Harsh NGO Criticism – The Electronics Giants and Their “Debt Slavery”

The situation in the Philippines, according to the report one of the most important countries in terms of electronics production, was mentioned as a case study. The wages paid there are six dollars for eight hours of work – not enough to feed the family. Julius Carandang, a member of the Metal Workers Alliance of the Philippines, told the NGOs in a video interview published on the air that the unions would work for wage increases, but membership is often associated with repression.

12 hours a day, 7 days a week
In another video interview taken in the Philippines, a woman who spent 19 years as a solderer at MEC Electronics reports that employees of the company, which makes power cords, among other things, are paid only $210 a month. – which would be equivalent to about a third of the living wage. She works twelve hours a day, seven days a week. Union membership is prohibited by management.

“Workers in China, Taiwan, Vietnam, the Philippines, Indonesia, Thailand and India all reported being forced to work overtime and denied protection from toxic chemicals. Working hours of 70 hours per week are the rule rather than the exception, and information about the safe handling of chemicals is usually lacking,” summarizes the human rights organization Südwind. The problem differs, on the one hand a kind of debt slavery would be a problem in Thailand and Taiwan, while in China and Indonesia there would be forced internships for students in companies, the activities of which would have nothing to do with the education in question.

Migrant workers in forced labour
Using the term forced labour, the report said that “most” electronics factories in Taiwan would hire migrant workers from Southeast Asian countries. These employees would have to pay a placement or recruitment fee in advance to an agency in their home country. Loans would then have to be taken out for this, with which the workers already end up with debts to their employer.

The practice also exists in Thailand, which would mean “excessive and unlawful recruitment costs and associated costs of 30-90 days” wages. However, there were also reports from the EU itself, there were reports from production countries such as Poland or the Czech Republic that companies here would deliberately deploy foreign employees with an uncertain residence status, because they would then be less able to defend themselves against the terms of employment.

Opaque and complex supply chains
The supply chains for electronic products are becoming increasingly opaque and complex – and the industry behind them is also one of the largest sectors of the economy from a global perspective. But over the past four decades, a system of “manufacturing to order” has developed in this industry, allowing major brands to produce and sell goods without owning a single factory,” the report said, citing various production models such as Electronic Manufacturing Services (EMS) to Original Design Manufacturing (ODM) to Joint Design Manufacturer (JDM).

In response to the above conditions, Südwind in the Global North is calling for a legal framework for mandatory due diligence along the entire supply chain and increased commitment to sustainable electronics at all levels. “From public procurement through to private consumption, reparability, reusability and professional disposal of devices should become guiding principles,” says René Schuster, an expert on fair supply chains at Südwind. A large part of the total electronics production is also purchased from the government. Public procurement can therefore play an important role in the transition to fairer working conditions.