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According to Chinese reports, a man recently was worked to death at an Apple plant. Foxconn, the manufacturer, is reportedly denying the man's family full benefits, as the death was not a suicide.  (Source: Ming Pao)
Foxconn refuses to pay family of employee who died of exhaustion after 34-hour shift as it wasn't suicide

The Shenzhen factory-city in southern China that primarily serves as a manufacturing site for Apple's iPads, iPhones, and iPods has claimed another life, only this time it wasn't a suicide. The man was a 28-year old plant engineer who reportedly died of exhaustion after being forced to work 34 hours nonstop.

Foxconn reportedly has been making employees work increasingly long hours to satisfy the growing demand for the iPad, including unpaid overtime.  It also has reportedly been bullying employees at the Shenzhen Apple plant and elsewhere.

The company is currently refusing to pay the family of the man, Yan Li, full benefits typically given for workers that commit suicide.  Instead, despite having apparently worked him to death, the company plans to only give the family a smaller "humanitarian terms" payout.

The man died shortly after suffering from shortness of breath.  After the 34 hour workday, he had rested for 10 hours, then had returned to work and had worked for 12 hours before becoming ill and dying.

Foxconn manufactures motherboards and other electronics for a variety of companies including Dell, HP, Microsoft, Nintendo, Nokia, and Sony.  However the Shenzhen factory serves primarily as a manufacturing facility for Apple products big and small.  It has all been the site of all the deaths thus far this year.

Since the start of the year, 11 Shenzhen workers have committed suicide, while several more have made unsuccessful attempts.  The string of suicides have brought to light the poor working conditions that the employees toil under daily.

Hon Hai Precision Industry owns the Foxconn unit that operates the plant.  The company has tried many approaches to stop the suicides -- Buddhist monks, "anger rooms", even contracts asking employees to promise not to kill themselves.  However, the death toll has continued to rise.

Foxconn's latest bid to halt the death toll is to give employees a long promised raise.  The company just instituted a 30 percent pay bump at the Shenzhen facility, bringing workers' average starting wage from $132 USD a month to $172 USD per month, enough to buy one of the iPad Nanos they manufacture (after a month's work).

The raise is rumored to be subsidized by Apple.  Apple reportedly is taking a 0.7 percent loss on the iPad's cost to pay for the raise -- or rough $3.50 per iPad sold.  This means that Apple's profit per unit sold will like drop from around $200 to around $196 per Wi-Fi iPad sold.



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Supply and Demand??
By m0f099 on 6/3/2010 5:52:13 AM , Rating: 2
If the demand is so high why not increase the price?? That would lower demand, increase profits and help to improve working conditions (fewer hours, better pay...)




RE: Supply and Demand??
By AyashiKaibutsu on 6/3/2010 9:24:05 AM , Rating: 2
Demand would probably look for alternatives at that point. Do they really want a 1000$ iPad or will they settle for a much cheaper kindle or netbook? They also can only push prices so high before they start getting their loyal consumers disgruntled over it, which affects long term success even if they make increased profits.


RE: Supply and Demand??
By Azure Sky on 6/3/2010 11:42:36 AM , Rating: 2
Not likely, most people buying ipads are iTards who will buy anything st.steve tells them is kool and the next big think, think pirks or reader1.

I have seen these IDIOTS pay 3-6x as much for an apple product as they would for another brand or a custom build thats as high or higher quality, and be HAPPY ABOUT IT, because its apple and apple only makes the best products!!!!


"We’re Apple. We don’t wear suits. We don’t even own suits." -- Apple CEO Steve Jobs














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