Foxconn's Labor Practices

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Excerpts

In 1974, Gou founded Hon Hai Precision Industry Company Limited (Hon Hai) with US$7,500. Hon Hai was involved in making plastic switches for TVs. Over the years, it became a specialist in manufacturing mechanical and electrical parts at a very low cost. The company became a multinational firm with a presence in various countries and dealing in electronics contract manufacturing across the globe... The Burgeoning Issue According to reports, this was not the first time that Foxconn had been exposed for its unscrupulous labor practices.

In mid-2006, a British newsweekly The Mail on Sunday reported the problems faced by laborers at Foxconn. This report said that Lei Huang, a worker at Foxconn, had told activist reporters that the working conditions and hours were not employee friendly...

The tragic news of the suicide attempts and deaths only elicited repeated responses from Foxconn that it was not at fault and that it had in place a Code of Conduct (Refer Exhibits VI & VII) and Business Policy and SER Guidelines which it said it religiously followed...

Few Reports citing figures of suicide rates in China threw up interesting facts. It was noted that the percentage of suicides at the enormous plant was far lower than the national average and that given the strength of employees in the factory city, the few suicides that had occurred could have happened anywhere regardless of the labor practices being followed...

Exhibit I: China's Low Cost Advantage (1995-2007)
Exhibit II: List of Recent Awards
Exhibit III: CAGR of Foxconn
Exhibit IV: Labor Contract Law of the People's Republic of China (September 2008)
Exhibit V-A: Labor Law of the People's Republic of China (March 2007)
Exhibit V-B: Labor Law of the People's Republic of China (March 2007)
Exhibit VI: Foxconn's Global Code of Conduct (CoC)
Exhibit VII: Business Policy and Social & Environmental Responsibility (SER)
Annexure I: History of Foxconn

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