Foxconn Suicides

3088 Words Feb 12th, 2011 13 Pages
Suicides at Foxconn
(A causal analysis)

MBAMGT-665
International & Cross-Cultural Management
Fall 2010

Contents

Introduction 2 Wages and Working Hours 2 Workers were kept uninformed about wage increase plan 2 Basic wage is just slightly more than minimum wage and far below living wage 2 Excessive overtime 2 Deduction of overtime premium 2 Frequent change of work shifts 2 Management 2 Punishments 2 Extensive work pressure 2 Reward system 2 Trade Unions 2 Health and Safety 2 Student Workers 2 Relocation Plans 2 Social Factors 2 Conclusion 2 References 2

Introduction Foxconn Technology Group, a subsidy of the Hon Hai Precision Industries Ltd. is one of the world's largest electronics manufacturers. It ranks 112th
…show more content…
Wages and Working Hours Foxconn claims that it is compliant with local laws. But, research studies conducted by SACOM (Students & Scholars Against Corporate Misbehavior) have found that Foxconn has been a regular violator of labor laws. Many hidden facts as discussed below are uncovered.
Workers were kept uninformed about wage increase plan When the suicide cases reached a climax in May, Foxconn made wage increase announcements twice, but there was no formal announcement. Also, details about the conditions under which workers can benefit from this pay rise, like seniority or type of contract were not communicated.
Basic wage is just slightly more than minimum wage and far below living wage The basic wage of frontline workers at Foxconn is only CNY 100 more than the minimum wage (SACOM, 2010). According to Foxconn management, the purpose of the wage increase plan was to stabilize the workforce. But the fact is that the basic wage (which was equivalent to the minimum wage) was insufficient for workers to maintain decent living standards in Shenzhen. Also, basic wages in Tianjin, Wuhan and Kunshan lag far behind the living wage, which makes it extremely difficult for workers to live in such expensive cities on such meagre
Open Document