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June 30, 2010

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Foxconn plans mega-factory in central China

FOXCONN Technology, a supplier to Apple Inc, is planning to build a huge new factory in the central Chinese city of Zhengzhou despite the company's own misgivings about city-sized manufacturing facilities after a spate of suicides among its young migrant workers.

Taiwan-based Foxconn and senior officials of Zhengzhou, capital of Henan Province, are working out the details of an agreement to build the plant, said a spokesman for the city government.

Zhengzhou has allocated 133 hectares for the first phase of construction, the spokesman said.

The new plant is to employ 300,000 people in the long run. About 100,000 people are to be recruited soon, said an official with the provincial employment promotion department who declined to give his name.

"Workers can expect a monthly income from 2,500 yuan (US$368) to 3,000 yuan with wages of no less than 2,000 yuan per month," he said.

The pay is about the same as that of Foxconn's plants in Shenzhen City in south China's Guangdong Province.

Henan has launched a massive recruitment drive for the new plant, posting recruitment advertisements in many residential communities in Zhengzhou as well as on the official websites of other Henan cities.

Newly recruited workers are to intern in Foxconn's Shenzhen plants before working in the new plant.

The provincial government will subsidize employees of the new Foxconn plant up to 600 yuan a month during their training, the official said.

Foxconn came under fire after 10 workers committed suicide by jumping from factory and dorm buildings in its industrial complex in Shenzhen from July 2009 to May 2010.

On June 1, Foxconn increased the monthly wages of assembly workers from 900 yuan to 1,200 yuan. On June 6, Foxconn announced another pay hike: the assembly workers' monthly wages are to be raised to 2,000 yuan starting October 1.

After being criticized for overworking staff and managing its dormitories too strictly, Foxconn announced on June 25 two property-management firms will run its staff dormitories in the Foxconn complex in Shenzhen.

Foxconn signed agreements with Shenzhen-based CATIC Property Management Co and Kaiyuan Property Management Co to outsource the daily management of the dormitories. The dormitories house 220,000 of Foxconn's 450,000 employees in Shenzhen.

With a population of more than 100 million, Henan is China's most populous province. The province has 22 million people working elsewhere as migrant workers, including 157,000 of Foxconn's 800,000 workers on Chinese mainland.

Foxconn, the world's biggest electronics contractor, makes high-tech gadgets for multinationals, such as Apple's iPhones and iPads.





 

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