TAIPEI -- Pegatron is denying accusations by a non-governmental organization that the ODM/EMS is violating customer and Chinese mandates covering worker overtime.

The company says workers at its Shanghai plant work less than the maximum 60 hours a week as mandated by Apple, its major customer, and far less than the limit of 76 as regulated by Chinese law. 

The firm also asserts that workers are paid higher than the minimum monthly wage of $330 as established by the Shanghai Municipal Government in April.

A report issued last week claims that after Shanghai raised the local minimum wage, Pegatron cut welfare and sharing insurance payments to workers, which had the net effect of decreasing total income.

China Labor Watch also says a review of 2015 paystubs showed 62% had over 82 hours of overtime work per month, with one worker accumulating 109 hours of overtime work per month, for a total of 293 hours.

CLW added that the net effect of the benefits cuts reduced the average worker hourly wage to $1.60 from $1.85 a year ago, less than the $2 floor set by the government.

Register now for PCB West, the Silicon Valley's largest trade show for the printed circuit industry, taking place Sept. 13-15 in Santa Clara: pcbwest.com