturers and to beuntil 2025/30 (Traub-Merz someinfluence 2011:onthe 4).This levels has due to the rapid of aging the Chinesepopulation, the peak of whichisnot expected At the sametime, Chinaischaracterised by ashortage of labour, whichismainly including increasing to wages strengthen consuming power (Traub-Merz 2011: 2). investments ininfrastructure, turningincreased attention onthe market, domestic accumulation model with highexport surplus and massive state-run capital inthe proclaimed Chineseeconomic achange approachhas from the previous In developing itstwelfth five-year-plan (2011-2015), the Chinesegovernment examples inseveral casestudies). according to different production models (Lüthje et 2013a: 156ff., al with detailed engineering and service professions (Lüthje et differ also 2013a: 135). They al many internal migrant workers, and well-paid employees inthe technical, between largenumbers of low-wage mass workers inmanufacturing, including to benotedIt has workforce that and labour rightsissues differ tremendously, both and provincial levels (Lüthje et 2013a: 341; al Traub-Merz 2011: 8). workers and amore for significant role trade unions inbargainingatthe local of timedemocraticfirst factory elections trade unions, bargaining rights for released adraft Directive onDemocraticThis stipulates Management. for the is to beobserved inGuangdong Province, where the government local has union activities(Van Dijk/Schipper 2007b: 29).Aninteresting new trend, however, protectedheavily over monopoly subsidiaryunion all organisations and trade China’s government and the Communist Party. ACFTU exercises and alegal The All-ChinaFederation of Trade Unions(ACFTU) intertwined isdeeply with 2011). create labour dispute mediationcommittees enterprises large-scale (CLB inall and Mediation for Labour Disputes inEnterprises” in2012, with the mandate to cases, thenumber government of legal released “Regulations onConsultation 2011: bargainingisnot 5-6).Collective allowed. Asareaction to an increasing the workers, butasmediators infavour of asmooth production flow (Traub-Merz Trade unions in China traditionally do not perceive themselves as representing working hours, low and wages the prevention of collectivebargaining. the exploitation of studentworkers asregular workers, discrimination,excessive have fewer jobsecurity. benefitsand less Other labour issues inChinainclude (CLB) 2013). Agency workers regular than paidless are employees, they usually in Singapore. Semiconductor companies like Avago chips and every almost other component related to the industry can befound Companies manufacture that printing and data storage devices, batteries, in manufacturing output (Singapore EID2013: 9). sector isthe inSingapore’s largest electronics industry; itgenerates US$39 billion centres and 20 plants for assembling and testing products. The semiconductor The production units include 14silicon wafer fabrication plants, 40chipdesign The electronics sector contributes 4%to Singapore’s gross product domestic (GDP). in Singapore. Manufacturing and Hyfluxare some of just the companies set that up headquarters (Economy Watch 2010; EID2013: 5).Flextronics, Chartered Semiconductor dueto itsgeographical positionand chain thetheir seaport supply of Singapore in Singapore isoneof the protective most inAsiaand companies are closeto assembling and manufacturing sites. property Intellectual law and patent law Singapore serves asthe headquarters of several ICTcompanies, aswell asof 19% of total inthe manufacturing employment sector (BusinessVibes 2013). 100 Avago Technologies Ltd. isaSingaporean company with headquarters inCalifornia and Singapore, designing and 99 SeeTable 6. workingpeople for the electronics industry inSingapore are migrant workers. conditions for migrant workers (HRW 2012: 4).Itisestimated 600,000 that Labour Organization Convention (ILO) Nr. 189, whichguarantees decent working Singapore isoneof the few states inthe world didnot ratify that the International isguaranteedNo minimumwage by law (Ibid:16). (Ibid:18). employment about the riskand danger, the employee doesnot have arightof further dangerous workplace. However, ifan investigation comes to another conclusion According to the Factories Act, employees are allowed to refuse to work at a 17). employees to work are when they more shift workers especially that, than (Ibid: Still, there are several exceptions to this lawallow that companies to allow their (overtimehours aday off and have isoptional) oneday per must they week. work more 44 hours than aweek, donot they have to that work more eight than ActIn the Employment of Singapore, itisstated workers that are not allowed to Department of Labor (DOL) 2012: 3-4). 16%of workersconstitution, only inthe industry are trade union members (US Even though the rightof freedom of association isguaranteed in Singapore’s Labour issues $153,270 million. site for TVs (Singapore EID:8).In2012, Singapore exported electronics worth US In the 1960sand 1970s, the electronics industry inSingapore started asan assembly Facts and figures b. Singapore presence. developing products includingsemiconductors and custom chips;seewww.avagotech.com 99 80,000 workers are employed inthe sector, whichrepresents 100 have a particularly high high have aparticularly

The ICT sector in the spotlight 37 Electronics Watch 38 of manufacturers inKorea and China(Haruhi/Kaneko 2013: 221). decline have beenthe shiftof production overseas and the greater competitiveness of employees (in regular decreased employment) by two-thirds. Reasons for this 2011, the number of business establishments decreased and by the number half afterstagnation the collapse of economy the in 1991.Between bubble 1991and Korea, Chinaand beeninlong-term economy the 2009).Japan’s US(Hays has house. However, industry the now Japanese has beenoutperformed by South producing everything from the partsand components to the products final in- electronics and semiconductors, integrated’ was basedon‘the vertically model, semiconductors. The former success companies, of both Japanese inconsumer computer chipindustry inthe 1980s,asitproduced more of the half world’s than dominatedSharp the market for TVs, radios dominated also and the Japan global brandsIn the Japanese for past, consumer electronics like Sony, Panasonic and Facts and figures c. Japan subject to Singaporean law (USDOL 2012: 19). about 14%of the of wage their Singaporean and not are colleagues usually Southeast Asia,e.g. China,Philippines, Thailand and elsewhere. get only They This represents about 30%of the total workforce. Workers come from over all 102 SeeTable 6 101 Seefor geese and amore waddling ducks:the “Flying different detailed Palma, JoséGabriel analysis: capabilities workforce (Daimon 2012: 2).The more effect isthat and more are people excluded (Friedrich Ebert Stiftung (FES)2011: 1),whichnow amounts to more 30%of than the A linked isthe problem growing number of employees inirregular employment or piecemeal work. Thus, were they indirectly encouraged to resign (Ibid:256). gathered inan ‘expulsion room’ without and left any assignment or assigned chores the company wanted to retire and whodidnot accept voluntary retirement were the AsahiShimbun inDecember 2012. According to the report, employees whom ‘expulsion room’ (oidashi-beya), whichwas featured first onthe of front page (Haruhi/Fumio 2013: 222).Many were people dismissed, aspartof the so-called Non-regular employees were the to first belaidoff, followed by regular employees to massive led factorymark. This has closures and massive cutsof the workforce. companies from Taiwan and South Korea and the made crisishave financial all their the collapse ofIn Japan, economy the in 1991, the bubble competing electronic Labour issues Corporation (Gartner 2013a). With an export of US$137,425 million in2012 ten semiconductor manufacturers are Toshiba Japanese: and million yen for industrial electronic equipment(Jeita 2013). Two of the world’s top compared to 649,314 million yen for consumer electronic equipmentand 1,330,259 proportion exports. of accounted Japanese They for 7,129,904 million yen in2013 2012). Today,(Chaeng electronic components and devices make up the biggest companies, like cameras (Sony) for iPhonesor for displays (Sharp) smartphones Rather consumer than products, Sonycomponents now andto other Sharp supply account for athird of economic Japan’s output 2009). (Hays is still oneof the players biggest inthe electronics industry. Consumer electronics unctad.org/sections/gds_ecidc/docs/gds_ecidc_2010d07Palma_en.pdf of Asiaand East LatinAmerica to “demand-adapt” and “supply-upgrade” their export productive capacity.”, http:// 101 102 , Japan , Japan Inventec, Lite-On Technology Corporation, Qisda and ArimaCommunications). Foxconn/Honhai, New KinpoGroup, Quanta Computer, Pegatron, Wistron, Compal, ofMost the contract biggest manufacturers are headquartered in Taiwan (e.g. Taiwan (GTO 2013c). motherboardsall and 93.3% of the notebook PCsworldwide are manufactured in worldwide (Bradsher 2013). According to the German Trade Office inTaipei, 98%of companies control more 90%of than design final and manufacturing of PCssold ODM contract manufacturers aswell (Lüthje et 2013b: 107-108). al Taiwanese centre of the world’s EMScontract leading manufacturers and locationof several Today, Taiwan hub of is the contract third major manufacturing in Asia. It is the 2011: 5). and contribute US$30billion every year, whichisupto 3%of Taiwan’s GDP(TWI (Lüthje et 2013b: 107-108). al However, 450companies are still situated atthe HIS mainland, design and while are logistics at the Taiwanese managed headquarters Taiwanesefacilities belonging to major contract manufacturers were located on the large volumes of production to . After of 2005, the great majority When labour costsgrew inTaiwan, Taiwanese contract manufacturers shifted including Tainan Science Park,and Kaohsiung Science Park. Central Taiwan Science ParknearTaichung, the Southern Taiwan Science Park, International (TWI) 2011: 5).Other industry parks involving electronics are the usedtheseassemblers advantages to set uptheir factories here (Thomas White in the 1980s as a low-tax area. Many Design Manufacturers Original (ODM) and e.g. by subsidising the HsinchuScience and Industrial Park (HIS) in the North-West (Lüthje et 2013b: 107-108). al This was supported by the Taiwanese government, microchips. Today, these are the sophisticated most semiconductor companies manufacturing grew in Taiwan, starting with largecontract manufacturers for with the consolidation of vertical inthe specialisation ICTindustry, contract characterised by foreign USinvestors and component local suppliers. However, The electronics industry started inTaiwan inthe late 1960s.Then itwas mostly represent the mainexport product inTaiwan (GTO 2013b). 103 SeeTable 6 In 2012, the electronics export amounted US$137 to billions. almost electronics, and plastics, chemicals machinery (German Trade Office (GTO) 2013a). Taiwan’s mainexport products are electronics, followed by mineral products, opto- Facts and figures d. Taiwan represents regular workers (FES2011: 1). members. Furthermore, Federation the Japanese of Trade Unions,RENGO, only to European trade unions, trade Japan’s unions are rather weak and have few collective agreements and the right to strike (Daimon 2012: 2). Still, compared Laws ontrade guarantee unions inJapan the rightof association, to conclude workers to manufacturing plants (Haruhi/Fumio 2013: 288). to the revision of the Worker Dispatch Law in 2004, allowing companies to dispatch from are securitysystems, the asthey social to fees. This pay not goesback able 103 Electronics

The ICT sector in the spotlight 39 Electronics Watch 40 minimum working of age 16(Gardner 2010). as well as hiring of students as ‘interns’, who are sometimes under the Taiwanese for someworker groups; poor working conditions and contracts for migrant workers; forming them. Further include: insufficienthealth problems protections; low wages Trade unions exist inTaiwan, butemployers try to prevent their workers from overtime hours are not beingpaidto the workers (I-chia2011). contracts jobresponsibility aso-called system can befound, whichmeans that maximum working and hours overtime andholiday changing regulations. Inmany some fields,working conditions can beestablished by employers, thus exceeding in Taipei 84-1 of Article the Labour against Standard Law. This states in that, Taiwanese workers face very longworking hours. In2011, someworkers protested Labour issues both gender-wise migrants. and against bargaining and trade unions rights(Lüthje et 2013b: 170). al There isdiscrimination hours and non-compliance with accepted internationally standards of collective Electronics productionisconnected inMalaysia with low longworking wages, Labour issues Unisern and ETITech Corporation (Ibid: 5). Pacific Industries, Hong Leong Industries, Panasonic Manufacturing Malaysia, companies2012: 4).The Malaysian inthe largest electronics industry are Malaysian Flextronics and Plexus, Sanmina (MGCC (includingSolectron),Jabil, Celestica, More 50of than the EMScompanies global are locatedthem amongst inMalaysia, Pinang, Kuala Lumpurand Bahru. centres are inMalaysia located inthe west of inPulau the mainisland, especially factoriesIn most partsare and tested assembled (Ibid).The production largest components business) contributes the to most the electronics Malaysian industry. the electronics industry. Semiconductor manufacturing (aspartof the electronics of activityinthe sector. This sub-sector isresponsible for 36%of investments in electronics. The electronics components business makes upalargeproportion andMany Korean Japanese companies are active inthe area inMalaysia of consumer and electronics sector isthe country’s manufacturing biggest sector (MIDA 2013). According to the Investment Malaysian Development Authority (MIDA), the electrical exported1-4). In2012, Malaysia electronic goodsworth US$132,822.69 million. a 34.5%market share of (Malaysian-German Chamber Commerce (MGCC) 2012: 5%)and 10%are exported to the exports, US.Ofall electronics hold are exported to Asian states (Singapore 11%, Thailand and 13%, China 13%, Japan labour-intensive and export-oriented industries for years. of Most goods Malaysian foreign investors. Furthermore, the government beenpromoting has inMalaysia islocated ofMalaysia inthe the middle ASEAN states and therefore attracts many sector economy packed with technology, knowledge and capital. was aproducer Malaysia While of raw materials inthe 1970s, itisnow amulti- Facts and figures e. Malaysia compulsory livingquarters are that shared with other workers (SOMO 2013: 7-8). issometimespay heldbackby or the usedfor agencies very and pricey small Agencies withhold workers’ passports after have beenemployed they and the and sometimes donot even get acontract atall. regularthan workers, work upto 72 hours per week (overtime isoften not paid) demand highfees for the recruitment of workers. Furthermore, are they paidless startwhen they to work inan electronics factory asthe employers or agencies from Indonesia, Myanmar, etc. Nepal, Often, migrant workers are already indebt of labour isthe issues employment inMalaysia migrantOne of workers the major 104 The term “chaebrol” consistsof =wealth “chae” or property and “pol”=faction or clan 3%ofof South unions. Only Korean workers (around 15,000 workers) inthe Another issue inSouth critical Korea’s electronics industry isthe lackof influence increases price competition amongthem, whicheffects the workers directly. cost parts,Samsung Electronics switches frequently between them and thereby KRW than 2million perless month (Ibid:9).Asthese low- companies supply companies, the KRW 2.67 average million. Production isonly wage workers earn At and small- medium-sized companies, whichmake up90%of Korean all electronics and to salaries managers’ Samsung’s these donot wages apply subcontractors. ofwage KRW 5.77 million (about US$5,317.63). However, this calculation includes to other electronics companies inSouth Korea, Samsung the monthly pays highest theone goes downlower chain, the supply the are wages (Ibid: 9-10). Compared million, whichcorresponds to € The average in the wage annual South Korean electronics industry is KRW 3.44 Labour issues Samsung and LG.especially These “chaebols” are so-called to an industry where electronic leading brand companies are from South Korea, South Korea now has developed from amere production site of foreign companies promoted vertical and horizontal integration (Sturgeon and Kawakami 2010: 17). market for electronic products, the butalso the fact that Korean state actively electronic companies cameto South Korea were low and wages itslargehome in South Korea. At owned the time, 27. the USonly The reason why somany big radios. In1975, there were already 168electronic companies operating from Japan South Korea’s electronics industry began to grow inthe 1960swith of the assembly Facts and figures f. South Korea manufacturing sector (Ibid:50). sector behind textiles and clothes with 14.3%of overseas all investments inthe 150 countries (Hyowon 2005:47). The electronics sector was the second biggest to June 2003, South Korean companies invested atotal of US$42,190 million in South Korean companies are well-known also asforeign investors. From 1968 was responsible for 24% almost of South Korea’s GDP(Simpson2014). power whohas chairman over the all operations. In2013, the Samsung Group alone Korean form of (often family-controlled) business conglomerate, controlled by a 2,472 (Han et 2013: 8).Apparently, al the more tiers 104 , referring to aSouth

The ICT sector in the spotlight 41 Electronics Watch 42 g. Mexico in Korea (Kyle 2014). term campaigningby families of the victimsand workers and publichealth activists at Samsung manufacturing facilities inKorea were made publicthrough only long- properly. Consequently, more 200casesof than occupational illnesses and deaths women and occupational health and safety deficiencies cannot bedealt with Thus ongoingtopics like migrant workers (Hyowon 2005:65),discriminationof of the unionised workers are employed under Samsung contracts (Ibid:7-8). workers contracted under directly Samsung with butalso 300 their suppliers. Only known for trying to prevent their workers from forming trade unions both amongst is linked electronics to Samsung asaleading company inSouth Korea, whichis LG Electronics union, whichisknown asacompany union (Ibid:7).This situation electronics industry are organised inunions. Approximately 2%of these are inthe Although every electronics producing company inMexico signedagreements has certain limits. allows forms of contracts even by the hour and makes within outsourcing legal become even2008: 14)has worse since the labour reform inNovember 2012. It contractsemployment from to lasting 15days three months, cf. Butollo/Laufer ofproblem temporary working (unstable employment conditions with temporary is not sufficientto live adignifiedlife, aslivingcostsare high(CEREAL 2011: 6).The average inthe wage electronics 100Pesos per(US$8.3), which sector day isonly temporary and employment no freedom of association (CEREAL 2011: 4). The concerning problems three the Mexican major electronics industry are low wages, According to the Mexican Centre for and Labour Action Reflection (CEREAL), the andemployment oppressive labour policies(Lüthje et 2013b: 156). al andproblems contradictions flexible inlabour policies,includinglow highly wages, dependence onthe world market and transnational corporations. to led This has through the liberalisationchallenged of the Mexican economy and itsincreased Mexico’s arelatively labour strong laws, historically framework, have been Labour issues operating inMexico include and Flextronics, Sanmina. Celestica Jabil, Mexico, now other countries have shifted their production there aswell. Contractors UScompanies started that itwas atfirst production the mainly than US.While in since the 1990s when it started to shift production towards cheaper countries In particular, the US-basedICTcompanybeenusingMexican HPhas contractors 2005 (Butollo/Laufer 2008:7-9). Southeast Asia.However, Mexico still held3.4%of exports global of ICTproducts in in the ICTindustry, largenumbers of workplaces were shifted from Mexico to close and cheapcontractors their toproducts. assemble In2001, dueto acrisis production sites to Mexico. brands from Especially North America usethe relatively ofSince the the middle 1980s,electronic companies have beenrelocating their Facts and figures areas, closeto Bangkok (Ibid). Thailand’s HDD production sites located are incentral mainly and north-eastern Sony and LG (Thailand BOI 2012). are located here: Electrolux, Seagate, Phillips, Hitachi, Fujitsu, Honeywell, Samsung, Thailand isusedasan assembling siteMostly for firms.Many global bigcompanies consists of manufacturing of integrated circuits and the . production of diskdrives hard (HDD) and alargepartof itselectronics industry 2011: 4;Butollo/Laufer 2008:12,16). discriminatory and humiliating treatment and exposure to toxic (Cereal chemicals Civil society organisations point out also various other including problems, for workers to demand better working conditions (Butollo/Laufer 2008:17). members of genuinetrade unions and this systematic intimidationmakes ithard under government control (‘charros’).There are of ‘blacklists’ also workers are that bymanaged corporate (‘white management unions’), somecorrupted unions Mexico. of unionsunions’, ‘phantom are someset The upand majority so-called not represented by them (Cereal 2011: 13).Genuineunions are the exception in with trade unions, workers most donot know exist they that and are mostly 107 Sources: Interview with Jerome Hassler, Bangkok University, December 2013; Bais(2012). Wan,106 Michael Electronic exports: Identifying Asia’s winners and losers, Credit Suisse, p. 5. 105 Voices of Thailand. Electrical and Electronics Industry. http://voicesofthailand.com/invest-sector/electrical-and- by law. Production facilities fail to allow employees their right of association and registration and proper formation of the union, union members are not protected makes it very difficult to form unions dueto ahighburden of bureaucracy. Before 87 and 98and passed theLabour instead Relations Thai Act has of 1975, which notThailand ratified has International Labour Organization (ILO) Conventions No. areThey not allowed to joinunions and lower get they significantly wages. and therefore This prevents ‘illegally’. them from getting health and benefits. social Theiras ‘aliens’. passports are taken by employers and work they unregistered other neighbouring countries with lower law incomes. Thai defines migrant workers million. Inparticular, workers come from from Cambodia,butalso Myanmar and The number of migrant workers from across Southeast Asiais estimated attwo issueA key inThailand’s ICTindustry migrant isthe workers. discriminationagainst Labour issues the additionof printers inrecent years. Electronic manufacturing inThailand isdominated by diskdrive production, with foreign investors. on tax, duty-free imports of electronic components and tariff-free zones to attract (Ibid). Like other ICT producing countries, policies national special Thailand has 400,000 workers were employed intheelectrical and Thai electronics industry made up24% of the country’s export revenues (Thailand BOI 2012). In2012, about In 2011, the electronics sector inThailand generated US$55billion inexports, which Facts and figures h. Thailand electronics-industry 107 105 106 Thailand isaworldwide inthe leader

The ICT sector in the spotlight 43 Electronics Watch 44 Facts and figures i. Vietnam pregnant. ICT sector in Thailand, are often by harassed their employers become when they appropriate health certificate. Women, of workers whoform the majority inthe means nofurther asworkers payment Sick leave usually cannot come upwith the are not provided with proper protective clothing toxic whenhandling materials. many overtime hours. Furthermore, workers encounter many health risksasthey protection from beingfired atany timeand workers that are forced to work too these workers face are the absence of full the and missing sufficientpayment, and faceagencies similar asmigrant problems workers. Someof the problems to form trade unions. About 50%of workers all inthe industry are employed by 108 SeeTable 6 grown to 43.11%, whichcorresponded to exports worth around US$22 billion. distributed 3%of total only exports. However, by 2012 itsexport market share had grownsignificance has exponentially. Inthe beginningof the 1970s, electronics the 1950s (Reyes-Macasaquit 2010: 153). Ever since then, the country’s economic Electronics goodshave been produced and exported inthe Philippines since Facts and figures j. Philippines precautions by employers (Huong2013). include excessive2012). Challenges overtime hours, temporary work and laxsafety Wages inVietnam are the lowest of countries all inSoutheast Asia(Maierbrugger organisations (CSOs) working onlabour issues. adequately. There isalackof both independent unions and of civil society its interest inforeign investment, are they neither implemented nor controlled RepublicThe of Socialist Vietnam strict has labour laws. However, becauseof Labour issues factorylargest worldwide inBacNinh(Tiessen 2011). factoryits largest worldwide placed inHoChiMinhCity(Ibid).Samsung its has Companies located inVietnam include Samsung, Intel Intelplaced and Jabil. has appliances grew over rapidly the couple of last years (Maierbrugger 2012). because of itslow Inparticular, wages. the markets for cell phonesand household Vietnam isbecoming amore and more attractive place to manufacture electronics (Okamoto 2003). However, start aswages to increase insomeother Asian countries, is relatively becauseVietnam’s small electronics industry stage isstill atan early at US$36,235 million. Compared to other countries inSoutheast Asia,this number 70% are migrant workers (Huong2013). In2012, exports annual inelectronics stood About 500companies250,000 employ workers –90%of whomare women and The electronics industry isthe second contributor largest to Vietnamese exports. Today, the sector isdominated by players. bigglobal Intel started to produce inthe In 2010, 500,000 workers inthe Philippines produced electronics (BOI/DTI 2011: 8). number of employees inthe electronics sector grew over constantly the years. last 108 The The five semiconductor biggest manufacturers, (including incorporated Fujitsu), as well as Western Digital, produce there. Of the in the Philippines. Ofthe three drive hard largest brands worldwide, Toshiba Many of the world’s important most producers or their subsidiariesare represented (Department of Trade and Industry (DTI) 2012). of the goods are exported the US, China, Singapore to Japan, and Hong Kong based Amkor Technology central production sites. Inc. and Integrated Micro-Electronics, Inc.) have set upproduction around the growing number of subcontractors and EMS-companies (e.g. Fastech, IonicsEMS 114 Seehttp://www.rohm.com/web/global/ 113 Seehttp://www.fairchildsemi.com/about-fairchild/cf/#Manufacturing-Sites 112 Seehttp://www.amkor.com/go/about-us Seehttp://www.nxp.com/about.html111 110 Seehttp://www.isuppli.com/Semiconductor-Value-Chain/News/Pages/-Rides-Wireless-Wave-to-Take- 109 Owncalculation, basedondata of the Statistics National Office (accessed inDecember 2012). trade unions. low and wages overtime hours, contract workers and limited opportunities to form inthe problems electronicsSocial industry inthe Philippines related are mainly to Labour issues total electronic exports in 2012, which corresponded to US $13.97 Schipper 2009: 10). The production of semiconductors generated alone 62.2% of 10% of semiconductors all worldwide, are produced in the Philippines (DeHaan/ hardware components. 50% of 2.5” and all 10% of drives, 3.5” hard all as well as The focus of the Philippine electronic production isonthe manufacturing of single and North Luzon and 7%inCebu (Valenciano 2013). Calabarzon (Cavite, Batangas, Laguna, Quezon), Rizal, 42%inManila, 3%inCentral In the Philippines there are several EPZs. 48%of the industry isbasedinthe region of Schipper 2009:13). authority and monitoring isconducted by private securitypersonnel (DeHaan/ relatively little influencehas within these areas, limited e.g. police have only themselves inthe of are hands private mainly investors. For this reason, the state offices like the Philippine Economic Zone Authority (Ibid: 17-19), but the zones well asduties.These advantages are determined by the Philippine administration Processing Zones’ (EPZ) where receive they largeadvantages interms of tax as 2010: 12).Infact,of most the manufacturers can befound ‘Export inthe so-called conditions or can baseproduction inoneof the economic special zones (BOI conditions. Companies can register with the Board of Investment to receive better The Philippines tries to lure foreign companies with cheaptax and investment (Valenciano 2013). corporations headquartered in the country, 78% are owned by foreign investors three companies are still important players inthe Philippines industry. Ofthe 936 IT facilities towards the Philippines of inthe the middle 1990s(Tecson 1999).These companies like18). Japanese Hitachi or Fujitsu started to relocate their production Philippines in1974 asoneof the chipmanufacturers first (DeHaan/Schipper 2009: there are many other manufacturers still remaining like Dutch-based NXP, to struggles duringthe economic global crisisin2009(Casiraya 2009).However, are situated inthe Philippines. Onthe other Intel hand, closeditsproduction site due Third-Place-in-Global-Semiconductor-Market-in-2012.aspx 112 and Fairchild 113 110 or Japanese ROHM. or Japanese Toshiba and again 114 Furthermore, a billion. 109 111 Most Most US-

The ICT sector in the spotlight 45 Electronics Watch 46 actually taken. actually though various conditions have to complicate befulfilled that any is actionthat Forming unions ispermitted by law. restrictions are ignored (DeHaan/Schipper 2009:30). by the respective Wage Regional Board. exist,Minimum wages vary butthey within the 17different regions and are fixed 119 Philippine 263. Labour Code: Article 118 Philippine 243, Labour Code: cf. Article http://www.dole.gov.ph/labor_codes 117 Philippine 106. Labour Code: Article 116 Philippine 87 Labour and Code: 89. Article 115 Philippine 99and Labour Code: 124, Article cf. http://www.dole.gov.ph/labor_codes of lightelectrical goodsandsuch asassembly electronics. Amongthe benefits zones to attract foreign corporations, includinglabour-intensive lightmanufacturing The Indonesian government established free has trade zones and economic special Indonesia 2013). electronic companies operate inIndonesia and 387,000 employ workers (GBG 2013). However, electronics annual exports totalled US$13billion in2012. 250 contributesit only 5%to exports annual (Global Business Guide (GBG) Indonesia The electronics industry isnot the sector largest inthe Indonesian economy, as Facts and figures k. Indonesia Philippine Labour Law of limitsthe employment contract workers, can befired anytime and thus are exposed to alot of pressure (Ibid:30).The are whenthey continued pay. pay sickor holiday Additionally, contract workers Contract workers donot are get rises,they to benefitslike social pay not entitled Schipper 2009:26). workersmost think are they not allowed to refuse working overtime (DeHaan/ to cover livingexpenses and to even out their regular low Furthermore, wages. as workers are beingpaidadequately. permitted and can berequested by an employer incaseof an ‘emergency’, aslong are not uncommon. Legally, overtime hours (more are eighthours than aday) Overtime isexpected every almost day. Work shiftsof 12hours for aweek sixdays 25). ever adds up hardly to more (De Haan/Schipper 400 Pesos than a day 2009: 24- higher e.g. wages, becauseof long-term contracts or paidovertime, buteven that basic livingneedswould have to be783 many Pesos. Inprinciple, workers earn wereminimum wages at 282 Pesos. However, are that wages adequate to cover Accordingsufficient minimum livingwages. to data from 2008, average daily (Valenciano 2013). their work environment, nor are protected properly they from toxic materials Philippines. workers Most are not informed about implications to their health by Another is health risks for problem workers in the electronics industry in the existence of factory the whole isindanger ifaunion isformed. it isprohibited to form unions (DeHaan/Schipper 2009: 28) orthe that further befoundonly inafew factories. employers Most make their workers think that improve followleaders actually working (ITUC2012: 3).Unionsthat conditions can of ‘Nounion, nostrike’. Threats, intimidationsand even casesof murder of union 119 However, inreality, caseswith handle apolicy employers usually 118 The sameapplies to the rightto strike, even 116 Workers onovertime rely work to beable 115 However, of all these liebeyond wages

117 but usually the butusually exports in2012, SITC; CCI 2013: 2). components make upthe export highest figures inthe sector (US$10,174.173 million market, however, consumer electronics make upthe segment. Electronic largest togetherlargest with the and automobile textile sectors (Nowak 2013). Within the comparedsmall to other Asian countries, within India the ICTsector isoneof the started to grow at an increasing rate it is still relatively (Alam 1990: 10). While promoted the liberalisation of the Indian market and since then, the industry India’s electronics industry started inthe 1960s. Inthe 1980s,the government Facts and figures l. India (Hertanti/Ceresna-Chaturvedi 2012: 26). permanentBatam workers only and not temporary workers are to joinin eligible 2013). Insomefactories, unions are encouraged. However, atothers like Flextronic however, Indonesian workers heldsomebigand effective strikes in2012 (Mufakhir Many employers try to suppress forming trade unions. Inthe couple of last years, expenses (Hertanti/Ceresna-Chaturvedi 2012: 38). many workers want to work overtime asthe isnot basicwage enoughliving to pay The maximum working weekly hours asset by the jurisdictionis40hours. However, (Agusyanti 2013). hundreds2013b: viii),butprovisionally of companies will beexempt it from paying 18). Since 2012, several provinces have decided to raise the (ILO minimumwage average around was minimum wage only US$95 per month in2012 (ILO 2013b: workers donot get the or minimumwage other benefits(ibid).Indonesia’s social 2013). Outsourcing as the outsourced of work a huge challenge, is also by agencies are coming from Central migrants, mostly and Java Sumatra Island (Mufakhir young women. Thus inthe caseof Samsung’s sites inIndonesia, 70% of the workers Many of the workers in Indonesia are rural-urban migrants and of most them are Labour issues 2013). neighbouring cityBekasi (Jakarta Post2010; interview with Utermöhlen 16August for electric components, are to befound inthe area inthe of and Jakarta especially (part of Panasonic), Toshiba and Samsung, alargenumber butalso of suppliers small BatamJava, islands and Surabaya. Facilities of brand companies suchasSanyo Many of the electronics manufacturing factories can befound inthe area, Jakarta Panasonic and Toshiba (GBG Indonesia 2013). companies imported to assemble components. Examples are Sony, LG, Samsung, ofMost the international corporations form jointventures with Indonesian local Ceresna-Chaturvedi 2012: 11). in regulations intheliberated 1990sthat the Indonesian market (Hertanti and 2013a: 62).The establishment of free trade zones went with inhand hand achange on imports of raw materials or intermediate goods,direct and indirect taxes (ILO offered to foreign companies are exemption from some or export all taxes, duties

The ICT sector in the spotlight 47 Electronics Watch 48 NokiaSiemens Network inChennai(interview Nowak, 18December 2013). situation and there are many strikes such as the long-term strike in spring 2013 at both founded and paidby Still, the management. Indian workers donot accept this company to agrees. alot This of management leads unions infactories, whichare the rightof association. Insomeprovinces, trade beregistered unions can only if not ratifiedIndia has the ILO conventions protect that collectivebargainingand or $3.40per day, depending onthe region (USHRReport 2012: 60). of thehalf workforce doesnot even earnIndia’s whichisUS$2.18 minimumwage, overtimeWhile work israre inIndia, are wages very low. Itisestimated almost that (Hertanti/Ceresna-Chaturvedi 2012: 3). fornot the eligible benefitsof permanent workers suchasbonusesor paidleave are contract workers (Nowak 2013). Their job security is very low and are they also do not know about their rights.Approximately 80-100% of workers inthe industry Unfortunately, however, the laws are not respected by employers and workers most association, amaximum working week of 48hours and minimumwages. in India, too. This includes health protections and safety regulations, freedom of in practice. By law, the all labour regulations to the economic special apply zones Labour laws are comparatively strict intheory, are butthey often not implemented Labour issues players doingbusiness inIndia (Ibid.;Hertanti/Ceresna-Chaturvedi 2012: 27 ff.). 2013: 8).Samsung, Nokia,Foxconn, Flextronics are and Jabil someof just the global Companies’ headquarters are inBangalore, Gurgaon,Noidaand New Delhi(Pratap 2012: 12). or notariffs and attract transnational corporations (Hertanti/Ceresna-Chaturvedi setIndia Economic has upSpecial Zones provide that incentives like tax reduction Due to atax reduction by the Brazilian government, Foxconn started to produce the2011), European while 15%(Abinee2012: 14). Unionhas figure 15%.LatinAmerican countries declined to only have the share (51%in largest during the ten last years. in 2004, 29% were While exported to the US, in 2011 this The regions Brazilian that electronic products are being exported to have changed material (7%)and industrial (3%)(Abinee2012: 8). energy (9%),electrical and electronic components (7%),electrical installation household appliances (12%),generation, transmission and distribution of electrical share at32%, followed by industrial equipment(16%),telecommunications (14%), In the electrical and electronic market the in2011, ITproducts greatest had market being employed (Abinee2012: 6). were in2011, sales employees, while already atUS$82.5billion with 180,300 workers growing. In 2004, goods worth US $27.9 billion were sold and produced by 132,900 The Brazilian electronics industry began to develop inthe 1960sand issteadily Facts and figures m. Brazil region attracting foreign investors (Economist 2000). close to or inside the , asthe Zona Franca of isahistorical low-tax commitment (Cisco 2012a/b). Many of the Brazilian production sites are situated of manufacturing local inthe country, aswell asconfirmation of their long-term wanted they that to expand their business inBrazil. This included the expansion manufacturinglocal 2011, announced inManaus, Brazil, inearly the year after well, e.g. Samsung, Motorola, LG and Huawei. US-owned Cisco, which started iPads in BrazilApple in 2011. Many other players big global set up facilities as of electronics exports are with boards and panels, electrical wires and transformers. tenenterprises employ workers and usually (TVEC or 2013). less The shares largest ofMost the companies operating in Sri Lanka are and small- medium-sized operations” (ICTA 2013). Sri Lanka asan attractive locationfor Multi global Corporations National to set-up for ICTproducts, services and investments”, other amongst things by “branding ‘e-Sri Lanka Initiative’. want They to “re-brand SriLanka asadestinationof choice Communication Technology Agency (ICTA), whichisthe coordinator of the country’s destination. Accordingly, agovernment-owned SriLanka has Information and The government of Sri Lanka is keen to promote Sri Lanka as an ICT investment and 100companies10,000 roughly employ workers (LBO2011). were still worth a considerable US $211 million in 2012 (SITC; Sri Lanka EDB 2013), large market share and isnot asimportant. However, total exports of electronics to the garmentand textile industry, the electronics industry doesnot have sucha countries and there are not asmany foreign investors involved. Therefore, compared The SriLankan electronics industry oriented isnotasother asglobally Asian Facts and figures n. SriLanka 2013). were exposed to dangerous and health risky work environments (Almeida/Kim worked upto 15 hours a day, did not get their mandatory per days week off and compulsory working conditions. An audit found Samsung’s out that employees Samsung becauseaproduction site inthe Amazon many failed of the government’s labour violations.For example, the Brazilian government alawsuit filed against fails here. Incontrast to other countries, Brazil seemsto react to such positively In spite of relatively strong labour regulations, implementation by companies also employees’ basicneeds,thus not covering the livingcosts. or Thailand, becauseof power itspurchasing cover inBrazil, itcan only 80of the although the average ishigher for wage than example in Mexico, the Philippines industry (Cereal US$15.8aday whichisroughly is28.5Real, 2011: 6-7). However, leave (AFL-CIO 2013). The average of wage workers inthe Brazilian electronics hours per week, and receive they somebenefits like health insurance and maternity overtimeless hours are expected, workers are not allowed to work more 44 than example. Dueto Brazilian labour regulations and comparatively strong trade unions, Foxconn’s production sites inBrazil lookquite different from those inChina,for Labour issues

The ICT sector in the spotlight 49 Electronics Watch 50 ‘essential service’. the government can and doesmake strikes by declaring illegal any industry an substitute for trade unions (ITUC2010: 4).Even where collectivebargainingoccurs, government encouraged employers has to recognise ‘employees’ councils’ asa 11-12; severe ITUC2010: 3). These are problems especially inEPZs, where the the rightto freedom of association isnot well established (Sivananthiran 2010: ratified the importantSri Lanka all most has ILO conventions. However, inparticular Labour issues for production (Sivananthiran 2010: 10). foreign investors, tariffs doesnot and charge provides the infrastructure needed (Ibid).SriLankaColombo andintroduced Gampaha an cutstaxes EPZ that for About 90% of the companies are located in the Western Province, in especially logistics all contribute all logistics to efficientand cost-effective manufacturing” (Ibid). close proximity to oneanother. Economies insourcing, of production scale and density creates anetwork of suppliers with strong relationships reside that within and density of electronics suppliers within the cluster –this supplier volume and to other countries presently, as“the primaryvalue of the cluster isthe sheer number existing clusters inChina,Indonesia and will Malaysia not presumably berelocated supplier-dense meccas suchasShenzhenand Dongguan” (Kameny 2013). The a combination [of] factors will lure suppliers to new manufacturing locationsover snowballing phenomenongenerates powerful an increasingly soonly chain, supply Market state: “The analysts larger the cluster, the more itbecomes. This valuable electronics suppliers specialised sector are that has concentrated inclusters. However, inproduction other factors personnel than costsare relevant. Thus, the takeIndonesia adjustments aswage place.” (ILO 2013b: viii). relocation see a decline in the options. 2013 may overall situation in employment are lodgingapplications the to delay onset of and minimumwages considering enterprise viability, in labour intensive particularly manufacturing. As a result, firms as an ILO report from 2013 states: “increase is causingfirms to in wages assess market towards new low-wage countries. A similar trend is to be seen in Indonesia, As already mentionedabove, inChinaculminate rising wages inseveral shiftsinthe Korea already include ICTmanufacturing and extent. to what whether other neighbouring countries like Laos,Cambodia,Myanmar and Northern sector, even incountries not known ICTindustries. askey Itisstill to beresearched affected by the trend towards ever cheaper and faster production inthe cycles ICT too. This report shows the impact in terms of revenue and in terms of workers and other developing and emerging economies are sites key for ICTmanufacturing and component manufacturing.assembly However, of most the neighbouring Asian China isstill the important most centre with for ICTproduction, especially regards to 3. Conclusion and further trends years. manufacturer plans to install 1 million in manufacturing in the next three to the CEOof Foxconn, , inastatement contract made in2011, the leading Another trend possible isthe industrial automation of ICTmanufacturing. According the US. announcedalso itwas investing US$100million initsown manufacturing sites in automated plants” inthe next five to ten years. manufacturers remains to beseen.Foxconn plans to “roll atleast out the fully first extent this capital intensive form of production mightbe used by other contract factory to adecline inShenzenof led work doneby human beings.To what like Foxconn, Lenovo Another interesting trend inthe other direction isto beobserved, ascompanies investments compared to the investments inlow-cost countries. 125 Seehttp://www.theverge.com/2012/12/11/3753856/foxconn-shenzhen-factory-automation-manufacturing-US-expansion 124 Seehttp://news.xinhuanet.com/english2010/china/2011-07/30/c_131018764.htm 123 Seehttp://evertiq.com/news/24430 122 Seehttp://www.isuppli.com/Manufacturing-and-Pricing/News/Pages/Fast-Facts-on-Apples-PC-Outsourcing.aspx 121 Seehttp://evertiq.de/news/12881 120 Seehttp://www.isuppli.com/Manufacturing-and-Pricing/News/Pages/Fast-Facts-on-Apples-PC-Outsourcing.aspx For example, Glass from Foxconn isto bemanufactured inthe US. 124 123 According to areport from 2012, the degree of automation ataFoxconn

120 and Quanta plan to produce backinthe increasingly US. 125 However, these are small just 122 Apple Apple 121

The ICT sector in the spotlight 51 Electronics Watch 52 V. Conclusion id/2580318 127 Gartner Identifies Top Organizations inAsiaPacificfor Chain 2013, http://www.gartner.com/newsroom/ Supply 126 See, for example, Wan, Electronic Michael: exports: Identifying Asia’s winners and losers, Credit Suisse (2013), devalued by analysts. financial on aproduct or product are components that regarded asoutdated are quickly new products, characterise this fast-paced sector. Companies or countries rely that mergers, takeovers and corporate restructuring, aswell asthe continuous launch of networkedThe ICTsector isahighly industry with markets. changing rapidly Regular recognised finds asonethat strategies manufacturing like practices’, ‘lean ICT supply chain. chain. ICT supply right target group, as contract manufacturers have become actors such key in the as important customers. The remains question whether brand companies are the is enormous and increasing, and brand companies regard publicsector buyers As shown inChapter IIof this report, the publicsector’s spending on ICTproducts power structures within chains. ICTsupply consumer markets over all the world) and the of question whoto address, i.e. the the of question the leverage of (European) publicpurchasers (compared with leverage the isatwo-foldWhat public sector itconcerns question: has both power, responsible manufactured by demanding socially products. contracts dohave the to chance make concrete through changes their purchasing public pressure. However, publicprocurers with largetender volumes and long-term mentioned exceptions), the power of private consumers islimited to long-term responsible manufacturedIn the absence of socially alternatives (with the above- sector show. audits do not result in real as ongoing news changes, about exploitations in the ICT pressure onthe sector. However, CSRreports and voluntary non-independent products and their unprecedented transparency chain supply to significant led (FAIRPhone and with Nager-IT) their attempt responsible to produce socially due to inhumane work pressures in2010 and recentlythe two first ICTproducts to Both making purchases. the media outcry after the suicides of Foxconn workers climate inthe ICTsector where performance’ ‘social isarelevant factor whenitcomes and even contract manufacturers show publicawareness to that ageneral led has highlighted inthis report? The numerous CSR-reports of both brand companies have been that public sector chain the –have issues to inthe social change supply by leverage consumers. doconsumers Butwhat –both private consumers and the It isnecessary to counter these structures and developments with message aclear to ageographical reorientation of both brands and contract manufacturers. isbuiltmodel that uponoutsourcing to low-cost countries. The riseof leads wages the ‘operational inabusiness risingwages risks’of ICTmanufacturing, especially http://www.credit-suisse.com/researchandanalytics 126 A top supply chain organisation inthis chain sector Atop supply is 127 to face face to

The ICT sector in the spotlight 53 Electronics Watch 54 they have adirectthey influence onthe of question fair wages. coordination power asitmight seem.Incontrast to frequent claimsto the contrary, themselves show both brands that have not handed over of all the supplier the important suppliers further are down chain doneby the several supply brands several butnotLast, least, indicators price negotiations that with or of all most function whichwas problems, estimated to costFoxconn US$256.8million. backto contract manufacturer Foxconn April last dueto appearance and (Sanmina 2012: 12). Another indication would delivered Apple be that 5 million negotiate accommodations with customers regarding particular situations” nature of our customer relationships or for other business reasons instead and may not enforce to immediately elect our contractual rightsbecauseof the long-term repurchase unused inventory from we usthat have ordered for them, we may which customers are contractually obligated toproducts purchase from usor between brand companies and contract manufacturers: “Even inthose casesin manufacturer Sanmina-SCI (US)provides someinsightinto the power relationship over contract even major manufacturers. Thus the statement by the EMS contract Furthermore, there are several indications brand that companies dohave leverage responsibility management. fear competitive disadvantages whenfailing to provide somekind of asocial interests. to the This contract conclusion leads that manufacturers mightwell on their commitment, social thereby addressing their customers, i.e. the brands’ with the brand companies. every Almost oneof these positions companies has presentations speak adifferent whenitcomes to language their relationship consumers, the statements of the bigcontract manufacturers intheir external Although this mightbetrue incontract manufacturers’ relationships with end companies (Ibid:16-17). common approach by brands all mighthave an impactoncontract manufacturing and thus their interest improvements in social a is limited. only He argues that are inducedimage risksto for not sales probable contract manufacturing brands to different standards social for workers for different customers. Beckarguesthat manufacturers strive for standardised ways of production, whichmightbeopposed low profit marginsleave them little possibility of introducing Contract changes. brands have handed over. At the sametime, contract manufacturers’ comparatively dependent onbrands dueto their extensive production and process know-how that (Beck 2012: 16).According contract to hisanalysis, manufacturers are nolonger andcoordinators management their growing chain insupply importance and size and enforcing standards social inthe ICTsector dueto their central positionas concludes contract that manufacturers with incomplying role acrucial play donotthey have enough impactonthe manufacturing process. Thus Beck(2012) transfer of know-how and manufacturing coordination to contract manufacturers, disadvantages through awareness-raising campaigns.However, dueto their – asthe ‘face’ of products mightsuffer –are onesthat from competitive the only been statedIt has before leverage that is difficult to achieve, as the brand companies 128 Seehttp://evertiq.com/news/24244 128

decisions about whichproducts to buyinfuture. is not when it comes optional to making chains their the along all supply way make ICTcompanies and distributors aware improving that working conditions the new ElectronicWatch initiative. Together, consumers and publicpurchasers can market power and their joinforces. bargainingpositionwhen they Many are joining with ICTcompanies. buyers Public are realising can strengthen they that their of their spending largeannual onICThardware, aswell astheir long-term contracts above, the publicsector holdsconsiderable leverage over the ICTindustry because responsible ICTproducts needto treadin socially acommon path. Asmentioned the pressureapply and the leverage have, they public procurers with an interest criteriaSocial are not yet perceived as enough of a competitive advantage. To margins, tracing backto business competition about market shares. and other poor working conditions are linked to directly flexibility and low profit Reichert 2012: 126).The structure to low overtime andleading wages, mechanisms sector are aby-product not only of the production process (Beck2012: 11;Raj- importantIt isalso to bearinmindthe that existing labour conditions inthe ICT

The ICT sector in the spotlight 55 Electronics Watch 56 singapore 2013, Businessvibes (2013): Industry Insight:Electronics Industry inSingapore, 15May regain-its-lead-in-consumer-electronics.html?pagewanted=all&_r=0 2013, http://www.nytimes.com/2013/05/13/business/global/taiwan-tries-to-13 May Bradsher, Keith (2013): InTaiwan, in:The New lead, York lamentingalost Times, www.boi.gov.ph/pdf/primer.pdf Board of Investments (BOI 2010): Primer ondoingBusiness inthe Philippines. http:// ph/downloads/sector/Electronics.pdf 2011): Board of Investments (BOI)/Department of Trade and Industry Philippines (BOI/DTI www.bitkom.org/de/themen/37244_78084.aspx Bitkom (2013b): Öffentliche Hand gibtüber 20Milliarden Euro fürITKaus,http:// org/de/themen/37244_77023.aspx Bitkom beiITK-Beschaffung, Nachhaltigkeit http://www.bitkom. (2013a): Soziale com/InvestorRelations/AnnualReports/Benchmark_Annual%20Report_2012.pdf Benchmark Electronics Report (2012): Annual Form 10K2012, http://www.bench. Berücksichtigung Kriterien. sozialer WSI-Diskussionspapier 183,December 2012. Beck, Stefan von (2012): Öffentliche Beschaffung IT-Mitteln (PCs) unter the-thai-electronics-industry On the Spot –April 2012, cf. http://goodelectronics.org/news-en/labour-issues-in- Bais, Karolien (2012): Labour issues intheelectronics Thai industry, GoodElectronics secfiling.cfm?filingID=1193125-12-444068 Report (2012): Annual FormApple year 10K(fiscal 2012), http://investor.apple.com/ Foxconn-Factory-Workers-in-Brazil http://www.aflcio.org/Blog/Global-Action/Strong-Unions-and-Labor-Laws-Protect- (2013): Strong Unionsand Labour Laws Protect Foxconn Factory Workers inBrazil. American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) samsung-sued-by-brazil-prosecutor-for-factory-working-conditions.html Working Conditions, 2013, 14August http://www.bloomberg.com/news/2013-08-14/ Almeida, Henrique;Kim,Rose (2013): Samsung Suedby Brazil Prosecutor for Factory oecd.org/dev/33750086.pdf and Policy Options,OECDDevelopment Centre. Working Paper No. 30, http://www. (1990):The Indian ElectronicsAlam, Ghayur Industry: Current Status, Perspectives from-minimum-wage-rise/570161/ thejakartaglobe.com/archive/government-to-exempt-hundreds-of-companies- from MinimumWage Globe, Rise, 7February in:Jakarta 2013, http://www. (2013):Agusyanti, Sagita Government Dessy to Exempt Hundreds of Companies informac/arquivos/pan2012i.pdf Overview and Performance of the Sector 2012, http://www.abinee.org.br/ing/ Abinee (2012): [Brazilian Electrical and Electronics Industry Association]: Economic VI. References The Philippine Electronics Industry Profile, http://www.investphilippines.gov. http://www.businessvibes.com/blog/industry-insight-electronics-industry-

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http:// http:// International Journal of Production Economics, 107, p. 1-19 development of electronics manufacturing service (EMS)companies, in: Endong; Yongjiang,Zhai, Shi; Gregory Mike (2007): for-Outsourced-Manufacturers.aspx Pricing/MarketWatch/Pages/Rise-of-Smartphones-Upends-Business-Prospects- Manufacturers, IHS/ISuppli 2013, cf. http://www.isuppli.com/Manufacturing-and- Wu, (2013): Riseof Jeffrey SmartphonesUpends Business Prospects for Outsourced double-wages-again/ 2012, Worstall, Tim (2012): http://www.forbes.com/sites/timworstall/2012/05/28/apples-foxconn-to- Apple’s Foxconn To Wages Double Again, in: Forbes, 28 May The growth and capability

The ICT sector in the spotlight 65 Electronics Watch 66 firm NagerIT: https://www.nager-it.de/static/pdf/lieferkette.pdf example for the chain of computer asupply mouse provided by the German Jordan, Susanne comprehensive (2013): Graph IT2013: comparably Nager company names). component production for and Samsung supply Electronics with concrete Workforce%20in%20South%20Korea.pdf (description of the “five layers” of Samsung%20Electronics%E2%80%99%20Supply%20Chain%20and%20 in AsiaResearch Paper Series No3,http://www.amrc.org.hk/system/files/3%20 and WorkforceElectronics’ Chain Supply inSouth Korea. Electronics Industry Han, Liem,Wol-san; Jiwon; Lee, Yoomi of the (2013): Samsung Inthe Beast: Belly HDD sub-supplier to HDD supplier Mektec besides LTT, MMI, Innovex, and Murata). http://somo.nl/publications-en/Publication_1969 as3rd (Paragon tier supplier, Dijk, Michielvan; Schipper, Irene (2007): Packard Bell,CSRCompany Profile, cf. Amsterdam, cf. http://somo.nl/publications-en/Publication_3109 Conditions inthe production of Computer Partsinthe Philippines. SOMO &WAC, De Haan, Esther; Schipper, Irene (2009): Configuring Labour Rights. Labour Tenglong, China). all Catcher,Kenseisha, United Win, AVY Precision, TOYO Precision Appliances, of the contract manufacturer Foxconn: BYD, Riteng Jabil, Computer Accessories, pdf/2012627-5.pdf Characterize http://chinalaborwatch.org/ Apple’s Entire Chain. Supply China Labor Watch (2012): Beyond Foxconn: Deplorable Working Conditions crisis. Mexico tier: 1st Dell,IBMwith by (mainly APRO, labour leasing Aplotran). (ElCentroCEREAL de Reflexion yAccion Laboral) 2009:Labour rightsintimeof keyboards for HP, Dell,Lenovo, Microsoft, IBM) paper_final.pdf tier (1st Meitei and Plastics Electronics, Dongguan City, China, Briefing paper WEED, Berlin http://www.pcglobal.org/files/WEED_briefing_ Bormann, Sarah; Geiermann, Astrid; Streit; Miriam (2009): andchains). laptop supply publications.apec.org/publication-detail.php?pub_id=1431 (case on studies Electrical and Electronics Industry, APECPolicy 2013, cf. Support Unit,July http:// Operation Chain inthe APECRegion: Supply CaseStudy of Global the James: APEC (Asia-Pacific Economic Cooperation) (2013): suppliers of the second and following tiers. literatureSelected onsubcontracting inthe electronics industry naming VII. Appendix , pages 6-11 tier (1st , pages contract manufacturers and subsidiaries Wood, Christopher; Tetlow, Live fast, die young. printed circuit board industry inPenang, Malaysia). Personal-Computer-Production-Chain.pdf and (1st 2nd tier HPsuppliers inthe in-Global-Production-Networks-Managing-Environmental-Health-Risks-in-the- ff., environmental health risksinthe personal computer p. 186 production chain, (2012): Governance Gale Production inGlobal Networks:Raj-Reichert, Managing tiers, without namingthe companies). Production and Industrial Relations inChina(case inChinafrom studies different (2013): SiqiLuo; Hao Zhang Lüthje, Boy; http://labourandelectronics.net/wp-content/uploads/2013/06/Governance- Beyond the Iron Rice Bowl: Regimes of

The ICT sector in the spotlight 67 Electronics Watch Improving working conditions in the global electronics industry

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