Foxconn Aims to Improve Public Image
Most of the Apple-loving world is familiar with the name Foxconn, as are plenty of organizations devoted to the cause of fair-trade labor and labor rights. This Chinese tech manufacturer is probably best known for reports of worker exploitation and unsafe working conditions. News articles about the company are unflattering more often than not, with reports of employee suicide rates high enough to warrant placing netting around buildings in order to thwart jumpers, factory explosions due to unsafe conditions that result in injury and death, and of course, the long hours and low wages that are the hallmark of forced labor. And considering that their main export is Apple products, it’s surprising that the situation went on as long as it did.
These days, Foxconn is looking to spruce up its image somewhat and they’ve apparently decided that the best way is to raise employee wages yet again, this time to the tune of a 25% pay increase across the board. Although they’ve actually raised wages twice in the past couple of years, amidst clamoring from labor rights groups, perhaps they feel that the third time is the charm. Of course, even with higher salaries, there are still a whole pack of labor rights abuses to contend with. The company reportedly keeps employees cloistered in secluded compounds where they work as much as 18 hours each day, six to seven days each week. Many are far from home and their lives consist of working, eating, and sleeping, with little to no time for leisure activities. And while they get paid better than the majority of workers in the country (and way more than the mandated minimum wage), it’s not really a fair trade, so to speak.
Under increasing pressure from lobbyists and protestors, the company has also agreed to cut “excess overtime”, whatever that means. In truth, this latter promise will be hard to keep without agreement from the many big-name companies that Foxconn contracts with (including Apple, HP, and Dell, just to name a few). These companies want their products pumped out in a timely manner in order to meet consumer demand, and if Foxconn can’t do it there are probably a line of manufacturers waiting to take their place. In truth, the change of heart that Foxconn recently espoused could have something to do with Apple’s announcement that they’ve finally bowed to the pressure of fair trade groups. They’ve agreed to allow an independent audit of their supply chain by the Fair Labor Association, a nonprofit labor group based in Washington. Since Foxconn supplies an estimated 90% of Apple’s products (iPods, iPhones, and iPads), they are likely the first stop on the list.
While the blame can’t all go to the Chinese electronics manufacturer, since they are under pressure to produce low-cost goods as fast as possible, the truth is that they’re the ones under fire, so they need to make changes in the way they operate. While the management at their factories has expressed the desire to improve working conditions, most say that it’s simply not possible with the high competition and the demands placed on them by the companies they supply. But as consumers find out more online, many are beginning to call these companies to task. And thanks to the public outcry and the efforts of labor groups, it seems that at least one sector of the thriving tech industry is about to get an overhaul.