Apple to share initial cost to improve conditions at Foxconn factories

By on May 11, 2012, 8:30 AM

Apple has voluntarily stepped forward to share the initial cost of improving working conditions at Foxconn factories in China. Both companies have come under fire in recent months with regards to what some deem to be poor labor conditions in the factories that produce iPhones and iPads.

Foxconn president Terry Gou said that he feels the criticism his company has received over working conditions is unfair and that they are spending heavily to fight the negative perception. As such, he believes that improving factory conditions isn’t merely a financial cost but a competitive strength. As Engadget says, the chief feels that both his company and Apple will be rewarded through an overall happier staff.

Gou didn’t elaborate on how much the initial improvements would cost, what exactly was being improved upon nor did he indicate if it would be a 50 / 50 split or some other ratio.

Both companies have been tackling the issue head-on in a number of ways. Foxconn raised employee wages by 16 to 25 percent earlier this year, marking the third pay increase for staffers since 2010. The two companies came to an agreement in March that would see Foxconn hire tens of thousands of additional workers to cut back on the amount of overtime existing employees are given.

Apple became the first technology company to join the Fair Labor Association, resulting in subsequent audits of several Foxconn factories in Chengdu and Shenzhen. Initial findings from those audits suggested that working conditions were above average but there were still areas that could use improvement.




User Comments: 8

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gwailo247, TechSpot Chancellor, said:

Every employee gets $100 yearly credit at iTunes and the suicide nets will be replaced quarterly.

Guest said:

Apple are not the only company contracting foxconn labour... xbox and some other popular devices are also built there...

Kibaruk Kibaruk, TechSpot Paladin, said:

Poor apple boo hoo!

Scshadow said:

[link]

"During recent trips to Foxconn plants over the past several days, (President of the Fair Labor Association) said that based on how tranquil the facilities are, boredom and alienation are perhaps a bigger problem than intensity and burnout from a pressure-cooker environment like those typically found in garment factories."

But suddenly they're spending more money to improve conditions of a workplace where its been suggested the problem is boredom and alienation. I didn't buy it then and I don't buy it now. I'm glad to see that they're at least still doing something about it instead of just lying and hoping the situation goes away from just that.

SNGX1275 SNGX1275, TS Forces Special, said:

Every employee gets $100 yearly credit at iTunes and the suicide nets will be replaced quarterly.
Poor apple boo hoo!

What other story could have occurred where you would have not commented? We can debate how bad the conditions are, but the fact is, products are made where they can be made cheap, labor conditions are allowed or disallowed by the host country not by the person/company with the money. If you think Apple is the only one making goods in what the "west" considers bad conditions you are a fool. I don't think you are a fool, I think you are just an opportunistic douchebag wanting to pour some more hate on Apple. The fact is though, Apple is funding some stuff to improve it, who else is?

gwailo247, TechSpot Chancellor, said:

I don't think you are a fool, I think you are just an opportunistic douchebag wanting to pour some more hate on Apple. The fact is though, Apple is funding some stuff to improve it, who else is?

I think you are a person whose sense of self esteem has been too tightly integrated into a product to the extend that you insult a person because they happen to insult a company that you happen to, I don't know, worship?

So why don't you seek some professional help, cause your ego is seriously out of whack when an internet stranger's criticism of a company can cause you to feel bad about yourself. Douchebag.

SNGX1275 SNGX1275, TS Forces Special, said:

I think you are a person whose sense of self esteem has been too tightly integrated into a product to the extend that you insult a person because they happen to insult a company that you happen to, I don't know, worship?

So why don't you seek some professional help, cause your ego is seriously out of whack when an internet stranger's criticism of a company can cause you to feel bad about yourself. Douchebag.

I don't worship anyone or anything. Your emotions got you so upset that you constructed a huge run-on sentence that took a few reads through before I gathered what you were trying to say. You also said "extend" when you meant "extent", well maybe you didn't, perhaps you really thought you were correct.

My ego isn't out of whack, I just made a point, you went on a few sentence rant about it, perhaps you are the one that needs to take your own advice.

captaincranky captaincranky, TechSpot Addict, said:

Foxconn isn't going to foot the bill for any labor agreements at Foxconn, and neither is Apple. The American consumer is going to fund it. Do you people think that Apple is going to chop their profit margin, out of the "goodness" of their black, necrotic, draconian heart.

What I can't wait for, is when the American public gets the bill. Then we'll see if all that concern for the Chinese workers is genuine. I suppose the average Apple customer will have to buck up, and fore go a couple of Izod shirts, and Ralph Lauren jeans to balance the books, or run up that old plastic debt.

I predict the complaining will shift to the price of goods, and we'll want our electronics manufacturers to look for cheaper labor elsewhere. Hey maybe Bangladesh would do the trick. Then we'll complain about the quality.

Basically, Apple should make the iPhone here in the USA, so you'd have to pay about $1800.00 bucks a pop for one. That'd separate the real yuppies from the wannabes.......

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