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Focus: Global Supply Chain and Logistics

Our Weekly Feature Article on Topics Related to Global SupplyChain Logistics

From SCDigest's On-Target e-Magazine

- Sept.26, 2012 -

 

Global Supply Chain News: Worker Riot at Another Foxconn Factory for Apple Raises Still More Questions


2000 Workers in Melee, as Foxconn Now Says it Will Pay Overtime Fairly; Beware Company Security Guards

 

SCDigest Editorial Staff

 

Not long after the Fair Labor Association issued a report saying labor conditions were improving at contract manufacturing giant Foxconn's factories in China that assemble the Apple iPads and iPhones, a riot involving some 2000 workers broke out on Sunday atone Foxconn facility that apparently hasn't seen much change in its labor conditions.

SCDigest Says:

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It at least appears that many of these changes had not found their way to the Taiyuan plant, which is smaller and under less scrutiny.

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A riot starting at about 11:00 pm local time at Foxconn's factory in northern Taiyuan city was immediately triggered by a security guard but more broadly was related to allegations the company was not paying workers correctly for their overtime work and other festering issues. Some 2000 workers were said to be involved in the riot, which started in the workers' dormitory.

Foxconn closed the facility, which is believed to be involved in the production of Apple's iPhone 5, on Monday, reopening it Tuesday morning. In total, the factory employs nearly 80,000 workers, out of the 1 million total employees Foxconn is said to have in China.

Reporters on the scene said there was clear damage at the factory from the melee, and that 40 workers were hospitalized as a result of the confrontation. Around the facility, windows were shattered in a bath house, supermarket, arcade and parked cars. Some unspecified number of workers were arrested.
As workers went into the factory for work on Tuesday, they heard a recording across a loud speaker reminding them to maintain social order.

Meanwhile, Foxconn said in a statement that it will "ensure its duties relating to employee welfare are implemented and it will make overtime payments as promised."

Under a spate of scrutiny and criticism earlier this year, including Apple's own supplier audit, Foxconn has been making a number of changes to working conditions and wage policies.

That included an audit of several Foxconn facilities making Apple products by labor rights organization the Fair Labor Association earlier this year. The initial report was modestly critical of conditions at the factories, though in reality much less so than was commonly reported. (See Headlines Said Fair Labor Association Found Numerous Violations at Apple/Foxconn Facilities, but Issues were Actually Quite Modest.)

Nevertheless, Apple and Foxconn were said to be taking numerous actions to improve labor conditions at those factories.

Then in late August, the FLA issued a follow up report largely praising the improvements it found.


(Global Supply Chain Article Continued Below)


CATEGORY SPONSOR: SOFTEON

 

"Many physical changes to improve worker health and safety have been made since the investigation, including the enforcement of ergonomic breaks, changing the design of workers' equipment to guard against repetitive stress injuries, updating of maintenance policies to ensure equipment is working properly, and testing of emergency protective equipment like eyewashes and sprinklers," the updated report said. "Foxconn has also engaged consultants to provide health and safety training for all employees."

Foxconn in August raised salaries by more than 16% at its mammoth Zhengzhou factory making iPhones, a reduced the probation period for new workers there by 50%. It is not clear if these changes were made across its entire factory presence there or even at all its facilities making Apple products.

It at least appears that many of these changes had not found their way to the Taiyuan plant, which is smaller and under less scrutiny.

BusinessWeek reported that although general pay levels were on par with other Foxconn facilities, other conditions were not. Workers at the plant cite low quality food , dorm rooms with four bunk beds for eight people, and dirty shared bathrooms. That in addition to the discrepancies related to overtime pay, a constant complaint about labor conditions in Chinese factories generally.

Complaints about company security guards were also found at the Foxconn factory, as they are in many other companies in China.

A statement posted on the Internet by someone claiming to be a worker at the plant said that "Incidents in which guards beat up workers at Foxconn Taiyuan frequently occur, and the methods used are brutal."

"Factory workers anywhere, beyond Foxconn, never have a good word to say about security guards," said Geoffrey Crothall, a director at rights group China Labor Bulletin, after the Foxconn riot. "Their training is minimal, they're recruited en masse and the requirements are not much."

Louis Woo, a Foxconn spokesperson, said of these charges that "If there's any truth to these allegations, we'll take severe action against any security guards, even though we don't hire them directly," implying Foxconn contracts the work of recruitment of the guards to a services company.

On Wednesday, a Hong Kong–based newspaper called the Apple Daily wrote that Chinese reporters had snuck into the hospital that was housing injured Foxconn workers. It reported that some of the people there claimed that police attacked workers regardless of whether or not they were involved in the riots. The plant is running on a 24-hour work shift to provide spare iPhone 5 parts, Apple Daily said.

Other employees reported that their cellphones were confiscated by local police, who then deleted sensitive images and video of the riot. The Chinese government has been allegedly working hard to censor news of the riot in other ways, including the removal of related images from China's most popular blog, Sina Weibo.

Foxconn is the trading name of Hon Hai Precision Industry, the world's largest contract maker of electronics.

What do you think of this latest incident? Are labor conditions in China changing? Let us know your thoughts at the Feedback button below.

Recent Feedback

This is the dark side of Apple which makes up most of its sub-contractors and employees: Hard work - Low Payroll.

Problems occurs also within Apple where employees (outside US-Cupertino) have also very bad working conditions.

How can you not react when you're told to work almost 24/7 for a few dollars where the iPhone retail price is $750-850, whereas the cost is about $200 - see there for details.

The worker abuse is not only salary,it's a far deeper problem that Foxconn should solve on the whole regarding worker'conditions...


Christophe
Senior Manager
Vikike LLC
Sep, 27 2012
 
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