Microsoft: Auditors Will Investigate Worker Conditions in Chinese Factory

Microsoft has already sent inspectors to investigate worker conditions at a factory operated by KYE in Dongguan, China, part of the company’s manufacturing and supply chain, after allegations of abuse emerged in a report by the National Labor Committee. According to NLC, over 30% of KYE’s production is represented by Microsoft Hardware products, but the Chinese factory also works with Hewlett Packard, Best Buy, Samsung, Foxconn, Acer, Wi/IFC/Logitech and Asus-Rd, etc.

The allegations indicate that workers are adversely impacted by the conditions at KYE, with all Chinese labor laws violated. KYE is reported to hire underage students, paying them only 52 cents after money is deducted for food, and setting goals as high as 2,000 mice per day. At the same time, allegations made against KYE reveal that workers are prohibited to leave the factory outside of regulated hours, that no bathroom breaks are allowed during working hours, and that they are harassed by the security staff.

“As a company that sells a wide range of hardware and devices, we take very seriously our corporate responsibility to ensure that the manufacturing facilities and supply chain operations that we use comply with all relevant labor and safety requirements and ensure fair treatment of workers. We have rigorous standards in place, and have established a robust supplier Social and Environmental Accountability (SEA) program,” Brian Tobey, corporate vice president, Manufacturing and Operations, Entertainment and Devices, noted.

Tobey expressed concern in relation to the NLC report, explaining that a team of independent auditors had been displaced to look into the matter. The promise from Microsoft is that it will take appropriate action in the eventuality that it will find KYE did not adhere to its standards.

“We should note that as part of Microsoft’s ongoing supplier SEA program, an independent auditor has been inspecting the KYE factory annually. In addition, Microsoft personnel conduct quarterly on-site assessments, and receive weekly reports from KYE on key labor and safety criteria that we monitor as part of our supplier SEA program. Over the past two years, we have required documentation and verification of worker age, and no incidence of child labor has been detected. Worker overtime has been significantly reduced, and worker compensation is in line with the Electronic Industry Citizenship Coalition standards for the Dongguan area,” Tobey said.