Social Impacts of the Production of Notebook PCs by Andreas Manhart & Rainer Grießhammer LCM 2007, Zürich, August 27-29
Various social trouble spots in the life cycle of ICT products Growing consumer concerns
BMBF: Case study computer & Methodology development to integrate social aspects into LCA
All companies in the supply chain meet a required set of minimum standards? 1 Notebook contains : - 1.752 working hours - less than 0,00002 accidents - no occupational diseases
The Computer s Life Cycle Focusing on social aspects L i f e C y c l e o f C o m p u t e r s Resource Extraction Hardware Manufacturing Use Disposal & Recycling World Bank FIAN FFI CAFOD SOMO Corporate data WSIS EMPA StEP Greenpeace
Supply Chain Simplification Notebook Network Interface Mainboard Boards & Cards Card Case CPU Printed Printed Circuit Circuit Printed BoardsCircuit Board Board Passive Inductors Inductors Electronic Components Resistors Resistors Si-Wafer Copper Foil Copper Foil Epoxy Resin Copper Foil Epoxy Resin Epoxy Resin Plastic Silica Sand Copper Ore Copper OreCrude Oil Copper Ore Crude Oil Oil Crude Oil
Developing Social Indicators A. Employees A.1 Safe & healthy working conditions A.2 Freedom of association, right to collective bargaining & workers participation A.3 Equality of opportunity and treatment & fair interaction A.4 Abolition of forced labour A.5 Abolition of child labour A.6 Adequate remuneration A.7 Adequate working time A.8 Employment security A.9 Social security A.10 Professional development A.11 Job satisfaction B. Local Community B.1 Safe & healthy living conditions B.2 Respect of human rights B.3 Respect of indigenous rights B.4 Community engagement B.5 Maintaining & improving social and economic opportunities C. Society C.1 Public commitments to sustainability issues C.2 Prevention of unjustifiable risks C.3 Employment creation C.4 Vocational training C.5 Anti-corruption efforts C.6 Social & environmental minimum standards for suppliers and co-operation partners C.7 Non-interference in sensitive political issues C.8 Contribution to the national economic development C.9 Prevention & mitigation of armed conflicts C.10 Transparent business information C.11 Protection of intellectual property rights D. Users / Consumers
Quantitative & Qualitative Indicators Quantitative and qualitative information of various sources Companies Labour rights activists Internet-sources Expert judgements
The Notebook Industry: Brandname-Companies Brandname Headquarter Dell USA No own production Hewlett-Packard USA No own production Lenovo (formerly IBM) China (formerly USA) No own production Acer Taiwan No own production Toshiba Japan No own production Fujitsu-Siemens Japan & Germany Own production (high-end only) NEC Japan No own production Sony Japan Own production (high-end only) Apple USA No own production Asus (= Asustek) Taiwan Own production
The Notebook Industry: Assembly-Companies Company Headquarter Production Sites Production volume 2006 Quanta Taiwan 22.000.000 Compal Taiwan 15.000.000 Wistron Taiwan, Philippines 11.000.000 Inventec Taiwan 7.000.000 Asustek Taiwan 6.500.000 Mitac Taiwan 2.500.000 Uniwill Taiwan 2.200.000 FIC Taiwan 2.000.000 Arima Taiwan 1.300.000 1.600.000 Twinhead Taiwan ca. 800.000 Clevo Taiwan ca. 800.000
The Notebook Industry: Supplier-Structure Battery-block assembly: Company Headquarter Production Simplo Taiwan GLW Taiwan New Sun Hong Kong Gold Peak Hong Kong Jingyou Vina Strongwill Sanger Hong Kong Hong Kong
The Notebook Industry: Supplier-Structure Battery-cell manufacturing: Company Headquarter Production Sites Market-share Sanyo Japan Japan 28% Sony Japan Japan, 15% Samsung SDI South-Korea South-Korea 12% MBI Panasonic Japan Japan 12% LG Chem South-Korea South-Korea, 7%
Social Indicators (for Chinese Factories) Workers: Remuneration: Working hours: Child labour: Forced labour: Freedom of association: Social insurances: Housing: Discrimination: Health & safety: 690 RMB (= 69 Euro) per month 196 hours / months officially, about 290 hours unofficially no major problem no major problem not guaranteed basic (legal obligations) Dormitories (8 persons per room) Young women preferred Partly hazardous work in component manufacturing On product level: Remuneration: Working hours: 1.0 2.0 Euro per notebook (assembly only) 2.5 3.0 hours per notebook (assembly only)
Some Problems & Findings 1.) Access to reliable data very difficult and time intensive 2,000 parts per notebook Nondisclosure widespread No sympathy of labour rights activists focus on improvements and not science 2.) In assembly no differentiation of brands and products possible Same wages Same working hours Same treatment Products of engaged companies and those of free riders would get the same ratings
Way Out 1.) Use data and information of various sources Companies, labour rights activists, newspapers, expert judgements 2.) Focus on hot-spots health & safety in parts manufacturing labour intensive productions 3.) Focus on improvements Evaluate on measures companies / governments / consumers could imply to improve the situation 4.) Measure the companies engagement
Measures towards FAIR electronics: IMPROVE the handling of critical production processes (chemicals) ALLOW independent reporting on working conditions (e.g. SA 8000) ESTABLISH durable and trustful business relations between brandname-companies, suppliers and sub-suppliers ( investments in social and environmental standards should not lead to disadvantages) ENCOURAGE workers to organise and participate TRAIN workers and management in labour rights issues ( national labour law, international standards (ILO)) COMMUNICATE with the consumers ( positive marketing of fair and sustainable products)
THANK YOU FOR YOUR ATTENTION! Contact: Dr. Rainer Grießhammer +49 (0)761 45295 50 r.griesshammer@oeko.de Andreas Manhart +49 (0)761 45295 44 a.manhart@oeko.de