Thursday May 24, 2012 11:00 PM AEST

Vendors distance themselves from Foxconn

By The Inquirer
09:59 May 27, 2010 | 16 Comments
Tags: foxconn | suicide | news
Vendors distance themselves from Foxconn

Poor working conditions and suicides apparently not cool...

Hardware vendors are distancing themselves from Foxconn as the death toll rises at one of its Chinese factories.

For weeks, reports have surfaced about the working conditions of employees and provided a morbid count of suicides at Hon Hai Precision Industries, better known as Foxconn. The Chinese manufacturer employs close to 900,000 workers to produce gadgets for companies likes Apple, Dell and HP. Now those firms are trying to distance themselves from Hon Hai and allegations of oppressive living and working conditions at its city-like factory complexes.

A recent undercover investigation paints a picture of appalling conditions for employees. With the count of suicides having steadily grown over the past several months, that has led Hon Hai founder Terry Gou to show journalists that workers, who presumably have completed overtime work that they seek due to low pay, have access to a swimming pool. While Gou was doing his best to counter reports that Foxconn's factories are nothing more than soul-killing sweatshops, a number of his biggest customers have announced internal investigations.

Apple has said that it is "saddened and upset" at the recent suicides and has announced that it has teams "independently evaluating" the steps Hon Hai has taken to address these events. HP has come out saying that it was investigating "the Hon Hai practices that may be associated with these tragic events." Dell has also weighed in, saying that it expects suppliers to "employ the same high standards" as in its facilities, all but admitting that Hon Hai's standards are below Dell's.

While the recent statements are welcome, given that they were only issued after the story hit mainstream media one has to wonder whether this is just damage control rather than any indication that changes will be made.

Given that companies typically survey facilities and have their own staff onsite to maintain quality levels, it would be shocking if Apple, Dell and HP were unaware of factory conditions at Foxconn.

For the workers, thankfully the international attention that's finally being paid to their plight may force the multinational corporations that profit from their hard work to address their own lack of corporate conscience. 

 

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16 Comments
nesquick
May 27, 2010 11:58 AM
I read about this the other day, these are the problems we face as businesses move to cheaper labor not only do we get affected by loss of jobs but these poor 3rd world workers end up in appalling conditions.
philo-sofa
May 27, 2010 12:24 PM
I saw an interesting anaysis of this; given China's suicide rate, and the purported Foxconn workforce of 300,000+ people there, you'd expect over 40 suicides a year from Foxconn workers, instead thus far we've had about two. Not to say that we shouldn't look veer closely at whether Foxconn's corporate behaviour cause this, but it's also worth considering whether this this is all self-generated media hype?
Mademan
May 27, 2010 5:00 PM
But unsuprisingly, it's not the first time 'Apple', 'Foxconn', and 'working conditions' have come under the microscope, rightly or wrongly. I think the press just likes running these stories because either "wow, it's just a media beatup, poor Apple!", or "wow, it's true, and we reported first!".
Fierce Guppy
May 27, 2010 5:06 PM
I've considered it self-generated media hype, philo-sofa.

There's a better article on this topic at ChinaHush: http://tinyurl.com/32bfqjs The comments are interesting,too

Nesquick,
What "appalling conditions"? Except for the dormatories and rude lower level management, everything else I've read about the conditions at Foxconn is identical to much of the mind-numbing factory work I've done in the past, which includes standing up for 8 hours a day (minus two 10 minute tea breaks and one 30 minute lunch break, of course). It's not a hard life at all, just extremely repetitive and mind-numbing.
sirtrancealot
May 27, 2010 5:12 PM
wouldn't you just quit your job instead of committing suicide? pretty sure i'd tell my boss to fuck off and die and find somthing else long before i decided to /wrists....

to me it all just adds to the pot stirring that apple seems to do to drum up media interest, and turn it into a marketing tool.

3 separate apple articles on news.com.au today is evidence enough!!!
sirtrancealot
May 27, 2010 5:13 PM
make that 4 articles... wtf?? seriously, it's a tablet and it's by apple.. i get it...
Periander
May 27, 2010 6:13 PM
The other thing about these types of articles is, what if it does cause the loss of partnerships and/or sales?

Then there will be less work, less money, and more suicides.
Waltish
May 28, 2010 5:38 AM
Ah yes, globalisation's promise of a better tomorrow for all.
TastyWheat
May 28, 2010 8:52 AM
Foxxcon pays the deceased families 110,000 yuan ($19k AUD) in compensation. Considering the starting wage is 900 yuan a month ($155 AUD), the suicides might be motivated by economic factors as well.

Shitty situation in my opinion. I'm sure the job is better than nothing, but it still seems as if the workers are being exploited for all they're worth.
fliptopia
May 28, 2010 9:42 AM
As long as the demand for cheap electronics is around this situation will happen. It's hard to get people in countries like ours to agree to pay 5 times as much so people they dont know can have better working conditions.

And sirtrancealot: I dont know that it's that easy to just change jobs there.
Jeruselem
May 28, 2010 10:29 AM
I bet most of the workers are from the poor rural areas who have no choice but work or else they cannot send money to their families. They don't have a choice in some cases.
Fierce Guppy
May 28, 2010 4:20 PM
fliptopia,
Are you from Greece, Venezuela, Argentina or some such place? You go ahead and pay 5 times as much if you feel this will increase wages, but scarcity of skills in concert with the costs of production determine wage rates, not how much you pay over the counter for stuff. You'll have the shareholders saying, "We love you, fliptopia!"
Fierce Guppy
May 28, 2010 4:40 PM
Jerusalem,
Everyone who is not sucking on the State tit and eating out the sustenance of his fellow countrymen has no choice but to work. It is called paying one's way in life.
fliptopia
May 28, 2010 10:34 PM
Fierce Guppy: I'm saying that the surrent prices couldn't be maintained without paying the people shit rates. If we just went and handed over more money straight away i'm sure they would still be screwed over. As long as people with poor attitudes are in the majority there is not much that can be done.

We live in grand excess here.
Fierce Guppy
May 29, 2010 9:33 AM
fliptopia,
The reduction in the price of goods is due to competition along with more efficient production methods i.e, improved technology and utilization of labour. There is no "bad attitude". Your skills are only as valuable as what someone else is ~willing~ to pay you to use them for ~their~ benefit. Do you have a more rational measure of personal economic worth that has been proven to work?

I live completely within my means and so I don't live in even a modicum of excess let alone grand excess. Exclude me from your admonishment that "we live in grand excess".
However, you ~can~ justifiably throw the accusation at people who are up to their eyeballs in debt because of their foolhardy choices, i.e, people that have been living way beyond their means.
Athlonite
May 30, 2010 4:44 AM
@ fliptopia it's not about us paying 5x as much for stuff we're already getting over charged for it's about the people in the TOP jobs sharing the wealth why does a big company like foxcon make a huge profit because it pays it's workers peanuts so what do they expect rocket scientists
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