Apple to Offer Subsidies to Foxconn Workers?

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A number of high profile suicides amongst Foxconn workers has generated a lot of headlines over the past few weeks. The incidents have resulted in increasing scrutiny of the company prompting a number of investigations. Foxconn is a manufacturing partner for a number of U.S. companies including Apple. Apple has announced that it will be conducting its own independent review of the working conditions at the Foxconn factories.

Today, a report from Chinese site Zol.com.cn indicates that Apple will be providing financial rewards to Foxconn workers producing Apple products. Micgadget provides a translation:
A tech site in China has reported, Apple will provide financial subsidies to Foxconn’s employees, the amount will roughly be 1 to 2% of the profits from Apple products. Apple has conducted investigation on Foxconn, and they believe the main reason for the suicide jumps is related to the employees’ low wages. In order to solve the problem, Apple decides to offer a direct financial subsidies for the workers in Foxconn, it will first start from the iPad production line.
Apple has not yet made any announcements about their investigation, and has not confirmed this report of worker subsidies.


Article Link: Apple to Offer Subsidies to Foxconn Workers?
 

stridemat

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If this is true then the the lost profit will surely be re-cooped through an increase in CSR. Its a move in the right direction.
 

gigidey

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I'm sure this will make the workers happier and all, but I think the reason most of them are so depressed is because of the rough working conditions.
 

opera57

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I kinda feel that its hard to believe personally, but pretty good if its true!
 

sockdoggy

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Jan 21, 2002
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"Apple has conducted investigation on Foxconn, and they believe the main reason for the suicide jumps is related to the employees’ low wages."

How about 100+ hr work weeks?

Higher wages won't make them actually feel better.
 

Small White Car

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Seems more like a PR move than anything that actually fixes the problem.
Do tell, please.

They're killing themselves to get the financial payout for their families.

So the problem is "they don't have enough money." You think "giving them more money" isn't the solution to that problem. So you must have a better plan. So why are you holding out on us? Please tell.
 

baryon

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All this cheap manufacturing in China... It is a bit unethical in a way, that we get all these awesome products that were made by people who work all day in a factory and almost get no money for it! But on the other hand, China wouldn't have enough jobs without such demand...
 

Jayomat

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That's nice of them. :apple:
"In order to earn sufficient money, many migrant workers in Dongguan had to extend their working hours to 12 to 14 hours a day, seven days a week, and with only one day off a month. These workers worked between 84 to 98 hours a week on a regular basis, so that overtime accounted for between 30 to 50 percent of their final monthly pay packets."

yeah, nice

http://www.china-labour.org.hk/en/node/100206

Damn you, Apple! My mother killed herself because she accidentally broke her iPad and all I got was this lousy t-shirt!:mad:
wow....:eek:
 

Small White Car

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This is actually a brilliant plan on Apple's part because they mostly sell high-priced, high-margin items.

So they can afford to shave a percentage off.

But companies like Dell are in a tough spot. Their business is designed around low-margin, high-volume items. So it'll be harder for them to do this. Will they ignore it (and look bad) or do it and hurt themselves, or raise their prices slightly?

No matter what they choose, it's gonna hurt the other computer companies to do this. I'm sure Apple knows that and is secretly a bit giddy about it.
 

Unique Visuals

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I read where one study showed that due to the extreme poverty that the workers will commit suicide just to help their families. It showed that as funeral and compensation payments went up so do suicide rates in poverty stricken areas. When they were lowered then the rates went down. (shrugs) hard to tell what is in their thoughts.
 

pubwvj

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This is a BAD idea. Foxconn should be paying its workers. Apple's now paying a TIP. This is how the restaurant industry pay scale was destroyed. The customer is now responsible for paying the workers. Bad, bad, bad idea. It is shameful that Apple is doing a politically correct game. Instead if they think Foxconn isn't paying its workers enough they should tell Foxconn to up the worker pay if they want the contract.
 

kolax

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This is actually a brilliant plan on Apple's part because they mostly sell high-priced, high-margin items.

So they can afford to shave a percentage off.

But companies like Dell are in a tough spot. Their business is designed around low-margin, high-volume items. So it'll be harder for them to do this. Will they ignore it (and look bad) or do it and hurt themselves, or raise their prices slightly?

No matter what they choose, it's gonna hurt the other computer companies to do this. I'm sure Apple knows that and is secretly a bit giddy about it.
You certainly talk a lot of sense.. I hadn't considered any of that when I read about this earlier.
 

Small White Car

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This is a BAD idea. Foxconn should be paying its workers. Apple's now paying a TIP.
Saying someone will get paid "x" for doing "y" is not a tip. That's a bonus.

A tip and a bonus are not the same thing. Think of all the sports players that get an extra amount of money if they meet some performance requirement. Is that called "tipping" NFL players?

No, it's called fulfilling a contract.
 

Analog Kid

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Good move. Introduce profit-sharing. I think it's a great idea when they do it in the US, glad to see it move to China.

The question is, how do they prevent Foxconn from reducing workers salaries since they know Apple's kicking in separately? Tips were meant to reward good waitresses, then restaurants cut back salaries since their tips subsidized their income.
 

flooce

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Jan 19, 2009
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They're killing themselves to get the financial payout for their families.
young male migrant workers around 20 most of the time do not have a family to support, but are quite on their own. alone. This is as well to the one-child-policy.

So the problem is "they don't have enough money."
The problem is an inhumane work life, 14 hour days, no freetime, being isolated in a security guarded factory area, sleeping on spot, no minimum wage regulation (labour-contracts lawfully overrule law in China), etc...

You think "giving them more money" isn't the solution to that problem. So you
must have a better plan. So why are you holding out on us? Please tell.
Some of the rights western labor movements needed to fight for decades would be a great start, wouldn't it? (A heritage which is too easy forgotten actually.) Like higher job security, shorter shifts, reasonable maximum hour limit a week, a day off a week, social insurance, etc...

1 to 2 % of the profit would not cover the extra costs for these conditions though. And how is this meant anyhow? A production line consists of several working steps. Does everybody involved in a one product get 1% of the profit for this piece? Does it accumulate? Does everybody involved share the 1% of the piece they were working on?

Foxconn is a huge manufacturer, employing 100.000 people (young male migrant workers), how do you think does this situation contribute to the working climate between the employees, as some of them produce for other companies?

This is just a PR cover up action.