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ABC's Nightline goes inside Foxconn's Apple factory (video)
Nightline's Bill Weir managed to get his feet inside manufacturing behemoth Foxconn: the infamous plant where iPads, Xboxes and Kindles are constructed. Following multiple explosions and employee suicides, the factory is being inspected by the Fair Labor Association to examine working conditions exposed by the efforts of journalists like Liu Zhiyi. In the show, we learn that on a quiet day, 3,000 prospective employees will linger outside the factory in the hope of earning just $1.78 an hour. Weir himself manages to coax the concession from company advisor Louis Woo that the multiple tragedies were a belated catalyst for change in the company's working conditions. The full special will air on ABC tomorrow but we've got a sneak peek for you after the break.
Foxconn worker from Chengdu factory commits suicide
Sadly, a 20-year-old male employee at Foxconn (Apple's contract manufacturer for many products) committed suicide Thursday morning, according to a report from the Hong Kong China News Agency (HKCNA) cited by Bloomberg. The worker was reportedly employed at the company's new facility in Chengdu where an explosion killed three workers on May 20. Further details about Thursday morning's incident are sparse, and the reasons behind the factory worker's suicide are currently unknown. This is at least the 14th publicized death by suicide among Foxconn's workforce since the start of 2010. Foxconn chairman Terry Gou declined to comment about the incident saying he doesn't know the full details about the apparent suicide. However, last year, Gou said suicides by Foxconn employees were prompted by personal issues rather than tough working conditions in his company's facilities. Labor groups like China Labor Watch disagree. Foxconn's critics have slammed the Taipei-based company for operating facilities with a sweatshop atmosphere -- an accusation Gou vehemently denies. In response to last year's suicides and subsequent harsh criticism, Foxconn, which builds electronic products for several other recognizable brands including Sony and Dell, raised wages, slashed overtime, offered counseling, and tried to improve the work-life balance for its more than one million factory workers in China. Although Foxconn's suicide rate remains markedly lower than China's national average, Thursday morning's death, last Friday's explosion, and protests outside a Foxconn shareholder meeting earlier this month suggest the manufacturer has more work to do to improve employee safety and overall satisfaction. Our thoughts and condolences go out to the friends and family of the young man who died.
Foxconn employees asked to sign 'no suicide' pledge
English tabloid newspaper the Daily Mail is reporting that employees working for Foxconn, assembler of many Apple products, are being forced to sign pledges not to commit suicide. The report from the tabloid paper points to an investigation conducted by the Centre for Research on Multinational Companies and Students & Scholars Against Corporate Misbehaviour (Sacom). Sacom claims it uncovered "appalling" working conditions at the Foxconn factory that include excessive overtime and public humiliation. While the Daily Mail cites the Sacom study as evidence of abysmal working conditions at Foxconn, the Sacom report investigates factory conditions across China -- not just Foxconn -- and, in fact, congratulates Foxconn as being the only employer to pledge to meet government limits on overtime. The anti-suicide letters seem to have been first published on the Shangaiist website, where there's some discussion on the exact translation of the supposed leaked Foxconn employee letter. The contentious, final paragraph states: "In the event of non-accidental injuries (including suicide, self mutilation, etc.), I agree that the company has acted properly in accordance with relevant laws and regulations, and will not sue the company, bring excessive demands, take drastic actions that would damage the company's reputation or cause trouble that would hurt normal operations." But what Shangaiist author Elaine Chow translates as "will not sue the company," others translate as "will not make demands outside of law and regulation." In fact, this anti-suicide pact that new workers are asked to sign seems to point them towards sources of help should they have problems, including a trade union hotline -- not quite the dismal picture painted by the Daily Mail. [Via Slashdot]
Foxconn denies Apple subsidizing wages
Some rumors from last May that Apple was paying a part of the salary of workers in the Foxconn assembly plant have been denied by the giant Taiwan electronics company. A report in DigiTimes today quotes a Foxconn executive as saying the "rumor is purely speculation and Foxconn has never received any subsidies from Apple." We've previously reported that Foxconn has started to give substantial pay raises to employees after a spate of publicity about suicides at the Foxconn plant. the company also says it is going to move some of the Apple product production to new facilities in other parts of China. [Via MacRumors]
Chinese government to make Foxconn suicide findings public
We've been struggling to wrap our heads 'round this whole Foxconn imbroglio since the beginning, and while we're pretty skeptical about any official reports we'd be remiss if we didn't mention that the Human Resources and Social Security Ministry in China was looking into the thing, and that they'll be releasing the findings somewhat soonish. According to Vice Minister Zhang Xiaojian, recent strikes at various factories including Brother and Honda (strikes seemingly sparked by the Foxconn incidents) do not constitute "a 'wave' of unrest." Well, that's good -- for business owners, at least. And while the families of the Foxconn suicides maintain that long hours, low pay, and harsh management are to be blamed, Zhang added that "the psychological problems of the workers" can be added to the list. Psychological problems caused by low pay, long hours, and harsh management, perhaps? [Thanks, Xinh]
Foxconn axes suicide compensation, relocating some production to Vietnam or Taiwan
At yesterday's annual shareholder meeting, Foxconn revealed that it'll no longer be compensating families of dead employees as a move to discourage further suicides. CEO Terry Gou reasoned by exhibiting evidence that showed the money -- an amount almost equivalent to ten years' worth of salary -- was a major motivation for the suicides. One such exhibit was a man's suicide letter that contained the following message for his parents: "...now I'm going to jump off Foxconn, really leaving now, but you don't have to be sad, because Foxconn will pay a bit of money, this is all your son can repay you now." Gou also blamed a possible "Werther Effect" created by the news coverage, which might have led to six of the twelve suicides all taking place in May. Consequently, the company will be handing over its welfare management work to the local Chinese government, as it's unable to deal with too many social responsibilities. In the same meeting, the company made an unsurprising announcement that it's looking to relocate some manufacturing work, amid a worsened earnings forecast due to increased wages -- basic salary has gone up from ¥900 ($132) to ¥1,200 ($176), rising to as much as ¥2,000 ($293) for those who meet new performance criteria. This will involve setting up a fully automated facility in either Taiwan or Vietnam, while the existing Vietnamese plant will be receiving more orders. Chairman Samuel Chen also said that Foxconn will be working with its clients to share the load -- no further details on this, but we suspect Apple's rumored direct subsidies are part of the plan.
Rumor: Apple paying Foxconn workers directly
After all of the trouble last week at Foxconn, the Chinese factory suffering from worker suicides, rumor has it that Apple is stepping up to increase wages at the plant by paying workers directly. A Chinese website claims that Apple may eventually pay workers as a percentage of product sales, though the numbers aren't quite clear -- the website says the payout would be around 1 to 2 percent of product sales, which sounds high. The report also says that the iPad will be the first product under this plan, which is good news for the workers considering how it's selling. This is still just a rumor at this point -- Foxconn makes products for all kinds of companies, and while it would be excellent for Apple to contribute to the low wages these workers are paid, it seems unlikely that it would step in with more money. Most likely, Apple would simply pressure Foxconn to make more changes, which is what Apple and other clients have done so far. But obviously the suicides are a major issue, and if Apple can alleviate the problem by providing higher wages on its own, that may help. We'll have to wait and see if any officially announced plans come to light.
Top Chinese official calls for improved worker conditions in response to Foxconn deaths
The highest ranking official in the Guangdong province of China has called for improved conditions for workers in light of the recent slew of suicides at Hon Hai Precision Manufacturing, also known as Foxconn. Wang Yang, the provincial party secretary in the province where the suicides have taken place, said that the government must work together with the company to "take effective measures to prevent similar tragedies from happening again," While it's still not clear what is causing the deaths, Wang called for measures such as increasing sports and leisure activities for the workers, and improving communication between worker and employer. "Labor unions in private firms should be improved to facilitate better working conditions and more harmonious relations between workers and employers," he said, speaking at a conference in Shenzhen on Saturday, just about one day after Foxconn announced it would increase wages of workers up to 20 percent.
More concerns over suicides at Foxconn
There was more bad news out of China this week -- manufacturer Foxconn (who makes quite a few parts for Apple devices) has been dealing with a rash of employee suicides, as low pay and long hours on the workers seems to be taking their toll. Yesterday, another worker reportedly tried to take his own life [Ed. note: original 9to5Mac link broken], and there are reports of more than 15 other attempts within the plant. Apple has responded, saying that they're working closely with the company to try and solve the issue. In order to do that, the company claims it's going to raise wages by 20%, although it's not clear yet when or how that plan will be implemented. It also says that some employees will be relocated closer to their homes -- about a fifth of the workforce will be moved to plants closer to their families. Apple isn't alone in helping Foxconn deal with the problem, either -- Sony, Nokia, Nintendo, Dell, and HP all get parts from these factories and are pressuring the company to do better. Finally, John Gruber points out that as bad as this Foxconn story is, it might not be all that remarkable, unfortunately. Even with the reported 13 suicides, Foxconn has over 800,000 workers, which means the company's suicide rate is below the national average in China, and China is number 26 on the worldwide list. But numbers and averages aside, a death is a death, and everything Foxconn can do to help their employees lead better lives should be worth it.
Another death at Foxconn, CEO makes statement
Looks like Foxconn's troubles are far from over -- hiring an exorcist must not have worked, because another worker jumped to their death last week. That's the 10th such employee death at the plant where many of Apple's parts are manufactured. Foxconn's CEO made a statement earlier this week saying that "we are not a sweatshop," and promising that the company will "soon be able to stabilize this situation." The company has also starting hanging nets around factories to try and save jumpers (that's pretty grisly), and they've asked all employees to sign a pledge to help stop the problem, which Gawker has obtained. The pledge asks workers to seek help before doing something to harm themselves, and to help those around them who need it. Foxconn claims it's not a sweatshop, but reports say the company is asking employees to work 60 hours of overtime a month (far over the legal limit of 36 hours of overtime), and paying only about $132 a month. Clearly something is wrong at the company that Apple depends on for much of its manufacturing labor.
The fate of a generation of workers: Foxconn undercover fully translated (update: videos added)
Machine translations are still years or even decades away from perfection, so rather than sending you to an auto-translated page, we now present -- with exclusive permission from Southern Weekend -- a human translation of this damning article on Foxconn by undercover reporter Liu Zhiyi. (Photo: Southern Weekend) I know of two groups of young people. One group consists of university students like myself, who live in ivory towers and kept company by libraries and lake views. The other group works alongside steel machineries and large containers, all inside a factory of high-precision manufacturing environment. These guys always address their seniors as "laoban" (boss), and call their own colleagues -- regardless of familiarity -- the rude "diaomao" (pubic hair) in loud. After going undercover in Foxconn for 28 days, I came back out. I've been trying to tie the two pictures together. But it's very difficult. Even with people living in these two places sharing the same age, the same youth dream. My undercover was part of Southern Weekend's investigation on the then six Foxconn suicides. We soon found out that most of Southern Weekend's reporters were rejected due to age -- Foxconn only recruits people around the age of 20. In comparison, being just under 23 years old, I was quickly brought into Foxconn. The 28-day undercover work made a strong impact on me. It wasn't about finding out what they died for, but rather to learn how they lived.
Undercover Chinese reporter exposes Foxconn working conditions (update: full English translation)
Some time in April, Chinese news site Southern Weekend sent its intern, Liu Zhiyi, on a 28-day undercover mission at Foxconn's Shenzhen factory, as part of an investigation on what could've led to this year's numerous suicides in one of China's largest factories. While the report doesn't comment on the company's management and support networks (or the lack of) for front-line workers, it appears that the real problem lies in Chinese workers' definition of a "good factory" -- one that pays more by means of offering overtime hours. It's clear what's causing this perception -- there's the sub-standard minimum wage in Shenzhen, and then there are the companies abusing this fact to lure workers with overtime hours above the legal limit. Update: Thanks to Southern Weekend's exclusive permission, we've now published the full human translation of the Chinese report.
