On Monday, China Labor Watch, a New York-headquartered rights group, stated that Pegatron Corp violated employees' rights at its factories in Shanghai and Suzhou, China. Pegatron was a corporation from Taiwan that made Apple Inc.'s products.

According to China Labor Watch, the Taiwanese corporation that currently assembles iPhones and iPads forced its workers to work overtime. The workers were not paid for the extra hours not to mention that they were also working and living in poor conditions in the factories.

"The Pegatron factories are violating a great number of international and Chinese laws and standards as well as the standards of Apple's own social responsibility code of conduct," China Labor Watch said in its report.

Pegatron immediately made a statement and said that it would investigate about the issue. It also promised to take an urgent action. Pegatron further stated that any violation of labor laws in China and the company's own principles would be corrected.

"We strive to make each day at Pegatron better than the last for our employees. They are the heart of our business. That's why we take these allegations very seriously," Jason Cheng, CEO of Pegatron, said.

Apple responded with the report and stated that it conducted 15 audits at the facilities of Pegatron which covered up to 130,000 workers. Apple said it ensured safety and fairness in working agreements in all of its supply chains.