The story, at first, sounded like a wild Internet rumor -- 25-year-old Sun Danyong, an employee with Apple contract manufacturer Foxconn (also known as Hon Hai Precision Industry Co.) leaped to his death following the disappearance of an iPhone prototype. It seemed somewhat far-fetched -- after losing the prototype, Danyong supposedly had his apartment illegally searched, and he was reportedly treated roughly by Foxconn security personnel.

But on Tuesday, Apple released a statement to CNET acknowledging Danyong's death without providing any additional details. "We are saddened by the tragic loss of this young employee, and we are awaiting results of the investigations into his death," Kristin Huguet told CNET. "We require our suppliers to treat all workers with dignity and respect."

This is not the first time that Foxconn's treatment of its employees has come into the spotlight. In 2006, Chinese reporters alleged that the company was not following labor laws, and the company subsequently admitted it. Apple's investigation at the time revealed some issues, but found the company mostly in compliance with its supplier responsibility standards.

There is incredible pressure from suppliers to retain business from high-profile companies -- like Apple -- who not only attract a lot of money, but prestige as well. Knowing how highly Apple values secrecy in the product development process, manufacturing concerns fear the loss of business if a leak can be pinned on them. For an NSFW but surprisingly insightful take on the tragedy, take a look at today's post from Fake Steve Jobs (Dan Lyons).

As reported in the Wall Street Journal, Chinese media is blaming Foxconn's management for Danyong's death. Given the information available, however, it does not appear that Apple was directly involved in this case. The case has been handed over to Chinese police for further investigation.

After gathering in front of Apple's offices in Taiwan earlier this week, protesters are now demanding a substantive response from Apple by the end of the month regarding alleged workplace labor and safety violations at Wintek, one of Apple's display component suppliers.

Labor groups associated with the protesters claim that Wintek unlawfully fired 619 workers, cut salaries without negotiation, and forced employees to work overtime without pay to fulfill rush orders. The company has since re-hired 20 of those workers and says it is operating within the law. Wintek has also threatened legal action if "company and stakeholder interests" are jeopardized. Wintek further claims that labor groups are violating their agreements and encouraging workers to demand benefits illegally.

The protesters appear to be using the popularity of Apple's brand name to get attention to their cause. "We want to go through Apple to put pressure on Wintek," said Chu Wei-li, secretary-general of the Taipei-based National Federation of Independent Trade Unions.

Apple Asia released a tepid response after the protests. Spokeswoman Jill Tan said, "Apple conducts regular audits of suppliers to make sure they comply with Apple's code of conduct. We require corrective actions when we find violations."

An audit is exactly what aggrieved Wintek employees say they are demanding. MacNN says that rights groups associated with the protests are also asking the Electronics Industry Citizen Coalition to investigate Apple's delay in responding to the matter.

Wintek was recently rumored to be the winner of the display contract for Apple's "media pad" tablet device. Some analysts predict the tablet will go on sale next year.

Apple has previously found itself in the middle of other labor disputes. In 2006, Foxconn workers protested low pay and poor working conditions while assembling iPods. Apple conducted its own investigation and found that the company violated overtime rules and unreasonably punished workers. Since then, cute pictures of Foxconn employees have thawed the image of the supplier.

Last week you may have caught some photos going around of a cute Foxconn factory worker flashing peace signs. The photos were found on a UK man's brand-new iPhone, and posted at MacRumors.

The mystery girl's identity is being protected by Foxconn, and a company spokesman said that her job is not in any danger. Taking pictures with the camera is a normal part of the testing procedure done before the phone is shipped out.

As with other Chinese internet celebrities, identities are hard to come by. Second Brother on the Right, who was part of the Olympic torch procession through many countries, is still anonymous.

[Via Reuters.]

If the name of this manufacturing company sounds familiar, it's probably because of our recent story about Foxconn reportedly winning the iPhone handset contact. Foxconn has also built has had contracts to build has had TUAW stories about having possibly having had contracts to possibly build in a theoretical way only Mac Minis, Powerbooks and iBook G4s for Apple in the past.