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Foxconn to close China factories?

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]




by MacNN Staff

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  1. ilovestevejobs

    Joined: Dec 1969

    -15

    Cool

    'nuff said

  1. Zanziboy

    Joined: Dec 1969

    -6

    Excellent Idea

    Foxconn should find a way to provide more automation in their new plants and eliminate many of the jobs requiring low wage hourly workers. This approach could help to stabilise production costs and further improve productivity.

  1. Jonathan-Tanya

    Joined: Dec 1969

    +5

    more direct answer

    a more direct solution to poor working conditions, is to actually improve working conditions.

    But moving the jobs to Vietnam, I guess thats another answer? OK. Nothing to celebrate, I hope the Vietnamese are good at assembling iPads.

  1. DiabloConQueso

    Joined: Dec 1969

    +13

    Wonderful alternative.

    Now, instead of 800,000 low-wage workers, we now have 800,000 no-wage, unemployed workers.

    Brilliant.

    I mean, I'm all for the closing of the plant if working conditions there are sub-standard and are proven to be causing the suicides, but then again, I don't know what goes on over there... and neither do any of you, either. Passing judgement on a company because of some crappy, biased journalism you read is a piss-poor way to come to a conclusion.

  1. Paul Huang

    Joined: Dec 1969

    +7

    As if you know how computers are produced

    @Zanziboy
    Automation only goes so far. Foxconn is the most efficient assembly line for electronic components.

    How good the working condition is only relative. In China, $500/month is a lot of money. A danish costs $1 here. In China? Fresh out of the oven: 10¢.

  1. facebook_Viviana

    Via Facebook

    Joined: Jun 2010

    +4

    Dubious

    I really doubt that working condition may be the cause of the suicide at Foxcomm because it it were, I would expect a much higher number of victims, given the size of the workforce we are dealing with. As a matter of fact, the percentage is way below the national average of many countries, including our own.

  1. Paul Huang

    Joined: Dec 1969

    +2

    free housing, free meal, etc

    Foxconn has now discontinued payments to families of workers who commit suicide. The payments were the incentive for workers to jump.

    Let's see how many more will jump now there is no financial incentive.

    Comment buried. Show
  1. Mike Richardson

    Joined: Dec 1969

    -11

    Efficient?

    800,000 workers is efficient?

  1. Peter Bonte

    Joined: Dec 1969

    0

    re: Dubious

    The percentage is indeed not that high but the suicides happen at work, the ones at home or other places are not counted. This is a high percentage.

  1. Paul Huang

    Joined: Dec 1969

    +7

    spewing out of your A_S_S

    Until you have the faintest idea about what Foxconn produces and the volume of products its workers produce, Richardson should just put his foot into his mouth.

    Look it up, please. You are looking like a fool.

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