Foxconn's Labor Condition

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(A) Background of Foxconn
Foxconn is the subsidiary of the Hon Hai Precision Industry Co., Ltd., which is a Taiwanese multinational electronics manufacturing company headquartered in Taiwan. It is the world's largest maker of electronic components. Foxconn is primarily an original design manufacturer and its clients include major American, European and Japanese electronics and information technology companies. Notable products manufactured by the company include iPad, iPhone, iPod, PlayStation, etc. Foxconn has factories in many different countries, which together assemble around 40 percent of consumer electronic products in the world.
The reason why Foxconn become famous is that it helps Apple to assemble iPhones. In recent
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Based on the investigation, nearly half of the employees feel stressed while working ( If Foxconn employ more workers to share the heavy work load, workers do not need to work with the unreasonable high efficiency. Then, their high pressure can be released.
(C) Provide more training
By providing training resource to frontline workers, the workers are able to much more familiar with the technical knowledge of the products, and lower failure rate which may also reduce their pressure. For example, Foxconn can invite a specialist from Apple Incorporation, in order to introduce or demonstrate the technical knowledge about product manufacturing in front of the frontline workers. Therefore, the probability of making mistakes decrease, workers will not be punished and they can be more relaxed.
Although the above practice will raise the operating cost of the factory, the potential benefits can resolve the existing problems of the company that is the settlement of the worker’s strike.
How can the recommendation be beneficial to Foxconn
The suggestion we recommended not only minimize the potential losses that may incur. It can also improve the overall situation of Foxconn in management accounting perspective.
(A) Higher fixed cost structure
Hiring additional employees lead to an increase in fixed cost, while increase in overtime pay rate lead to an increase on variable cost.
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