TAIPEI (Taiwan News) – The labor rights group China Labor Watch (CLW) published a report on Sunday (Sept. 8) detailing labor violations at a Foxconn factory in Zhengzhou that manufactures products for the Apple corporation.
The facility is called “iPhone City” and is reportedly the largest iPhone factory in the world, supplying half of the iPhones sold worldwide. CLW conducted an investigation of labor conditions at the factory over a four year period and found that Foxconn and Apple are responsible for some significant abuses of the Chinese laborers.
According to the CLW report, the factory has used dispatch workers as well as student workers in excess of the legal limit to ensure orders are met during peak season. The company has also allegedly withheld promised bonuses and made use of overtime work opportunities in an illegal reward/ punishment scheme as a means to entice employees into recruiting new workers.
The report says that Foxconn has become increasingly reliant on dispatch labor to make up for a diminished labor force. The Zhengzhou factory workforce is made up of nearly 50 percent dispatch laborers. The report also accuses the Apple Corporation of transferring its increasing costs as a result of the U.S. –China trade war onto the factory laborers in China. From the report’s Executive Summary:
“Recent findings on working conditions at Zhengzhou Foxconn highlights several issues which are in violation of Apple’s own code of conduct. Apple has the responsibility and capacity to make fundamental improvements to the working conditions along its supply chain, however, Apple is now transferring costs from the trade war through their suppliers to workers and profiting from the exploitation of Chinese workers.”
Foxconn was recently criticized by CLW for labor rights violations at a factory in Hengyang, China which manufactures products for Amazon. A list of reported labor rights violations perpetrated by managers at the Zhengzhou factory and the Apple Corporation, along with the complete report, can be found at China Labor Watch’s website.
There is major disruption to British Airways’ bellyhold cargo operations as the airline’s pilots carry out strike action today and tomorrow.
The strike is the result of an ongoing dispute about pay between British Airways and the pilots’ union BALPA.
The industrial action is the largest ever carried out by British airways with some 1,700 passenger flights being cancelled, thereby grounding bellyhold cargo, which is managed by IAG Cargo.
A statement released today by British Airways, explained: “Unfortunately, with no detail from BALPA on which pilots would strike, we had no way of predicting how many would come to work or which aircraft they are qualified to fly, so we had no option but to cancel nearly 100 per cent our flights.
“We remain ready and willing to return to talks with BALPA.”
Another statement released by IAG Cargo last week said: “BALPA’s unjustifiable strike action does affect parts of our cargo operations.
“Our British Airways schedules have been updated and are now reflected on ba.com. We are working on limiting the operational impact this unacceptable action will have, and we will continue to keep customers updated with the latest information.”
If the dispute is not resolved in future talks – which are as yet unplanned – between British Airways and BALPA, then pilots plan to strike again on September 27.
BALPA said Sunday on Twitter that it put forward a proposal to the carrier's management Wednesday, but had yet to receive a reply.
British Airways said in a statement posted Monday it remains "ready and willing to return to talks with BALPA."
The airline said it was forced to cancel so many flights because "with no detail from BALPA on which pilots would strike, we had no way of predicting how many would come to work or which aircraft they are qualified to fly."
Customers who had flights booked for Monday and Tuesday will likely "not be able to travel as planned," British Airways said. The airline also advised customers not to go to the airport.
According to its website, BALPA represents more than 10,000 pilots in the United Kingdom — more than 85% of all commercial pilots who fly there.
The pilot's union also intends to strike September 27. British Airways said Monday that it will be in contact "in the next few weeks" to let customers who are traveling on or around that date know if they are affected.
While the union is calling for higher wages, British Airways has said its offer of an 11.5% increase over three years "fair" and above the United Kingdom's current rate of inflation. In a statement released last month, it said the strike could "destroy the travel plans of tens of thousands of our customers." It called the strike "a reckless course of action."
BALPA said Sunday on Twitter that it put forward a proposal to the carrier's management Wednesday, but had yet to receive a reply.
British Airways said in a statement posted Monday it remains "ready and willing to return to talks with BALPA."
The airline said it was forced to cancel so many flights because "with no detail from BALPA on which pilots would strike, we had no way of predicting how many would come to work or which aircraft they are qualified to fly."
Customers who had flights booked for Monday and Tuesday will likely "not be able to travel as planned," British Airways said. The airline also advised customers not to go to the airport.
According to its website, BALPA represents more than 10,000 pilots in the United Kingdom — more than 85% of all commercial pilots who fly there.
The pilot's union also intends to strike September 27. British Airways said Monday that it will be in contact "in the next few weeks" to let customers who are traveling on or around that date know if they are affected.
While the union is calling for higher wages, British Airways has said its offer of an 11.5% increase over three years "fair" and above the United Kingdom's current rate of inflation. In a statement released last month, it said the strike could "destroy the travel plans of tens of thousands of our customers." It called the strike "a reckless course of action."
Many younger workers put off saving for retirement so they can focus on goals like paying off their student debt or buying a home. But if you've reached your 50s and have no money at all in a dedicated retirement savings plan, consider it a wake-up call to start doing better. Here are three critical moves to make if that's the situation you're in.
1. Cut back on living expenses big time
If you're without retirement savings, chances are it's because you're in the habit of spending your entire paycheck. Getting on a serious budget and making lifestyle adjustments could therefore be your ticket to carving out some money for your nest egg and salvaging your retirement in the process.
IMAGE SOURCE: GETTY IMAGES.
Once you have your budget set up, comb through it to see where your money is going, and commit to making a few major changes that free up cash. That could mean downsizing to a smaller home, going car-less if there's low-cost public transportation where you live, or eating at home rather than dining out three or four times a week. Smaller changes, like downgrading your cable plan, will help, too, but if you're without retirement savings at all, you'll need to think big to make a difference.
2. Start making catch-up contributions to your IRA or 401(k)
The good thing about being in your 50s is that you're allowed to contribute more to a 401(k) or IRA than younger folks. Currently, workers 50 and older can put up to $25,000 a year into a 401(k) and up to $7,000 into an IRA. Those under 50, meanwhile, max out at $19,000 and $6,000, respectively.
Of course, if you're not in the habit of saving any money at all for retirement, it'll no doubt be a challenge to max out either account type. But let's assume you're housing your savings in an IRA. If you were to sock away $6,000 a year for the next 15 years and invest your savings at an average annual 7% return, you'd wind up with about $151,000. On the other hand, if you were to take advantage of that $1,000 catch-up and instead save $7,000 a year, you'd retire with around $176,000, assuming that same time frame and return on investment. That extra $25,000 could make a huge difference during your golden years, so it pays to push yourself to come up with that additional $1,000 annually.
3. Get a side hustle
There may come a point when you can only cut back on so many expenses or make so many sacrifices to free up cash for your nest egg. If you've exhausted those options, it may be time to consider a side hustle. Of the millions of Americans who have a second gig on top of a main job, 14% are taking on that extra work for the express purpose of saving for retirement.
Not only might a second job help you give your 401(k) or IRA a much-needed boost, but it might also be a gig you're able to continue doing during retirement to supplement your income down the line. And if you've reached your 50s without savings, chances are, you'll need all the money you can get once your full-time career comes to an end.
As of 2016, only 52% of workers 55 and older were saving for retirement in a 401(k) or IRA, according to the U.S. Government Accountability Office. Meanwhile, Social Security will replace only about 40% of the average worker's pre-retirement income, and most seniors need close to double that amount to live comfortably. If you're in your 50s without savings for your golden years, it's time to make some serious changes. Otherwise, you'll risk struggling financially when the time comes to finally leave the workforce.
Keijiro Nawata’s mother, Yaeko Nawata, who suffers from dementia, was sold multiple insurance policies by government-controlled Japan Post.
Photo:
Ko Sasaki for The Wall Street Journal
SANYO-ONODA, Japan—
Keijiro Nawata,
a 38-year-old truck driver, had finished the day’s deliveries and was changing his truck’s oil in the shop one day in June last year when an uncle called saying something was wrong. Mr. Nawata’s mother had received a letter urging her to pay $3,600 in overdue life-insurance premiums, the uncle said.
Mr. Nawata immediately called the insurance office and set up a meeting for the next day, where the news got worse. He discovered that salesmen had persuaded his mother, who suffers from dementia, to take out a dozen policies costing her $2,400 a month—twice her income. She had even been induced to get a $7,000 bank loan to cover payments when she ran out of money.
The company selling all those policies was no fly-by-night operator. It was government-controlled
Japan Post Holdings Co.
6178 0.42%
, one of the world’s largest financial groups, with trillions of dollars in assets.
“I couldn’t believe it, because I had absolute trust in the post office,” said Mr. Nawata as he showed the pile of contracts with his mother’s shaky signature. “This is very much like the work of gangsters.”
What happened to 71-year-old
Yaeko Nawata
and tens of thousands of other Japan Post policyholders has now ballooned into the biggest scandal since the company’s partial privatization a decade ago and highlighted the pressure that rock-bottom interest rates may be putting on institutions around the globe.
The family sifted through stacks of papers, noting each policy and each payment.
Photo:
Ko Sasaki for The Wall Street Journal
When longer-term rates are negative—as in Japan and parts of Europe, including Germany—it is hard to profit from the difference between short-term and long-term rates, the bread and butter of banks and insurance companies. The U.S. is also experiencing near-record-low interest rates that some economists believe may last for years.
Japan Post said that over the past five years, it sold some 183,000 policies that may have gone against customers’ interests. The company is conducting an internal investigation of the matter.
Japan Post’s core life-insurance products are more like savings plans because they promise returns to policyholders even while they are living. When interest rates were 5% or 6%, Japan Post could offer attractive plans simply by investing in government bonds and letting the interest compound for decades. Today, savers might do as well stuffing their money under a mattress.
“Because of low interest rates, savings-style insurance is not very popular,” Japan Post Holdings President
Masatsugu Nagato
said at a news conference July 31.
“It’s now very hard” to sell policies, said
Masahiko Suzuki,
who has worked as a salesman for three decades at a central-Japan post office. Elderly people, he said, have good memories of the days when the products were more attractive, “so it’s easy to trick them.” Mr. Suzuki said he refused to do that and was a low performer.
One of the salesmen who sold policies to Ms. Nawata,
Koichi Tokutomi,
raised his voice when The Wall Street Journal called and asked about the case. “Why are you calling only me? I’m not the only person who does this!” Mr. Tokutomi said.
He is still employed at the post office in Sanyo-Onoda, an industrial seaside town with cement factories along the coast. Officials at the post office referred questions to Tokyo headquarters, where a spokeswoman declined to comment on the case.
The post office in Sanyo-Onoda, Japan.
Photo:
Ko Sasaki for The Wall Street Journal
Japan Post has apologized and said it would do its best to recover customers’ trust. At the July 31 news conference,
Kunio Yokoyama,
president of Japan Post Co., said, “I strongly regret” that unrealistic goals “put a lot of pressure on our employees.”
The 148-year-old financial behemoth has long been about more than just delivering the mail. With savings accounts and life-insurance policies, Japan Post brought modern finance to all corners of the nation with a network that now includes 24,000 post offices.
Japan Post Holdings Co. went public in 2015 along with its banking and insurance subsidiaries. The government now owns 57% of the holding company, which in turn owns 64.5% of the insurance unit.
As of last year, nearly 90% of Japanese households had insurance policies, with about four per household on average, according to the Japan Institute of Life Insurance.
But the industry has been through a rough period. Several insurance companies went bankrupt around the turn of the century, when the
Bank of Japan
’s benchmark rate was headed to zero for the first time. Overall, industry revenue has fallen nearly 40% since 2011, and the number of policies held at Japan Post has fallen by nearly half over the past decade to 29 million.
The insurance institute’s surveys released last year found that while Japan Post’s policies are seen as less attractive, it still received top ratings for trustworthiness.
Many customers are hanging on to lucrative older policies sometimes known as treasure insurance.
Kyoko Okamoto,
a 66-year-old who works part time at a parcel-delivery company, said she signed up for insurance when she was 20 and took out a loan from the post office to pay premiums when she was going through a rough patch. She said the terms were favorable by today’s standards and she has been collecting about $9,500 every five years, with the first payout coming at age 60 and the last to come at age 75. “I’m glad that I could manage to cling to it,” she said.
A poster inside of the Sanyo-Onoda post office advertising one of the products sold by Japan Post.
Photo:
Ko Sasaki for The Wall Street Journal
Some sales representatives try to persuade people to exchange their treasures for the insurance equivalent of trinkets: new policies with lower returns. Japan Post says its improper sales methods included charging policyholders twice for overlapping coverage.
Commissions account for 25% of annual income for the median postal salesperson, according to Japan Post, which cut salespeople’s base salaries in 2015 to emphasize incentive pay. Low performers have been sent to training where they were berated and humiliated with comments such as, “You’re useless!” said
Kazuhiro Kamon,
vice chairman of the labor union for the postal industry. Japan Post spokesman
Hideo Murata
said such training may have happened in the past but the company now offers proper training.
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What lessons about consumer protection can be learned from Japan Post’s sales practices? Join the conversation below.
At her spacious traditional home, Ms. Nawata, still wipes the wooden hallway floors every day and feeds stray cats that come to her Japanese garden, despite advancing dementia. When her 38-year-old younger son visited on a recent Sunday with a reporter, she said happily to him, “Oh, my goodness, you have become taller!”
According to Mr. Nawata, two salesmen visited his mother in May 2017, a month after
Japan Post Insurance
7181 0.26%
raised some premiums to reflect lower expected interest rates. Among the policies she was induced to buy were two from
Aflac Inc.
AFL 0.86%
The U.S. company declined to comment about Ms. Nawata and said it was looking into sales practices.
It took months for Mr. Nawata and his uncles to sort stacks of papers. They wrote down by hand each policy and each payment.
After half a year, the family managed to cancel all Ms. Nawata’s policies and get back the money she paid.
“I should have paid more attention to my mother. But the bonds with my family are now stronger,” Mr. Nawata said. He used to visit his mother only on weekends, but now stops by after work almost every day.
Keijiro Nawata and his mother, Yaeko Nawata, in her home in Sanyo-Onoda.
Photo:
Ko Sasaki for The Wall Street Journal
Fox Business' Edward Lawrence spoke about how many jobs were added in August and about the Federal Reserve's Jerome Powell's take on the trade war in relation to the U.S. economy.
Hours after Federal Reserve Chairman Jerome Powell said he did not see the U.S. sliding into a recession despite uncertainty surrounding the U.S.-China trade war with China, President Trump had a few words for Twitter followers about China’s economic strategy.
“China just enacted a major stimulus plan. With all the Tariffs THEY are paying to the USA, Billions and Billions of Dollars, they need it! In the meantime, our Federal Reserve sits back and does NOTHING!” he wrote in the tweet.
The People’s Bank of China Friday, in a statement on its website, said it would cut the amount of cash that banks are required to hold in reserve. The shift pivots the country to the lowest level of capital reserves since 2007.
China’s stimulus package is estimated to bring an added $126 billion in available loans to kick-start growth.
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Powell on Friday, while speaking in Zurich, Switzerland, said he “wouldn’t see the recession as the most likely outcome in the U.S.”
“The most likely outlook is still moderate growth, a strong labor market and inflation continuing to move back up," he said.
When asked if he felt whether politics influenced decisions by the U.S. central bank, he was emphatic.
“Political factors play absolutely no role in our process, and my colleagues and I would not tolerate any attempt to include them in our decision-making or our discussions," he said.
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Trump has often criticized Powell for stifling economic growth by raising interest rates in 2018.
In July, Fed policymakers cut interest rates for the first time since the financial crisis. They are expected to lower rates by another 25 basis points during their upcoming meeting on Sept. 18.
