updated 06:40 pm EDT, Tue June 8, 2010
Move designed to prevent more suicides
Foxconn has announced that it has put an end to the compensation program that provided payments to families of suicide victims, according to a local Xinhua news report. The decision is designed to prevent additional employees from killing themselves, as the company believes many of the earlier suicides were motivated by monetary compensation.
"The act is wrong. Life is precious," the company allegedly wrote on posters in the Shenzhen facility. "To prevent such tragedies, Foxconn is to cease releasing compensation other than that provided by law."
Victims families typically received more than 100,000 yuan (~$14,600), representing wages that would have taken the workers many years to earn. The company reportedly claimed to have "concrete evidence" that some of the suicide victims took their life to guarantee compensation for their families.
Through several wage increases, Foxconn factories will soon double their earnings from recent levels. Executives also suggest the workers will face less pressure to work extreme overtime hours. [via Reuters]