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The Chinese government thinks that Foxconn's employee union is one key towards improving working conditions at the company's plants. The government has demanded action from the company after a string of suicides at the company's Apple plant in Shenzhen.  (Source: Indy Media)
Foxconn's owners are facing their most serious criticism yet

Foxconn's Taiwanese owner Hon Hai has tried everything to curb the suicides at its Chinese Shenzhen plant -- anger rooms where employees can beat away their stress, soothing Buddhist music on the assembly line, counseling from monks, and, most recently, requiring employees to sign contract letters promising not to kill themselves (the letter has since been retracted).  However, none of those steps seems to have worked yet at stopping the suicides at the plant which manufactures most of the world's iPhones, iPods, and iPads.

On Saturday the top Communist Party official of Guangdong, Wang Yang demanded Foxconn clean up its act, arguing that improved unions could help the situation.  Yang, provincial party secretary, comments, "[The government and Hon Hai must] work together and take effective measures to prevent similar tragedies from happening again.  Labor unions in private firms should be improved to facilitate better working conditions and more harmonious relations between workers and employers."

Thus far 10 employees have taken their lives at the Shenzhen plant, which houses between 330,000 and 400,000 people.  Three others were seriously injured in suicide attempts.  Compared to the average suicide rate in China, this would seem rather normal.  However, workers in factories typically have a much lower suicide rate than the national average.  And the number of males committing suicides is unusual.  Rural females alone account for half of China's suicides in recent statistics, while urban females account for a portion of the remaining suicides.

Foxconn reportedly has been making employees work long overtime, sometimes unpaid.  Even as it made record profits, it also failed to give employees a promised raise in recent months, as well (entry level employees currently make around $132 a month).  There's even reports of company security details beating and harassing workers.

At this point Foxconn has at least committed to at last giving its employees their promised raise.  It has not said when it will implement the raise, but says "it should be very soon."  Particular raises are at the discretion of local management.  Company officials explain, "It would be an average 20% increase, which means some areas will be more than 20%."  

Meanwhile a probe into the company by Apple, HP, Dell, Sony, Nokia, and Nintendo continues.  Between scrutiny from its corporate partners and the Chinese government, pressure is building for Hon Hai to step in and improve its working conditions (better pay, shorter hours), even if that means cutting into its annual profit of NT$75.69B ($2.35B USD).



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RE: I knew
By hashish2020 on 5/31/2010 3:25:05 PM , Rating: 2
From your Slate article

"Gettelfinger argued Toyota's workers actually make $2-per-hour more than UAW workers, if you count bonuses. "

You cited the union indirectly, nice try.

From the other article

"In that instance, Toyota Motor Corp. gave workers at its largest U.S. plant bonuses of $6,000 to $8,000, boosting the average pay at the Georgetown, KY, plant to the equivalent of $30 an hour. That compares with a $27 hourly average for UAW workers, most of whom did not receive profit-sharing checks last year. Toyota WOULD NOT PROVIDE [emphasis mine] a U.S. average, but said its 7,000-worker Georgetown plant is representative of its U.S. operations."

What was that about asking companies and then trusting them to tell the truth without hard facts?

"Honda Motor Co. and Nissan Motor Co. are not far behind Toyota and UAW pay levels. Comparable wages have long been one way foreign companies fight off UAW organizing efforts. "

Wait, so the fear of unionization is part of the reason for high wages? But I thought it was just the awesome power of non-union excellence that made wages higher AT ONE TOYOTA PLANT?


RE: I knew
By Iaiken on 5/31/2010 4:57:45 PM , Rating: 2
What's more, the commonly cited $27/hour UAW wages, does not include: Group Health Insurance, Group Life Insurance, Prescription Drug Plans, Dental, Vision, Phsyio, Pension Contributions.

Once all of these are figured in, the UAW average remuneration climbs to an astounding $36/hour. That is including janitors, security guards, cafeteria staff and other labour who actually bring that average DOWN. Not everyone in the UAW is actually an auto worker? NO WAI!

The $30 figures given for Toyota were all production line workers and technicians. This figure included profit sharing, bonuses and all of their benefits.

What's more, many (if not all) union benefits remain when you become a pensioner. Union pensioners usually wind up with 50% more income available to them in their retirement years because of the larger pension and offloading of burdens to their benefits packages.


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