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Foxconn’s Global Empire Reflects a New Breed of Sweatshop
The public scrutiny subsided after the company agreed to institute certain reforms, from raising wages to pushing workers to sign a non-suicide “pledge.” But activists have kept the spotlight on Foxconn's shady labor practices and exposed a similar pattern of driving electronics-industry workers in India and Mexico as well.
An investigative report by Hong Kong-based Students and Scholars Against Corporate Misbehaviour (SACOM), in partnership with the international industry watchdogs MakeItFair, GoodElectronics and Bread for All, contends that Foxconn's follies reflect problems rampant throughout a global electronics industry that treats "workers as machines." Yet even tragic deaths have not compelled the company to undertake even minimal reforms, according to SACOM's research.
The sanitized sweatshop
Employees were due for a major wage increase to CNY 2000 per month, for example, but as of October 11, management has been silent, says SACOM: "Details about the conditions under which workers can benefit from this pay rise, like seniority or type of contract, have not been communicated.”
Foxconn has issued a statement denying any deception, arguing that the new wages are being processed and that “our objective with these increases is to ensure we remain one of the highest paying employers in our industry.”
Yet on the factory floor, promises of pay hikes haven't leavened the Tayloristic atmosphere. While the company says workers' overtime hours generally fall well within the 60-hour limit mandated by the Electronic Industry Citizenship Coalition guidelines, according to SACOM, this evidently means they simply stop counting the extra hours that exceed the cap. One worker in Wuhan said "the management made an order to prohibit workers from recording overtime."
Other testimony from workers indicates that workers are often effectively forced into "voluntary" overtime.
Despite fatigue, workers cannot reject overtime work, because Foxconn requires workers to sign a Voluntary Overtime Pledge. Since the basic wage is not enough for survival, workers have no choice but to earn their living from the overtime premium. Even in the midst of the series of suicides, excessive overtime remained prevalent."
The quota system pushes employees toward ever-escalating exploitation:
Workers have to repeat the same monotonous and tedious tasks every day. A female worker from the packing department at Hangzhou campus complained that she was totally exhausted after non-stop work. The production target is usually set at 5000 pieces per day. If there is an influx of orders, the target will be raised to 1000 pieces per hour. Production targets keeps soaring. Management always test the capacity of the workers. If workers can finish the quota, the target will be increased day by day until the capacity of the workers maximize.
The draconian management structure keeps the workers in check by enforcing a "culture of absolute obedience,” SACOM says. Workers, who live in dormitories on site, are often subject to intrusive investigations and harassment. Interviewees cited feelings of social alienation, depression, and intense humiliation, in a self-contained micro-society that smacks of paternalistic dictatorship. One worker at the Longhua campus testified, “The authority of the security guards at Foxconn are like the police.”
Foxconn's global fiefdom
The Foxconn model is a hit outside China, too, as the company's reach traces the global grasp of its client brands, including Nokia, Apple, Dell, and Sony among others.
A separate report issued by CIVIDEP India (Civil Initiatives for Development and Peace India) suggests that in Tamil Nadu, south India, precariously employed Foxconn workers face hardships similar to those suffered by their Chinese counterparts:
It appears that the company is paying less than minimum wages by taking in Trainees and getting the work of a full time worker out of them. There is overtime work on almost all days. Workers have no choice but to work overtime and they are threatened with dismissal if they refuse. Work pressure and production targets are high. Linemen and supervisors harass workers when they slow down or attempt to take short breaks....
The overall policy of Foxconn shows a preference for temporary workers, to deny right to association and to avoid collective bargaining agreements.
Labor unrest, while perhaps more militant in the Indian facilities compared to the southern China sites, runs into similar obstacles from above. Protesters in Chennai reportedly clashed with management last month in an effort by an independent worker group, FITS, affiliated with Centre of India Trade Unions (CITU), tried to challenge the Foxconn-approved establishment union. To break up a sit-down strike, bosses “used police” to round up protesters, ultimately leading to the arrest and suspension of many workers ad labor activists according to the International Metalworkers' Federation and the Deccan Chronicle.
Foxconn has burrowed its way to the next hemisphere. The Mexican media reports that Foxconn workers in Guadalajara have been roused by news of the Chinese workers' plight; some staged a solidarity vigil in June, shedding light on parallels between strenuous, precarious factory jobs in Mexico and elsewhere.
SACOM advocate Chan Sze Wan told In These Times that in both Chennai and Shenzhen, Foxconn appears to be colluding with local authorities to suppress labor organizing. SACOM's report dismisses the “official” union apparatus representing Foxconn's Chinese workers as a sham that ignores workers' grievances and fails to educate them about their rights. Sadly, interviews with workers revealed that many knew nothing about union representation or the international manufacturers' codes of conduct that their employer is supposed to follow.
Chan added, “Foxconn as the world's leading electronics manufacturer, it does not translate its influence into responsibility.” But that corporate responsibility, she noted, must also be shared by American client companies like Apple, which should have the leverage to raise standards throughout the production chain.
With hundreds of thousands of employees worldwide, Foxconn's militaristic model is perfectly suited to the evolving workplace culture of the global economy—homogenized, disciplined, robotically efficient. And the workers will keep working at a frenzied pace, not because Foxconn insists, but because brand-name multinational corporations and gadget-obsessed consumers demand it.
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7 Comments so far
Show Allgnken
One of my passions is Electric Trains. Lionel, MTH, Williams by Bachmann use Chinese Plants for manufacturing. When I purchase my items I do enjoy running them, but can't help but realize that some poor Chinese worker sturggled to make ends meet for his family so I can enjoy my items from these companies. At the bi annual Eastern REgion of TCA (Train Collectors Association) in York, Pa, I questioned a Magazine O Gauge Railroading of a story they did on a trip to visit the manufacturing Plant of Sanda Kan in China. I was the only one who asked about conditions of the workers. The Representative of the magazine looked at me with a "Say What" type of look, but did go on to answer how well the workers get treated there and that they have the option of living in Company provided dorms, or living outside the plant. The workers get a month off to go home and visit families cause many of the workers are from very far distances away. When the article came out you could tell that the tour was very very controlled. almost like Red Cross Inspectors in the Paradise Gettos in WWll. Next time you use an item made in China give a moment of thought to the worker that made it.
Ken Berg
Many times I have NOT purchased something because it was made in China, or purchased something BECAUSE it was made in the USA. Bosh appliances are made in the USA, so when we had to purchase a new washer/drier* we bought Bosh. Recently I wanted to purchase a ribbed frying pan. When I went to the store I had three to choose from. Two made in the USA one made in China. (Interestingly, all three were in about the same price.) Needless to say I bought the one made in the USA.
Even though it was quite a few years ago, this still sticks in my mind. I was at a store in VT and they had a really nice flannel shirt with a moose print on it. It was around $45, which was way more than I normally pay for a shirt, but I was tempted, until I saw it was made in Malaysia. I put it down in disgust. Sorry, but if you are charging $45 bucks for a flannel shirt and you won't make it here because your profit won't be big enough? Sorry bud, but I aint playing that game.
* We rarely use a drier. Only in the dead of winter, or if we have an extend period of rainy weather and we can't hang cloths out on the close line.
Unfortunately with electronics, "made in the USA" doesn't mean squat. It could mean as little as "this is where we did the final coat of paint".
Even aside from the somewhat regular fraud in labelling, even to be legitimately be labeled "Made in the USA" only the very end of the assembly would need to be done here. There is a good chance even that the manufacturer of the final product could not even list the countries that they source their components from, and those components were probably made from other components that are sourced from yet other places.
It's good that you try tho.
Here is a problem with the "Made in ______ (fill in the blank)". I have recently spent an extended period of time in China and was not employed. I watched the Super Bowl there in February. During halftime of the game, some prizes were given out to those who won certain contests. Two of the prizes were "Official NFL Jerseys" of the quarterbacks of the two teams. The guy running the scene made a comment that went something like this, "Official NFL Jerseys. See, here are the logos. See, here it says 'Made in the USA'" Then in a slightly lower voice, and quite humorously, he said, "But, actually made in China."
Later in my stay, I became acquainted with a wholesaler who specialized in toys, but also sold pillows, clothes and anything else he could get an order for. He told me that certain buyers request that the labels read 'Made in Korea' or 'Made in Cambodia' etc. He once got a request to make the labels read 'Made in Germany', so it may not be a good idea to always believe the labels.
BTW, does anyone remember in the mid to late 1980's when Walmart began expanding and how Walmart used to advertise that most products sold were made in America?
Anyway, if American and European companies would share their profits with the Chinese companies, maybe the Chinese workers could make a little more in salary. Do some research on Apple products. The factories make pennies per unit, yet Apple makes $100's per unit. Maybe it is American corporate greed to blame and not FOXCONN, IMO.
Ya know, WalMart did not stop with the "Made in America" advertising till more than 80% of their merchandise was made in China. I believe Hillary Clinton was on the board at the time this was going on, too. Any wonder she worked so hard to get NAFTA through?
Yes, what happens in those other countries is bad, but after having a lot of temp jobs during school, I can honestly say, 'THAT happens in America too!
It's not just the low skilled jobs( are there really any of those...?) Perhaps they should be called ENDURANCE positions!)
Ill treatment happens in corporate offices, law offices....( this one is funny, in a sick kind of way) some black employees were incensed to find that they were making less than the white ones...and the HR person gave them a lecture on how to save money!)
I think they finally did get a raise, but geez, this was in a big time law office. Pity the poor waiters and waitresses that get taxed on what the IRS thinks they make, and too, those people involved in public safety ( trains, planes and automobiles) are pushed beyond limits all the time. Do you really want an ER doctor who's been on duty for 20 hours?
By all means SHUN the exploiting American businesses that are really engaging in a 21st century version of slavery...BUT DON'T BUY anything, until you know where it came from.
Shrimp anyone?
You can see how humane Fauxcom is by the pictures of the netting around its factory compounds to keep workers from killing themselves. Would an unfeeling souless corporate conglomerate do that?