(A)Background of Foxconn
Foxconn is the subsidiary of the Hon Hai Precision Industry Co., Ltd., which is a Taiwanese multinational electronics manufacturing company headquartered in Taiwan. It is the world's largest maker of electronic components. Foxconn is primarily an original design manufacturer and its clients include major American, European and Japanese electronics and information technology companies. Notable products manufactured by the company include iPad, iPhone, iPod, PlayStation, etc. Foxconn has factories in many different countries, which together assemble around 40 percent of consumer electronic products in the world. The reason why Foxconn become famous is that it helps Apple to assemble iPhones. In recent year, demand for Apple’s products increase dramatically. Foxconn thus mainly focus on assemble its products and receiving fewer orders from other company. However, Foxconn has been involved in several controversies, most relating to how it manages employees in China since it is the largest private-sector employer. The employees’ suicide cases are reflecting on this problem. Therefore, Apple hired the Fair Labour Association to conduct an audit of working conditions at Foxconn in 2012. (B)Issue of the news
Strike was happened in Zhengzhou factory of Foxconn in 5 October this year. Three to four thousands of employees stop working. This may affect the progress of the production line for assembling the iPhone 5. The poor working conditions are the main reason lead to the strike as Foxconn did not concern about the physical and mental health of employees. The long working hours make employees feel tired. Their effort put into the work did not have reasonable return as they only earn a very low wages for such a long working hour. Employees therefore cannot concentrate on their works. Moreover, Employees face high pressure working at Foxconn. Recent news had pointed out that Foxconn workers were fail to meet the high product quality standard of Apple, because the structure of Iphone 5 is more complicated and workers have not been given enough training before they start their work, so high failure rate is obtained. The long working hour and the unsatisfactory in the production of the iPhone 5 make employees therefore face tremendous psychological pressure. Although the spokesperson explains it is only the employee dispute and will not affect the factory production. We disagreed that the strike did not bring any negative impact to Foxconn. In this report, we will examine the consequences of the strike and recommend suitable methods to solve the problem in order to minimize those negative impacts bring to the Foxconn. Causes
FLA has investigated that Foxconn was fail to provide reasonable work time, compensation as well as working condition for the workers. For instance, more than 40 percent of workers had experienced or witnessed an industrial accident in the factory. (A)Long working hour with low wages
The long working hour is unreasonable to the workers. In Foxconn, workers have to work for twelve hours per day excluding overtime working but they only have two to three holidays per month. Thus, they need to work over seventy hours per week and they can only get one holiday after working for ten to fourteen days. The average number of hours worked per week at Foxconn is found to be exceeded both the Fair Labor Association (FLA) Code Standard of sixty hours per week and the Chinese legal limits of forty hours per week. The wages of the workers are also relatively low. After raising the wage in 2010, the basis wage of a worker is about two thousand dollars per month. It is not reasonable for such a long working hour but the wages is so low. If the workers want to earn more, they need to work over time so that they can earn about four thousand dollars in which over 70% of the wage are overtime pay, reward and allowance. (B)High pressure
Leadership had high demand requirement for the quality...