This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

HP Sets New Rules for Student Labor in China

NEW YORK ( TheStreet) -- Hewlett-Packard (HPQ - Get Report) 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 - Get Report) 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: tips@thestreet.com.
Gary Krakow is TheStreet's senior technology correspondent.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $122.77 0.00%
HPQ $30.25 0.00%
FB $94.20 0.03%
GOOG $627.26 0.00%
TSLA $253.39 0.15%

Markets

Chart of I:DJI
DOW 17,440.59 -127.94 -0.73%
S&P 500 2,067.64 -12.01 -0.58%
NASDAQ 5,039.7760 -48.8540 -0.96%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs