NEW YORK (TheStreet) -- Hewlett-Packard (HPQ) has put its corporate foot down. The company told its Chinese manufacturing partners to stop using student "interns" as cheap labor to build its high-tech products.
Sound familiar? Apple (AAPL) has reported the same problem. And the gadget maker is now asking its partners to supply them with student-employment data to see exactly what's going on.
According to the New York Times, HP is taking the fight to the next level. It reportedly told partners that all student employment must be completely voluntary and that those students must be able to leave their jobs at any time they want without being punished for doing so. The jobs should also have some sort of connection with students' field of study.
The problem has been well-documented. In order to keep prices down, Chinese factories are turning to schools to keep their production lines going 24/7. The high-school age teens seek part-time jobs when school is in recess but are pressured to stay on during peak manufacturing months. Worker turnover is high, and manufacturers constantly need new sources of labor to fill their grueling and boring jobs.HP is also demanding that student/intern labor be no more than 20% of the total workforce at the factory during peak manufacturing periods -- and possibly half that number in the future. Foxconn (the contract builder for HP and Apple) says student labor usually hovers around 2.7% during the year. -- Written by Gary Krakow in New York >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV