Foxconn Reportedly Fixes Pay Dispute With Employees

Posted Jan 12, 2012

Yesterday I wrote about how Microsoft was investigating a mass suicide threat at Foxconn Technology, the Chinese company that is known for manufacturing Xbox 360 consoles, iPhones, iPods, iPads, HP computers, etc. Foxconn said that they have resolved a pay dispute with their workers. In the process about 45 workers had resigned.

Most of the protesting workers agreed to return to work after negotiations between the company and officials from the local government took place. The protest involved about 150 out of the 32,000 employees at its campus in Wuhan.

Several of Foxconn’s employees committed suicide in 2010. This led to scrutiny from their customers and a lot of bad press. Foxconn has been trying to improve factory conditions and has hired psychiatrists and suicide counsels since then. Foxconn is now investing in robots and is planning on moving some of their production to central and western parts of China where labor is less costly. Foxconn is run by Hon Hai Precision Industry of Taiwan.

Employees at Wuhan are upset that many of their workers are being forced to move from Foxconn’s biggest campus in the southern city of Shenzhen. Workers that shift to Wuhan had been promised about $450 per month in salary including overtime pay. However working conditions in Wuhan are believed to be much more difficult.