September 25, 2023
Ralph Nader Slams Tim Cook for Buying Back Stock Instead of Helping Impoverished Workers

Ralph Nader Slams Tim Cook for Buying Back Stock Instead of Helping Impoverished Workers

Posted October 24, 2014 at 7:49pm by iClarified · 26724 views
Ralph Nader, a five-time presidential candidate, has written an open letter to Apple CEO Tim Cook criticizing him for spending billions on stock buybacks instead of helping impoverished factory workers.

Nader notes that if Apple had spent that $130 billion to endow a foundation, the interest would have been enough to double wages, ensure a 40 hr work week, and improve health, safety, and environmental standards for hundreds of thousands of workers.

You can read the full letter to Tim Cook below...

Tim Cook
CEO, Apple
1 Infinite Loop Cupertino, CA 95014
October 23, 2014

Dear Mr. Cook,

“Designed by Apple in California” has a nicer ring to it than “Assembled by workers paid about a dollar per hour, working 11­hour shifts, and sleeping eight to a room in the Jabil Circuit corporate dormitories in Wuxi, China.” But, no matter how you spin it on the iPhone packaging, you continue to turn away from the horrid working conditions and miserly pay at your Chinese factories. Just last month, while you displayed ­­through a two hour event on the ins­and­outs of tiny iPhone 6 and Apple Watch design breakthroughs how capable your company is of solving problems it cares to solve, China Labor Watch and Green America revealed ­­in their newest report, “Two Years of Broken Promises”­­ how you have failed to apply even a modicum of the problem­solving focus you bring for product design to the “serious health and safety, environmental, and human rights violations” at Chinese factories assembling the iPhone.

“That’s the price of affordable phones,” says the corporatist argument. This could be the case, if Apple was just barely profitable. But, as revealed in a recent letter responding to Carl Icahn’s call for more stock buybacks (you respond to billionaire’s pleas much more often than workers’ pleas), Apple is planning to have repurchased $130 billion of its own shares by the end of next year. In short, Apple is so profitable, that it does not know what to do with $130 billion except buy back stock from its shareholders to maybe boost its share price.

There are many alternate ways could have spent its surplus profits. For example, what if Apple decided to invest that excess $130 billion in dignified working conditions and living wages, instead of unproductively using their surplus to buy stocks back from the wealthy? Estimates differ, but according to Chinese labor watchdogs, factory workers in Apple’s supply chain make average salaries of, estimating at the high end, about $500 per month for about 80 hours of work per week. Doubling monthly salaries and cutting hours in half ­­ reforms that would make great strides towards having Chinese factories meet modern, dignified standards of a living wage from a 40­hour work week ­­ would cost ~$1500 per month (~$18,000 per year) for each factory worker. To have achieved
these reforms for the 300,000 Foxconn workers who assembled the iPhone 5s would have cost
Apple about $5.4 billion annually.

If instead of buying back stock, Apple had used its excess $130 billion to endow a foundation to achieve these reforms, it would have paid out ­­at a conservative five percent interest ­­ $6.5
billion annually, enough to double wages and ensure a 40­hour workweek for hundreds of thousands of iPhone workers, while leaving a $1.1 billion surplus as an annual budget for ensuring top­notch health, safety and environmental standards at Apple factories. The technology company that leads the way in profits and product design could, without changing anything but the amount of excess, unproductive money it uses to repurchase stock from wealthy shareholders, could also lead the way in dignified working conditions, hours and wages. Finally, some of Apple’s Chinese factory workers may become able to buy the iPhones they manufacture.

This goes to show that tolerating poverty wages is not the price we pay for affordable phones. Rather, poverty wages and harmful conditions are a consequence of tolerating outrageous stock buybacks. You had a choice for the $130 billion: living wages for workers or stock buybacks for millionaires? You chose buybacks. Here’s a challenge for the present and future use of surplus profits: why not let the customers decide? Just as they have consumer interests in thinner iPhones and sleeker MacBooks, they also have humane interests in more dignified working conditions and more liveable wages for the workers that make their products. And you, more than any other CEO, have the technological ability to poll your customers about who Chinese workers or millionaire shareholders should receive Apple’s excess money. Are you scared that they might Think Different about this issue than Carl Icahn?


Ralph Nader
P. O. Box 19312
Washington, D.C. 20036

Let us know what you think in the comments. How should Apple have used its excess funds.

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Ralph Nader Slams Tim Cook for Buying Back Stock Instead of Helping Impoverished Workers
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L. Moore
L. Moore - January 12, 2015 at 9:32pm
STOP being so damn greedy and help those in need!!!!!
Lolwut - January 13, 2015 at 12:37am
Who said anything about being greedy? He's not one of the wealthiest thereby not stealing money.
James White
James White - October 26, 2014 at 7:16pm
I wasn't aware that Apple owned any companies in china. Sure Apple could take there business elsewhere but would that really solve any of the issues that Mr. Nader spoke of?
Fake-You Mother Faker
Fake-You Mother Faker - October 26, 2014 at 3:38pm
Do you know any apple workers at the Apple store wanting to stay till retirement ? Like having a career there?
King Rollo
King Rollo - October 26, 2014 at 8:23am
I'm not American but even I can see this guy is a dumb fu@k. Isn't he the plank who destroyed the corvair car by writing a book? If you look at his resume he is nothng short of a anti capalist..
John Davis
John Davis - October 26, 2014 at 6:42am
After reading his BS, I am glad that Nader was never elected.
firoz - October 26, 2014 at 2:23am
If this is the case I would really appreciate mr. Ralph nadir and support him for this injustice done to the workers.
Joe P
Joe P - October 25, 2014 at 11:23pm
Mr. Nader, you have spent decades in trying to better the lives of uncounted millions in the US and the rest of the world as an advocate for ordinary working class Americans. Like many before you who have stood up to the rich, the privileged, the entrenched plutocrats who believe only in their own right to rule, you have been and continue to be reviled by the greedy and by their surrogates. I applaud you sir for your compassion and clear sighted patriotism. Those of you reading this, understand this, that the monied forces deforming this democracy plan long ahead to ensure their plans. They buy huge amounts of our dwindling press so that they control most of what remains of the once vigorous watchdogs of democracy. Thomas Jefferson himself believed economic independence and the free press essential to democracy. There are very few people in the history of this country who have spent their lives as advocates for safety and a square deal for everyone. Mr. Nader is one who has shown light into the darkness where the dirty deals and shoddy products are made. Bless you mr. Nader.
Bugged Out
Bugged Out - October 25, 2014 at 8:50pm
Ralph is right. Haters be damned.
Fu€ked In!
Fu€ked In! - October 25, 2014 at 10:06pm
nadar is no right. Jealous souls be trippin'.
Rambo$ - October 25, 2014 at 6:23pm
Boats and Hoes!!!
ObamaFailed - October 25, 2014 at 5:19pm
Not of your business Mr. Nader !! No wonders you never become a president of usa you looser
it wasnt me
it wasnt me - October 25, 2014 at 12:15pm
overly strict demands on product quality without providing worker training for the corresponding skills. this turns out products that have no standards, and ultimately put a tremendous amount of pressure on workers and Apple is allowing it.
Tom Vanimox
Tom Vanimox - October 25, 2014 at 9:59am
Okay first things first, I DO NOT know much about economics, nor have I done much research. But if they do make $3 an hour, and their food and housing is paid for them. Then well, they essentially live the same way I do? I don't know, correct me if I'm wrong.. I work at McDonald's making 8.5 an hour. That gives me $1360. But after taxes I'm getting around $1000/month. Rent $500 Gas $30 Water $20 Electric $ 80 -------------------- Gives me $370 after bills for spending, and that's not including my iPhone bill nor my food costs..... Now.... At $3 an hour in China working full time would give you $480/month. That's not a lot.. But if your housing and food is given to you.... That means no bills? At that rate, aren't we kinda in the same boat? Someone comment on this please?
You're correct.
You're correct. - October 25, 2014 at 10:47am
You're absolutely correct. But are you making the point that the Chinese workers are doing well, or that you're being treated as badly as workers in a communist country under a totalitarian regime?
worm - October 25, 2014 at 8:13pm
Maybe, your conditions of work are a "bit" better than theirs. Assembling devices for hours and doing the same monotone job every day. It's not just physically hard, but mentally. In the 21st century these people are being treated not anything but human beings. This is nothing else just modern slavery. And by the way, they can't use robotics for these kinds of works like other companies? I know it's might be a more precise progress, but it has to be solvable.
tah - October 25, 2014 at 10:45pm
You are right Ralph is wrong on this one. I've lived all over China in many provinces. 1) Chinas economy is about 4-5 times cheaper cost of living than the USA. So $3/hr buys the equivalent of $12-15/hr here 2) Most Chinese don't have to pay income tax, so it is all take-home 3) Many Chinese companies provide free housing & food. This dates back the the transition from communism. Private land/home ownership is only a lease from the government anyway. 4) The money that a Foxconn worker gets is premium in the local economy So you can figure that if the living wage in the USA is $9.81/hr ( According to the MIT calculator $7.85 (80%) of that earned goes to housing, food, medical & income taxes. Leaving the american living wage worker with about $1.96/hr in spending. The Chinese worker earning $3/h, can spend it like the equivalent of $12-15US , with the addition of the $7.85 living expenses being payed for by the company. Giving them the equivalent earning power of $19.85-22.85US/hr. It is not bad at all.
it's just you
it's just you - October 25, 2014 at 10:57pm
Well said.
Dan - October 25, 2014 at 6:20am
China's problems are China's problems! Let them deal with it Nader!
Teo Ngo
Teo Ngo - October 25, 2014 at 2:01am
"He is an idiot"
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