Apple suspends Chinese iPhone maker over labour abuses - FT

Before October Pegatron used thousands of student interns to put iPhones together at its plant in Kunshan near Shanghai, the FT said. The students worked illegal overtime and nightshifts, former workers told the FT.

Students told the paper they were forced by their schools to intern at the factory to graduate with degrees such as graphic design and computer science with few links to factory work.

Apple said: "Apple has placed Pegatron on probation and Pegatron will not receive any new business from Apple until they complete all of the corrective actions required." The company did not tell the FT how it defined "new business" and what the effect of the probation would be for Pegatron.

Apple has faced criticism before over the manufacture of iPhones in China. Its main supplier, Foxconn, has been linked to labour abuses on several occasions. Investors are keeping a closer watch on companies' treatment of workers as part of greater scrutiny of businesses' social impact.

Schools and local governments in China often work together to make sure big companies have enough labour. Apple said an intern's work should be related to their degree and that they should not work overtime or night shifts.

"Pegatron misclassified the student workers in their programme and falsified paperwork to disguise violations," Apple said.

Apple's product launches put pressure on its suppliers to increase staff numbers and working hours to cope with a surge in orders.

A former Pegatron worker told the FT people were forced to work 12-hour days at the factory to deal with rush orders or make up for others workers quitting. "Sometimes you get orders you can't complete - 600 to 1,000 [iPhones] per hour - and then they don't let you take lunch," the former worker told the paper.