Apple's Broken Promises

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    • 00:30

      [MUSIC PLAYING]

    • 00:34

      RICHARD BILTON: Tonight on "Panorama," the truthabout Apple and your iPhone.For the first time, secret filmingfrom inside the high-security Chinese factorieswhere Apple's products are made.

    • 00:50

      SUPERVISOR: [NON-ENGLISH SPEECH][MUSIC PLAYING]The reality of life on the iPhone production line.

    • 01:02

      WORKER: [NON-ENGLISH SPEECH]

    • 01:08

      RICHARD BILTON: We find an exhausted workforce.

    • 01:12

      WOMAN: That is surprising and really shocking,that they haven't been able to get this under control yet.

    • 01:17

      RICHARD BILTON: With staff falling asleep as they work.

    • 01:20

      MAN: When they fall asleep that way again and again,that means that the conditions of workare totally and physically intolerable.[MUSIC PLAYING]

    • 01:30

      RICHARD BILTON: And we travel further down the supply chain,to find children digging for the tin the industry needs.When you look close, it is horrifying to see this.And find evidence that tin from illegal and dangerous minesis being supplied to Apple.

    • 01:49

      CHILD: [NON-ENGLISH SPEECH][MUSIC PLAYING]

    • 01:55

      RICHARD BILTON: The most valuable companyin the world that builds the gadgets weall love described by those inside the machine.

    • 02:04

      MAN: [NON-ENGLISH SPEECH]

    • 02:06

      INTERPRETER: I just want the customersto know that Apple operates heartless factories.

    • 02:11

      MAN: [NON-ENGLISH SPEECH][MUSIC PLAYING]

    • 02:34

      RICHARD BILTON: Some came overnight.[MUSIC PLAYING][CHEERING]Some will wait all day.But they're all here for the ritual.[CHEERING][MUSIC PLAYING]Apple is launching a new product, the iPhone 6.[CHEERING]

    • 02:56

      RICHARD BILTON [continued]: And the faithful have gathered.

    • 02:59

      MAN: [INAUDIBLE]

    • 03:00

      RICHARD BILTON: Why?

    • 03:01

      MAN: Because the people around here,you can see them cheering, and the enjoyment that's happening.I don't think any other company would do that.[MUSIC PLAYING]

    • 03:10

      MAN: Only cool people use Apple.

    • 03:14

      MAN: They do small things that makethe customer feel a little bit happier, a little bit moreexcited about their products.And that's what makes them just a tiny bit different.

    • 03:24

      RICHARD BILTON: At London's swanky Covent Garden store,there's an almost religious fervor.[CHEERING]Apple has an extraordinary relationshipwith its consumers.These people, they don't feel like customers.They feel more like followers, fanaticseven, to the cult of Apple.[MUSIC PLAYING]

    • 03:51

      RICHARD BILTON [continued]: The iPhone, the iPad, the Mac, the iconic consumer accessoriesof our time united under the Apple logo.

    • 04:00

      REBECCA BATTMAN: People describe Apple's products with wordslike, oh, it's gorgeous.I love it.I mean, when have you ever heard anybody talkabout other technology brands in the same sense,that it's got that desirability?[MUSIC PLAYING]

    • 04:18

      RICHARD BILTON: The stores are like boutiques, designsand products that people around the globewant to be seen using.And I'm one of them.I have an iPhone and a MacBook computer.I bought into the Apple brand.Apple is different.Its image is part of its attraction and its success.

    • 04:41

      RICHARD BILTON [continued]: It's almost like there's a kind of aurathat somehow Apple is better in the things it producesand the way it behaves.Apple are a spectacularly successful company.They made $39 billion profit last year, with $155 billionin the bank.[CHEERING]

    • 05:03

      RICHARD BILTON [continued]: All told, they're worth more than half a trillion dollars.Ralph Nader, who campaigns for more ethical business,says Apple should spend more of that moneyon its global workforce.

    • 05:15

      RALPH NADER: Well, I would say that Appleis in the best position of any company in the world becauseof its massive surplus profits to clean up its supply chain,and set an example for the rest of the world.

    • 05:28

      RICHARD BILTON: But Apple says they're alreadydoing more, that the business model is aboutfar more than money.Apple has made a series of promisesabout protecting the environment and about howthe workers in its supply chain should be treated.

    • 05:44

      REBECCA BATTMAN: Apple is clearlytrying to make sure that it is seento be an ethical and responsible company,and therefore everybody's eyes are looking at the companyto say, actually, are you fulfilling your purpose.You know, are you being a true leader in your category.

    • 06:02

      RICHARD BILTON: But is Apple keeping its promises?[MUSIC PLAYING]This is where the Apple dream is manufactured, China.[MUSIC PLAYING]Companies from around the world operate here.

    • 06:24

      RICHARD BILTON [continued]: [MUSIC PLAYING]But an estimated million workers makeApple products, an army manufacturing,testing, and assembling.[MUSIC PLAYING]

    • 06:38

      LI QIANG: [NON-ENGLISH SPEECH]

    • 06:39

      INTERPRETER: Without China, Applewouldn't be the company it is today.No other country can provide labor so cheaplyand make its products so quickly.[MUSIC PLAYING]

    • 06:56

      RICHARD BILTON: The products the world wants start their lifeat vast plants like this one, in the southern city of Shenzhen.But there have been problems.[MUSIC PLAYING]It was 2010 when the world started to hearthat things were going wrong.

    • 07:16

      WOMAN: [NON-ENGLISH SPEECH]

    • 07:27

      RICHARD BILTON: 14 workers killed themselvesat Apple's biggest supplier, a company called Foxconn.[MUSIC PLAYING]Long hours, harsh discipline, and poor living conditionswere all said to be factors.The company put up anti-suicide netsto make it harder for workers to take their own lives.

    • 07:50

      RICHARD BILTON [continued]: Foxconn says working conditions were not to blame,that wages have since been increased and workinghours reduced.They say their new measures are saving lives.[MUSIC PLAYING]Apple's promise is to make things better.Since the suicides, it has published

    • 08:12

      RICHARD BILTON [continued]: a set of standards to protect factory workers,spelling out how employees should be treated.

    • 08:19

      HEATHER WHITE: I think what Apple'sproduced on paper all looks very good,in that they don't seem to shy awayfrom reporting on the violations and the problemsthat they're finding in the factories.But they've got to go beyond these mere commitments on papersaying we're bound to do better, because it's not actuallytranslating into results.[MUSIC PLAYING]

    • 08:46

      RICHARD BILTON: This company, Pegatron,now does some of the work.It has huge factories on the outskirts of Shanghai.Pegatron [INAUDIBLE] after 2010 and the scandal of the wayworkers were being treated.This is a company where the standardsare supposed to be high.[MUSIC PLAYING]

    • 09:12

      RICHARD BILTON [continued]: So have things really changed for the workers?[MUSIC PLAYING]A labor rights group has published critical reportsabout Pegatron.And they say Apple must be aware of the problems.

    • 09:27

      LI QIANG: [NON-ENGLISH SPEECH]

    • 09:28

      INTERPRETER: It's impossible theydon't know about the issues.We have repeatedly pointed out the problems in our reports.But we've seen almost no improvement.[MUSIC PLAYING]

    • 09:44

      RICHARD BILTON: To test Apple's promise to protect workers,we need to go undercover.[MUSIC PLAYING]But that is not easy in an authoritarian state.We have used three reporters.[MUSIC PLAYING]Because of the risks, we will be protecting their identities.

    • 10:06

      RICHARD BILTON [continued]: We want to know what life is like for an Apple worker.To get ready for the launch of the iPhone 6 and the Christmasrush, Pegatron is recruiting thousands more workersfrom across the country.Our reporter is at a recruitment center hundredsof miles from the Shanghai factory.

    • 10:27

      RICHARD BILTON [continued]: [MUSIC PLAYING]He's fingerprinted, then asked to hand over his identity card.

    • 10:34

      MAN: [NON-ENGLISH SPEECH]

    • 10:37

      RICHARD BILTON: Now every person in Chinamust hold an ID card by law.Our reporter is losing his.It means he can't pull out.He has to go to the factory.

    • 10:49

      REPORTER: [NON-ENGLISH SPEECH]

    • 10:51

      INTERPRETER: They said they needed to see my ID.When they got it, they didn't return it to me.I demanded that they return it.I felt helpless.[MUSIC PLAYING]

    • 11:04

      RICHARD BILTON: So our reporter has only just joinedApple's supply chain, but the standardsintroduced to protect workers have already been breached.They state workers shall retain possession or controlof all identity documents.[MUSIC PLAYING]

    • 11:21

      LI QIANG: [NON-ENGLISH SPEECH]

    • 11:22

      INTERPRETER: Without the ID, workerscan't even buy a train ticket.Last year, we also found that workers at Apple factorieswere having their IDs taken from them.Apple promised things would change.They responded publicly.And yet, this year the problem is still there.[MUSIC PLAYING]

    • 11:41

      RICHARD BILTON: It's a 28-hour coachjourney from the recruitment center to the factory.[MUSIC PLAYING]Workers are then sent to their new homes, dormitoriesaround the site.To give you a sense of the scale of this plant,

    • 12:02

      RICHARD BILTON [continued]: these enormous buildings here, that's where the workers live.These are buildings just to housethe workers who've come from out of town to work at this plant.[MUSIC PLAYING]80,000 people eat, sleep, and work here.

    • 12:24

      RICHARD BILTON [continued]: It's like a city, where most of the populationlives to produce for Apple.[MUSIC PLAYING]Apple has clear rules about accommodation.No more than eight individuals shall occupy one dormitory

    • 12:47

      RICHARD BILTON [continued]: sleeping room.Well, 12 people sleep in this cramped room.So that's another breach of Apple's promises.[MUSIC PLAYING]So we've seen those pictures that you filmedwith 12-bedroom dormitories.What was that like in there?

    • 13:06

      REPORTER: [NON-ENGLISH SPEECH]

    • 13:09

      INTERPRETER: Life there would be very tough.To be honest, 12 people in a room, even a guy of mybuild would have to walk sideways to get in and out.The room was too narrow.

    • 13:24

      HEATHER WHITE: I mean, this is something that could literallychange throughout Apple's supply chain in less than six months.I mean, they can throw up a factoryand get production going in three monthswhen they've got orders and they'vegot the motivation to do so.

    • 13:38

      RICHARD BILTON: Apple say the dormitory overcrowding has nowbeen resolved.But listen to how the workers are treated.A supervisor from the recruitment agencysays, if they get lost, they're in trouble.

    • 13:56

      SUPERVISOR: [NON-ENGLISH SPEECH]

    • 14:12

      RICHARD BILTON: The workers get their ID cards back.They should never have been taken.

    • 14:16

      SUPERVISOR: [NON-ENGLISH SPEECH][MUSIC PLAYING]

    • 14:32

      RICHARD BILTON: Before our worker can start his new job,he must go through training.

    • 14:38

      SUPERVISOR: [NON-ENGLISH SPEECH]

    • 14:40

      RICHARD BILTON: Hundreds gather.It's peak production, and these sessionsare happening almost every day.Apple told us factory managers aretrained to behave appropriately.But we saw people being picked on.

    • 14:52

      SUPERVISOR: [NON-ENGLISH SPEECH]

    • 15:09

      RICHARD BILTON: And ordered around.

    • 15:13

      SUPERVISOR: [NON-ENGLISH SPEECH]

    • 15:21

      RICHARD BILTON: Doing as you're told continues with the admin.The forms seem to give workers choicesabout doing shifts that involve standing for long hours,or working nights.But in reality, there's no choice at all.

    • 15:36

      SUPERVISOR: [NON-ENGLISH SPEECH]

    • 15:56

      RICHARD BILTON: It's an example of a fake audit trail.The paperwork will look as if all the workershave agreed to work nights.Apple say they investigate every concern brought to them.

    • 16:12

      HEATHER WHITE: These are just waysto try to meet very superficially the demandsof auditors, because it's all about trying to live upto promises that have been made without reallychanging business as usual.

    • 16:27

      RICHARD BILTON: And what about health and safetyin these high-tech factories with chemicalsand dangerous machines?Our reporters say they got no more than a coupleof hours' training, followed by an exam they had to pass.And they will.This is what happens.Exam papers are handed out, and the workers

    • 16:47

      RICHARD BILTON [continued]: chant the answers in unison.

    • 16:49

      SUPERVISOR: [NON-ENGLISH SPEECH]

    • 16:52

      WORKERS: [NON-ENGLISH SPEECH]

    • 16:54

      SUPERVISOR: [NON-ENGLISH SPEECH]

    • 16:56

      RICHARD BILTON: She's more like a bingo callerthan an examiner, and the questions are hardly tough.

    • 17:02

      SUPERVISOR: [NON-ENGLISH SPEECH]

    • 17:06

      RICHARD BILTON: So the paperwork shows workers have passed.Apple say they'll investigate, though they'veseen no evidence of coaching.

    • 17:14

      LI QIANG: [NON-ENGLISH SPEECH]

    • 17:16

      INTERPRETER: This is common.But if you ask Apple, they would tell youthat the workers have signed a document which says theyreceived 24 hours of training.The companies only need the signatures.Apple looks only at the signatures.[MUSIC PLAYING]

    • 17:33

      RICHARD BILTON: Pegatron, who run the factory,say worker safety and well-being are our top priorities.They set very high standards, and conduct rigorous training.External auditors regularly visitto find areas for improvement.Pegatron say they meet or exceed customer codes of conduct.

    • 17:54

      RICHARD BILTON [continued]: [MUSIC PLAYING]Our undercover teams are now ready for the shop floor.But it will be risky.These are high-security buildingsin a surveillance state.[MUSIC PLAYING]It is the ultimate secret filming challenge.[MUSIC PLAYING]

    • 18:15

      RICHARD BILTON [continued]: Our reporters face body searches in airport-style scanners.[MUSIC PLAYING]These are heart-stopping moments.They could be jailed if they're caught.On this occasion, the guard reaches for the camera.But he sees nothing suspicious.

    • 18:35

      RICHARD BILTON [continued]: We're in.[MUSIC PLAYING]These are the first secret camera pictures

    • 18:58

      RICHARD BILTON [continued]: from inside factories making Apple products.This is where your iPhone comes from.The workers are treated like members of a production army.

    • 19:09

      SUPERVISOR: [NON-ENGLISH SPEECH]

    • 19:24

      WORKERS: [NON-ENGLISH SPEECH]

    • 19:35

      RICHARD BILTON: We saw a culture of intimidation.This is a group of supervisors being shouted atby a senior manager.

    • 19:45

      MANAGER: [NON-ENGLISH SPEECH]

    • 19:59

      RICHARD BILTON: But one thing more than any otherstood out on the factory floor, Apple's exhausted workforce.

    • 20:09

      REPORTER: [NON-ENGLISH SPEECH]

    • 20:13

      INTERPRETER: I have personally seen somethingvery outrageous in the factory, workers falling asleepwhile standing and operating the machines.I would see many workers sitting or lying downto sleep during break time.

    • 20:28

      REPORTER: [NON-ENGLISH SPEECH][MUSIC PLAYING]

    • 20:31

      RICHARD BILTON: This reporter worked in a factory thatmade computer parts for Apple.It was very noisy.[MACHINE WHIRRING]But even with so much noise, he saw people so tiredthat they were falling asleep on their breaks.[MUSIC PLAYING]And sometimes when they were supposed to be working.

    • 20:54

      RICHARD BILTON [continued]: Apple say napping on breaks is not unusual.[MUSIC PLAYING]But it was the same wherever we filmed,people exhausted at work.Here, one of our reporters filmed someone falling asleepas they work.

    • 21:14

      RICHARD BILTON [continued]: [MUSIC PLAYING]And this iPhone 6 testing area has virtually no one awake.[MUSIC PLAYING]

    • 21:27

      REPORTER: [NON-ENGLISH SPEECH]

    • 21:29

      INTERPRETER: After work, I would be so tiredthat I could fall asleep standing upon the bus on the way back to the dormitory.

    • 21:36

      REPORTER: [NON-ENGLISH SPEECH]

    • 21:38

      INTERPRETER: If the bathroom queue was too long,I'd fall asleep on the bed within two minutes.

    • 21:42

      REPORTER: [NON-ENGLISH SPEECH]

    • 21:44

      RALPH NADER: When they fall asleep that way againand again, that means that the conditions of workare totally and physically intolerable.[MUSIC PLAYING]

    • 21:56

      RICHARD BILTON: So why are the workers so tired?Well, we found Apple's promises were beingbroken on the factory floor.All of our reporters are routinely on 12-hour shifts.The longest was 16 hours.The overtime was built in as standard.

    • 22:16

      RICHARD BILTON [continued]: Our workers didn't seem to have much choice.It's a breach of Apple's promises.They say all overtime must be voluntary.

    • 22:30

      REPORTER: [NON-ENGLISH SPEECH]

    • 22:34

      INTERPRETER: We have to work more than 12 hours every day,from 8:00 AM till 8:00 PM, sometimes 8:30 or 9:00 PM.We had to leave dormitories at 7:00 AMto travel to the factory.It was 8:00 PM when I finished my work,and I'd only get back around 9:00 PM.

    • 22:55

      REPORTER: [NON-ENGLISH SPEECH]

    • 22:60

      HEATHER WHITE: That is surprising and really shockingthat they haven't been able to get this under control yet,because if they had the staff on the ground making surethat the factories were operatingin compliance with the law, they could addressthese issues rather quickly.

    • 23:15

      RICHARD BILTON: Overtime was routine.And it wasn't just the adult workers.The factory employs under 18's, and this 17-year-old was alsoworking long night shifts.

    • 23:25

      MAN: [Are you tired?]

    • 23:27

      WORKER: [Tired, damn right!]

    • 23:28

      MAN: [So do you get to spend time with with your classmateswho work here?]

    • 23:37

      WORKER: [I have little time for that.Most of them have left here and gone home.]

    • 23:45

      MAN: [Left here for home.Why?]

    • 23:47

      WORKER: [They can't stand working here any longer.Here we work all day long, from day until night]

    • 23:54

      RICHARD BILTON: This is another of Apple's rules being broken.In Apple's promise to protect workers who are under 18,they state juvenile workers shall not work overtime.Juvenile workers shall not conduct night work.

    • 24:17

      RICHARD BILTON [continued]: We saw payslips that suggest illegal working hours arecommonplace.One undercover reporter was even asked to sign a form,consenting to hours that would be a clear breach of Apple's 60hour limit.Another reporter's long hours weren't shown on his payslip.His overtime payments were disguised as a work bonus

    • 24:40

      RICHARD BILTON [continued]: so nobody could tell how long he'd workedfrom looking at his payslip.

    • 24:44

      LI QIANG: [Li Qiang, China Labor Watch]We informed Apple of this last year but Apple,never pays attention to it.The factories keep doing the same thing.They try to meet Apple's requirements.The problem is still there.

    • 24:57

      RICHARD BILTON: Apple investigated.They said hours were correctly logged,but they've asked Pegatron to change the payslips to makethem more transparent.

    • 25:06

      HEATHER WHITE: [HEATHER WHITE, Supply chain expert]Well, there's a lot of ways that the factories areable to kind of massage the books, and it's all electronic,and it's digitized, and so they can basicallyproduce any kind of payroll they wantto present to the authorities, to presentto the various brands they come through with their codesof conduct.

    • 25:27

      RICHARD BILTON: Pegatron says workersare the heart of our business and that theyare encouraged to confidentially communicate any workplaceissues.But all our reporters were completelyoverwhelmed by the work.

    • 25:44

      INTERPRETER: Every time I got back to the dormitories,I wouldn't want to move.Even if I was hungry, I wouldn't want to get up to eat.I just wanted to lie down and rest.I was unable to sleep at night because of the stress.

    • 26:05

      RICHARD BILTON: His working environmentsand those standards are controlled from the other sideof the world, California.Last week I was invited to Apple's headquarters.It's six weeks since we told them of our findingsand I was hoping for an interview.So this is it, this is the home of Apple.

    • 26:26

      RICHARD BILTON [continued]: I spent three hours meeting Apple's top people.So having come all the way to California to meet them,Apple has just told us that they won't be putting anybodyup for interview.It's perhaps not what you'd expectfrom a company that says it wants to make the mosttransparent in the world.

    • 26:46

      RICHARD BILTON [continued]: Instead we got a statement.Apple say they'll investigate our findings.They will examine sleeping during production.On ID cards, Apple says they've done more than any companyto prevent the widespread abuse of migrant workers.They work with suppliers to prevent excessive overtime

    • 27:08

      RICHARD BILTON [continued]: and that Pegatron is averaging a 55 hour working week.But we want to go deeper into Apple's supply chain.I've come to a place known as Tin island.This is Bangka in Indonesia.

    • 27:31

      RICHARD BILTON [continued]: Many of the world's electronic companies get tin from here.Whole areas of forest have been ripped away to get at the ore.This smashed landscape might seem a long way from Apple's

    • 27:54

      RICHARD BILTON [continued]: shiny products, but the tin produced hereis a key ingredient.Tin is used inside your mobile phoneto solder the components together.So your laptop, your tablet, and your mobile phone,they're all held together by tin.It isn't just Apple, 30% of the world's tin

    • 28:16

      RICHARD BILTON [continued]: comes from Bangka province, and the legal mindscan't keep up with demand.

    • 28:23

      INTERPRETER: We are very concerned about the situationon Bangka [INAUDIBLE], particularyabout the situation of the illegal miners.[RATNO BUDI, Friends of the Earth Indonesia] Every yeartheir numbers grow.

    • 28:42

      RICHARD BILTON: These moonscapes are the clue.Follow the destroyed land and you'll find the illegal mines.Now, Apple says it will drive the responsible sourcing

    • 29:03

      RICHARD BILTON [continued]: of minerals, but we've been told that tin ore from aroundhere ends up in their supply chain.The tin ore is in the mud.The miners use jets of water to break it up,but if too much mud slips, a miner could be buried alive.

    • 29:26

      MINER: [This is a dangerous place.We have to earn money and make a living,and we have to have courage to work in a pit like this.On the other side there was a landslide.

    • 29:50

      MINER [continued]: Two died.]

    • 29:53

      RICHARD BILTON: When you're close,it is horrifying to see this.Whilst we've been here, we've seen huge chunks of the wallscrash down into the water.And this is not just a kind of vague threat,miners are killed all the time.

    • 30:15

      RICHARD BILTON [continued]: These are often family teams.We saw 14-year-old Wahid working in the mud.

    • 30:23

      WAHID: [I'm here helping my grandfather with the work.I'm afraid of the danger, but I'm careful.] I think,for what we earn, it's not worth it.because you risk your life]

    • 30:48

      RICHARD BILTON: This is a rescue effort after a landslide.[Footage - Friends of the Earth Indonesia,2012] It shows the reality.Once someone is buried, they rarely survive.A local doctor says the bodies showthe same characteristics, broken bones,their mouths full of sand.

    • 31:14

      RICHARD BILTON [continued]: And then there are those left behind.This is your daddy, here.Yeah?I came to meet [INAUDIBLE] because shelost her husband to the mud.

    • 31:28

      INTERPRETER: The first body was recovered quickly,that was my husband.My brother-in-law took longer.It was deeper, that was the problem.

    • 31:37

      RICHARD BILTON: But as we talked,I discovered something even worse.

    • 31:43

      INTERPRETER: It's happened twice,that my husbands died because of landslides.Both of them.

    • 31:56

      RICHARD BILTON: Both husbands were buried at the mines.

    • 32:02

      INTERPRETER: I was shocked when it happened the second time.I felt like I wanted to die, just like the first time.

    • 32:17

      RICHARD BILTON: Apple has confirmedit gets tin from Bangka.What's never been confirmed is whether illegal tin,from sites like this, ends up in Apple products.We need more evidence.

    • 32:41

      RICHARD BILTON [continued]: Nobody knows the tin industry here better than this man.Johan Murod is Mr. Tin.He's worked his way up through the industryand made a fortune doing it.Eagle, [INAUDIBLE].

    • 32:55

      JOHAN MUROD: This house, all of the money I got from tin.

    • 33:02

      RICHARD BILTON: He's a director of a processingplant, a smelter.Apple has published a list of the smelters thatsupply it with tin.Mr. Murod's company is on that list.He says all the smelters around here buy at least someof their tin through middlemen.The smelters can't tell whether it's legal or illegal.

    • 33:24

      INTERPRETER: [JOHAN MUROD, Ex-head of Indonesian TinMining Association] 70% of the tin ingots exported overseasare produced in small scale mining.So this is gathered by collectorsand then sold to smelters, and the smelters export worldwide.So the tins all mixed up.

    • 33:45

      INTERPRETER [continued]: At the smelter, there's everythingfrom both large and small scale mines.It's all mixed.There's no way to know what is legal and what is illegal.

    • 34:06

      RICHARD BILTON: So a boss at an Apple suppliersays smelters can't distinguish between legal and illegal tin.Can that be true of other smelters on Apple's list?Well, Apple buys tin from the majorityof smelters in the province.So if illegal tin is being mixed up,it's very likely to be an Apple supply chain.

    • 34:33

      RICHARD BILTON [continued]: Getting confirmation from other smelters is not easy.[NON-ENGLISH SPEECH]

    • 34:44

      MAN: [Turn the camera off][NON-ENGLISH SPEECH]

    • 34:49

      RICHARD BILTON: Oh, OK, sir.OK.OK, sir.Thank you.To get more evidence, we need to talkto the middleman, the collectors who buy illegal tinand supply legal smelters.

    • 35:10

      RICHARD BILTON [continued]: They're hard to track down.Eventually, we get a break.To meet a contact, we head into rural Bangka.Hey, how are you?This collector buys from the areawhere we filmed the dangerous muddy mine, wherethe 14-year-old is working.

    • 35:30

      RICHARD BILTON [continued]: He agrees to talk if we don't identify him.Does his gang supply the smelters that supply Apple?So is this from legal mines or is this from illegal mines?

    • 35:43

      MAN: [Illegal ones]

    • 35:45

      RICHARD BILTON: Could you write down the smeltersthat you sell to?I just need to see them written down.Just write them down for me.So that's Nujana

    • 35:59

      MAN: Yes.

    • 36:00

      RICHARD BILTON: Nujana, they supply Apple, don't they?Just to be clear, you buy from illegal mines, minerswho work in dangerous conditions,and you sell to Nujana, a smelter that sells to Apple.Is that right?

    • 36:14

      MAN: Yes.

    • 36:15

      RICHARD BILTON: Nujana was not the only Apple smellto this collector supplied.He also wrote down RBT.I checked with Apple's list of suppliers.He told me he dealt with RBT.I didn't recognize that name, but that's PT Refined BangkaTin.So two of the three smelters that he supplies dealwith Apple.

    • 36:37

      RICHARD BILTON [continued]: Apple says it goes deep into its supply chainto enforce standards, but in only a few dayswe found a connection between dangerous mines and Apple.But then we heard another gang were prepare to meet us

    • 37:02

      RICHARD BILTON [continued]: and this group were edgy.They felt more like criminals than businessmen.Once again, they tell us they buy from illegal minersand sell to a smelter on Apple's list.So, your own smelter that you sell to is RBT?

    • 37:18

      MAN: Yes.[I have a friend who works market at the smelter.He works in the department that manages everything, prices,all that sort of thing.]

    • 37:28

      RICHARD BILTON: Do they ask questionsabout where the tin ore came from?

    • 37:33

      MAN: [Oh no, they don't ask about where the tin is from.The important thing for them is the standard of tinand the quality of tin.]

    • 37:42

      RICHARD BILTON: So this criminal dealersays he's only been doing business with RBT,a smelter that supplies Apple.RBT says it doesn't take illegal tin,and the other smelter, Nujana, says it'sabides by all the local laws.

    • 38:03

      RICHARD BILTON [continued]: Apple blames corruption and government in action.They told us they're first companyto talk to smelters about the shocking conditionsand they helped create a group to look at the problems,but not all the members of that group seem convinced.

    • 38:26

      INTERPRETER: So far, there's been no concrete action.[RATNO BUDI, Friends of the Earth Indonesia] In reality,Apple should know that the tin theyuse to produce electronic products,originates from illegal mines and is cast or madein private smelters, and then sold so Apple.

    • 38:47

      RICHARD BILTON: Apple says it came here, to Indonesia,to investigate the mines, but we were only here for two weeksand we found something shocking.We've been told collectors who sell to a smelter on Apple's

    • 39:08

      RICHARD BILTON [continued]: list, get tin from this area.So all of the men and women who were working in the pitsat the bottom of these cliffs are taking their livesin their hands.But here, we found something really upsetting.This is about 70 feet of sheer sand,and at the bottom trying to start the little landslide,is a father and his 12-year-old son.

    • 39:33

      MAN: [I don't know what to say about the danger.We have to eat.So there;s no other choice tan to work like this,to provide for my children and wife.]

    • 39:47

      CHILD: [My feelings?I'm worried.Why?Because I help my dad.I feel sorry for my dad.I worry about landslides.The earth slipping from up there to the bottom.Earth.

    • 40:10

      CHILD [continued]: It could happen.]

    • 40:15

      MAN: [He says he wants to help his father.As his dad, I tell him to go to school, but as my son,he refuses.]

    • 40:26

      RICHARD BILTON: We stayed on at the mine until duskand watched as the tin ore was washed.It's the last work the miners do before the ore issold on to collectors.And when we left, 12-year-old Rianto was still at work.

    • 40:49

      RICHARD BILTON [continued]: And there seems little to stop the tin he's mining ending upin Apple's products.Apple says it's a complex situation,with tens of thousands of miners selling tinthrough many middlemen.The simplest course will be to refuse any tin

    • 41:09

      RICHARD BILTON [continued]: from Indonesian mines, but that would do nothingto improve the situation.Apple has chosen to drive changes on the ground.Back in China, I'm leaving the citiesand heading for the countryside.

    • 41:33

      RICHARD BILTON [continued]: A thousand Kilometers from Shanghai,this is the village of Hu Zhai Poo.It's harvest, but around here the workers are all old.The young people have gone.These villages have kind of changed.There are very young people here, and there are old people,but most of the young adults have moved away because there's

    • 41:56

      RICHARD BILTON [continued]: nothing for them.They're headed to the coast, to the cities, to the factories,and to the money.Zhu Yunhe has been a farmer here for 40 years.His sons have gone to the factories.His granddaughter is only 15, but she left this weekto work for another electronics factory.

    • 42:17

      INTERPRETER: [ZHU YUNHE, Farmer] In farming,they can only feed themselves and nothing else,so they need to go to factories to work.All the farmers here are in this situation.

    • 42:31

      RICHARD BILTON: Many young people go to the factoriesto help their families, but it doesn't always work out.Shi Zengqiang was 15 when he left his village.

    • 42:51

      RICHARD BILTON [continued]: That's too young to legally work at an Apple plant,but using his older cousins ID card,he got a job on the iPhone production line.

    • 43:01

      INTERPRETER: [SHI ZENGQIANG, Father] He knewthat our family was very poor and other people workin the factories, so he wanted to go.I told him he should wait for a couple of years,but he said don't worry, let me go.He wanted to earn some money which would make life better.

    • 43:22

      INTERPRETER [continued]: So he went.

    • 43:28

      RICHARD BILTON: He was in one of the factorieswhere our reporters are working, and like them, heworked long shifts.The family were told 280 hours in just four weeks.And at the end of that month, he died.

    • 43:44

      INTERPRETER: My son was fit and healthybut died after working in the factory.He didn't have any medical problems.I wouldn't have let him go if he was unwell.

    • 44:05

      RICHARD BILTON: Mr. Shi took me to his son's grave.The family are farmers and [INAUDIBLE]is buried in a field.

    • 44:28

      RICHARD BILTON [continued]: Apple's say independent medical expertsfound no evidence linking his death to working conditions.The family were given a one off paymentfrom the owners of the factory, but theyhad to sign a gagging order to say they wouldn'ttalk about their son's death.

    • 44:46

      INTERPRETER: [LI QIANG, China Labor Watch]This is one of the factory's dirty tricksto shut the workers mouths.They tried to seal the mouth of the familyin the hope of not damaging Apple's brand image.They worry this will have a negative impact.

    • 45:04

      RICHARD BILTON: What do you think of the company?

    • 45:06

      INTERPRETER: No one should enter that factory.If I'd known, I'd never have let my boy work there.

    • 45:14

      RICHARD BILTON: The workers in Pegatronearn the Shanghai minimum wage, about a pound an hour.We were told they work long and illegal hours because it'sthe only way to make a living.Now, the cost of an iPhone in the US is $650.Analysts say Apple makes $248 in profits on every phone,

    • 45:38

      RICHARD BILTON [continued]: but factories like this, only spend about $5putting them together.

    • 45:44

      HEATHER WHITE: [HEATHER WHITE, Supply chain expert]Well, I think that most people would agreethat it's OK to maximize profits,but when you're breaking the law,that should send the signal to the companythat they need to take a new approach,and they need to start looking at the problem a little bitmore creatively, and a little bit more proactively.[MUSIC - THE WHO, "BABA O'RILEY"]

    • 46:03

      RICHARD BILTON: It was the sheer volume of workthat overwhelmed our reporters.One had to work 18 days in a row,despite repeated requests for a day off.He was working more than 70 hours a week,and that's yet another of Apple's broken promises.

    • 46:25

      RICHARD BILTON [continued]: Supplier shall limit the actual hours worked by each workerto no more than 60 hours per work week.All of our reporters were left exhausted by their shiftsand by the way they were treated.It wasn't just the paid work.

    • 46:45

      MANAGER: [From today on, those whowould like to ask me for leave, I will not be signing it,at all!A couple of workers phoned me looking for leave.What were they thinking?There's no shitting use calling me.]

    • 46:60

      RICHARD BILTON: Many workers had to go to meetings like thisbefore and after shifts, without being paid for the time.Apple promises all meetings must bewithin the regular 8-hour shift.They're not.Apple says if it discovers unpaid meetings,it expects suppliers to backdate pay,

    • 47:20

      RICHARD BILTON [continued]: but we found the meetings and the workloadleft a shattered workforce.

    • 47:25

      WORKER: [I am too tired, too sleepy.I can't stand this any longer.So tired, so sleepy, my eyes are about to close.]

    • 47:39

      RICHARD BILTON: And that's dangerous,listen to what one supervisor tells his team.

    • 47:46

      SUPERVISOR: [If you fall asleep and you lean against machinesthat are connected with electricity,and there is a live wire, and you will be gone!]

    • 48:00

      INTERPRETER: This is quite dangerous because sleepingwhile working is likely to result in an injury.The reason why industrial injuries are numerous in Chinais mainly due to workers exhaustion.Workers fatigue leads to industrial injuries.

    • 48:16

      RICHARD BILTON: And yet, when most of our reporterstried to resign, saying he couldn'thandle the hours anymore, he was told he should toughen up.

    • 48:25

      SUPERVISOR: [What do working hours have to do with stress?All you're doing is checking the materials.I am sorry, I don't get it!Checking materials is easy!How could the working stress be severe?It's just long hours - long hours are long hours!]

    • 48:46

      WORKER: [Working hours are too long.Too long.From 8 in the morning to 1 or 2 at night -that's too much for anyone!]

    • 48:57

      RICHARD BILTON: Pegatron says they are carefullyinvestigating Panorama's claims and willtake all necessary actions if any deficiencies arefound at their facilities.Apple told us they strongly disagree with our conclusions.No other company is doing as muchto ensure fair and safe working conditions.

    • 49:19

      RICHARD BILTON [continued]: They require employers to treat all workerswith dignity and respect.They check the hours of more than a million workersand audit hundreds of workplaces.They see continuous and significant improvements,but add, we know our work is never done.

    • 49:41

      RICHARD BILTON [continued]: But this is what we found.This is where Apple products come.These are the people who make them.

    • 50:04

      INTERPRETER: I just want the customersto pay attention to Apple's appalling work conditions.Apple has been championing itself as a perfect enterprise,but it is all a facade.I don't think they care about the workers at all.

    • 50:27

      RALPH NADER: [RALPH NADER, Former US PresidentialCandidate] If you know that there's wrongdoingin your supply chain, if you knowthe standards are not being applied, if your profitingfrom all this, you have an obligationto do something about it.

    • 50:40

      RICHARD BILTON: They say that theywant to do all that they can to protect workers in their supplychain.Are they serious?

    • 50:47

      RALPH NADER: Well, they have limited ambitionif that's what they are desiring to do because it's not working,and the proof is the conditions in those factoriesand in those mines.[CHEERING]

    • 50:59

      RICHARD BILTON: Apple's model works.10 million iPhone 6's sold in its first weekend.But we went deep into the supply chainto test Apple's commitment to the environmentand to its workers.For the children digging in the mud and sand, and the workers

    • 51:21

      RICHARD BILTON [continued]: falling asleep on the iPhone production line,there are too many broken promises.[Reporter - RICHARD BILTON.Camera - JOE COOPER, DAVID LANGAN, MARK HINEY, KEN BUTLER.China and Indonesia Filming - MATT BARDO.China and Indonesia Production - DWI SADMOKO, JASMIN GU,VEEON ZHANG.Translators - VIDA LAKE, LUNG-CHI JOSEPH LIN.Colourists and Online Editors - JIM ALLISON, WARREN YORK.Dubbing Mixer - WILL McCONNELL.Media Manager - DECLAN DOHERTY.Team Assistant - GERALDINE BOYLE.Production Co-ordinator - CONOR FLYNN.

    • 51:42

      RICHARD BILTON [continued]: Production Manager - LISA MEGARRY.Researcher - CONOR SPACKMAN.Film Editors - ADAM RICHARDSON, DAVE HOWELL.Executive Producers - ANDREW HEAD, DARREN KEMP.Producers - JAMES OLIVER, MATT BARDO.Deputy Editor - KAREN WIGHTMAN.Editor - CERI THOMAS.]

Apple's Broken Promises

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Abstract

Apple is the most valuable brand on the planet, making products that everyone wants - but how are its workers treated when the world isn't looking? Panorama goes undercover in China to show what life is like for the workers making the iPhone 6. And it's not just the factories. Reporter Richard Bilton travels to Indonesia to find children working in some of the most dangerous mines in the world. But is the tin they dig out by hand finding its way into Apple's products?

Apple's Broken Promises

Apple is the most valuable brand on the planet, making products that everyone wants - but how are its workers treated when the world isn't looking? Panorama goes undercover in China to show what life is like for the workers making the iPhone 6. And it's not just the factories. Reporter Richard Bilton travels to Indonesia to find children working in some of the most dangerous mines in the world. But is the tin they dig out by hand finding its way into Apple's products?

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