Tuesday, April 3, 2012
Agree to Destroy Apple & Foxconn Working Conditions
BEIJING - China Apple and its manufacturing partner, Foxconn, agreed to improve wages and working conditions at Foxconn factories are considered to have low wages. This is a step that could be the benchmark that the new fee for service users in the West about the Foxconn workers in China.
Based on the important agreement on Thursday, Foxconn, which makes devices like the Apple iPad and iPhone, will employ tens of thousands of new workers, there is no illegal overtime, improve security protocols and improvement of workers' housing and other facilities.
The move is a response to one of the largest investigations ever conducted by the company's United States (U.S.) in foreign countries. Apple agreed to an investigation by the Fair Labor Association (FLA), which responded to criticism that its products are assembled in China who are persecuted for workers.
Through a survey of three Foxconn factories and 35 thousand workers, labor associations found numerous violations of labor laws, including overtime hours are extreme and not paid.
Apple is not the only business partner Foxconn. So Apple and Foxconn agreement will also likely increase costs for other manufacturers who also formed a partnership with Taiwan companies such as Dell, Hewlett-Packard (HP), Amazon and Motorola Mobility Holding.
"If Fixconn trying to raise the price of Amazon can go to other manufacturers such as Quanta, Wistrob, Pegatron or Inventec to see what can be done for his company," says research director of technology at Detwiler Fenton.
The agreement juag can make higher prices for consumers, although the impact will be limited due to labor costs only a fraction of the total for most of the technology.
"If Foxconn rising labor costs, it's become a phenomenon in the industry and then we will decide how much should we give to our customers and compared how much money will we take," said HP chief executive, Meg Whitman some time ago, like quoted by Reuters, Juat (30/03/2012).
Meanwhile, responding to inquiries FLA, Apple through his spokesman said, "We appreciate the work of the FLA to assess conditions at Foxconn and fully support their recommendation."
"We have a variety of purposes by the FLA, which is improving the lives and capability to any manufacturing company," he added.