TimCook

CEO,Apple
1InfiniteLoop
Cupertino,CA95014

October23,2014

DearMr.Cook,

DesignedbyAppleinCaliforniahasanicerringtoitthanAssembledbyworkerspaidaboutadollar
perhour,working11hourshifts,andsleepingeighttoaroomintheJabilCircuitcorporatedormitories
inWuxi,China.But,nomatterhowyouspinitontheiPhonepackaging,youcontinuetoturnaway
fromthehorridworkingconditionsandmiserlypayatyourChinesefactories.Justlastmonth,whileyou
displayedthroughatwohoureventontheinsandoutsoftinyiPhone6andAppleWatchdesign
breakthroughshowcapableyourcompanyisofsolvingproblemsitcarestosolve,ChinaLabor
WatchandGreenAmericarevealedintheirnewestreport,TwoYearsofBrokenPromiseshow
youhavefailedtoapplyevenamodicumoftheproblemsolvingfocusyoubringforproductdesignto
theserioushealthandsafety,environmental,andhumanrightsviolationsatChinesefactories
assemblingtheiPhone.

Thatsthepriceofaffordablephones,saysthecorporatistargument.Thiscouldbethecase,ifApple
wasjustbarelyprofitable.But,asrevealedinarecentletterrespondingtoCarlIcahnscallformore
stockbuybacks(yourespondtobillionairespleasmuchmoreoftenthanworkerspleas),Appleis
planningtohaverepurchased$130billionofitsownsharesbytheendofnextyear.Inshort,Appleis
soprofitable,thatitdoesnotknowwhattodowith$130billionexceptbuybackstockfromits
shareholderstomaybeboostitsshareprice.

Therearemanyalternatewayscouldhavespentitssurplusprofits.Forexample,whatifAppledecided
toinvestthatexcess$130billionindignifiedworkingconditionsandlivingwages,insteadof
unproductivelyusingtheirsurplustobuystocksbackfromthewealthy?Estimatesdiffer,butaccording
toChineselaborwatchdogs,factoryworkersinApplessupplychainmakeaveragesalariesof,
estimatingatthehighend,about$500permonthforabout80hoursofworkperweek.Doubling
monthlysalariesandcuttinghoursinhalfreformsthatwouldmakegreatstridestowardshaving
Chinesefactoriesmeetmodern,dignifiedstandardsofalivingwagefroma40hourworkweek
wouldcost~$1500permonth(~$18,000peryear)foreachfactoryworker.Tohaveachieved
thesereformsforthe300,000FoxconnworkerswhoassembledtheiPhone5swouldhavecost
Appleabout$5.4billionannually.

Ifinsteadofbuyingbackstock,Applehaduseditsexcess$130billiontoendowafoundationto
achievethesereforms,itwouldhavepaidoutataconservativefivepercentinterest$6.5
billionannually,enoughtodoublewagesandensurea40hourworkweekforhundredsofthousands
ofiPhoneworkers,whileleavinga$1.1billionsurplusasanannualbudgetforensuringtopnotch
health,safetyandenvironmentalstandardsatApplefactories.Thetechnologycompanythatleadsthe
wayinprofitsandproductdesigncould,withoutchanginganythingbuttheamountofexcess,
unproductivemoneyitusestorepurchasestockfromwealthyshareholders,couldalsoleadthewayin
dignifiedworkingconditions,hoursandwages.Finally,someofApplesChinesefactoryworkersmay
becomeabletobuytheiPhonestheymanufacture.

Thisgoestoshowthattoleratingpovertywagesisnotthepricewepayforaffordablephones.Rather,
povertywagesandharmfulconditionsareaconsequenceoftoleratingoutrageousstockbuybacks.You
hadachoiceforthe$130billion:livingwagesforworkersorstockbuybacksformillionaires?You
chosebuybacks.Heresachallengeforthepresentandfutureuseofsurplusprofits:whynotletthe
customersdecide?JustastheyhaveconsumerinterestsinthinneriPhonesandsleekerMacBooks,
theyalsohavehumaneinterestsinmoredignifiedworkingconditionsandmoreliveablewagesforthe
workersthatmaketheirproducts.Andyou,morethananyotherCEO,havethetechnologicalabilityto
pollyourcustomersaboutwhoChineseworkersormillionaireshareholdersshouldreceive
Applesexcessmoney.AreyouscaredthattheymightThinkDifferentaboutthisissuethanCarl
Icahn?

Sincerely,

RalphNader
P.O.Box19312
Washington,D.C.20036
TimeForARaise.org