A demand dilemma for supplier
Source: Agencies |
May 27, 2010, Thursday
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Print Edition
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TERRY Gou, chairman of Foxconn parent Hon Hai and one of Taiwan's wealthiest men, is under siege.
The stakes are high for Hon Hai and the Foxconn unit that supplies industry giants.
There is a growing call from activists for a global boycott of products like Apple's iPhone.
Hon Hai's clients read like a Who's Who of electronics makers, from Apple, Hewlett-Packard, Nokia to Dell.
"It's a crucial issue that Hon Hai has to deal with right away," said Andrew Deng, an analyst with Taiwan International Securities. "If not, Nokia, HP and Apple might cut orders as pressure against buying their products mount."
Gou led media representatives inside the factory in south China's Shenzhen yesterday - the plant that has seen nine suicides and two attempts this year alone.
Reporters were allowed to talk freely with workers, many of them coming from China's less-developed areas.
"Maybe they can't take the stress here," said Tang Wenying, a young line supervisor from central China's Hunan Province. "This is a good place to work because they treat us better than many other factories."
Labor activists say the string of suicides backs up their allegations that workers toil in terrible conditions at Foxconn. They claim shifts are long, the assembly line moves too fast and managers enforce military-style discipline on the workforce.
But Foxconn has insisted that workers are treated well and are protected by programs that ensure their welfare.
The Shenzhen factory is perennially a popular place to work, with hordes of applicants lining up for jobs during the hiring season.
"We are saddened and upset by the recent suicides at Foxconn," Apple spokesman Steve Dowling said yesterday. "Apple is deeply committed to ensuring that conditions throughout our supply chain are safe and workers are treated with respectand dignity."
"A team from Apple is independently evaluating the steps they are taking to address these tragic events, and we will continue our ongoing inspections of the facilities where our products are made," he said.
Dell said it was also looking into Foxconn's situation.
"Any reports of poor working conditions in Dell's supply chain are investigated and, if warranted, appropriate action is taken," Dell spokesman Jess Blackburn said yesterday.
"We expect our suppliers to employ the same high standards we do in our own facilities."
Nokia spokeswoman Louise Ingram declined to comment on specific suicide cases.
"Nokia firmly believes that all employees have the right to ethical and legal treatment," she said.
"We set strict requirements to all our suppliers, including Foxconn, and follow up on them regularly."
The latest death at Foxconn on Tuesday followed that of a 21-year-old man who worked in the logistics department and jumped from a four-story building just after finishing the night shift last Friday.
The stakes are high for Hon Hai and the Foxconn unit that supplies industry giants.
There is a growing call from activists for a global boycott of products like Apple's iPhone.
Hon Hai's clients read like a Who's Who of electronics makers, from Apple, Hewlett-Packard, Nokia to Dell.
"It's a crucial issue that Hon Hai has to deal with right away," said Andrew Deng, an analyst with Taiwan International Securities. "If not, Nokia, HP and Apple might cut orders as pressure against buying their products mount."
Gou led media representatives inside the factory in south China's Shenzhen yesterday - the plant that has seen nine suicides and two attempts this year alone.
Reporters were allowed to talk freely with workers, many of them coming from China's less-developed areas.
"Maybe they can't take the stress here," said Tang Wenying, a young line supervisor from central China's Hunan Province. "This is a good place to work because they treat us better than many other factories."
Labor activists say the string of suicides backs up their allegations that workers toil in terrible conditions at Foxconn. They claim shifts are long, the assembly line moves too fast and managers enforce military-style discipline on the workforce.
But Foxconn has insisted that workers are treated well and are protected by programs that ensure their welfare.
The Shenzhen factory is perennially a popular place to work, with hordes of applicants lining up for jobs during the hiring season.
"We are saddened and upset by the recent suicides at Foxconn," Apple spokesman Steve Dowling said yesterday. "Apple is deeply committed to ensuring that conditions throughout our supply chain are safe and workers are treated with respectand dignity."
"A team from Apple is independently evaluating the steps they are taking to address these tragic events, and we will continue our ongoing inspections of the facilities where our products are made," he said.
Dell said it was also looking into Foxconn's situation.
"Any reports of poor working conditions in Dell's supply chain are investigated and, if warranted, appropriate action is taken," Dell spokesman Jess Blackburn said yesterday.
"We expect our suppliers to employ the same high standards we do in our own facilities."
Nokia spokeswoman Louise Ingram declined to comment on specific suicide cases.
"Nokia firmly believes that all employees have the right to ethical and legal treatment," she said.
"We set strict requirements to all our suppliers, including Foxconn, and follow up on them regularly."
The latest death at Foxconn on Tuesday followed that of a 21-year-old man who worked in the logistics department and jumped from a four-story building just after finishing the night shift last Friday.
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