Microsoft to Probe Conditions at China Supplier

Microsoft Corp. (MSFT) said it is investigating allegations of worker abuse at a factory in China that makes computer mice, cameras and other devices for the technology giant.

The move was prompted by a report published this week by a Pittsburgh-based non-profit, the National Labor Committee, which alleges a factory in Dongguan, China, operated by KYE Systems Corp. overworks young employees and houses them in harsh conditions. Microsoft devices represent a significant portion of the products made at the factory, though KYE makes products for other companies there as well, according to the report.

“The factory was really run like a minimum security prison,” Charles Kernaghan, director of the National Labor Committee, said in an interview.

Representatives of KYE Systems at their Taiwan headquarters couldn’t be reached for comment.

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