Motorola

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Company Profile
Company Name Motorola Solutions
CEO Name Greg Brown
CEO Compensation $29,329,052
Underfunded Company Pension -$2,206,000,000
Annual Company Revenue $8,203,000,000
Territorial Tax Break $350,000,000
Federal Lobbying/Political Donations ('09-'12*) $10,220,000
Click here for sources.
2011 data unless otherwise noted.
©2013 Center for Media and Democracy
Motorola
Type Publicly-traded corporation
Founded 1928
Headquarters Illinois, USA
Area served worldwide
Key people Edward Zander Chariman and CEO, Gregory Brown CEO, Thomas Meredith acting CFO, Mike S. Zafirovski - Former President
Industry technology
Products communications equipment
Revenue 34.64 bilion USD
Net income -81 million USD
Total assets 21.8 billion USD
Employees 66,000 (full-time)
Divisions Mobile Devices, Home and Networks Mobility, and Enterprise Mobility Solutions
Website http://www.motorola.com/

Motorola is the second largest maker of wireless handsets after global leader Nokia. After its spin-off of its semiconductor unit, Motorola reorganized to focus on enterprise mobility, mobile devices, and home and networks mobility. It also supplies wireless infrastructure equipment such as cellular transmission base stations, amplifiers, and servers. In 2011, Motorola posted $8.2 billion in total revenue.[1] In 2011, the company reported $8,203,000,000 in net sales.[2]

Ties to Pete Peterson's "Fix the Debt"

The Campaign to Fix the Debt is the latest incarnation of a decades-long effort by former Nixon man turned Wall Street billionaire Pete Peterson to slash earned benefit programs such as Social Security and Medicare under the guise of fixing the nation's "debt problem." Motorola is part of the Campaign to Fix the Debt as of February 2013.

This article is part of the Center for Media and Democracy's investigation of Pete Peterson's Campaign to "Fix the Debt." Please visit our main SourceWatch page on Fix the Debt.

About Fix the Debt
The Campaign to Fix the Debt is the latest incarnation of a decades-long effort by former Nixon man turned Wall Street billionaire Pete Peterson to slash earned benefit programs such as Social Security and Medicare under the guise of fixing the nation's "debt problem." Through a special report and new interactive wiki resource, the Center for Media and Democracy -- in partnership with the Nation magazine -- exposes the funding, the leaders, the partner groups, and the phony state "chapters" of this astroturf supergroup. Learn more at PetersonPyramid.org and in the Nation magazine.


Ties to the American Legislative Exchange Council

Motorola has been a corporate funder of the American Legislative Exchange Council (ALEC). [3]

A list of ALEC Corporations can be found here.

About ALEC
ALEC is a corporate bill mill. It is not just a lobby or a front group; it is much more powerful than that. Through ALEC, corporations hand state legislators their wishlists to benefit their bottom line. Corporations fund almost all of ALEC's operations. They pay for a seat on ALEC task forces where corporate lobbyists and special interest reps vote with elected officials to approve “model” bills. Learn more at the Center for Media and Democracy's ALECexposed.org, and check out breaking news on our PRWatch.org site.

Company History

Motorola was originally founded as the Galvin Manufacturing Corporation in 1928. The first product that it introduced was the battery eliminator. Motorola has worked in wireless, broadband, and automotive communications technologies and embedded electronic products.[4]

Historical Financial Information

Business Strategy

Corporate Accountability

Labor

In early 2006, Students and Scholars Against Corporate Misbehavior (SACOM), learned that nine women in the Shenzhen (China) Hospital for Occupational Disease Treatment & Prevention were poisoned by n-hexane as a result of working at a plant contracted to produce for the company (Hivac). "Hivac agreed to give every worker suffering n-hexane poisoning a tiny sum of seven to eight thousand yuan. However, they pressured workers to agree, among other things, not to raise future complaints in connection with their disease. Otherwise, the employer said they would get no recompense at all. These efforts to silence workers from discussing the long term effects of their poisoning no doubt influenced the quality of the "independent" audit commissioned by Motorola." Hivac makes lenses for Motorola phones out of Nanshan, Shenzhen Special Economic Zone in southern China. Exposure to toxic chemicals resulting in illness and birth defects has been a recurrent problem with suppliers of parts to cell phone manufacturers, including Motorola and Nokia[5]

In the late 1980s, bitter and often violent battles broke out at the company's South Korean subsidiary over the right to form a union, according to the New York Times: We still don't understand, said Park Joon Hee, country manager for Motorola Korea (employer of 3,800 workers), reflecting on how workers' demands for union recognition escalated into nightmarish days of demonstrations, hunger strikes, near self-immolations and a long siege at the computer center. In January/February 1989 Multinational Monitor reported that an IMF study concluded that the company set up a kusadae - "save the company corps" - which consists of 'thugs' who offer their services to Korean companies. The primary work of the kusadae has been to intimidate trade union activists. The IMF charged that the Motorola kusadae has disrupted union meetings, attacked union organizers with iron bars and cattle prods, and set four union leaders on fire. Motorola had 5,000 employees in Seoul and in 1987 Motorola in Korea made $8.8 billion in profits.[6]

As of 2006, workers in one of Motorola's handset supplier factories, Giant Wireless, in China, were forced upon threat of dismisasal, suspension, and wage penalties to work 12-13 hours a day, in violation of Chinese overtime rules.[7]The illegal forced overtime is covered up by falsification of documents in a dual time-card bookkeeping system.[7]

In the same year, a SOMO report found that workers were being exposed to hazardous chemicals, and that female employees in the Giant Wireless factory in particular suffer from work-related menstrual disorders, fatigue, anemia, headache, and deterioration of eyesight. No occupational health and safety institutions were in place, and workers were not paid while hospitalized.[7]

Further, despite dangerous conditions and forced overtime, workers in the Giant Wireless factory in Shenzhen were paid $0.12 an hour and $0.45 an hour for overtime, well below the legal minimum wages in China.[7]

At the Flextronics factory in Pondicherry, India, which also supplies Motorola, workers are paid above the minimum wage, but, especially given transport costs to the factory, the wages paid(approximately $48 USD/month) are not enough to support any dependents.[7]

Motorola purchases power supply devices including invertors, converters, and adapters from the Yonghong Electronics factory in Shenzhen. Yonghong is a member of the FSP Group and was founded in May 2000. In 2006, it was found to employ children under the age of 16, though by 2008 only workers of legal age were found to be working in the factory.[8] Workers at the factory are forced to work up to 7 days a week and 100-200 hours of overtime a month, in clear violation of Chinese labor law. Exhaustion is a common problem amongst workers at the factory, and they are often paid wages below the legal minimum, especially probationary (new) workers. [9] While some workers are paid the legal minimum wage of 750 yuan/month, the system in place to pay overtime wages does not pay for more than 3 hours of overtime a day, even though workers are forced to work longer in order to make the daily production quotas. [10] Because of the repetitive nature of the factory work and the extreme long hours, besides exhaustion, workers suffer from repetitive motion injuries, and neck, shoulder, and back pain are common. [10] The problem is exacerbated by the management policy that fines workers for moving their chairs from a yellow line painted on the floor to make all chairs placed in a straight line, a policy even worse for smaller employees who are not close enough to reach their work tables comfortably. [10] Workers are not provided with hazard or safety training or face masks and inhale fumes produced by soldering. [11] Workers at the Yonghong factory are not permitted to stop working there, despite the Chinese labor law code which allows for resignation with one-month prior notice. Employees complain that management refuses to look at their applications of resignation. [11] Workers sleep in rooms with 12 people in the dormitories, and they expressed concerns to SACOM interviewers about the quality and cleanliness of the food provided to them. [12]

Human Rights

A 2008 study demonstrated that Motorola, as well as several other major manufacturers of mobile phones, including Nokia, LG, and Samsung use cobalt mined in the Democratic Republic of Congo for the production of their mobile phones, thereby running the risk of supporting unfair labor practices in the mines and serious related human rights abuses.[13] Despite the companies former claims that they could not trace the origins of cobalt and other minerals used in the production of their mobile handsets, the report demonstrates that supply chains are identifiable and notes that despite this information, none of the mobile phone companies have taken action to insure that their cobalt suppliers comply with their Corporate Social Responsibility initiatives.[14]

Environment

Consumer Protection and Product Safety

"In Cellular Telephone Russian Roulette, author Robert Kane, a former top Motorola engineer, traces the history of cell phone development (in which he was involved) and analyzes the cell phone radiation bioeffects research base from 1950 to 1996. Despite industry’s claim to safety, Kane’s report shows that there was much more information available indicating safety concerns than the industry has ever acknowledged."[15]

Anti-Trust and Tax Practices

Social Responsibility Initiatives

Motorola claims in its policy for suppliers that it is committed to ensuring its suppliers do not violate workers’ rights.

Business Scope

Motorola Subsidiaries[7]

  • Motorola Australia Proprietary Ltd (Austrailia)
  • Motorola Industrial Ltda (Brazil)
  • Motorola Servicios Ltda (Brazil)
  • Motorola Canada Ltd (Canada)
  • Hangzhou Motorola Cellular Equipment Co Ltd (China)
  • Motorola (China) Electronics Ltd (China)
  • Motorola (China) Investment Ltd (China)
  • Motorola SAS (France)
  • Motorola Gmbh (Germany)
  • Motorola Asia Ltd (Hong Kong)
  • Motorola South Israel Ltd (Israel)
  • Motorola Israel Ltd (Israel)
  • Motorola Japan Ltd (Japan)
  • Motorola Technology Sdn Bhd (Malaysia)
  • Motorola Electronics Sdn Bhd (Malaysia)
  • Motorola de Mexica SA (Mexico)
  • Motorola Finance BV (Netherlands)
  • Motorola Asia Treasury Pte Ltd (Singapore)
  • Motorola Electronics Ptd Ltd (Singapore)
  • General Instrument of Taiwan Ltd (Taiwan)
  • Motorola Electronics Taiwan Ltd (Taiwan)
  • Motorola Ltd (United Kingdom)
  • General Instrument Corp
  • River Delta Networks Inc.
  • Synchronous Inc
  • Network Ventures I Inc
  • Motorola Credit Corp
  • Tohoku Semiconductor Corp (Japan)
  • Synchronous Inc
  • Quantum Bridge COmmunications (R) Inc
  • Force Computers
  • MeshNetworks Inc
  • CRISNET Inc
  • Post Year End Acquisition
  • Ucentric Systems Inc
  • Post Year End Joing Venture
  • Triarc Content Labs


Customers Suppliers Creditors Competitors
AT&T Celestica Ericsson
Cingular Flextronics Nokia Corp
Telcel Mexico Foxconn International Samsung
T-Mobile BenQ
Verizon
Vodafone


Financial Information (2008)

Ticker Symbol:MOT
Main Exchanges:NYSE, Chicago, Toyko
Investor Website:http://phx.corporate-ir.net/phoenix.zhtml?c=90829&p=irol-intermediate

Shareholder % Total Shares held
Dodge and Cox Stock Fund 6.20%
Ichan Capital Management LP 5.13%
NWQ INVESTMENT MANAGEMENT COMPANY, LLC 3.55%
Barclays Global Investors UK Holdings Ltd 3.42%
FMR LLC 3.29%
STATE STREET CORPORATION 3.11%
VANGUARD GROUP, INC. (THE) 3.03%

Table: Largest Shareholders[16]


Motorola handsets are generally produced in Asia, largely through subcontractors, but the company's own production facilities are located in Brazil, China, Germany, South Korea, Singapore, and Malyasia. Motorola's research and development facilities are located in Argentina, Australia, Brazil, Canada, China, Denmark, France, Germany, India, Ireland, Israel, Italy, Japan, Malaysia, Poland, Russia, Singapore, South Korea, Spain, the United Kingdom, and the United States.

Personnel

Board of Directors

As of February 2013[17]

  • Gregory Q. Brown, Chairman and Chief Executive Officer, Motorola Solutions, Inc.
  • David W. Dorman, Lead Independent Director of the Board, Motorola Solutions, Inc., and former Chairman and Chief Executive Officer, AT&T
  • William J. Bratton, Chief Executive Officer, Bratton Group LLC
  • Kenneth C. Dahlberg, former Chairman and Chief Executive Officer, Science Applications International Corporation
  • General Michael V. Hayden, Principal, Chertoff Group; former Director of the National Security Agency; former Director of the Central Intelligence Agency; and a former Principal Deputy Director of National Intelligence
  • Judy C. Lewent, former Executive Vice President, Chief Financial Officer, Merck
  • Anne R. Pramaggiore, President and Chief Executive Officer, Commonwealth Edison Company
  • Samuel C. Scott III, former Chairman, President and Chief Executive Officer, Corn Products International
  • Bradley E. Singer, Partner with ValueAct Capital and a former CFO at Discovery Communications and American Tower
  • Dr. John A. White, Distinguished Professor of Industrial Engineering and Former Chancellor, University of Arkansas

Former board members include:[18]

Executive Management

As of February 2013[19]

  • Greg Brown, Chairman and Chief Executive Officer
  • Michele Aguilar Carlin, Senior Vice President, Human Resources
  • Eduardo Conrado, Senior Vice President, Marketing & IT
  • Edward J. Fitzpatrick, Executive Vice President & Chief Financial Officer
  • Mark Moon, Executive Vice President and President, Sales & Product Operations
  • Lewis Steverson, Senior Vice President & General Counsel
Key executives and 2006 pay: [20]          Options
exercised
Edward J. Zander, Chairman and Chief Executive Officer    $2,770,000    $0
Gregory Q. Brown, Chief Operating Officer    $1,230,000    $3,990,000
Thomas Joseph Meredith, Acting Chief Financial Officer    $105,000    N/A
A. Peter Lawson, Executive Vice President    $820,000    $1,210,000
Adrian Nemcek, Executive Vice President    $400,000    $7,720,000

Political and Public Influence

Paragraph information

Political Contributions

Motorola gave $276,321 to federal candidates in the 2006 election through its political action committee - 31% to Democrats and 69% to Republicans. [21]

Lobbying

The company spent $3,240,000 for lobbying in 2006. Some of the lobbying firms used were OB-C Group, Dutko Worldwide, Federalist Group, Lundquist, Nethercutt & Griles LLC, and Ernst & Young. [22]

Contact Information

Motorola Inc. 1303 East Algonquin Road
Schaumburg, IL 60196
Phone: 847-576-5000
Fax: 847-576-5372
Web: http://www.motorola.com

Articles and Resources

Featured SourceWatch Articles on Fix the Debt

References

  1. Motorola Solutions, "2011 Annual Report", organizational document, page 31.
  2. Motorola Solutions: 2011 Annual Report, Motorola Solutions, Accessed Feb. 18, 2013.
  3. Clearinghouse on Environmental Advocacy and Research, project of the Environmental Working Group, Information on American Legislative Exchange Council, archived organizational profile, archived by Wayback Machine December 2, 2000, accessed August 19, 2011
  4. "A Legacy of Innovation: Timeline of Motorola History, 1928-2008", Motorola website, accessed July 2008.
  5. "Workers Poisoned in Mobile Phone Factories in China - Report", December 13th, 2006.
  6. "Motorola", Crocodyl, accessed July 2008.
  7. 7.0 7.1 7.2 7.3 7.4 7.5 Joseph Wilde and Esther de Haan, The High Cost of Calling: Critical Issues in the Mobile Phone Industry, SOMO: Centre for Research on Multinational Corporations, November 2006, p.74
  8. Jenny Chan, the Research Teach of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-Up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 11
  9. Jenny Chan, the Research Teach of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-Up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 12
  10. 10.0 10.1 10.2 Jenny Chan, the Research Teach of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-Up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 13
  11. 11.0 11.1 Jenny Chan, the Research Teach of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-Up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 14
  12. Jenny Chan, the Research Teach of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-Up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 14-15
  13. DanWatch. May 2008. "Bad Connections: How your mobile phone is linked to abuse, fraud, and unfair mining practices in DR Congo."
  14. DanWatch. May 2008. "Bad Connections: How your mobile phone is linked to abuse, fraud, and unfair mining practices in DR Congo." p. 4.
  15. "Cellular Telephone Russian Roulette", EMR Policy Institute, accessed July 2008.
  16. Yahoo! Finance accessed July 2008
  17. Motorola Solutions, "Board of Directors", organizational website, accessed February 2013
  18. Board of Directors, Motorola, accessed August 2007.
  19. Motorola Solutions, "Executive Committee", organizational website, accessed February 2013
  20. Motorola Key Executives, Yahoo Finance, accessed November 2007.
  21. 2006 PAC Summary Data, Open Secrets, accessed August 2007.
  22. Motorola lobbying expenses, Open Secrets.

External Articles