An audit of Apple's largest products manufacturer, Foxconn, located in China, found serious and pressing Chinese labor laws violations.
Apple commissioned the Fair Labor Association in February to audit the manufacturer's factories, following a spate of negative publicity about the working conditions there, including accidents that led to worker deaths.
Fair Labor Association inspectors found at least 50 labor violations, according to the association's report, including excessive work hours without days off. It said Foxconn would enter into compliance by reducing working hours to be within legal limits by July 2013 and will compensate workers for lost overtime pay.
Foxconn has agreed to enhance workers' participation in committees and other union structures, the report read. In keeping with local laws, Foxconn has agreed to ensure elections of worker representatives without management inteference. All workers will receivea copy of the Collective Bargaining Agreement.
Improved labor conditions will lead to higher production costs, but Apple is expected to maintain its profit margins by increasing the prices of its popular products like the iPhone and iPad, shifting the extra cost onto consumers.
Foxconn has agreed to achieve full legal compliance regarding work hours by July 1, 2013, while protecting workers' pay, the company was quoted as saying in its report.