Foxconn has been at the heart of lots of controversy this year after ten workers killed themselves. The deaths were blamed on low morale and poor working conditions in the media. Apple cut its profits on the iPad to give the workers a raise in early June.
Foxconn was also rumored to be considering closing its Chinese operations altogether. Foxconn has now reportedly turned the management of its worker dorms over to a management company. Foxconn has 153 dorms that house 450,000 workers.
The management company will handle the dorms and will start to charge those who live there rent. Foxconn did not charge workers to live there. Foxconn will reportedly give the workers a housing stipend to cover rent.
Background on Foxconn’s Controversies
Foxconn, a major manufacturer for tech giants like Apple, has faced significant scrutiny over the years. The company, which employs over a million workers in China, has been criticized for its harsh working conditions, long hours, and low pay. The tragic suicides of ten workers earlier this year brought these issues into the spotlight, prompting global media coverage and public outcry. Reports indicated that workers were subjected to intense pressure, with some working up to 12 hours a day, six days a week, for minimal wages. The living conditions in the dormitories were also called into question, with many workers sharing cramped spaces and lacking basic amenities.
Apple’s Response and Measures Taken
In response to the growing criticism, Apple took a significant step by cutting its profits on the iPad to provide a raise for Foxconn workers. This move was seen as an attempt to improve the workers’ living and working conditions and to address the negative publicity surrounding the company. Apple announced that it would allocate 0.7 percent of its iPad profits to increase the wages of Foxconn employees. This decision was welcomed by labor rights activists, who had long been advocating for better treatment of workers in the tech manufacturing industry.
Foxconn’s decision to hand over the management of its dormitories to a third-party company is another measure aimed at improving the living conditions of its workers. By outsourcing the management of the dorms, Foxconn hopes to provide a more professional and efficient living environment for its employees. The new management company will be responsible for maintaining the dormitories, ensuring that they meet certain standards of cleanliness and safety, and addressing any issues that may arise.
The introduction of rent charges for the dormitories is a significant change, as Foxconn previously provided free accommodation for its workers. However, the company has stated that it will offer a housing stipend to cover the cost of rent, ensuring that workers are not financially burdened by this new policy. This move is intended to create a more sustainable and fair system for housing its large workforce.
Despite these efforts, some critics argue that more needs to be done to address the root causes of the problems at Foxconn. They point out that while raising wages and improving living conditions are important steps, they do not fully address the underlying issues of excessive work hours, high production targets, and the overall pressure faced by workers. Labor rights organizations continue to call for comprehensive reforms to ensure that workers are treated with dignity and respect.
In conclusion, Foxconn’s recent controversies have highlighted the challenges faced by workers in the tech manufacturing industry. The company’s efforts to improve wages and living conditions, along with Apple’s decision to share its profits, are positive steps towards addressing these issues. However, ongoing vigilance and further reforms are necessary to ensure that workers’ rights are fully protected and that they can work in a safe and supportive environment.
via Digital Trends
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