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MARCH 2016
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The truth behind our tech
14 Crazy days
Gershon Nimbalker
Over 50 electronics companies have failed to make the grade on forced labour, child labour and exploitation in the 2016 Electronics Industry Trends report released by Baptist World Aid Australia. Smartphones, televisions, tablets, computers, navigators, gaming consoles and, now, wearable tech is everywhere. Brands like Apple, Samsung, Microsoft and Google are all global household names. Between them, they rake in hundreds of billions of dollars in revenue each year and have supply chains so vast that they employ millions of people from across the planet. The products these companies produce have changed our lives and, in the process, changed the world, sadly though, there is a dark side to our global tech addiction. The report released in February showed the electronics
industry has not made sufficient progress in implementing steps to protect workers. Of the 56 companies assessed, none received an A grade and the median score was C. The report assessed many of the world’s most valuable companies including Apple, Intel, Microsoft, Samsung and Sony. Baptist World Aid Australia Advocacy Manager Gershon Nimbalker said forced labour, child labour and exploitation remain as significant problems in the supply chain of the electronics industry. “This is the most valuable industry in the world, worth
in the trillions. If anyone can afford to ensure they have an ethical supply chain, it’s our big tech companies,” he said. The report graded electronics companies from A to F on the practices and policies they have in place to mitigate the risk of forced labour, child labour and exploitation. The grading reports on the levels of visibility and transparency these companies have across their key supply chain production phases: raw materials level – extraction of minerals; inputs level – smelting and refining and/or component manufacturing; and final manufacturing. Since the report’s release in 2014, 64 percent of companies showed some improvement, however no companies have improved their practices and policies enough to earn an A grade. Garmin and Dick Smith are amongst the best performers (B grade), and the only two
companies to demonstrate any measures to address poverty level wages. Thermomix, NutriBullet and GoPro were amongst the worst, performing at D-. According to the report no company provided evidence that they had actively implemented a living wage for their workers. A living wage was defined as a wage that is sufficient for workers to ensure they can afford basic necessities for themselves and their dependants – food, water, shelter and electricity – with a little left over for discretionary spending or emergency savings. “The median C grade suggests workers remain overworked and underpaid, working long shifts with little rest, and wages so low families struggle to make ends meet. This lack of a living wage was a top concern as it meant workers still would not be able to afford the basics,” Gershon said. }} Continued on page 8
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