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Foxconn sues reporters over iPod story

updated 02:20 am EDT, Tue August 29, 2006

Foxconn sues reporters

Apple's iPod manufacturing partner has filed a lawsuit against two reporters for their story on poor working conditions at an iPod manufacturing facility in China. Foxconn has sued the reporter and the managing editor for 30 million yuan or $3.77 million, alleging that the report was false and that it damaged the Foxconn's reputation. The story on substandard working conditions was run in the China Business News about four days after Britain's Daily Mail ran a similar story alleging poor working conditions in Foxconn's mainland factories. It prompted an investigation by Apple as well as made headlines around the industry. In reponse to the Foxconn lawsuit, the Shanghai Daily reports that a Chinese court has frozen the personal assets of the reporter and an editor at the Shanghai newspaper, including their apartments, a car and bank accounts.

Although both had received notice of the asset freeze, they were not given details on the lawsuit, according to the report. The China Business News told the publication that it "stands firmly behind its journalists and will bear all possible consequences in this case."

"The company also filed a lawsuit against the journalists, seeking 20 million yuan from Wang and 10 million yuan from Weng," according to the ShanghaiDaily.com. "The case is the biggest of its kind on the Chinese mainland in terms of the size of the compensation claim." Foxconn, the trade name of Taiwan-based information technology manufacturer Hon Hai Precision Industry Co, is owned by Terry Guo, one of Taiwan's richest men.

According to The Shanghai Daily, Wang's report claimed that most employees in Foxconn's Shenzhen factory worked more than 12 hours a day and earned only about 1,000 yuan a month. It also alleged that employees had to stand for long hours at their jobs and were not allowed to talk to others.

After performing their own internal investigation, both Apple and Foxconn denied many of substandard working condition claims but did report some violations of Apple's code of conduct, but said that they were working to address the issues; however, the International Confederation of Free Trade Unions (ICFTU) has criticized Apple's report, because it was not independently verified.

Apple is also reportedly considering Foxconn as a third manufacturer for its laptops, as demand continues to outstrip production.

 
Previous Comments

Low...

08/29, 04:00am reply delete

This is low, low, low... Perhaps Foxconn was *not* guilty of all these claims, Apple *did* find some fault and the fact that the Chinese government has frozen the reporters assets, including their cars and homes is incredibly low and reeks of cover up and a "message" to reporters not to fiddle with factories there.

Gabriel Morales

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Welcome...

08/29, 04:33am reply

Welcome to communist China.

CVB

cvbcvb

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re: Welcome...

08/29, 05:33am reply

Taiwan is *not* communist China.

Luke MacWalker

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Political Geography 101

08/29, 05:45am reply

This factory is on the mainland, in "communist" China. It is indeed the heavy-handed "Communist" Party government that is attempting to chill the press. The owner of the factory is Taiwanese.

debohun

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chill the press?

08/29, 09:53am reply

Why is it that journalists think they have the right to say anything they want without any evidence and then hide behind their press badge when the consequences come knocking? I wish this kind of thing happened more often. Maybe journalists would consider doing a little research for their stories if they knew that lying like they so often do would get them in serious hot water. Especially in print where you've got time to research. Live TV reporters have an excuse (not a valid excuse but an excuse just the same) for blurting out rubbish because they don't have time to do their job, but a print journalist doesn't have that.

I'm sick of the media being allowed to say stuff that's false and get away with it. I can't, so why should they. As far as freezing their assets goes, the newspaper has said that it will cover any "consequences" so it seems like more of a formality than anything else. But it stops them transferring assets into someone else's name to try and get away with the crime like executives often do in western countries.

beeble

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Re: chill the press

08/29, 10:58am reply

I agree completely. The press has been going downhill for years. They say whatever they want without doing research and then cry "freedom of the press" when they get called on it.

If you don't agree, maybe ask Richard Jewel what his thoughts are.

hayesk

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Joined: Sep 1999

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Re: chill the press

08/29, 12:50pm reply

Well, the problem is that 'journalists' aren't journalists anymore. They're pundits and opinion artists. They don't need to say the truth, because they're just offering opinions on stuff. There's so little real journalism out there, its hard to find it.

As for these guys, maybe they do have proof. Maybe Apple's investigation involved just going into the plant and saying "Hmmm, looks OK to me". Did they talk to the reporters? See their evidence?

testudo

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RE: Chill the Press

08/29, 01:30pm reply

Maybe it's time we could do the same in the USA. There are several politicians I would love to see stripped of all of their money.

Better yet, when a politician is caught Lying on numerous occasions, let's say a three strikes your out, albeit proven to some level of standard, we strip them of all of there voting privileges for a period of time. Oh wait, most of these jerks are too busy setting up drive-by media press conferences to spread their BS and Lies to a much larger audience, rather than doing what they have been elected to do - Vote.

difusion

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oh testudo

08/29, 03:26pm reply

Somehow you always seem to find a way to twist any story (no matter the subject matter) into some kind of negative comment directed towards apple. We get it, your smart, quick, witty, opinionated, a real thinker, original, creative, one of a kind, an all around super duper individual. I imagine you recycle, volunteer on the weekends at the childrens hospital, have an incredibly large compost heap in your back yard, drive an electric car, vegetarian, built your house with your bare hands out of nothing but organic material.

And being as super duper as you are you still find the time in your busy schedule to sit down and tell us "mac fanboys" (isn't that what you call us) your side of the story (i.e. your glass half empty apple perspective). Let me be the first to say Thank You. Thank you so very much for being there when I (all of us) need you most and allowing me to think outside of the box and become a more negatively better person. I now can see both sides of the story, my "oh apple is the very greatest bestest company ever!" side and your "testudo induced, singular t******* weilding, brad pitt, bestest color in the world, opinion ever!" side.

You are truely a staple of this community and I wish you the very best as you continue to enlighten all of us on the things we (the "not as smart as testudo, mislead apple fanboys") obviously could never figure out on our own because we are the sheep and you are the shepard. Lead on oh mighty testudo, lead on. You are truely a man among boys in this applecentric society.

I wonder why apples supposed "bad" investigating skills (according to mesiah of the macnn community) have anything to do with Foxconn suing some random journalists? Huh...

appleuzr

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Re: oh testudo

08/29, 09:00pm reply

appleuzer:

BRAVO!!!

Cubester

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