A factory worker assembles small electronics in China
SUMMARY
In a report released on June 10, labor rights NGO China Labor Watch and British newspaper, The Observer, criticized Foxconn, the world’s largest electronics manufacturer, for mistreating workers in a factory located in Hengyang, China. Headquartered in Taiwan, Foxconn owns thousands of factories and manufactures products for American tech giants like Apple and Amazon. An investigation alleged that Foxconn illegally hired and underpaid more than 40% of workers, who receive no regular sick leave, holiday pay, and have no job security. Foxconn has struggled with similar labor rights scandals for years. In 2010, a number of workers committed suicide as a result of long working hours and high pressure to perform from management. Two years ago, Foxconn was accused of illegally hiring underage workers. Following the scandal in 2016, Apple CEO Tim Cook brought a team to Shenzhen to investigate and conduct report on suicide issues within Foxconn. Foxconn adjusted its working schedule and now provides counseling services for its employees.
FAO GLOBAL ASSESSMENT
Companies with overseas production should learn from Foxconn’s situation and reduce the potential for legal and public affair scandals by strengthening their labor audits and, when considering employing a local management firm, conduct extensive research into the company’s history and reputation. Companies can also ensure that their factories provide sufficient services for workers’ mental and physical health.
Related Links
- The New York Times- Foxconn Is Under Scrutiny for Worker Conditions. It’s Not the First Time.
- The New York Times- Electronics Maker Promises Review After Suicides
- The Guardian- Workers not paid legally by Amazon contractor in China
- China Labor Watch- Amazon Profits from Secretly Oppressing its Supplier’s Workers: An Investigative Report on Hengyang Foxconn
About the Author
Weiting Li – International Policy Associate
Weiting Li is an international policy intern at FAO Global, where she focuses on international trade, technology, and environmental policies. Weiting is currently a second year graduate student pursuing dual master’s degrees in public policy at Georgetown University and Business Administration at University of Geneva. Prior to Georgetown, she was the assistant for government relations and working groups at European Chamber of Commerce in China. She graduated from Gettysburg College with a major in Sociology and a minor in Business.
