Reports: Labor conditions still bad at Foxconn
Source: Agencies |
01:34 UTC+8 October 13, 2010
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Print Edition
Print Edition
FOXCONN, maker of Apple's iPhone, faces new allegations of worker abuse at its sprawling plants on Chinese mainland in two reports that claim conditions have not improved despite company promises after a rash of suicides.
One report criticized Foxconn for long working hours, a "militaristic" work culture and mass employment of low-wage vocational college students and interns on production lines to cut costs. The report was based on interviews with over 1,700 workers by 20 universities in Chinese mainland, Hong Kong and Taiwan.
Foxconn and its parent company, Hon Hai Precision Industry Company Ltd, dismissed the report's "unsubstantiated allegations" and said it treated and paid its workers well.
"Foxconn Technology Group strongly and categorically rejects reports in the Chinese and international media that are attributed to research by academics and students alleging worker abuse, illegal labor practices, and unsafe working conditions at our operations in China," it said in a statement.
Hon Hai, the world's biggest electronic parts maker - it makes iPhones and iPads for Apple and goods for Dell and Hewlett-Packard, among others - came under criticism following 13 suicides at its Foxconn mainland plants.
Since the suicides, Foxconn pledged to improve the livelihood of its 937,000 workers on Chinese mainland by raising wages, cutting overtime and building new factories in inland provinces closer to migrant workers' homes.
However, the report, based on worker interviews between June and August, said the workload was still unrelenting.
A second report by rights group Students & Scholars Against Corporate Misbehavior said many employees were still paid barely more than minimum wage levels in some factories despite promises to beef up basic wages to around 2,000 yuan by October.
Both reports said Foxconn was hiring young students and interns on a vast scale at low wages to mitigate soaring costs that have eroded profits and hurt Hon Hai's share price this year.
Hon Hai denied this, saying that only around 7.6 percent of its workforce were interns and that those working overtime had done so voluntarily.
The reports also blamed major electronics brands like Apple for driving Chinese workers and factory owners to the brink.
"Apple and other brands must raise the unit price of their orders to allow manufacturers to survive while providing a living wage for the workers who produce their electronics products," said the Students & Scholars report.
Apple declined to comment yesterday.
Market research firm iSuppli estimates that a 4G iPhone costs US$6.54 to make in China, or just around 1.1 percent of its retail price, while Apple's profits margins hover above 60 percent.
One report criticized Foxconn for long working hours, a "militaristic" work culture and mass employment of low-wage vocational college students and interns on production lines to cut costs. The report was based on interviews with over 1,700 workers by 20 universities in Chinese mainland, Hong Kong and Taiwan.
Foxconn and its parent company, Hon Hai Precision Industry Company Ltd, dismissed the report's "unsubstantiated allegations" and said it treated and paid its workers well.
"Foxconn Technology Group strongly and categorically rejects reports in the Chinese and international media that are attributed to research by academics and students alleging worker abuse, illegal labor practices, and unsafe working conditions at our operations in China," it said in a statement.
Hon Hai, the world's biggest electronic parts maker - it makes iPhones and iPads for Apple and goods for Dell and Hewlett-Packard, among others - came under criticism following 13 suicides at its Foxconn mainland plants.
Since the suicides, Foxconn pledged to improve the livelihood of its 937,000 workers on Chinese mainland by raising wages, cutting overtime and building new factories in inland provinces closer to migrant workers' homes.
However, the report, based on worker interviews between June and August, said the workload was still unrelenting.
A second report by rights group Students & Scholars Against Corporate Misbehavior said many employees were still paid barely more than minimum wage levels in some factories despite promises to beef up basic wages to around 2,000 yuan by October.
Both reports said Foxconn was hiring young students and interns on a vast scale at low wages to mitigate soaring costs that have eroded profits and hurt Hon Hai's share price this year.
Hon Hai denied this, saying that only around 7.6 percent of its workforce were interns and that those working overtime had done so voluntarily.
The reports also blamed major electronics brands like Apple for driving Chinese workers and factory owners to the brink.
"Apple and other brands must raise the unit price of their orders to allow manufacturers to survive while providing a living wage for the workers who produce their electronics products," said the Students & Scholars report.
Apple declined to comment yesterday.
Market research firm iSuppli estimates that a 4G iPhone costs US$6.54 to make in China, or just around 1.1 percent of its retail price, while Apple's profits margins hover above 60 percent.
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