Friday, July 9, 2010

Foxconn's Employee Scuicides

Foxconn is a computer electronics manufacturing cooperation that makes parts for Apple, Sony, Microsoft and other major names in the software industry. With its origins in Taiwan, Foxconn has its industries mostly in China where it has come under attack from allegations of employee mistreatment. If we look at its history, this is not surprising; Foxconn has had 12 employees attempt suicide in the mere first few months of this year, not to mention rumors of other misconducts on the company's premises.

To name a few examples, employee Sun Danyong committed suicide after losing one of the 16 iPhone prototypes. Supposedly, his superiors physically abused him and illegally raided his house. A few days later, he jumped off his apartment building. In February, a reporter that was photographing Foxconn buildings was beaten by security. The list of misconducts goes on an on and the result is what we see as bad work conditions for Foxconn employees. As if China didn't have enough problems with the media snapping at its child and factory labor issues.

However, the blame might not all be on Foxconn. If we look closely at its revenue compared to that of its suppliants, Foxconn only has a 4% annual gain while Apple's is 40%. Obviously, Foxconn might not be able to afford better working conditions for its employees (although this does not absolve them from blame) (Foxconn actually provides dormitories for its employees). The pressure on the employees, in fact, may be coming from the big companies like Apple and Microsoft so they can keep their 40% profit gain. If Foxconn were to put money into its employees' welfare, the money would eventually come out of the American companies' pockets. In the case of Sun Danyong, his intrusive superiors were actually from Apple, and it is quite possible that it was his fear of their reprimanding that caused him to commit suicide.

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