updated 09:00 pm EDT, Thu June 10, 2010
Manufacturer said to be eying move elsewhere
Amid reports of poor working conditions at Foxconn factories, the company is reportedly mulling a restructuring strategy that would close its facilities in mainland China, according to report from the local news outlet ON.CC. If the claims are accurate, the move could displace approximately 800,000 workers in the region.
The restructuring announcement was allegedly made at a shareholders meeting hosted by Foxconn's parent company, Hon Hai Group. An executive was quoted as suggesting the production would be balanced through expanded operation in other regions such as Taiwan, Vietnam, and India.
It is unclear if the strategy may be directly related to the recent spike in suicides at the plant. Foxconn recently announced several pay raises that will effectively double the salary of many workers, while payouts to suicide victims' families will be suspended to eliminate financial compensation as a motivating factor.
Foxconn has yet to directly confirm the restructuring report. [via The Register]