Axehole

A reporter and an editor at a leading Chinese financial newspaper are being sued for defamation by FoxConn, an Apple subcontractor that was recently identified as violating Apple’s own labor practices. FoxConn is seeking $3.75 million in damages.

A Chinese court has frozen the assets of the reporter and editor, who work for China Business News, pending a hearing filed by a subsidiary of Foxconn Technology Group. The newspaper’s management has said it stands by the accuracy of its report.

The case prompted Apple to conduct a 10-week investigation into Chinese factories that make the iPods, clearing them of child labor or forced labor. The inquiry found that workers earned at least local minimum wage but found multiple violations of Apple’s Code of Conduct, including pay formulas that were “unnecessarily complex”, excessive overtime, and even humilating discipline.

Apple said it had found that more than a quarter of the employees worked more than was allowed by company policy, which limits workweeks to 60 hours and calls for workers to have at least one day off a week.