NEW YORK – A recent China Labor Watch report reveals labor violations in Chinese electronics factories.

The 136-page report focuses on ten factories that supply finished manufactured electronic products to the likes of Dell, Salcomp, IBM, Ericsson, Philips, Microsoft, Apple, HP, Nokia and others. 

An investigation found that factory workers were required to work an excessive amount of overtime hours, especially during the peak manufacturing season.

All of the electronics factories investigated required staff to work between 36 and 160 hours of overtime per month. No one investigated factory was found to be in strict compliance with China’s labor laws regarding overtime hours, says CLW. In many cases, workers were coerced into working overtime hours ‘voluntarily’ to earn a monthly salary that would pay for basic living costs.

The minimum monthly wage found in nine investigated factories did not adequately provided workers with the financial means to afford basic living costs.

The level of labor intensity was found to be extremely high in all ten factories investigated. On one HP assembly line, workers were required to complete their assigned task every three seconds, while continually standing over a ten-hour period, says CLW. The high level of labor intensity left workers more prone to developing long-term occupational illness or injury.

Investigators found that many factories were signing coercive labor contracts with workers. In many cases, workers were not properly informed about the specific details of their contracts.

All ten factories investigated were found to have discriminatory recruiting practices, hiring only young and healthy candidates, while restricting against others based on age, gender, or medical condition, specifically those infected with Hepatitis B, according to CLW.

CLW believes the inhuman working conditions found in these factories not only reflect severe problems in China’s electronic manufacturing industry, but also reveal serious systematic problems in the international electronics industry as a whole. 

The investigations took place over an eight month period from October 2010 to June 2011; 408 workers were interviewed in Guangdong and Jiangsu provinces.
Investigators posed as workers to gain access into the factories.

For a full report, visit http://chinalaborwatch.org/pdf/20110712.pdf. 

GLENVIEW, IL – Illinois Tool Works today reported second-quarter 2011 revenues of $4.62 billion, up 17.5% versus the year-ago period.

ELKHART, IN – CTS Corp. today posted second-quarter 2011 revenue of $146.9 million, up 6% year-over-year.

Net earnings were $4.1 million, down 30.5% compared to the second quarter of 2010.

Earnings decreased year-over-year primarily as a result of lower expected automotive sales from the disruption caused by the Japan earthquake. However, these sales shortfalls are anticipated to begin to recover in the fourth quarter, as OEM production ramps up and inventories are replenished, the firm says.

Components and Sensors segment sales decreased $4.2 million (6%) from the same quarter last year, primarily due to a 10% decrease in automotive product sales. Electronic component product sales were flat year-over-year. The company estimates second-quarter impact from the Japan earthquake on this segment’s sales was a decrease of approximately $6 million to $7 million.

EMS segment sales were up $12.3 million (18%) year-over-year, with increases reported across all markets served. This growth resulted from new program launches with existing and new customers, primarily driven by a 46% increase of sales into industrial markets.

 “While our second-quarter results were in line with expectations, we look forward to a stronger second half as we begin to launch new programs like piezoceramic elements for disk drive applications, a global pedal program and increased sales to our key Japanese automotive OEMs, who will begin to ramp up their production. Our key initiatives to further improve our cost structure include expanding our low cost facilities in Mexico and Thailand, and starting up a new manufacturing facility in India, which is slated to be operational later this year,” said Vinod M. Khilnani, CTS Chairman and CEO.

The firm maintains full-year 2011 guidance of a sales increase in the range of 9% to 13% over 2010.

CTS designs and manufactures electronic components and sensors, and provides electronics manufacturing services to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets.

BANNOCKBURN, IL – IPC has released the B revision of IPC-CH-65, Guidelines for Cleaning of Printed Boards & Assemblies.

SAN JOSE – Electronics manufacturing services provider Sanmina-SCI Corp. today reported third-quarter net sales of $1.67 billion, up 6.7% sequentially and 2.5% year-over-year.

Net income for the quarter was $7.2 million, down 66.7% compared to the same period in 2010.

FORT COLLINS, CO – FCT Assembly has relocated its operations here to a larger facility.

The 1,974 sq. ft. site allows the firm to bring in new equipment and capabilities to meet growing service demands. 

“We have expanded our operations in Fort Collins to accommodate the growth in both our FCT Assembly and FCT Recovery businesses,” said Mike Scimeca, president and CEO.

FCT Assembly manufactures Pb-free solder products, stencils and precision laser cut parts.

SCOTTSDALE, AZ – Small office (one to four employees) spending on broadband IP telephony will increase 83% from 2010 to 2015, says In-Stat.

“Broadband IP telephony offers a number of advantages for small businesses and SOHO; primary among them is the low monthly service fee and negligible costs for long distance,” says Greg Potter, research analyst. “Unfortunately it does not provide the scalability associated with hosted and IP PBX solutions. It also does not typically come with the service level agreements and quality-of-service afforded by other solutions, which are general requirements for enterprise and medium-sized businesses.”

Also, traditional TDM is set to decline to just under $14.5 billion in 2015.

Application-based VoIP will increase more than 50% from 2010 to 2015.

As a segment, mid-sized business (100 to 999 employees) spending will have the greatest growth, increasing in excess of 10% between 2010 and 2015.

And the professional services vertical market segment will spend more than $3 Billion in 2013, says the research firm.

HONG KONG – World Semiconductor Trade Statistics expects the global semiconductor market to increase 5.4% in 2011, 7.6% in 2012 and 5.4% in 2013.

The WSTS forecasts the semiconductor market to reach $338.4 billion in 2012, following an increase to $314.4 billion in 2011.

The industry is now expected to top $356.6 billion in 2013, with a three-year CAGR of 6.13% from 2010 to 2013.

In 2010, the industry recovery – driven by enterprise and consumer spending – resulted in 31.8% growth, totaling $298.3 billion. 

FRAMINGHAM, MA – Worldwide semiconductor revenues will grow 5% year-over-year in 2012 and will achieve a compound annual growth rate (CAGR) of 6% through 2015, said International Data Corp. in its semiannual forecast.

TORONTO -- Celestica reported second-quarter net profits more than tripled over last year to $45.7 million, but said economic volatility would continue to affect customer demand.

SAN JOSE – Flextronics on Thursday reported fiscal first-quarter net sales of $7.55 billion, up 15% year-over-year.

WASHINGTON – The State Department has released a document that guides commercial entities concerning the legislation involving conflict mineral requirements.

The Department says it is “critical” to “begin now to perform meaningful due diligence,” even though guidance could be revised after final regulations are issued by the Securities and Exchange Commission later this year.

State is encouraging firms to begin immediately to structure supply chain relationships in a responsible manner to encourage conflict-free trade, including conflict-free minerals sourced from the DRC and the Great Lakes region.

Conflict minerals include columbite-tantalite (coltan), cassiterite, gold, wolframite and derivatives.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, certain persons who use these minerals must disclose to the SEC whether those minerals originated in the Democratic Republic of the Congo or a nearby country, where mining has aided in the finances ongoing civil war and related human rights violations.
The department specifically endorses the guidance issued by the Organization for Economic Cooperation and Development. The OECD framework includes the following: establish strong company management systems, identify and assess risk in the supply chain, design and implement a strategy to respond to identified risks, carry out independent third-party audit of supply chain due diligence at identified points in the supply chain, and report on supply chain due diligence.