The iPod manufacturing company that was accused of operating dodgy sweatshop-esque working conditions has completely dropped its libel case against two Chinese journalists who published the allegations.
As previously reported, tech firm Hon Hai took legal action against the reporters from China Business News after they made allegations regarding the company's working practices, initially seeking unprecedented (in China) damages of $3.7 million. As public pressure grew against Hon Hai, and with China Business News standing by their reporters, the tech firm altered their claim last week so that the case became about the principle, rather than about financial compensation.
As of yesterday the Taiwanese company dropped its libel case completely, claiming it had done so out of "respect for journalists' social responsibility in scrutinizing corporations". CBN confirmed that the dispute between the two companies had been resolved, and both sides apologised to the other for any inconvenience the dispute had caused.
The whole debacle could, however, continue to inconvenience Hon Hai, because Chinese authorities have told the company they must establish a workers union at their factories in the country by the end of the year. The union would be affiliated to the All-China Federation Of Trade Unions.
As previously reported, Apple undertook an investigation of Hon Hai's operations after the British press reported on the questionable working practices. Although they did ask for some changes to be made at Hon Hai's Chinese factories, the computer firm denied that their supplier's employees were subject to sweatshop conditions.