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===Allegations of employee mistreatment===
===Allegations of employee mistreatment===
Allegations of employee mistreatment have been made on a number of occasions. News reports highlight the long working hours,<ref name="Economist-Foxconn"/><ref name=bloom/> discrimination against mainland Chinese workers by their [[Taiwan]]ese co-workers,<ref name="management">[http://hk.stockstar.com/2010/05/2510087523186.shtml 富士康管治双重标准 员工有冤上诉无门].</ref> and lack of working relationships at the company.<ref name="moore">{{cite news|last=Moore |first=Malcolm |url=http://blogs.telegraph.co.uk/news/malcolmmoore/100039883/what-has-triggered-the-suicide-cluster-at-foxconn/ |title=What Has Triggered the Suicide Cluster at Foxconn? | work = [[The Daily Telegraph]] |date=2010-05-16 |accessdate=2010-07-09 |location=London}}</ref>
Allegations of employee mistreatment have been made on a number of occasions. News reports highlight the long working hours,<ref name="Economist-Foxconn"/><ref name=bloom/> discrimination against mainland Chinese workers by their [[Taiwan]]ese co-workers,<ref name="management">[http://hk.stockstar.com/2010/05/2510087523186.shtml 富士康管治双重标准 员工有冤上诉无门].</ref> and lack of working relationships at the company.<ref name="moore">{{cite news|last=Moore |first=Malcolm |url=http://blogs.telegraph.co.uk/news/malcolmmoore/100039883/what-has-triggered-the-suicide-cluster-at-foxconn/ |title=What Has Triggered the Suicide Cluster at Foxconn? | work = [[The Daily Telegraph]] |date=2010-05-16 |accessdate=2010-07-09 |location=London}}</ref>

Chen Long, a 23-year-old assembly worker, died. He worked 60 hours a week and was often encouraged by his parents to resign from Foxconn, alarmed with the epidemic of suicides and general misfortune surrounding the company. Chen Long was also required to work increasing increments over a year and once fainted in the street months prior to his death. He joined the company in 2010.<ref>[http://micgadget.com/13379/foxconn-worker-died-in-the-bath-after-working-60-hours-a-week/].</ref>


In 2006, the ''[[Daily Mail]]'' accused it of abusive employment practices.<ref name=dailymail>{{cite news|author=Mail Foreign Service |url=http://www.dailymail.co.uk/news/article-401234/The-stark-reality-iPods-Chinese-factories.html |title=The Stark Reality of iPod's Chinese Cactories | work = [[Daily Mail]] |date= 2006-08-18|accessdate=2011-05-27 |location=London}}</ref> Although Foxconn was found to be compliant in the majority of areas when [[Apple Computer|Apple]] audited the maker of its [[iPod]]s and [[iPhone]]s,<ref name=wsj/> the audit did substantiate a few of the allegations.<ref name=ipodcity>[http://www.macworld.co.uk/news/index.cfm?RSS&NewsID=14915 "Inside Apple's iPod Factories"]. ''[[MacWorld UK]]''. 2006-06-12.</ref>
In 2006, the ''[[Daily Mail]]'' accused it of abusive employment practices.<ref name=dailymail>{{cite news|author=Mail Foreign Service |url=http://www.dailymail.co.uk/news/article-401234/The-stark-reality-iPods-Chinese-factories.html |title=The Stark Reality of iPod's Chinese Cactories | work = [[Daily Mail]] |date= 2006-08-18|accessdate=2011-05-27 |location=London}}</ref> Although Foxconn was found to be compliant in the majority of areas when [[Apple Computer|Apple]] audited the maker of its [[iPod]]s and [[iPhone]]s,<ref name=wsj/> the audit did substantiate a few of the allegations.<ref name=ipodcity>[http://www.macworld.co.uk/news/index.cfm?RSS&NewsID=14915 "Inside Apple's iPod Factories"]. ''[[MacWorld UK]]''. 2006-06-12.</ref>

In 2012, [[Mike Daisey]] and [[Nicholas Kristof]] appeared on ''[[This American Life]]'' detailing their first-hand experiences at Foxconn; they noted that e.g. [[child labor]] is common, and that companies maintain "blacklists" of "troublemakers", workers who demand overtime pay. Living conditions are staggering, and [[hexane]] (a toxic solvent) is used as a cleaning material.<ref>http://www.businessinsider.com/apple-child-labor-2012-1</ref>


===Suicides===
===Suicides===
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===Protests===
===Protests===
In January 2012, 150 workers in [[Wuhan]] threatened to commit mass suicide because of worsening work conditions.<ref name=Tel2012>[http://www.telegraph.co.uk/news/worldnews/asia/china/9006988/Mass-suicide-protest-at-Apple-manufacturer-Foxconn-factory.html "'Mass Suicide' Protest at Apple Manufacturer Foxconn Factory"]. ''[[The Daily Telegraph]]''.</ref> The employees had asked for a raise but were told they could either quit with compensation or keep their jobs with no raise. The employees quit, but did not receive their compensation.<ref>[http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20120110000064&cid=1103 "Indignant Workers Threaten Suicide at Foxconn Park in Wuhan"]. Want China Times. 2012-01-10.</ref>
In January 2012, 150 workers in [[Wuhan]] threatened to commit mass suicide because of worsening work conditions.<ref name=Tel2012>[http://www.telegraph.co.uk/news/worldnews/asia/china/9006988/Mass-suicide-protest-at-Apple-manufacturer-Foxconn-factory.html "'Mass Suicide' Protest at Apple Manufacturer Foxconn Factory"]. ''[[The Daily Telegraph]]''.</ref> The employees had asked for a raise but were told they could either quit with compensation or keep their jobs with no raise. The employees quit, but did not receive their compensation.<ref>[http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20120110000064&cid=1103 "Indignant Workers Threaten Suicide at Foxconn Park in Wuhan"]. Want China Times. 2012-01-10.</ref>

===Workplace accidents===
====Chengdu====
{{main|2011 Chengdu Foxconn explosion incident}}
On May 20, 2011, an explosion and fire broke out at a factory in [[Chengdu]]. The incident caused three deaths and injured fifteen people. It occurred on and impacted the [[iPad 2]] assembly line.

====Shandong====
A fire broke out at the Foxconn [[Yantai]] complex in [[Shandong]] province at around 10 a.m. on September 27, 2011. No casualties were reported and production was not impacted. The fire occurred at the Yantai economic technology development zone where nearly 80,000 worked.<ref>[http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aALL&ID=201109270036]</ref><ref>[http://gizmodo.com/5844196/another-foxconn-factory-is-burning/gallery/1]. [[Gizmodo]].</ref> The fire started due to improper operation of workmanship{{vague|date=January 2012}} with color paint chemicals.<ref>[http://www.geek.com/articles/chips/color-spraying-explosion-causes-major-fire-at-foxconn-factory-20110927/]. geek.com.</ref>

====Chennai====
Around 250 workers at a company factory in Chennai, India, were hospitalized following respiratory ailments caused by the routine spraying of pesticide at the facility. No casualties were reported.<ref>[http://articles.economictimes.indiatimes.com/2010-07-27/news/27614687_1_foxconn-salaries-for-assembly-line-hike-monthly-salaries]. ''[[The Economic Times]]''.</ref>

===President compares workers to animals===
At a January 15, 2012, corporate meeting, in conversation with the director of the Taipei Zoo, President Gou said, "Hon Hai has a workforce of over one million worldwide and as human beings are also animals, to manage one million animals gives me a headache," according to WantChina Times, which translated Gou's remarks. Foxconn later issued a statement reporting Gou's apology and explaining his remarks in the full context of his conversation with the zoo's director.<ref name=pcmag.com>[http://www.pcmag.com/article2/0,2817,2399149,00.asp Foxconn Clarifies, Apologizes for CEO's Comparison of Workers to 'Animals'], ''[[pcmag.com]]'', January 2012. Retrieved on 5 January, 2012</ref>


==See also==
==See also==

Revision as of 04:42, 24 January 2012

Hon Hai Precision Industry Co., Ltd.
(trading as Foxconn)
Company typePublic
TWSE: 2317
SEHK: 2038
LSE: HHPD
Nasdaq: HNHPF
IndustryElectronics manufacturing services
Founded1974
Headquarters
Tucheng District, New Taipei
,
Taiwan
Area served
Global
Key people
Terry Gou (Chairman and President)
ProductsVarious
RevenueUS$59.32 billion (2010)[1]
Decrease 4.1% from 2008
US$2.2 billion (2010)[1]
Increase 31.1% from 2008
Number of employees
920,000+ (2010)[2]
Websitefoxconn.com

The Foxconn Technology Group (traditional Chinese: 富士康科技集團; simplified Chinese: 富士康科技集团) is a multinational business group anchored by the Hon Hai Precision Industry Co., Ltd. (Chinese: 鴻海精密工業股份有限公司; LSE: HHPD), a Taiwan-registered corporation headquartered in Tucheng, New Taipei, Taiwan. It is the world's-largest maker of electronic components[3] including printed circuit boards.[4]

Due to its dominance in this specialized outsourcing sector, it is popular with European, Japanese, and American companies wishing to reduce labor costs without sacrificing quality. Notable products the company manufactures include the Amazon Kindle, iPad,[5] iPhone,[6] PlayStation 3, Xbox 360 and Wii.

It is the largest exporter in Greater China and the second-largest exporter in the Czech Republic.[7]

The company has been involved in several controversies– most relating to how it manages employees in China, where it is the largest private employer.[8] International attention has repeatedly been drawn to the suicides of workers and the conditions of employment.

History

Hon Hai Precision Industry Co Ltd was founded in 1974 as a manufacturer of electrical components (notably electrical connectors for computer components,[6] which found use in the Atari 2600,[9] Foxconn was first a trade name of Hon Hai and is now named a Hon Hai subsidiary.[6]

Hon Hai's first manufacturing plant in China opened in Longhua, Shenzhen, in 1988.[6]

Operations

Foxconn currently has factories in Asia, Europe and South America.

China

Foxconn has 13 factories in nine Chinese cities, more than in any other country.[10]

Foxconn's largest factory worldwide is in Longhua, Shenzhen, where 300,000[11] to 450,000[2] workers are employed at the Longhua Science & Technology Park, a walled campus[6] sometimes referred to as "Foxconn City"[12] or "iPod City".[13] Covering about 1.16 square miles (3 square km),[14] it includes 15 factories,[12] worker dormitories, a swimming pool,[15] a fire brigade,[6] and a downtown complete with a grocery store, bank, restaurants, bookstore, and hospital.[6] While some workers live in surrounding towns and villages, others live and work inside the complex,[16] which broadcasts its own television network, Foxconn TV.[6]

Planned factories include sites at Chengdu in Sichuan province, Wuhan in Hubei province, and Zhengzhou in Henan province.[10]

Europe

A Foxconn factory in the Czech Republic

Foxconn has factories in Slovakia,[8] Poland[8] and Czech Republic.[7]

India

Foxconn has an operation in the Special Economic Zone of Chennai, Tamil Nadu.[17]

Mexico

Facilities in Mexico include a site in San Jerónimo, Chihuahua, which assembles computers,[citation needed] and two Juárez facilities– a former Motorola production base that makes mobile phones,[18] and a set-top box factory purchased from Cisco Systems.[19] LCD televisions are also made in the country by Foxconn.[20]

Brazil

All existing and currently planned company facilities in South America are located in Brazil,[21] including mobile-phone factories in Manaus and Indaiatuba as well as production bases in Jundiai, Sorocaba, and Santa Rita do Sapucaí.[22] The company is considering more investments in Brazil.[8]

Major customers

Former Apple executives said that Apple uses Foxconn and similar Chinese companies because their employees are more flexible, diligent, and skilled than American workers, and are willing to work harder. For example, in 2007 Apple redesigned the iPhone with a new, non-scratch glass screen at the last minute. Chinese companies provided industrial engineers to manage the changeover. The glass screens began arriving at midnight. A foreman roused 8,000 workers inside the company's dormitories, gave each one a biscuit and cup of tea, guided them to a workstation and started a 12-hour shift fitting glass screens into frames. An executive said, "The speed and flexibility is breathtaking. There's no American plant that can match that."[23]

Foxconn is valuable not only because of its own capabilities, but because it is part of an industrial complex, known informally as Foxconn City, and an entire supply chain. 230,000 employees live in Foxconn City, many working 6 days a week, 12 hours a day. Over one-quarter live in company barracks, and many earn less than US$17 a day. In addition, the Chinese government subsidizes Foxconn and other companies in developing industries. Foxconn assembles 40% of the world's consumer electronics products.[23]

Foxconn manufactures products for companies including:

(country of headquarters in parentheses)

In 2011, Amazon and Foxconn formed a joint-design manufacturing company. The move was meant to produce an Amazon branded smartphone sometime in 2012.[25]

Controversies

Allegations of employee mistreatment

Allegations of employee mistreatment have been made on a number of occasions. News reports highlight the long working hours,[12][14] discrimination against mainland Chinese workers by their Taiwanese co-workers,[29] and lack of working relationships at the company.[30]

In 2006, the Daily Mail accused it of abusive employment practices.[31] Although Foxconn was found to be compliant in the majority of areas when Apple audited the maker of its iPods and iPhones,[6] the audit did substantiate a few of the allegations.[32]

Suicides

Main article: Foxconn suicides

Sun Danyong, a 25-year-old male, committed suicide in July 2009 after reporting the loss of an iPhone 4[33] prototype in his possession.[34]

In reaction to a spate of worker suicides where fourteen died in 2010,[28] a report by twenty Chinese universities described Foxconn factories as labour camps and detailed widespread worker abuse and illegal overtime.[35] In response to the suicides, Foxconn installed suicide-prevention netting at some facilities,[31] and it promised to offer substantially higher wages at its Shenzhen production bases.[36] Workers were also forced to sign a legally binding document guaranteeing that they would not sue the company as a result of self-injury or suicide.[37]

Protests

In January 2012, 150 workers in Wuhan threatened to commit mass suicide because of worsening work conditions.[38] The employees had asked for a raise but were told they could either quit with compensation or keep their jobs with no raise. The employees quit, but did not receive their compensation.[39]

See also

References

  1. ^ a b "Fortune Global 500 2010: The World's Biggest Companies– Hon Hai Precision Industry" Fortune. 2010.
  2. ^ a b "Foxcon Plans To Increase China Workforce to 1.3 Million". Focus Taiwan News Channel. 2010-8-19. Retrieved 2010-8-19. {{cite news}}: Check date values in: |accessdate= and |date= (help)
  3. ^
  4. ^ Buetow, Mike (March 2010). "The Trials of 2009". circuitsassembly.com.
  5. ^ "Apple Adding More iPad Production Lines To Meet Holiday and 2011 Demand". San Francisco Chronicle. 2010-11-23.
  6. ^ a b c d e f g h i "The Forbidden City of Terry Gou". The Wall Street Journal. 2007-08-11.
  7. ^ a b "About Foxconn: Group Profile". Foxconn Technology Group.
  8. ^ a b c d "Foxconn Says Looking at Investment Opportunities in Brazil". Reuters. 2011-04-13.
  9. ^ Balfour, Frederik; Culpan, Tim (2010-09-09)."Everything Is Made by Foxconn in Future Evoked by Gou's Empire". Bloomberg News.
  10. ^ a b "Struggle for Foxconn Girl Who Wanted To Die". Mimi Lau in Wuhan, Hubei. South China Morning Post. 2010-12-15.
  11. ^ "Firm Shaken by Suicides". Los Angeles Times. 2010-05-26.
  12. ^ a b c "Suicides at Foxconn: Light and Death". The Economist. 2010-05-27.
  13. ^
  14. ^ a b "Foxconn Workers in China Say 'Meaningless' Life Sparks Suicides". BusinessWeek. 2010-06-02.
  15. ^ [1]. Engadget.
  16. ^ "A Night at the Electronics Factory". The New York Times. 2010-06-19.
  17. ^ ""Trade Union Leaders and Workers at Foxconn India Imprisoned". 2010-10-22. Retrieved 2010-11-04.
  18. ^ "Foxconn: Arson at Mexico Plant Work of Angry Ex-Employee". PC World. 2010-02-22.
  19. ^ "Citigroup Likes Hon Hai's Purchase of Set-Top Box Plant". Taipei Times. 2011-07-20.
  20. ^ "Foxconn Denies Plans To Acquire Sony LCD TV Factory in Spain". Ninelu Tu; Adam Hwang. DigiTimes. 2010-07-09.
  21. ^ "Global Distribution". Foxconn Technology Group.
  22. ^ [clarification needed] Fávaro, Tatiana (2011-04-24). "Filial no Brasil acusada de pressão no trabalho" (in Portuguese). Retrieved 2011-06-06. {{cite web}}: Cite has empty unknown parameter: |trans_title= (help)CS1 maint: unrecognized language (link)
  23. ^ a b [2] How U.S. Lost Out on iPhone Work, by Charles Duhigg and Keith Bradsher, New York Times, January 21, 2012
  24. ^ "Kindle Screen Maker Will Increase Capacity To Meet Demand". Computer World. 2010-07-28.
  25. ^ Clarke, Peter (2011-11-21)."Report: Amazon Asks Foxconn for Smartphone Help". EE Times. Retrieved 2011-11-21.
  26. ^ a b "Foxconn Option for Henan's Migrating Millions: A New Factory in Zhengzhou. He Huifeng. South China Morning Post. 2010-09-15. p. 8.
  27. ^ Buetow, Mike (April 2005). "Foxconn, HP Extend Contract Relationship". Circuits Assembly. Vol. 16, Iss. 4; p. 10, 1 pgs.
  28. ^ a b Pomfret, James (2010-11-05). "Foxconn Worker Plunges to Death at China Plant: Report". Reuters.
  29. ^ 富士康管治双重标准 员工有冤上诉无门.
  30. ^ Moore, Malcolm (2010-05-16). "What Has Triggered the Suicide Cluster at Foxconn?". The Daily Telegraph. London. Retrieved 2010-07-09.
  31. ^ a b Mail Foreign Service (2006-08-18). "The Stark Reality of iPod's Chinese Cactories". Daily Mail. London. Retrieved 2011-05-27.
  32. ^ "Inside Apple's iPod Factories". MacWorld UK. 2006-06-12.
  33. ^ "Apple Confirms Death of iPhone Worker in China". CNET. 2009-07-21.
  34. ^ "IPhone Maker in China Is Under Fire After a Suicide". The New York Times. 2009-07-26.
  35. ^
  36. ^ "Foxconn To Raise Wages Again at China Plant". Reuters. 2010-10-01.
  37. ^ Malone, Andrew; Jones, Richard (2010-12-06). "Revealed: Inside the Chinese Suicide Sweatshop Where Workers Toil in 34-Hour Shifts To Make Your iPod". Daily Mail. London. Retrieved 2011-10-07.
  38. ^ "'Mass Suicide' Protest at Apple Manufacturer Foxconn Factory". The Daily Telegraph.
  39. ^ "Indignant Workers Threaten Suicide at Foxconn Park in Wuhan". Want China Times. 2012-01-10.

Further reading

Wikimedia Commons has media related to Foxconn.
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