The Foxconn Technology Group is anchored by the Hon Hai Precision Industry Co., Ltd. Hon Hai was founded in 1974 as a manufacturer of plastic products (notably connectors) by Terry Gou, who remains as its CEO
Why is this not news? Recently, the company has come under public scrutiny due to allegations of employee mistreatment. Twelve employees jumped from company buildings in suicide attempts during a five month period in 2010; only two survived in critical condition.
Criticism............. Employment practices
In June 2006, allegations of Foxconn operating abusive employment practices came to light as reported by Mail that were later denied by Foxconn.[9][10] Apple launched an investigation into these claims.[11] The result was that the claims of mistreatment of employees were judged by the Apple inspection team to be largely unfounded, but the inspection team also discovered that at peak production times some of the employees were working more hours than Apple's acceptable "Code of Conduct" limit of 60 hours and 25% of the time workers did not get at least one day off each week.[12] These same workers complained there were not enough overtime work during off peak periods. The auditing team also discovered that workers had been punished by being made to stand at attention for extended periods,[13] and junior employees were subjected to military-style drills.[14]
Foxconn admitted that it makes workers do an extra 80 hours overtime per month while the local labor law only permits 36 hours[15] Foxconn sued Wang You and Weng Bao of China Business News, the journalists responsible for revealing these practices, for $3.77 million and filed a successful court ruling to have the journalists' assets frozen.[16] Some disagree with the demands and the court ruling.[17] Reporters Without Borders sent a letter to Apple Computer CEO Steve Jobs to implore Foxconn to drop the case.[18] Later Foxconn reduced the demand to a symbolic 1 yuan (12 U.S. cents), withdrew the request to freeze the journalists' personal assets and initiated legal proceedings to sue their employer.[citation needed]
In a conversation between a Reuters journalist who had visited the Foxconn factory and a BBC interviewer broadcast on 27th May 2010[19], the Reuters journalist commented that "many workers told us that throughout their shift...they are not allowed to speak at all, so there is absolutely no conversation at all between workers during their shift".
Case of Sun Danyong's death
On July 16, 2009, employee Sun Danyong allegedly committed suicide in Shenzhen, China by jumping off the 12th floor of his apartment building. [27] Initial reports from China indicate that he was under a lot of pressure because of investigations by Foxconn's Environmental, Safety and Loss Prevention Division regarding a missing prototype for a fourth generation iPhone. He was tasked with shipping 16 iPhone prototype units. However, one of the units went missing.
After filing his report on July 13, Chinese state-run Southern Metropolis Daily reported that his residence was searched by Foxconn employees and that he was beaten and interrogated by his superiors.[28] Sina Online News and ND Daily Newspaper both reported Foxconn's security division may have illegally searched his personal residence without a warrant, used unlawful confinement and possible physical force during the investigation.[29][30] The controversial incident placed questions regarding Apple's secrecy over upcoming releases of its products, where misplacing prototypes serve as a serious breach of protocol.
Foxconn has released an official statement apologizing to Sun Danyong's family. The manager in question was suspended and an official police investigation has begun.[31] An Apple spokesman told reporters that the company was "saddened by the tragic loss of this young employee."[28]
Employee suicides and deaths
| Name | Gender | Age | Date of death | Decription |
| Ms Hou (姓侯) | Female | 19 | 18 June 2007 | Hanged herself in bathroom of company's building, her father claims that there's something wrong with his daughter's body after reviewing it but it was confirmed by investigative officials as a suicide.[32][33] |
| Liu Bing (刘兵) | Male | 21 | 1 Sept 2007 | Sudden death just two hours after being discharged from work, his mother complained to Foxconn that her son didn't have any history of strong illness but was denied entrance to company's building[34] |
| Mr Li (姓李) | Male | 28 | 16 March 2008 | An employee of Foxconn based in Yantai, collapsed in his rental home. His friends suggested that he was overwork and had symptoms of headache and constant vomits before his death.[35] |
| Sun Danyong (孙丹勇) | Male | 25 | 16 July 2009 | Committed suicide in Shenzhen, China by jumping off the 12th floor of his apartment building.[33] |
| Zheng Xinsong (郑鑫崧) | Male | 23 | 20 Aug 2009 | Mysteriously drowned in company building's pool but was an able swimmer[36] |
Between Jan 2010 to May 2010, thirteen Foxconn employees attempted suicide, with ten deaths[37]. Some reporters criticized long working hours with low pay and harsh management methods such as physical abuse towards mainland employees from Taiwanese managers. Some workers have complained about the monotonous work schedule and inhumane working relationships (such as one employee who had worked for half a year and yet did not know the names of his dormitory mates). [38]
As CEO of Hong Hai Precision Industry, Terry Gou responded to the situation on May 25 2010. Because of a huge number of employees, management is difficult, he claimed, but they will improve the situation soon. Now Foxconn has formed specialized "employee care centers" and hired psychologists to offer counseling. However such a measure is doubted by the public.[39] In addition it has been announced that employees will be asked to sign pledges that state they will not commit suicide and seek help if necessary.[40] Some suggest that Foxconn should change its management systems, philosophy, and methods to create a more human orientated business atmosphere.[41]
Assault on foreign reporters at a Chinese factory
On February 17, 2010, Reuters released a news story on Apple and its suppliers' practice of secrecy. In the article, it includes an account of Foxconn security guards confronting Reuters reporters taking photos of an alleged factory producing parts for Apple products, while standing on a public road.[42]
After the reporter boarded a taxi, a security personnel stopped the vehicle and confronted him. As workers watched, two security guards tried to drag him into the factory. When the reporter struggled free, a guard kicked the reporter while another guard threatened to hit him if he moved. The reporter called police after a Foxconn security vehicle drove by and the security guards attempted to coerce him into the car. Police arrived later and was able to mediate the two parties with the security guards apologizing to the reporter. While offering an option to the reporter to file a police report, the police officer informed him that he is free to choose whichever option but he must note that Foxconn receives special status locally.
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