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Beware Foxconn bearing gifts
By Xinmin Evening News |
July 5, 2010, Monday
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Print Edition
Print Edition
IT'S reported that Foxconn, the world's largest contract manufacturer of IT products like iPhones, may move part of its business from the coastal city of Shenzhen to somewhere in Henan Province of central China.
Such a move is understandable in terms of cutting costs, but in relocating its business, Foxconn should not reproduce its current crude management model in any new destination. Its management model essentially comes down to "strong capital power versus weak labor force," which partly explains the tragic series of employee suicides at a Foxconn factory in Shenzhen in the past year.
The government of the possible new location should also learn a lesson: it must not just provide favorable conditions for Foxconn to come and invest, it must respect the law and see to it that employees' rights are not trampled upon.
Otherwise, Foxconn's move to a new destination is no benefit to society as a whole although it may make the local government's account book look a bit better.
Such a move is understandable in terms of cutting costs, but in relocating its business, Foxconn should not reproduce its current crude management model in any new destination. Its management model essentially comes down to "strong capital power versus weak labor force," which partly explains the tragic series of employee suicides at a Foxconn factory in Shenzhen in the past year.
The government of the possible new location should also learn a lesson: it must not just provide favorable conditions for Foxconn to come and invest, it must respect the law and see to it that employees' rights are not trampled upon.
Otherwise, Foxconn's move to a new destination is no benefit to society as a whole although it may make the local government's account book look a bit better.
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