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Foxconn dodges welfare benefits for workers
By Wang Xiang |
June 4, 2010, Friday
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Online Edition
Online Edition
A FOXCONN factory in east China's Shandong Province has refused to pay contributions into a housing fund, a compulsory social welfare benefit, for its 80,000 workers in the past five years.
The factory in Shandong's Yantai City could save more than 200 million yuan (US$29.29 million) every year from holding back its workers' housing funds, Beijing-based Economic Information Daily reported today.
This is the latest scandal to hit the world's largest contract electronics manufacturer after a spate of 10 suicides at Foxconn's Shenzhen plant highlighted long working hours and measly pay.
Several Foxconn Yantai workers told the newspaper that some were recruited when the factory opened in 2005. But the company never paid a cent of their housing fund contributions, they told the newspaper.
A lawyer told the newspaper that Foxconn should pay at least 2,500 yuan into the housing fund for each worker every year, according to regulations.
One Foxconn worker at Yantai said he asked his boss for his housing fund contributions. He was told that he could either keep silent on the matter or leave the factory next day.
He chose to keep his mouth shut like everyone else, he told the newspaper. He would not reveal his name for fear of reprisals,
Foxconn refused to comment on the matter.
Companies that refuse to pay workers' housing contributions can be fined up to 50,000 yuan, the report said.
Zhang Xiang, an official with Yantai Housing Fund Management Center, admitted to the newspaper that Foxconn Yantai did not pay anything into the housing fund and said the company had not been fined.
Zhang said authorities were incapable of doing anything because Foxconn is the biggest taxpayer in Yantai, according to the newspaper.
The factory in Shandong's Yantai City could save more than 200 million yuan (US$29.29 million) every year from holding back its workers' housing funds, Beijing-based Economic Information Daily reported today.
This is the latest scandal to hit the world's largest contract electronics manufacturer after a spate of 10 suicides at Foxconn's Shenzhen plant highlighted long working hours and measly pay.
Several Foxconn Yantai workers told the newspaper that some were recruited when the factory opened in 2005. But the company never paid a cent of their housing fund contributions, they told the newspaper.
A lawyer told the newspaper that Foxconn should pay at least 2,500 yuan into the housing fund for each worker every year, according to regulations.
One Foxconn worker at Yantai said he asked his boss for his housing fund contributions. He was told that he could either keep silent on the matter or leave the factory next day.
He chose to keep his mouth shut like everyone else, he told the newspaper. He would not reveal his name for fear of reprisals,
Foxconn refused to comment on the matter.
Companies that refuse to pay workers' housing contributions can be fined up to 50,000 yuan, the report said.
Zhang Xiang, an official with Yantai Housing Fund Management Center, admitted to the newspaper that Foxconn Yantai did not pay anything into the housing fund and said the company had not been fined.
Zhang said authorities were incapable of doing anything because Foxconn is the biggest taxpayer in Yantai, according to the newspaper.
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