Is FoxConn really the answer to Apple’s manufacturing needs?

Posted By: Technology Staff Editor In: Uncategorized

According to Wikipedia, Foxconn (Hon Hai Presicion Industry Co) is a multinational electronics manufacturing company headquartered in Tucheng, New Taipei, Taiwan and is the world’s largest maker of electronics components.  Some of its more notable products include the iPad, iPhone, Kindle, PlayStation 3, Wii and Xbox 360.  Some of its major customers include Acer, Amazon, Apple, Cisco, Dell, Gateway, HP, Intel, Microsoft, Motorola, Nintendo, Nokia, Samsung, Sony, Toshiba and Vizio.


Recently allegations have surfaced citing poor work conditions and aligning those with products manufactured for Apple.  Supposedly Apple audited the  maker of its iPods and iPhones and the audit did substantiate a few of the allegations.  One of the biggest concerns, outside of the poor working conditions and low wages is the concern of suicides.  The most recent numbers include fourteen workers who committed suicide in 2010.


Many of the workers described the Foxconn factories as labor camps detailing abuse and illegal overtime.  In response to the public outcry over this situation, Foxconn promised raises.  That sounds wonderful, doesn’t it?  Not so fast.  Those raises came with a stipulation – workers had to sign a contract that  neither they nor their descendants would sue the company as a result of an unexpected death, self-injury or suicide.  Following up on this, just this year, workers at one of FoxConn’s plants threatened mass suicide because conditions had not improved but had grown increasingly worse.  When the employees forced the issue and asked for a raise, they were told that they could quit with compensation or keep their jobs at status quo.  The employees did quit but never received the compensation.


In response to the public outcry over the working conditions at FoxConn, Apple released a statement indicating that they “care out every worker in our worldwide supply chain.”  The statement went on to say that Apple insists that their suppliers provide safe working conditions, treat workers with dignity and respect and use environmentally responsible manufacturer processes wherever their products are made.  They indicated that if the manufacturer wants to keep doing business with them, they must live up to the requirements.


Needless to say, Apple wants to maximize their revenue by minimizing costs which is why they chose FoxConn in the first place.  But is this right?