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Foxconn Working Conditions 2012: Company Cuts Hours, Employees Ask Why

Foxconn Working Conditions

First Posted: 03/30/2012 5:32 am Updated: 03/30/2012 4:04 pm


LONGHUA, China, March 30 (Reuters) - When Chinese worker Wu Jun heard that her employer, the giant electronics assembly company Foxconn, had given employees landmark concessions her reaction was worry, not elation.

Wu, 23, is one of tens of thousands of migrants from the poor countryside who staff the production lines of Foxconn's plant in Longhua, in southern China, which spits out made-to-order products for Apple Inc and other multinationals.

Foxconn's concessions, including cutting overtime for its 1.2 million mainland Chinese workers while promising compensation that protects them against losing income, we re backed by Apple, which has faced criticism and media scrutiny for worker safety lapses and for using relatively low-paid employees to make high-cost phones, computers and other gadgets.

But at the Foxconn factory gates, many workers seemed unconvinced that their pay wouldn't be cut along with their hours. For some Chinese factory workers - who make much of their income from long hours of overtime - the idea of less work for the same pay could take getting used to.

"We are worried we will have less money to spend. Of course, if we work less overtime, it would mean less money," said Wu, a 23-year-old employee from Hunan province in south China.

Foxconn said it will reduce working hours to 49 per week, including overtime.

"We are here to work and not to play, so our income is very important," said Chen Yamei, 25, a Foxconn worker from Hunan who said she had worked at the factory for four years.

"We have just been told that we can only work a maximum of 36 hours a month of overtime. I tell you, a lot of us are unhappy with this. We think that 60 hours of overtime a month would be reasonable and that 36 hours would be too little," she added. Chen said she now earned a bit over 4,000 yuan a month ($634).

Foxconn is one the biggest employers of China's 153 million rural migrants working outside their hometowns. Compared to smaller, mainland-owned factories, workers said, its vast plants are cleaner and safer, and offer more recreation sites.

But even so, for most employees at the Foxconn plant in Longhua, a part of Guangdong province's vast industrial sprawl, life is dominated by the repetitive routine of the production line.

Outside the Foxconn plant, off-duty employees crowded a small shopping mall. Their tightly packed apartment blocks are hemmed by hair salons, snack stores, gaming arcades and Internet "bars", where many while away leisure hours by playing computer games or watching Korean and Hong Kong soap operas.

"I don't go out that much as there is nothing much to do. I do go out for a meal once in a while," said Huang Hai, a 21-year-old man who said he had worked at Foxconn's factory for about two years.

"This is a good company to work for because the working conditions are better than a lot of other small factories."

Huang was waiting for a friend lined up outside the recruitment centre for prospective Foxconn employees.

"I didn't like my first job at Foxconn because it was very repetitive. It was mainly manual work and I had to hammer nails everyday," said Huang. "Now it's better because I work with computers."

Flick through the slideshow to see some of the most surprising facts uncovered recently at a Foxconn factory during an ABC special report.
Loading Slideshow...
  • Handmade Gadgets

    On February 21, <a href="http://www.huffingtonpost.com/2012/02/22/nightline-apple-supplier-foxconn_n_1293393.html?ref=technology" target="_hplink">ABC aired a "Nightline" segment featuring Bill Weir's visit to a Chinese Foxconn factory</a> responsible for making some of Apple's popular devices. During a tour of the factory, Weir says he "expected more robots" but in fact most of the gadgets at Foxconn are made the old-fashioned way: The high tech parts are put together by hand. For example, iPhones are assembled by hand in 141 steps. One iPad takes five days to assemble and passes through 325 sets of hands.

  • Insane Output

    Two shifts of workers toiling in 12 hour shifts can make 300,000 iPad camera modules in one day, not to mention shape sleek iPads out of "raw hunk[s] of aluminum" at a rate of 10,000 per hour. <a href="http://abcnews.go.com/watch/nightline/SH5584743/VD55173552/nightline-221-apples-chinese-factories-exclusive" target="_hplink">Image via Nightline</a>

  • 7 To A Room

    Many workers live at the factory, where they pay $17.50 per month to live 7 to a room in Foxconn dormitories. <a href="http://www.forbes.com/sites/connieguglielmo/2012/02/22/nightline-goes-inside-apple-factories-in-china/" target="_hplink">The average starting salary is $285 per month,</a> and workers must pay for their food. <a href="http://abcnews.go.com/watch/nightline/SH5584743/VD55173552/nightline-221-apples-chinese-factories-exclusive" target="_hplink">Image via Nightline</a>

  • No Free Lunch

    Workers get two hour-long meal breaks during each 12-hour shift. They eat together in a cafeteria where they pay $.70 a meal. This is about a quarter of their hourly wage. <a href="http://abcnews.go.com/watch/nightline/SH5584743/VD55173552/nightline-221-apples-chinese-factories-exclusive" target="_hplink">Image via Nightline</a>

  • Tim Cook Investigated Suicides

    In 2010, after a spate of suicides at Foxconn's Shenzen plant, then COO Tim Cook flew to China to investigate the matter. <a href="http://abcnews.go.com/watch/nightline/SH5584743/VD55173552/nightline-221-apples-chinese-factories-exclusive" target="_hplink">According to Nightline,</a> Cook put together a team of psychiatric experts to examine the issue. It was at that team's suggestion that the infamous nets were installed between the buildings to prevent suicides. There have been 18 worker suicides at Foxconn since 2010. <a href="http://www.reuters.com/article/2012/02/15/us-china-apple-idUSTRE81E1FQ20120215" target="_hplink">According to Reuters' interview with Fair Labor Association president Auret van Heerden, the group's initial findings from its audit of Foxconn</a> suggested that the suicides could have been "a function of monotony, of boredom, of alienation perhaps."

  • Young Workers

    Weir said he was surprised to see how young the workers were. He said many were in their late teens and no one looked like they could be over 30. Many had left their hometowns, oftentimes in the countryside, in order to get jobs at Foxconn. Weir also toured Chengdu and spoke with the relatives of workers who had left for jobs at Foxconn. According to Cult of Mac, <a href="http://www.cultofmac.com/147878/foxconn-employees-say-underage-workers-were-hidden-before-fla-inspection/" target="_hplink">Foxconn may have hidden underage employees</a> when the Fair Labor Association conducted its inspections. While Apple allows for workers as young as sixteen to assemble their products, those eighteen and under are afforded "special protections," <a href="http://www.appleinsider.com/articles/12/02/22/factory_workers_claim_foxconn_hid_under_age_employees_before_fla_inspection.html" target="_hplink">according to Apple Insider.</a> These include not being allowed to perform some tasks and working shorter hours than older workers.

  • Foxconn Exec Wants To Pay More

    When asked how Foxconn would react if Apple suggested doubling workers' pay, Foxconn executive Louis Woo told Weir that the company would welcome a raise for employees. "Why not?" Woo said. "That would be good for the employees and also definitely good for China and good for us."

  • Air Showers

    Workers have to wear static-proof jackets and take "air showers" to make sure the work area remains dust-free. Even one spec of dust could prove ruinous to the iGadgets' delicate innards. <a href="http://abcnews.go.com/watch/nightline/SH5584743/VD55173552/nightline-221-apples-chinese-factories-exclusive" target="_hplink">Image via Nightline</a>

  • WATCH A CLIP FROM THE NIGHTLINE SEGMENT

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LONGHUA, China, March 30 (Reuters) - When Chinese worker Wu Jun heard that her employer, the giant electronics assembly company Foxconn, had given employees landmark concessions her reaction was wo...
LONGHUA, China, March 30 (Reuters) - When Chinese worker Wu Jun heard that her employer, the giant electronics assembly company Foxconn, had given employees landmark concessions her reaction was wo...
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This user has chosen to opt out of the Badges program
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12:06 PM on 04/01/2012
They were brave enough to put their real names out there, they must not have that huge a concern for potential loss of wages....there is a fine line between applauding smart business practices in order to turn huge profits, and applauding economical business practices that earn a company profits while acknowledging being in business comes with the responsibility to consumers, workers, and the communities it reaches.

One can dream...right?
HUFFPOST SUPER USER
wtf is this
It depends.
05:43 PM on 03/31/2012
Perhaps a raise in pay could balance things out.
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Morgantheaxe
Eisenhower Republicans don't drink tea!!
08:13 AM on 03/31/2012
When we started to unionize is this county working conditions were horrible. They were EXACTLY like they are in China now. When workers began to organize and stand up companies did exactly what Foxconn is doing now. They are going to apply the changes in a way that hurts the employees the most. Eventually the workers will win. Eventually there will be better working conditions and higher pay. It will take time and be painful to get there. When they do get there a conservative will be waiting to tell them how horrible they, how overpaid they are, and how lazy they are. Stand together and get a living wage. Do not let the greedy or stupid interfere.
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06:44 AM on 04/02/2012
fanned
12:31 AM on 03/31/2012
That's just under $3 an hour including overtime. Wonder where American jobs went? Wonder why Apple is one of the richest companies in the world? Wonder why Steve Jobs died a multi-billionaire? Still think a flat tax sounds fair?
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HUFFPOST SUPER USER
theveggiedude
my body is a temple, not a living graveyard
12:33 AM on 04/01/2012
A multi-billionaire? You are thinking of Bill Gates - he retired about 10 years ago with $70 billion. Steve Jobs never got the opportunity to retire, and when he died he had made $2.1 billion from Apple. Not exactly a 'multi-billionaire' though he did make about $7 billion from Disney, which is not part of your conversation of shipping jobs overseas.
lurkinman
Clear thinking is best served non-partisan
11:55 AM on 04/01/2012
It's more like $.30/hour and, at that rate, those jobs are never coming back to America.
07:55 PM on 03/30/2012
Foxconn was violating Chinese law. The overtime was excessive. The pay was too low.
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Ed Baker
All Hail Big Mother
04:30 PM on 03/30/2012
They didn't tell us how much these folks made in the country where they lived in hovels with dirt floors and 23 people to a room......
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jflorish
01:22 AM on 03/31/2012
Do you have facts stating this, or are you just making up garbage like most other posters?
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Ed Baker
All Hail Big Mother
01:22 PM on 04/02/2012
Read and learn - google "life in rural china" and go from there.
lurkinman
Clear thinking is best served non-partisan
11:56 AM on 04/01/2012
Are there no workhouses? Are there no prisons?
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HUFFPOST SUPER USER
TamerAir
I don't want to believe, I want to know
04:21 PM on 03/30/2012
Unlike some lazy fat Americans these people want to work. I understand the concern about work conditions but media coverage was little bit exaggerated. They only make $1.78 per hour and they need some hours to make money. Apple could pay them $3.50 an hour that would be better since they charge $600 for an iPhone.
100,000s of people want to work there no matter what cause they're really from poor villages. Also let's not forget this is still a communist country there is no labor union. American media created huge hype and now people who want to work lost hours therefore money.
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jgeurian21
04:29 PM on 03/30/2012
She is not concerned with her working conditions or even those of her fellow employees. She is worried about having enough money. 2 huge differences really. But the odd thing is that the first report also said wages were going up dramatically and it is omitted in this report.
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clearthinker2008
we need to respect each other
07:31 AM on 03/31/2012
"Unlike some lazy fat Americans these people want to work."

That is a tremendously broad generalization. My mother worked 12 hours a day for GM for over 30 years, dropping of a heart attack on her last day there for her retirement party..oh, and to work. Working oneself to just about death isn't noble it's brainwashing. They don't want to work those many hours Mr. Brilliant Enlightened One, they NEED THE MONEY for their families and are willing to do what they have to do, like giving up their lives for Apple and the like.
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jettymichael
Unwavering Truth!
04:10 PM on 03/30/2012
Foxcon couldnt escape scrutiny because its the worlds biggest private employer and a global IT partner for most companies as per the pay for its employees. It must be matched with the countries PPP.
Besides that its doing a good job. I dont want to pay $5000 for an IPAD. We need such a company also for the auto industry. A new car would cost $10K.
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wtf is this
It depends.
05:47 PM on 03/31/2012
I suggest you be the first in line to work at the factory for slave wages. In fact, you should suggest to your employer that they replace you with someone that will work for pennies.
Whatever happened to an honest days pay for an honest days work? Has that been tossed aside so you can have a ridiculously cheap car?
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Ogg-the-bear
Stunning millions with bolts of lightning...
03:10 PM on 03/30/2012
Apple dictates the profit margins Foxconn can make. Foxconn finds more shortcuts. The execs at both Foxconn and Apple bear the blame. They are the ONLY ones in the situation unaffected. A parasite is a parasite, the owning class is the owning class. Period.
03:44 PM on 03/30/2012
You are no better than Mike Daisey when it comes to facts. Microsoft, Dell, HP, Sony, HTC, Motorola, Nokia and others use Foxconn for manufacturing and their execs are also "complicit" by your definition. But that's also false because there are millions of shareholders in all these companies, and they are also to "blame" by your argument.

Apple directly competes in one way or another with all the companies I listed and only accounts for 40% of Foxconn's manufacturing revenues, the rest are from Microsoft, Dell, HP, Sony, HTC, Motorola, Nokia et al.

The one thing you are correct about is that Foxconn will find more shortcuts, no matter how much any customer pays them or the phase of the moon or whether you've had your meds today. And if Apple paid gratuities to Foxconn, they would no more go to the employees than you spending more on concert tickets would go to the artist.

One good thing to come out of this is that China will become less competitive as Microsoft, Dell, HP, Sony, HTC, Motorola, Nokia are all forced to pay higher costs in proportion to their use of Foxconn, and in turn the American worker will look less like an expensive alternative.
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jgeurian21
04:32 PM on 03/30/2012
Sure, but 90%+ of Apple's revenue comes from Foxconn factories. Apple couldn't exist without Foxconn whereas a company like Mircrosoft makes most of their money on software they develop here in the US. I think the last time I looked hardware accounts for less than 5% of MS's total revenue. If Foxconn stopped today Apple would go out of business. If Foxconn stopped today MS probably wouldn't even notice it.
lurkinman
Clear thinking is best served non-partisan
11:58 AM on 04/01/2012
Those jobs will NEVER come back to America. No one can make a living on twice what Chinese workers make.
02:42 PM on 03/30/2012
Geez did you bleeding hearts really think employees would come out on the winning end of public outcry? Same crap happened when women cried out for equal wages. They simply lowered men's wages where they were able (lower paying jobs of course) so now you see more working parents.
lurkinman
Clear thinking is best served non-partisan
12:00 PM on 04/01/2012
Let me get this straight. You think that it is bad when men and women make the same money for the same work, or that men should be paid more than women if they are equally qualified?
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DRaymond
Network administrator, voiceovers
02:13 PM on 03/30/2012
Like factory workers everywhere they are distrustful of management's sincerity.  So they are going to get more per hour.  Are they also going to get higher rent in the corporate dormitories, higher prices at the corporate store?  Even though they may not, I don't blame them for being suspicious.

They have lived in an environment that the basic reality is more overtime=enough money to send back to their families.

Frankly these corporate cities may be in for a considerable social upheaval.  With fewer hours per employee they will need to hire tens of thousands more people that they already have  They will get a whole bunch of young people away from home with surplus free time on their hands, more money, and very few social outlets.
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02:20 PM on 03/30/2012
"Frankly these corporate cities may be in for a considerable social upheaval. With fewer hours per employee they will need to hire tens of thousands more people that they already have They will get a whole bunch of young people away from home with surplus free time on their hands, more money, and very few social outlets."

A potentially prescient observation.
03:46 PM on 03/30/2012
Agreed, and I bet some of them will go get second jobs! Oh, the irony!
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HUFFPOST SUPER USER
ResearchtheFacts
Alert, awake & paying attention to the details.
11:53 AM on 03/30/2012
They couldn't afford basic living on 60 hrs a week, shorter hours means more of a trapped, austerity, lifestyle.
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HUFFPOST COMMUNITY MODERATOR
J0E1
Don't blame me, I'm not a republicrat.
03:00 PM on 03/30/2012
Foxconn's concessions, including cutting overtime for its 1.2 million mainland Chinese workers while promising compensation that protects them against losing income

Reading IS fun!
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HUFFPOST SUPER USER
ResearchtheFacts
Alert, awake & paying attention to the details.
05:57 PM on 03/30/2012
Sure that's why they are complaining.
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HUFFPOST SUPER USER
ResearchtheFacts
Alert, awake & paying attention to the details.
06:00 PM on 03/30/2012
Hey, I always complain about making more money or the same amount and working shorter hours. Who could be happy about that?
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Cael
11:30 AM on 03/30/2012
Some people here need to read the article. They are not mad at the lost hours, they think that the lost hours means less pay even though they were told they would not lose any pay.

So they will make the same pay as before with no hours, they just don't trust the management.
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02:20 PM on 03/30/2012
would you?
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Cael
02:33 PM on 03/30/2012
If I was getting same pay for less hours I would be thrilled. Would I trust the management there? Probably not.

But that is not the fault of outsiders stepping in, that is a problem with the management.

Hopefully the management will step up and do what they said they will do.
-swift
Can you put your country before your party?
11:14 AM on 03/30/2012
You aren't working in terrible conditions any more because Americans are paying attention to you. So now you don't have to...Oops. The Americans are distracted again...Back to work, all of you!
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HUFFPOST COMMUNITY MODERATOR
mairs
Four legs, good.
11:55 AM on 03/30/2012
What are the terrible conditions? It's an honest question, as I've never read what they were. I've read that they have long hours and the pay wasn't very good, and they sleep in dorms.
-swift
Can you put your country before your party?
12:24 PM on 03/30/2012
From what I've seen and heard - and some of it is disputed - extremely long hours and days for very little pay. And the dorms are like 16 strangers packed into a room. Some places are better than others, of course. And like the article says, some Chinese view the long hours as an opportunity to make money, rather than a burden.

I remember reading similar quotes when a clothing "sweatshop" was shut down in an African country. Everyone who worked there was upset at losing the job that paid a few dollars for like a twelve hour workday. That was a lot of money to them. Enough to feed their family, get medical care, and send their kids to school. When the factory was shut down, they lost those things. So which is "fair"?

So "unfair" and "exploitation" depend a bit on the people involved. Many of the Chinese workers felt trapped and depressed and had high suicide rates. That would suggest a problem. But if they're telling you they want to work 60 hours a week, and they're happy, leave them to it.
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02:21 PM on 03/30/2012
Google it
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edenooch
nefarious humor
12:17 PM on 03/30/2012
just keep the pads rolling. ipad 4 5 6 7 .materialism, consumerism and the coveting of these precious gadgets is all this country is any more
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02:21 PM on 03/30/2012
Your Levis are made in even worse factories.
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Organic-Guy
Organic Gardener, Carpenter, Philosopher, Agitator
10:29 AM on 03/30/2012
This is the attitude corporations want americans to have and are working to cultivate and they can get it by doing the same thing to people here as they do in China. You make people desperate enough for long enough, blame the victims for their own misery and fill them with guilt and self loathing and turn them against one another even though you know you caused it and don't care and suddenly they lick up whatever is on the plate like stray kittens on the back porch and then they guard the back porch for you even though you've turned them into machines.
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SST Tech
Tradition is a detriment to progress
12:15 PM on 03/30/2012
It may be a coincidence, but it seems like this corporate attitude you describe started around the same time the global economy began to flourish.
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02:22 PM on 03/30/2012
It's at least as old as the Industrial Revolution.