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Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:09,000 --> 00:00:15,989 Tonight on Panorama, the truth about Apple and your iPhone. 2 00:00:16,000 --> 00:00:19,989 For the first time, secret filming from inside 3 00:00:20,000 --> 00:00:37,989 the high-security Chinese factories where Apple's products are made. 4 00:00:38,000 --> 00:00:43,989 The reality of life on the iPhone production line. 5 00:00:44,000 --> 00:00:58,989 That is surprising, and really shocking that they haven't been able 6 00:00:59,000 --> 00:01:03,989 to get this under control yet. With staff falling asleep as they work. 7 00:01:04,000 --> 00:01:06,989 When they fall asleep that way again and again, that means that 8 00:01:07,000 --> 00:01:09,989 the conditions of work are totally and physically intolerable. 9 00:01:10,000 --> 00:01:11,989 And we travel further down the supply chain to find 10 00:01:12,000 --> 00:01:18,989 children digging for the tin the industry needs. 11 00:01:19,000 --> 00:01:28,989 When you're up close, it is horrifying to see this. 12 00:01:29,000 --> 00:01:34,989 And find evidence that tin from illegal and dangerous mines 13 00:01:35,000 --> 00:01:41,989 The most valuable company in the world, that builds 14 00:01:42,000 --> 00:01:46,989 Described by those inside the machine. 15 00:01:47,000 --> 00:01:48,989 I just want the customers to know that Apple 16 00:01:49,000 --> 00:02:29,989 Apple is launching a new product - the iPhone 6 - 17 00:02:30,000 --> 00:02:42,989 Because the people round here you can see them cheering and 18 00:02:43,000 --> 00:02:47,989 I don't think any other company would do that. 19 00:02:48,000 --> 00:02:53,989 They do small things that make the customer feel a little bit happier, 20 00:02:54,000 --> 00:02:56,989 a little bit more excited about their products, and that's what 21 00:02:57,000 --> 00:03:02,989 At London's swanky Covent Garden store, there's 22 00:03:03,000 --> 00:03:09,989 Apple has an extraordinary relationship with its consumers. 23 00:03:10,000 --> 00:03:10,989 These people, they don't feel like customers, 24 00:03:11,000 --> 00:03:34,989 The iconic consumer accessories of our time, 25 00:03:35,000 --> 00:03:39,989 People describe Apple's products with words like: 26 00:03:40,000 --> 00:03:47,989 When have you ever heard anybody talk about other technology 27 00:03:48,000 --> 00:03:56,989 The stores are like boutiques - designs 28 00:03:57,000 --> 00:03:59,989 and products that people around the globe want to be seen using. 29 00:04:00,000 --> 00:04:07,989 I have an iPhone and a MacBook computer. 30 00:04:08,000 --> 00:04:15,989 Its image is part of its attraction and its success. 31 00:04:16,000 --> 00:04:18,989 It's almost like there is a kind of aura - that somehow Apple is 32 00:04:19,000 --> 00:04:25,989 better, in the things it produces, and the way it behaves. 33 00:04:26,000 --> 00:04:32,989 The products make Apple feel good too. 34 00:04:33,000 --> 00:04:39,989 Last year, Apple sold 169 million iPhones and 68 million iPads. 35 00:04:40,000 --> 00:04:56,989 And that makes them a spectacularly successful company. 36 00:04:57,000 --> 00:05:04,989 They made $39 billion profit last year, with $155 billion in the bank. 37 00:05:05,000 --> 00:05:10,989 All told, they're worth more than half a trillion dollars. 38 00:05:11,000 --> 00:05:14,989 Ralph Nader, who campaigns for more ethical business, 39 00:05:15,000 --> 00:05:20,989 says Apple should spend more of that money on its global workforce. 40 00:05:21,000 --> 00:05:25,989 Well, I would say that Apple is in the best position 41 00:05:26,000 --> 00:05:29,989 of any company in the world because of this massive surplus profit to 42 00:05:30,000 --> 00:05:33,989 clean up its supply chain and set an example for the rest of the world. 43 00:05:34,000 --> 00:05:36,989 But Apple says they're already doing more - that the business model is 44 00:05:37,000 --> 00:05:48,989 Apple doesn't just sell you its products. 45 00:05:49,000 --> 00:05:51,989 It offers an ethical production model. 46 00:05:52,000 --> 00:06:02,989 This promotional video is voiced by Apple's chief executive, Tim Cook. 47 00:06:03,000 --> 00:06:07,989 And an even stronger commitment to the environment for the future. 48 00:06:08,000 --> 00:06:12,989 He says Apple cares, from protecting people to protecting the planet. 49 00:06:13,000 --> 00:06:22,989 From environmentally to how you work with suppliers with labour 50 00:06:23,000 --> 00:06:26,989 questions, to your carbon footprint of your products, to 51 00:06:27,000 --> 00:06:33,989 the things you choose to support, to the way you treat your employees. 52 00:06:34,000 --> 00:06:36,989 Apple has made a series of promises about how the workers in 53 00:06:37,000 --> 00:06:46,989 Apple is clearly trying to make sure that it is seen to be an ethical and 54 00:06:47,000 --> 00:06:51,989 responsible company and therefore everybody's eyes are on the company 55 00:06:52,000 --> 00:06:55,989 to say, actually, are you fulfilling your purpose, are you being 56 00:06:56,000 --> 00:07:03,989 Apple seems to be the company that offers the whole package. 57 00:07:04,000 --> 00:07:07,989 But now, more than ever, we will work to leave 58 00:07:08,000 --> 00:07:15,989 Well, we want to investigate Apple's supply chain. 59 00:07:16,000 --> 00:07:25,989 The workforce, the raw materials and the factories. 60 00:07:26,000 --> 00:07:36,989 This is where the Apple dream is manufactured. 61 00:07:37,000 --> 00:07:40,989 China. Companies from around the world operate here, but an estimated 62 00:07:41,000 --> 00:07:52,989 An army manufacturing, testing and assembling. 63 00:07:53,000 --> 00:07:56,989 Without China, Apple wouldn't be the company it is today. 64 00:07:57,000 --> 00:08:01,989 No other country can provide labour so cheaply and make its products 65 00:08:02,000 --> 00:08:12,989 The products the world wants start their life 66 00:08:13,000 --> 00:08:15,989 at vast plants - like this one in the southern city of Shenzhen. 67 00:08:16,000 --> 00:08:25,989 It was 2010 when the world started to hear that 68 00:08:26,000 --> 00:08:51,989 14 workers killed themselves at Apple's biggest supplier, 69 00:08:52,000 --> 00:08:57,989 Long hours, harsh discipline and poor living conditions were all 70 00:08:58,000 --> 00:09:03,989 The company put up anti-suicide nets to make it harder for 71 00:09:04,000 --> 00:09:08,989 Foxconn says working conditions were not to blame, 72 00:09:09,000 --> 00:09:11,989 that wages have since been increased and working hours reduced. 73 00:09:12,000 --> 00:09:15,989 They say their new measures are saving lives. 74 00:09:16,000 --> 00:09:22,989 Apple's promise is to make things better. 75 00:09:23,000 --> 00:09:26,989 Since the suicides, it has published a set of standards to protect 76 00:09:27,000 --> 00:09:33,989 factory workers, spelling out how employees should be treated. 77 00:09:34,000 --> 00:09:37,989 I think what Apple's produced on paper all looks very good, 78 00:09:38,000 --> 00:09:41,989 in that they don't seem to shy away from reporting on the violations 79 00:09:42,000 --> 00:09:45,989 and the problems that they're finding in the factories. 80 00:09:46,000 --> 00:09:49,989 But they've got to go beyond these mere commitments 81 00:09:50,000 --> 00:09:53,989 on paper saying we're bound to do better, because it's not actually 82 00:09:54,000 --> 00:10:03,989 This company, Pegatron, now does some of the work. 83 00:10:04,000 --> 00:10:09,989 It has huge factories on the outskirts of Shanghai. 84 00:10:10,000 --> 00:10:13,989 Pegatron got Apple work after 2010 and the scandal of 85 00:10:14,000 --> 00:10:23,989 This is a company where the standards are supposed to be high. 86 00:10:24,000 --> 00:10:30,989 So have things really changed for the workers? 87 00:10:31,000 --> 00:10:35,989 A labour rights group has published critical reports about Pegatron 88 00:10:36,000 --> 00:10:56,989 and they say Apple must be aware of the problems. 89 00:10:57,000 --> 00:11:02,989 To test Apple's promise to protect workers, we need to go undercover, 90 00:11:03,000 --> 00:11:08,989 but that is not easy in an authoritarian state. 91 00:11:09,000 --> 00:11:19,989 Because of the risks, we will be protecting their identities. 92 00:11:20,000 --> 00:11:25,989 We want to know what life is like for an Apple worker. 93 00:11:26,000 --> 00:11:29,989 To get ready for the launch of the iPhone 6 and the Christmas 94 00:11:30,000 --> 00:11:33,989 rush, Pegatron is recruiting thousands more workers from 95 00:11:34,000 --> 00:11:39,989 Our reporter is at a recruitment centre hundreds 96 00:11:40,000 --> 00:11:55,989 He's fingerprinted, then asked to hand over his identity card. 97 00:11:56,000 --> 00:11:58,989 Every person in China must hold an ID card by law. 98 00:11:59,000 --> 00:12:13,989 When they got it, they didn't return it to me. 99 00:12:14,000 --> 00:12:23,989 So our reporter has only just joined Apple's supply chain, but 100 00:12:24,000 --> 00:12:30,989 the standards introduced to protect workers have already been breached. 101 00:12:31,000 --> 00:12:34,989 They state, "workers shall retain possession or control 102 00:12:35,000 --> 00:12:43,989 Without the ID, workers can't even buy a train ticket. 103 00:12:44,000 --> 00:12:47,989 Last year, we also found that workers at Apple factories were 104 00:12:48,000 --> 00:12:58,989 They responded publicly and yet, this year, 105 00:12:59,000 --> 00:13:04,989 It's a 28-hour coach journey from the recruitment centre to 106 00:13:05,000 --> 00:13:12,989 Workers are then sent to their new homes, dormitories around the site. 107 00:13:13,000 --> 00:13:16,989 To give you a sense of the scale of this plant: 108 00:13:17,000 --> 00:13:20,989 These enormous buildings here, that's where the workers live. 109 00:13:21,000 --> 00:13:24,989 These are buildings just to house the workers who've come from out 110 00:13:25,000 --> 00:13:34,989 80,000 people eat, sleep and work here. 111 00:13:35,000 --> 00:13:38,989 It's like a city - where most of the population lives 112 00:13:39,000 --> 00:14:00,989 Apple has clear rules about accommodation: 113 00:14:01,000 --> 00:14:05,989 Well, 12 people sleep in this cramped room. 114 00:14:06,000 --> 00:14:21,989 So that's another breach of Apple's promises. 115 00:14:22,000 --> 00:14:44,989 We've seen those pictures that you have filmed, with 12-bed 116 00:14:45,000 --> 00:14:54,989 Dormitories. What was it like in there? 117 00:14:55,000 --> 00:14:58,989 I mean, this is something that could literally change throughout Apple's 118 00:14:59,000 --> 00:15:00,989 supply chain in less than six months. 119 00:15:01,000 --> 00:15:04,989 I mean, they can throw up a factory and get production going in three 120 00:15:05,000 --> 00:15:07,989 months, when they've got orders and they've got the motivation to do so. 121 00:15:08,000 --> 00:15:09,989 Apple say the dormitory overcrowding has now been resolved. 122 00:15:10,000 --> 00:15:11,989 But listen to how the workers are treated. 123 00:15:12,000 --> 00:15:13,989 A supervisor from the recruitment agency says if 124 00:15:14,000 --> 00:15:53,989 Before our worker can start his new job, he must go through training. 125 00:15:54,000 --> 00:15:56,989 Hundreds gather. It's peak production 126 00:15:57,000 --> 00:15:59,989 and these sessions are happening almost every day. 127 00:16:00,000 --> 00:16:01,989 Apple told us factory managers are trained to behave appropriately, 128 00:16:02,000 --> 00:16:36,989 but we saw people being picked on. Doing as you are told 129 00:16:37,000 --> 00:16:39,989 continues with the admin. The forms seem to give workers 130 00:16:40,000 --> 00:16:44,989 choices - about doing shifts that involve standing 131 00:16:45,000 --> 00:16:44,989 for long hours or working nights. But in reality, 132 00:16:45,000 --> 00:17:17,989 there's no choice at all. If you ticked the box showing that 133 00:17:18,000 --> 00:17:20,989 you are not willing to give consent, he would ask us to do it again. 134 00:17:21,000 --> 00:17:25,989 If we did it again, he said he'd kick us out 135 00:17:26,000 --> 00:17:28,989 and not let us stay there. He said, if you don't do what 136 00:17:29,000 --> 00:17:34,989 the company asks you to do, what is the point of employing you here? 137 00:17:35,000 --> 00:17:39,989 It's an example of a fake audit trail. 138 00:17:40,000 --> 00:17:44,989 The paperwork will look as if all the workers have agreed to 139 00:17:45,000 --> 00:17:45,989 work nights. Apple say they investigate 140 00:17:46,000 --> 00:17:54,989 every concern brought to them. I mean, these are just ways to try 141 00:17:55,000 --> 00:18:00,989 to meet, very superficially, the demands of auditors, because 142 00:18:01,000 --> 00:18:05,989 it's all about trying to live up to promises that have been made without 143 00:18:06,000 --> 00:18:08,989 really changing business as usual. And what about the health and safety 144 00:18:09,000 --> 00:18:13,989 in these hi-tech factories, with chemicals and dangerous machines? 145 00:18:14,000 --> 00:18:17,989 Our reporters say they got no more than a couple of hours' training, 146 00:18:18,000 --> 00:18:21,989 followed by an exam they had to pass. 147 00:18:22,000 --> 00:18:26,989 And they will. This is what happens. 148 00:18:27,000 --> 00:18:35,989 Exam papers are handed out and the workers chant the answers in unison. 149 00:18:36,000 --> 00:18:37,989 She's more like a bingo caller than an examiner. 150 00:18:38,000 --> 00:18:50,989 And the questions are hardly tough. So, the paperwork shows 151 00:18:51,000 --> 00:18:52,989 workers have passed. Apple say they'll investigate, 152 00:18:53,000 --> 00:18:57,989 though they've seen no evidence of coaching. 153 00:18:58,000 --> 00:19:00,989 This is common. But if you ask Apple, 154 00:19:01,000 --> 00:19:03,989 they would tell you that the workers have signed a document which says 155 00:19:04,000 --> 00:19:06,989 they received 24 hours' training. The companies only need 156 00:19:07,000 --> 00:19:12,989 the signatures. Apple looks only at the signatures. 157 00:19:13,000 --> 00:19:17,989 Pegatron, who run the factory, say worker safety and well-being 158 00:19:18,000 --> 00:19:23,989 are "our top priorities". They set "very high standards" 159 00:19:24,000 --> 00:19:28,989 and conduct "rigorous training". External auditors regularly visit 160 00:19:29,000 --> 00:19:36,989 to find "areas for improvement". Pegatron say they "meet or exceed" 161 00:19:37,000 --> 00:19:39,989 customer codes of conduct. Our undercover teams are now 162 00:19:40,000 --> 00:19:44,989 ready for the shop floor. But it will be risky. 163 00:19:45,000 --> 00:19:49,989 These are high-security buildings in a surveillance state. 164 00:19:50,000 --> 00:19:55,989 It's the ultimate secret filming challenge. 165 00:19:56,000 --> 00:20:04,989 Our reporters face body searches and airport-style scanners. 166 00:20:05,000 --> 00:20:07,989 These are heart-stopping moments. They could be jailed 167 00:20:08,000 --> 00:20:10,989 if they're caught. On this occasion, 168 00:20:11,000 --> 00:20:14,989 the guard reaches for the camera. But he sees nothing suspicious. 169 00:20:15,000 --> 00:20:37,989 We're in. These are the first secret 170 00:20:38,000 --> 00:20:40,989 camera pictures from inside factories making Apple products. 171 00:20:41,000 --> 00:20:44,989 This is where your iPhone comes from. 172 00:20:45,000 --> 00:21:13,989 The workers are treated like members of a production army. 173 00:21:14,000 --> 00:21:19,989 We saw a culture of intimidation. This is a group of supervisors being 174 00:21:20,000 --> 00:21:42,989 shouted at by a senior manager. But one thing more than any other 175 00:21:43,000 --> 00:21:52,989 stood out on the factory floor - Apple's exhausted workforce. 176 00:21:53,000 --> 00:21:58,989 I have personally seen something very outrageous in the factory. 177 00:21:59,000 --> 00:22:04,989 Workers falling asleep while standing and operating the machines. 178 00:22:05,000 --> 00:22:10,989 I'd see many workers sitting or lying down to sleep 179 00:22:11,000 --> 00:22:15,989 during break time. This reporter worked in a factory 180 00:22:16,000 --> 00:22:23,989 that made computer parts for Apple. It was very noisy. 181 00:22:24,000 --> 00:22:30,989 But even with so much noise, he saw people so tired that they were 182 00:22:31,000 --> 00:22:35,989 falling asleep on their breaks. And sometimes, when they 183 00:22:36,000 --> 00:22:42,989 were supposed to be working. Apple say napping on breaks is not 184 00:22:43,000 --> 00:22:48,989 unusual and they look after workers. We're measuring working hours 185 00:22:49,000 --> 00:22:51,989 for 700,000 people. I don't know anybody else doing 186 00:22:52,000 --> 00:22:56,989 this and we're reporting it. And we're showing a level of care 187 00:22:57,000 --> 00:23:02,989 that I don't see in other places, and I think it's really important. 188 00:23:03,000 --> 00:23:10,989 But it was the same wherever we filmed. 189 00:23:11,000 --> 00:23:19,989 People exhausted at work. Here, one of our reporters films 190 00:23:20,000 --> 00:23:20,989 someone falling asleep as they work. And this iPhone 6 testing area 191 00:23:21,000 --> 00:23:33,989 has virtually no-one awake. After work, 192 00:23:34,000 --> 00:23:38,989 I would be so tired that I could fall asleep standing up on the bus 193 00:23:39,000 --> 00:23:40,989 on the way back to the dormitory. If the bathroom queue was too long, 194 00:23:41,000 --> 00:23:47,989 I'd fall asleep on the bed within two minutes. 195 00:23:48,000 --> 00:23:51,989 When they fall asleep that way again and again, that means that 196 00:23:52,000 --> 00:24:00,989 the conditions of work are totally and physically intolerable. 197 00:24:01,000 --> 00:24:07,989 So why are the workers so tired? Well, we found Apple's promises were 198 00:24:08,000 --> 00:24:13,989 being broken on the factory floor. All of our reporters are 199 00:24:14,000 --> 00:24:17,989 routinely on 12-hour shifts. The longest shift was 16 hours, the 200 00:24:18,000 --> 00:24:21,989 overtime was built in as standard. Our workers didn't seem 201 00:24:22,000 --> 00:24:25,989 to have much choice. It's a breach of Apple's promises. 202 00:24:26,000 --> 00:24:37,989 They say: "All overtime must be voluntary." 203 00:24:38,000 --> 00:24:43,989 We had to work more than 12 hours every day, from 8am till 8pm, 204 00:24:44,000 --> 00:24:48,989 sometimes 8:30pm, or 9pm. 205 00:24:49,000 --> 00:24:54,989 We had to leave our dormitories at 7am to travel to the factory. 206 00:24:55,000 --> 00:25:01,989 It was 8pm when I finished my work and I'd only get back at around 9pm. 207 00:25:02,000 --> 00:25:11,989 That is surprising, and really shocking that they haven't been able 208 00:25:12,000 --> 00:25:14,989 to get this under control yet because if they had the staff 209 00:25:15,000 --> 00:25:16,989 on the ground making sure that the factories were operating in 210 00:25:17,000 --> 00:25:19,989 compliance with the law, they could address these issues rather quickly. 211 00:25:20,000 --> 00:25:23,989 Overtime was routine, and it wasn't just the adult workers. 212 00:25:24,000 --> 00:25:24,989 The factory employs under-18s, and this 17-year-old was also 213 00:25:25,000 --> 00:25:59,989 working long night shifts. This is another 214 00:26:00,000 --> 00:26:01,989 of Apple's rules being broken. In Apple's promise to protect 215 00:26:02,000 --> 00:26:04,989 workers who are under 18, they state: 216 00:26:05,000 --> 00:26:07,989 'Juvenile workers shall not work overtime. 217 00:26:08,000 --> 00:26:18,989 Juvenile workers shall not conduct night work.' 218 00:26:19,000 --> 00:26:25,989 We saw payslips that suggest illegal working hours are commonplace. 219 00:26:26,000 --> 00:26:30,989 One undercover reporter was even asked to sign a form consenting 220 00:26:31,000 --> 00:26:33,989 to hours that would be a clear breach of Apple's 60-hour limit. 221 00:26:34,000 --> 00:26:37,989 Another reporter's long hours weren't shown on his payslip. 222 00:26:38,000 --> 00:26:44,989 His overtime payments were disguised as a "work bonus". 223 00:26:45,000 --> 00:26:49,989 So nobody could tell how long he'd worked from looking at his payslip. 224 00:26:50,000 --> 00:26:54,989 We informed Apple of this last year, but Apple never pays attention to 225 00:26:55,000 --> 00:26:57,989 it. The factories keep doing 226 00:26:58,000 --> 00:26:59,989 the same thing. They try to meet Apple's 227 00:27:00,000 --> 00:27:03,989 requirements. The problem is still there. 228 00:27:04,000 --> 00:27:06,989 Apple investigated. They said hours were correctly 229 00:27:07,000 --> 00:27:09,989 logged, but they've asked Pegatron to change the pay slips, 230 00:27:10,000 --> 00:27:13,989 to make them more transparent. Well, there's a lot of ways that 231 00:27:14,000 --> 00:27:17,989 the factories are able to kind of massage the books and it's all 232 00:27:18,000 --> 00:27:20,989 electronic and it's digitised, and so they can basically produce 233 00:27:21,000 --> 00:27:23,989 any kind of payroll they want, to present to the authorities, 234 00:27:24,000 --> 00:27:28,989 to present to the various brands that come through 235 00:27:29,000 --> 00:27:33,989 with their codes of conduct. Pegatron says workers are the 236 00:27:34,000 --> 00:27:36,989 "heart of our business" and that they are encouraged to 237 00:27:37,000 --> 00:27:41,989 "confidentially communicate any workplace issues". 238 00:27:42,000 --> 00:27:45,989 But all our reporters were completely overwhelmed by the work. 239 00:27:46,000 --> 00:27:48,989 Every time I got back to the dormitories, 240 00:27:49,000 --> 00:27:51,989 I wouldn't want to move. Even if I was hungry, 241 00:27:52,000 --> 00:27:56,989 I wouldn't want to get up to eat. I just wanted to lie down and rest. 242 00:27:57,000 --> 00:28:06,989 I was unable to sleep at night because of the stress. 243 00:28:07,000 --> 00:28:13,989 His working environment and those standards are controlled from the 244 00:28:14,000 --> 00:28:16,989 other side of the world, California. Last week, 245 00:28:17,000 --> 00:28:20,989 I was invited to Apple's HQ. It's six weeks since we told them 246 00:28:21,000 --> 00:28:23,989 of our findings, and I was hoping for an interview. 247 00:28:24,000 --> 00:28:29,989 So this is it. This is the home of Apple. 248 00:28:30,000 --> 00:28:34,989 I spent three hours meeting Apple's top people. 249 00:28:35,000 --> 00:28:38,989 So having come all the way to California to meet them, Apple have 250 00:28:39,000 --> 00:28:41,989 just told us that they won't be putting anyone up for interview. 251 00:28:42,000 --> 00:28:45,989 It's perhaps not what you would expect from 252 00:28:46,000 --> 00:28:48,989 a company that says it wants to be the most transparent in the world. 253 00:28:49,000 --> 00:28:51,989 Instead, we got a statement. Apple say they'll investigate 254 00:28:52,000 --> 00:28:57,989 our findings. They will examine 255 00:28:58,000 --> 00:29:00,989 "sleeping during production". On ID cards, Apple says they've done 256 00:29:01,000 --> 00:29:05,989 more than any company to prevent the widespread abuse 257 00:29:06,000 --> 00:29:09,989 of migrant workers. They work with suppliers to prevent 258 00:29:10,000 --> 00:29:13,989 "excessive overtime" and that Pegatron is averaging a 259 00:29:14,000 --> 00:29:15,989 "55-hour working week". We want to go deeper into Apple's 260 00:29:16,000 --> 00:29:27,989 supply chain. I've come to a place known 261 00:29:28,000 --> 00:29:34,989 as 'Tin Island'. This is Bangka, in Indonesia. 262 00:29:35,000 --> 00:29:39,989 Many of the world's electronic companies get tin from here. 263 00:29:40,000 --> 00:29:46,989 Offshore, an industrial flotilla is about to start dredging the seabed. 264 00:29:47,000 --> 00:29:53,989 The way they work is a 75-foot drill smashes down into 265 00:29:54,000 --> 00:29:57,989 the seabed and then pulls up the tin sand to be processed back here, but 266 00:29:58,000 --> 00:30:05,989 that is not great for the seabed and the coral when that drill arrives. 267 00:30:06,000 --> 00:30:09,989 The power of the dredgers churns the ocean. 268 00:30:10,000 --> 00:30:12,989 This is the water that that boat has just dredged through and it's 269 00:30:13,000 --> 00:30:25,989 This mining ship is owned by PT Timah, an Apple supplier. 270 00:30:26,000 --> 00:30:39,989 But Apple has promised to protect the environment. 271 00:30:40,000 --> 00:30:43,989 It says 'suppliers should act in environmentally responsible ways'. 272 00:30:44,000 --> 00:30:51,989 Campaigners say these underwater pictures show how 273 00:30:52,000 --> 00:31:02,989 PT Timah told us the damage is temporary and it takes 274 00:31:03,000 --> 00:31:12,989 Its mining activities are licensed by the Government. 275 00:31:13,000 --> 00:31:17,989 But environmentalists say Apple has been warned the mining 276 00:31:18,000 --> 00:31:24,989 Apple knows, because I was interviewed in person 277 00:31:25,000 --> 00:31:33,989 I also e-mailed them once and told them that this is the data about 278 00:31:34,000 --> 00:31:44,989 If a coral reef is covered in sediment due to offshore tin 279 00:31:45,000 --> 00:31:57,989 30% of the world's tin comes from Bangka province. 280 00:31:58,000 --> 00:32:04,989 Legal mining alone can't keep up with demand. 281 00:32:05,000 --> 00:32:09,989 We've been told of a place that's become a symbol 282 00:32:10,000 --> 00:32:31,989 You can hear the noise from a mile away. 283 00:32:32,000 --> 00:32:54,989 It looks and sounds like one enormous floating machine. 284 00:32:55,000 --> 00:33:02,989 The sound and the smell of diesel is completely overwhelming. 285 00:33:03,000 --> 00:33:04,989 This is a man-made island of absolute chaos, 286 00:33:05,000 --> 00:33:14,989 It's very, very unsafe, but it's all about tin. 287 00:33:15,000 --> 00:33:17,989 We've been told that tin ore from this site ends up with 288 00:33:18,000 --> 00:33:27,989 In bare feet, the men force a pipe into the seabed. 289 00:33:28,000 --> 00:33:32,989 The tin is sucked up to the deck and water is used to separate sand 290 00:33:33,000 --> 00:33:39,989 It's so loud, but that's what they're after. 291 00:33:40,000 --> 00:34:03,989 It's dangerous, but the workers say it's worth it. 292 00:34:04,000 --> 00:34:13,989 On land, whole areas of forest have been ripped away to get at the ore. 293 00:34:14,000 --> 00:34:18,989 This smashed landscape might seem a long way from Apple's shiny 294 00:34:19,000 --> 00:34:24,989 products, but the tin produced here is a key ingredient. 295 00:34:25,000 --> 00:34:29,989 Tin is used inside your mobile phone to solder the components together. 296 00:34:30,000 --> 00:34:33,989 So your laptop, your tablet and your mobile phone 297 00:34:34,000 --> 00:34:44,989 All electronics companies depend on tin. 298 00:34:45,000 --> 00:34:49,989 And just as at sea, on land, the legal mines can't keep up. 299 00:34:50,000 --> 00:34:53,989 We are very concerned about the situation on Bangka-Belitung. 300 00:34:54,000 --> 00:34:57,989 Particularly about the situation of the illegal miners. 301 00:34:58,000 --> 00:35:21,989 Follow the destroyed land and you'll find the illegal mines. 302 00:35:22,000 --> 00:35:30,989 Now Apple says it will drive 'the responsible sourcing of minerals'. 303 00:35:31,000 --> 00:35:34,989 But we've been told that tin ore from around here ends up 304 00:35:35,000 --> 00:35:45,989 The miners use jets of water to break it up. 305 00:35:46,000 --> 00:36:14,989 But if too much mud slips, a miner could be buried alive. 306 00:36:15,000 --> 00:36:20,989 When you're up close, it is horrifying to see this. 307 00:36:21,000 --> 00:36:25,989 Whilst we've been here, we've seen huge chunks of the walls 308 00:36:26,000 --> 00:36:33,989 And this is not just a kind of vague threat, 309 00:36:34,000 --> 00:37:09,989 We saw 14-year-old Wahid working in the mud. 310 00:37:10,000 --> 00:37:14,989 This is a rescue effort after a landslide. 311 00:37:15,000 --> 00:37:25,989 Once someone is buried, they rarely survive. 312 00:37:26,000 --> 00:37:29,989 A local doctor says the bodies show the same characteristics - broken 313 00:37:30,000 --> 00:37:52,989 I came to meet Sumiati because she lost her husband to the mud. 314 00:37:53,000 --> 00:37:58,989 The first body was recovered quickly, that was my husband. 315 00:37:59,000 --> 00:38:08,989 But as we talked, I discovered something even worse. 316 00:38:09,000 --> 00:38:15,989 That my husbands died because of landslides. 317 00:38:16,000 --> 00:38:25,989 Both husbands were buried at the mines. 318 00:38:26,000 --> 00:38:28,989 I was shocked when it happened the second time. 319 00:38:29,000 --> 00:38:39,989 I felt like I wanted to die. Just like the first time. 320 00:38:40,000 --> 00:38:45,989 Apple has confirmed it gets tin from Bangka. 321 00:38:46,000 --> 00:38:50,989 What's never been confirmed is whether illegal tin from sites 322 00:38:51,000 --> 00:39:08,989 Nobody knows the tin industry here better than this man. 323 00:39:09,000 --> 00:39:17,989 He's worked his way up through the industry, 324 00:39:18,000 --> 00:39:28,989 This house, all the money, I got from tin. 325 00:39:29,000 --> 00:39:34,989 He's a director of a processing plant, a smelter. 326 00:39:35,000 --> 00:39:38,989 Apple has published a list of the smelters that supply it with tin. 327 00:39:39,000 --> 00:39:45,989 He says all the smelters around here buy at least some 328 00:39:46,000 --> 00:39:53,989 The smelters can't tell whether it is legal or illegal. 329 00:39:54,000 --> 00:39:56,989 70% of the tin ingots exported overseas 330 00:39:57,000 --> 00:40:03,989 So this is gathered by collectors and then sold to smelters. 331 00:40:04,000 --> 00:40:15,989 At the smelter, there's everything from both large 332 00:40:16,000 --> 00:40:26,989 There's no way to know what is legal and what is illegal. 333 00:40:27,000 --> 00:40:30,989 What does he think of Apple's environmental promises to make 334 00:40:31,000 --> 00:40:53,989 So a boss at an Apple supplier says smelters can't distinguish 335 00:40:54,000 --> 00:41:00,989 Can that be true of other smelters on Apple's list? 336 00:41:01,000 --> 00:41:04,989 Well, Apple buys tin from the majority 337 00:41:05,000 --> 00:41:12,989 So if illegal tin is being mixed up, it's very likely to be in Apple's 338 00:41:13,000 --> 00:41:26,989 Getting confirmation from other smelters is not easy. 339 00:41:27,000 --> 00:41:38,989 To get more evidence, we need to talk to the middlemen. 340 00:41:39,000 --> 00:41:43,989 The collectors who buy illegal tin and supply legal smelters. 341 00:41:44,000 --> 00:41:54,989 To meet a contact, we head into rural Bangka. 342 00:41:55,000 --> 00:42:02,989 This collector buys from the area where we filmed 343 00:42:03,000 --> 00:42:06,989 the dangerous muddy mine, where the 14-year-old was working. 344 00:42:07,000 --> 00:42:10,989 He agrees to talk if we don't identify him. 345 00:42:11,000 --> 00:42:19,989 Do his gang supply the smelters that supply Apple? 346 00:42:20,000 --> 00:42:25,989 So, is this from legal mines or is this from illegal mines? 347 00:42:26,000 --> 00:42:28,989 Could you write down the smelters that you sell to? 348 00:42:29,000 --> 00:42:32,989 I just need to see them written down. 349 00:42:33,000 --> 00:42:48,989 Just to be clear, you buy from illegal mines, miners 350 00:42:49,000 --> 00:42:52,989 who mine in dangerous conditions, and you sell to Nurjana, a smelter 351 00:42:53,000 --> 00:43:02,989 Nurjana was not the only Apple smelter this collector supplied. 352 00:43:03,000 --> 00:43:08,989 I checked with Apple's list of suppliers. 353 00:43:09,000 --> 00:43:13,989 He told me he dealt with RBT and I didn't recognise that name, 354 00:43:14,000 --> 00:43:16,989 but that's PT-refined Bangka tin, so two out of the three smelters 355 00:43:17,000 --> 00:43:28,989 Apple says it goes "deep into its supply chain to enforce standards." 356 00:43:29,000 --> 00:43:31,989 But in only a few days, we found a connection 357 00:43:32,000 --> 00:43:39,989 But then we heard another gang were prepared to meet us. 358 00:43:40,000 --> 00:43:45,989 They felt more like criminals than businessmen. 359 00:43:46,000 --> 00:43:50,989 Once again, they tell us they buy from illegal miners and sell to 360 00:43:51,000 --> 00:44:00,989 So, your only smelter that you sell to is RBT? 361 00:44:01,000 --> 00:44:19,989 Do they ask questions about where the tin ore came from? 362 00:44:20,000 --> 00:44:25,989 So this criminal dealer says he's only been doing business with RBT, 363 00:44:26,000 --> 00:44:29,989 a smelter that supplies Apple. RBT says it doesn't 364 00:44:30,000 --> 00:44:31,989 take illegal tin. And the other smelter, Nurjana, says 365 00:44:32,000 --> 00:44:42,989 it abides by all the local laws. Apple blames corruption 366 00:44:43,000 --> 00:44:47,989 and government inaction. They told us they're 367 00:44:48,000 --> 00:44:50,989 the first company to talk to smelters about the shocking 368 00:44:51,000 --> 00:44:53,989 conditions, and they helped create a group to look at the problems. 369 00:44:54,000 --> 00:45:01,989 But not all the members of that group seem convinced. 370 00:45:02,000 --> 00:45:06,989 So far, there's been no concrete action. 371 00:45:07,000 --> 00:45:09,989 In reality, Apple should know that tin they use 372 00:45:10,000 --> 00:45:14,989 to produce electronic products originates from illegal mines 373 00:45:15,000 --> 00:45:24,989 and is cast, or made, in private smelters and then sold to Apple. 374 00:45:25,000 --> 00:45:30,989 Apple says it came here to Indonesia to investigate the mines. 375 00:45:31,000 --> 00:45:41,989 But we were only here for two weeks and we found something shocking. 376 00:45:42,000 --> 00:45:47,989 We've been told collectors who sell to a smelter on Apple's 377 00:45:48,000 --> 00:45:51,989 list get tin from this area. So all of the men and women who are 378 00:45:52,000 --> 00:45:54,989 working in the pit at the bottom of these cliffs are taking their lives 379 00:45:55,000 --> 00:45:58,989 in their hands, but here, we've found something really upsetting. 380 00:45:59,000 --> 00:46:02,989 This is about 70 feet of sheer sand and at the bottom, trying to start 381 00:46:03,000 --> 00:46:59,989 the little landslide, is a father and his 12-year-old son. 382 00:47:00,000 --> 00:47:05,989 We stayed on at the mine until dusk and watched 383 00:47:06,000 --> 00:47:10,989 as the tin ore was washed. It's the last work 384 00:47:11,000 --> 00:47:21,989 the miners do before the ore is sold on to collectors. 385 00:47:22,000 --> 00:47:26,989 And when we left, 12-year-old Rianto was still at work. 386 00:47:27,000 --> 00:47:34,989 And there seems little to stop the tin he's mining ending up 387 00:47:35,000 --> 00:47:38,989 in Apple's products. Apple says it's a complex situation, 388 00:47:39,000 --> 00:47:42,989 with tens of thousands of miners "selling tin through many 389 00:47:43,000 --> 00:47:46,989 middlemen". The simplest course would be to 390 00:47:47,000 --> 00:47:49,989 "refuse any tin from Indonesian mines". 391 00:47:50,000 --> 00:47:52,989 But that would do "nothing to improve the situation". 392 00:47:53,000 --> 00:47:57,989 Apple has chosen to "drive changes on the ground". 393 00:47:58,000 --> 00:48:11,989 Back in China, I am leaving the cities 394 00:48:12,000 --> 00:48:15,989 and heading for the countryside. 1,000 km from Shanghai, 395 00:48:16,000 --> 00:48:18,989 this is the village of Hou Jia Pu. It's harvest, but around here, 396 00:48:19,000 --> 00:48:31,989 the workers are all old. The young people have gone. 397 00:48:32,000 --> 00:48:33,989 These villages have kind of changed. There are young and old people, 398 00:48:34,000 --> 00:48:35,989 but most of the young adults have moved away, 399 00:48:36,000 --> 00:48:37,989 there's nothing for them. They head to the coast, the cities, 400 00:48:38,000 --> 00:48:43,989 the factories and the money. Zhu Yunhe has been a farmer here 401 00:48:44,000 --> 00:48:48,989 for 40 years. His sons have gone to the factories. 402 00:48:49,000 --> 00:48:54,989 His granddaughter is only 15, but she left this week to work 403 00:48:55,000 --> 00:48:56,989 for another electronics factory. In farming, they can only feed 404 00:48:57,000 --> 00:48:58,989 themselves and nothing else. So they need to go to 405 00:48:59,000 --> 00:49:06,989 factories to work. All the farmers here are 406 00:49:07,000 --> 00:49:09,989 in this situation. Many young people go to the 407 00:49:10,000 --> 00:49:22,989 factories to help their families. But it doesn't always work out. 408 00:49:23,000 --> 00:49:28,989 Shi Zhaokun was 15 when he left his village. 409 00:49:29,000 --> 00:49:34,989 That's too young to legally work at an Apple plant, but using 410 00:49:35,000 --> 00:49:39,989 his older cousin's ID card, he got a job on the iPhone production line. 411 00:49:40,000 --> 00:49:46,989 He knew that our family was very poor and other people work in 412 00:49:47,000 --> 00:49:50,989 the factories so he wanted to go. I told him he should wait 413 00:49:51,000 --> 00:49:56,989 for a couple of years, but he said, "Don't worry, let me go". 414 00:49:57,000 --> 00:50:04,989 He wanted to earn some money which would make life better, so he went. 415 00:50:05,000 --> 00:50:11,989 He was in one of the factories where our reporters are working and, 416 00:50:12,000 --> 00:50:14,989 like them, he worked long shifts. The family were told 280 hours 417 00:50:15,000 --> 00:50:20,989 in just four weeks. And at the end of that month, 418 00:50:21,000 --> 00:50:23,989 he died. My son was fit and healthy, but 419 00:50:24,000 --> 00:50:27,989 died after working in the factory. He didn't have any medical problems. 420 00:50:28,000 --> 00:50:39,989 I wouldn't have let him go if he was unwell. 421 00:50:40,000 --> 00:50:47,989 Mr Shi took me to his son's grave. The family are farmers 422 00:50:48,000 --> 00:51:07,989 and Zhaokun is buried in a field. Apple say independent medical 423 00:51:08,000 --> 00:51:12,989 experts found no evidence linking his death to working conditions. 424 00:51:13,000 --> 00:51:16,989 The family were given a one-off payment from the owners 425 00:51:17,000 --> 00:51:19,989 of the factory. But they had to sign 426 00:51:20,000 --> 00:51:26,989 a gagging order to say they wouldn't talk about their son's death. 427 00:51:27,000 --> 00:51:29,989 This is one of the factory's dirty tricks to shut the workers' mouths. 428 00:51:30,000 --> 00:51:33,989 They try to seal the mouth of the family in the hope of not 429 00:51:34,000 --> 00:51:37,989 damaging Apple's brand image. They worry this will have 430 00:51:38,000 --> 00:51:42,989 a negative impact. What do you think of the company? 431 00:51:43,000 --> 00:51:49,989 No-one should enter that factory. If I'd known, I'd never have let 432 00:51:50,000 --> 00:51:51,989 my boy work there. The workers 433 00:51:52,000 --> 00:51:57,989 in Pegatron earn the Shanghai minimum wage, about ?1 an hour. 434 00:51:58,000 --> 00:52:08,989 We were told they work long and illegal hours because it's 435 00:52:09,000 --> 00:52:11,989 the only way to make a living. Now, the cost of an iPhone in the US 436 00:52:12,000 --> 00:52:15,989 is $650. Analysts say Apple makes $248 437 00:52:16,000 --> 00:52:21,989 in profit on every phone. But factories like this only spend 438 00:52:22,000 --> 00:52:25,989 about $5 putting them together. Well, I think that most people would 439 00:52:26,000 --> 00:52:28,989 agree that it's OK to maximise profits, but when you're breaking 440 00:52:29,000 --> 00:52:31,989 the law, that should send a signal to the company that they need to 441 00:52:32,000 --> 00:52:34,989 take a new approach and they need to start looking at the problem 442 00:52:35,000 --> 00:52:41,989 a little bit more creatively and a little bit more proactively. 443 00:52:42,000 --> 00:52:47,989 It was the sheer volume of work that overwhelmed our reporters. 444 00:52:48,000 --> 00:52:54,989 One had to work 18 days in a row, despite repeated requests 445 00:52:55,000 --> 00:52:56,989 for a day off. He was working more than 70 hours 446 00:52:57,000 --> 00:53:02,989 a week. And that's yet another of Apple's 447 00:53:03,000 --> 00:53:09,989 broken promises. "Supplier shall limit the actual 448 00:53:10,000 --> 00:53:12,989 hours worked by each worker to no more than 60 hours per work week." 449 00:53:13,000 --> 00:53:21,989 All of our reporters were left exhausted by their shifts and 450 00:53:22,000 --> 00:53:24,989 by the way they were treated. When I was in the countryside, there 451 00:53:25,000 --> 00:53:31,989 was an ox at my parents' farm. We used the ox to plough the fields. 452 00:53:32,000 --> 00:53:42,989 If the ox refused to plough, it would be whipped until it did. 453 00:53:43,000 --> 00:53:47,989 It was similar in the factory. If we did not do as we were told, 454 00:53:48,000 --> 00:54:06,989 we would get insulted and scolded. It wasn't just the paid work. 455 00:54:07,000 --> 00:54:12,989 Many workers had to go to meetings like this before and after shifts 456 00:54:13,000 --> 00:54:14,989 without being paid for the time. Apple promises, 457 00:54:15,000 --> 00:54:20,989 'All meetings must be within the regular eight-hour shift'. 458 00:54:21,000 --> 00:54:22,989 They're not. Apple says 459 00:54:23,000 --> 00:54:28,989 if it discovers unpaid meetings, it expects suppliers to backdate pay. 460 00:54:29,000 --> 00:54:43,989 But we found the meetings and the workload left a shattered workforce. 461 00:54:44,000 --> 00:54:45,989 And that's dangerous. Listen to what one 462 00:54:46,000 --> 00:55:07,989 supervisor tells his team. This is quite dangerous 463 00:55:08,000 --> 00:55:12,989 because sleeping while working is likely to result in an injury. 464 00:55:13,000 --> 00:55:15,989 The reason why industrial injuries are numerous in China is mainly 465 00:55:16,000 --> 00:55:22,989 due to workers' exhaustion. Workers' fatigue leads 466 00:55:23,000 --> 00:55:25,989 to industrial injuries. And yet when one of our reporters 467 00:55:26,000 --> 00:55:26,989 tried to resign, saying he couldn't handle the hours anymore, 468 00:55:27,000 --> 00:56:07,989 he was told he should toughen up. Pegatron say they are 469 00:56:08,000 --> 00:56:10,989 "carefully investigating Panorama's claims" and "will take all necessary 470 00:56:11,000 --> 00:56:15,989 actions" if any deficiencies are found at their facilities. 471 00:56:16,000 --> 00:56:20,989 Apple told us they 'strongly disagree' with our conclusions. 472 00:56:21,000 --> 00:56:26,989 No other company is doing as much to ensure 'fair 473 00:56:27,000 --> 00:56:32,989 and safe working conditions.' They require employers to treat all 474 00:56:33,000 --> 00:56:35,989 workers with 'dignity and respect'. They check the hours of 475 00:56:36,000 --> 00:56:39,989 'more than one million workers', and audit hundreds of workplaces. 476 00:56:40,000 --> 00:56:46,989 They see 'continuous and significant improvement', but add, 477 00:56:47,000 --> 00:56:54,989 'We know our work is never done'. But this is what we found. 478 00:56:55,000 --> 00:57:00,989 This is where Apple products come from. 479 00:57:01,000 --> 00:57:11,989 These are the people who make them. I just want 480 00:57:12,000 --> 00:57:16,989 the customers to pay attention to Apple's appalling work conditions. 481 00:57:17,000 --> 00:57:20,989 Apple has been championing itself as a perfect enterprise, 482 00:57:21,000 --> 00:57:21,989 but it is all a facade. I don't think they care 483 00:57:22,000 --> 00:57:38,989 about the workers at all. If you know that there's wrongdoing 484 00:57:39,000 --> 00:57:41,989 in your supply chain, if you know the standards are not being applied, 485 00:57:42,000 --> 00:57:46,989 if you are profiting from all this, you have an obligation to do 486 00:57:47,000 --> 00:57:50,989 something about it. But they say that they, they want 487 00:57:51,000 --> 00:57:53,989 to do all that they can to protect workers in their supply chain. 488 00:57:54,000 --> 00:57:55,989 Are they serious? Well, they have limited ambition 489 00:57:56,000 --> 00:57:58,989 if that's what they're desiring to do, because it's not working 490 00:57:59,000 --> 00:58:07,989 and the proof is the conditions in those factories and in those mines. 491 00:58:08,000 --> 00:58:14,989 Apple's model works. Ten million iPhone 6s sold 492 00:58:15,000 --> 00:58:17,989 in its first weekend. But we went deep into their supply 493 00:58:18,000 --> 00:58:23,989 chain, to test Apple's commitment to the environment and to its workers. 494 00:58:24,000 --> 00:58:28,989 For the children digging in the mud and sand 495 00:58:29,000 --> 00:58:31,989 and the workers falling asleep on the iPhone production line, 496 00:58:32,000 --> 00:58:34,000 there are too many broken promises. 48486

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