Street Insider is reporting that Standpoint Research Analyst Ronnie Moas, has downgraded Apple stock from Hold to Sell because of poor working conditions in China.
According to Ronnie Moas:
“For Apple Computers to pay their workers $2 an hour while they have $150 billion in the bank is nothing short of obscene… They have workers who are doing back-breaking and eye-burning work in depressed states of mind and in many instances have already committed suicide. Instead of treating their employees like human beings, they are treated like animals. If it were not for their employees, Apple would not be where it is today. But instead of giving these people a better life, they give these people the bare minimum and defend this action with the argument that the wage is higher than the average there and in-line with what their competitors are paying.”
While Ronnie Moas stand against deplorable working conditions in factories building Apple’s products China has to be applauded, I’m not sure whether this is another stock manipulation tactic or a suicide research note to investors.
Under Tim Cook‘s leadership, Apple has taken significant steps to address many of the issues Ronnie Moas highlighted in his report. Readers can find out more about what Apple is doing on the company’s Supplier Responsibility page.
Here’s what Dionne Harrison, Business and Capability Director, Impactt Limited – has to say about Apple:
“In our experience, Apple is a leader in the field of responsible child labor remediation. The issues found by Apple are indicative of the tightening labor market in China and a changing social landscape. Apple is working hard with suppliers to support them to develop responsible recruitment systems. When it finds child labor, Apple acts swiftly to protect the best interests of the child and support children to return to their families and education. We are now starting to see these children’s achievements and the improved life choices now available to them.”
Image Credit: Apple
