Foxconn Hopes To Curb Problems By Stopping Suicide Compensation

Posted Jun 9, 2010

Foxconn will no longer provide suicide compensation to families of dead employees. The company believes this will help curb suicides from happening in the first place. Foxconn CEO Terry Gou said that when an employee commits suicide, the family is given money that is equivalent to 10 years of salary. This may have been a major motivation of the suicides.

This is evidenced by a suicide note that a son left for his parents:
“…now I’m going to jump off Foxconn, really leaving now, but you don’t have to be sad, because Foxconn will pay a bit of money, this is all your son can repay you now.”

Gou is also blaming the “Werther Effect” because of all the media attention that Foxconn is getting over suicides. Foxconn is handing the welfare management work to the Chinese government locally because they are unable to deal with social responsibilities. Foxconn is the manufacturing company that builds iPods and iPhones.