Apple Supplier Settles With Family of Underage Worker

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ChinaApple (NASDAQ:AAPL) supplier Pegatron recently paid compensation to the family of an underage worker who died last year, reports non-profit organization China Labor Watch. Although Pegatron denied that it was at fault, the company paid the worker’s family a total of $24,820, including $3,310 that was personally paid by Pegatron CEO Jason Cheng.

As reported by China Labor Watch last month, fifteen-year-old Shi Zhaokun died of pneumonia not long after passing Pegatron’s pre-employment physical examination. The Shanghai-based factory where Shi worked primarily makes smartphones and tablets for Apple, including the iPhone 5C.

Last December, Apple sent an independent team of medical experts to China to investigate the death. The team concluded that Shi’s death was unrelated to his work at the Pegatron facility. Pegatron also conducted its own internal investigation and came to the same conclusion. According to China Labor Watch, Shi’s family wanted to sue Pegatron over Shi’s death, but gave up after they were unable to raise sufficient funds. China Labor Watch’s report did not give a reason why Pegatron decided to pay compensation to Shi’s family.

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