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Foxconn workers protest pay as company denies white iPhone 4 part sales

post #1 of 41
Thread Starter 
Chinese workers of Foxconn, Apple's overseas manufacturing partner, protested their wages and proposed relocation plans this week. Also, the company denied its employees sold white iPhone 4 parts that allowed a high school student to assemble and sell them.

Foxconn workers stage large protest

Workers at a Foxconn factory in Foshan, China, staged a protest this week over wages, according to Reuters. Employees were reportedly upset over their pay, as well as plans to relocate some of them to inland factories.

Many companies in China have moved their manufacturing operations away from the coast and inland, where the labor and land costs are less. Workers claimed their demonstration had between 6,000 and 7,000 employees, and that the company threatened to fire anyone who would strike.

One worker said the factory pays wages of 1,100 yuan, or $165.80, per month. He said that wage is less than what Foxconn and its parent company, Hon Hai Precision Industry Co., agreed to pay employees when it recently raised wages.

The protest isn't the first time this year wages with Foxconn have come under scrutiny. Earlier this year, Apple was compelled to make a public statement after a rash of suicides occurred at the manufacturing hub of Foxconn in Shenzhen, China.

The iPhone maker began auditing its plants in 2006 after a newspaper report suggested workers at a Foxconn plant were treated unfairly and forced to operate under sweatshop-like conditions. Apple now conducts an annual audit of its overseas manufacturing partners. Last year it found that more than half weren't paying their workers valid overtime rates.

This week, Brazilian billionaire Eike Batista, the eighth richest man in the world, indicated he wants to court Apple to assemble its products in Brazil. The businessman who made his fortune in the mining industry is looking to fill 90 square miles of space at the Port of Acu.

Hon Hai denies involvement in white iPhone 4 part sales

Also Friday, Hon Hai Precision Industry Co. denied that Foxconn workers had sold white iPhone 4 components. The company said so in a formal statement to the Taiwan Stock Exchange, according to Bloomberg.

This week, a 17-year-old high school student in New York gained attention when it was revealed that he made as much as $130,000 buying white iPhone 4 replacement parts from overseas, and building his own models of Apple's smartphone. Hon Hai's statement came in response to reports that the components were bought from Foxconn workers.

The story isn't the first time Hon Hai has been forced to address its security and ability to protect Apple's secrets. Last year, Foxconn made headlines when a worker committed suicide after a fourth-generation iPhone prototype he was responsible for reportedly went missing.
post #2 of 41
It's nice to see Chinese workers becoming somewhat Americanized when it comes to their attitude to improve their lives though better wages and grouping together against their employer.

On another side note, personally I could care less if they are protesting because foxconn is doing a little corporate restructuring, get used to it people... that's business !
post #3 of 41
Quote:
Originally Posted by AppleInsider View Post

Chinese workers of Foxconn, Apple's overseas manufacturing partner, protested their wages and proposed relocation plans this week.



Apple ensures that the factories they use pay fair wages and provide adequate accommodations. I'm not sure what these guys are doing.
post #4 of 41
Quote:
Originally Posted by Market_Player View Post

It's nice to see Chinese workers becoming somewhat Americanized when it comes to their attitude to improve their lives though better wages and grouping together against their employer.

On another side note, personally I could care less if they are protesting because foxconn is doing a little corporate restructuring, get used to it people... that's business !

China is actually facing a skilled labor shortage, similar to what has been happening everywhere else in the world.

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post #5 of 41
Quote:
Originally Posted by Bill-G View Post

Apple ensures that the factories they use pay fair wages and provide adequate accommodations. I'm not sure what these guys are doing.

No Apple does not, they do audits to see if the factories are in compliance if they are not they give a warning to the supplier, that is all that is really happening. Foxconn is still violating, for example, over time pay wage laws and what has Apple done? Nothing.

Perhaps you should actually read the report below to actually get an idea of what these Foxconn workers lives are like. I think if you were in there shoes I think you would have quit on the very first day.

http://sacom.hk/wp-content/uploads/2...nes_sacom3.pdf
post #6 of 41
Well, I can live an hour on their monthly salary.
post #7 of 41
$135 a month is downright awful.

Now, not to justify this amount; but, I wonder...do the employees get free housing and food? If not, how do they survive? I guess that is the point.
post #8 of 41
Quote:
Originally Posted by Market_Player View Post

that's business !

Yeah? Well then "business" sucks.
post #9 of 41
Quote:
Originally Posted by Noliving View Post

No Apple does not, they do audits to see if the factories are in compliance if they are not they give a warning to the supplier, that is all that is really happening. Foxconn is still violating, for example, over time pay wage laws and what has Apple done? Nothing.

Perhaps you should actually read the report below to actually get an idea of what these Foxconn workers lives are like. I think if you were in there shoes I think you would have quit on the very first day.

http://sacom.hk/wp-content/uploads/2...nes_sacom3.pdf



Would the moral thing be to boycott all Foxconn products until they improve their policies? Or should we all just sit back and enjoy business as usual?

It is truly amazing that Foxconn can make the iPad so cheaply.
post #10 of 41
Quote:
Originally Posted by justbobf View Post

$135 a month is downright awful.

Quote:
Originally Posted by stevetim View Post

Well, I can live an hour on their monthly salary.

In China, that's a very attractive salary.
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"I'm way over my head when it comes to technical issues like this"
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post #11 of 41
Assuming security wasn't an issue, I'd be curious to know how much it would cost to manufacture an iPhone or iPad in the U.S.
post #12 of 41
Quote:
Originally Posted by justbobf View Post

$135 a month is downright awful.

Now, not to justify this amount; but, I wonder...do the employees get free housing and food? If not, how do they survive? I guess that is the point.

Would $165.80 work for you?
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post #13 of 41
Quote:
Originally Posted by justbobf View Post

$135 a month is downright awful.

Now, not to justify this amount; but, I wonder...do the employees get free housing and food? If not, how do they survive? I guess that is the point.

No, it's a very good wage. Also, as is typical with most medium sized or large factories, they provide free or subsidized food and housing for their workers.

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post #14 of 41
LOL. Maybe you can get Apple to get you a job over there so you can experience the so called fair wages. I used to work in the garment industry. My job was to go to factories to make sure garments were being made properly. Most Americans would prefer to die then work under the condition third world workers endure. I would.

You do understand that Apple closed down factories in every country that values human rights, right? To be fair, every American company has done so and as such Apple had little choice. Why not, so called Free Trade laws give huge tax incentives for companies to relocate overseas. Further, you can take advantage of slave labor in third world countries that do not value human rights. It used to be the case that import laws would tax imports that utilized slave labor so that Americans wouldn't have to try to compete with countries without the same values. The taxes coming into the country would pay for government services.

Apple largely relies on company self reporting (in other words FoxConn monitors itself) and Chinese government guidelines to make those determinations. When ever there is a stink, Apple sends somebody over to check things out, but that is like an announced inspection. Further, Apple needs Foxconn. There aren't many operations capable of building Apple's products. America has lost the ability to manufacture anything similar.

Quote:
Originally Posted by Bill-G View Post

Apple ensures that the factories they use pay fair wages and provide adequate accommodations. I'm not sure what these guys are doing.
post #15 of 41
LOL. Have you been to China? I doubt it. I have. They work long hours, with no overtime pay. Further, the subsidized housing is to compensate from not being paid enough to afford anything else. Forget having a family as you live in a big dorm room with multiple bunks.

Quote:
Originally Posted by SpamSandwich View Post

No, it's a very good wage. Also, as is typical with most medium sized or large factories, they provide free or subsidized food and housing for their workers.
post #16 of 41
Quote:
Originally Posted by Market_Player View Post

get used to it people... that's business !

No, that's exploitation!
post #17 of 41
Quote:
Originally Posted by SpamSandwich View Post

No, it's a very good wage. Also, as is typical with most medium sized or large factories, they provide free or subsidized food and housing for their workers.

This is pure rationalization. No wonder we ship jobs to countries like this. They exploit the workforce, and we rationalize it.
post #18 of 41
Quote:
Originally Posted by ruel24 View Post

This is pure rationalization. No wonder we ship jobs to countries like this. They exploit the workforce, and we rationalize it.

The term "rationalization" is often used to make perfectly valid arguments "go away".

In very real terms, these factory workers may very well be better off at Foxconn than they were previously, or would be should they leave Foxconn. This doesn't excuse any inhumane treatment, but to assume that people chose to work there and stay working there when it is not advantageous to them, is tantamount of accusing the workers of stupidity.

I'm all for the right to collective bargaining, and also regulations. I would also support some sort of certification process that companies like Apple, etc.. could meet to assure that their devices and components are assembled by workers receiving basic levels of humane treatment. However not every assumption that we have about how things "should" be done in a working environment, translate to other cultures and political, economic and industrial level realities that are different than our own.
post #19 of 41
It's hard for any country to maintain cheap labor as it progresses.

Here in America, we used to export things like clothing, shoes, cotton, what have you, and people would work these jobs for pennies a day. Now our nation has much more complex exports, like software development or even advertising!

Who knows how long this planet will have third world countries that are willing to sew our pants, or make our shoes? If every country does well, these jobs won't pay enough anywhere.

The solution? iRobot.
post #20 of 41
Any salary in China is attractive. Doesn't mean it is fair.

Quote:
Originally Posted by jragosta View Post

In China, that's a very attractive salary.
post #21 of 41
I know this will never happen but....."BRING IT HOME! Create jobs in the US and make the stuff here! Or put the plant in Mexico, where it's way closer, and we can work on illegal immigration at the same time.

I know everyone will scream..."Do you want it to cost $900 dollars instead of $200? Because after paying a regular person's wages that's what will happen?"

To which I will reply as I always do-NO, it should still only costs $200, because rather than the Average guy taking a hit, maybe the CEOs of these companies can only make $300 million a year instead of $500 or whatever ridiculous amount they are paid,

I do think that unions have some faults, but in the end- The white collar crime and the amount that these CEOS make could pay for 1,000 of new jobs and keep the costs of products down.
post #22 of 41
Apple used to manufacture most of it's Macs in the US. It owned the factories. Even if wages weren't an issue, Apple wouldn't want to own factories anymore because of accounting reasons. For example, until Apple receives shipment of Macs from a third party it doesn't have to account for that product as inventory for accounting purposes. When it owns the factories it has to count Macs sitting around at the factory as product it owns and that offers accounting problems for Apple.

There are no manufacturers left in the US that could make Apple product. A factory would have to be set up. There are few people left in the US who know how to set those factories up. Many of the so called Green Jobs that are supposedly going to save our economy are facing problems trying to set factories up here because very few people are capable of doing this. Further, in China the government subsidizes the creation of the factory. In America, the third party manufacturer would have to come up with the money.

Wages were never an issue in the US. It was the height of the economic boom of the 80s that greedy manufacturers lobbied Congress for Free Trade agreements so they could take advantage of both tax breaks and free labor overseas to make more money. The cost of products have not dropped significantly. Only the profit has risen. That extra profit is what used to pay for government services and keep Americans employed.


Quote:
Originally Posted by Cpsro View Post

Assuming security wasn't an issue, I'd be curious to know how much it would cost to manufacture an iPhone or iPad in the U.S.
post #23 of 41
[/QUOTE]There are no manufacturers left in the US that could make Apple product. A factory would have to be set up. There are few people left in the US who know how to set those factories up.[/QUOTE]




This doesn't really seem to make sense as American companies set up the factories overseas. Didn't we Invent factories? Not to mention we do have thousands upon thousands of factories here in the US.

Not to mention American businesses open thousands of Storefronts and restaurants all over the world...
post #24 of 41
The amount of money they get paid is typical of China...you all should come over here and take a look at the the definition of over-employment...go into any given store, groups of employees are just standing around talking...my favorite is the mob of women (about 7 of 'em) whose job is it to promote and sell some toothpaste in the local equivalent of walmart. Keep them employed and complacent...cost of living should be considered...I live in a 85 sq.meter apartment for 2200¥ a month (actually it used to be 2000¥ a month until our landlord raised it and I am NOT a happy camper about that )...at a 6.7¥/$1 exchange rate do the math...try touching that stateside without being crack, gang, and rat infested.
Anyway American Chinese food is a helluva lot better, the monoplized Internet is high speed and slow as molasses, they pay MORE for their Apple products in China (even with the tax built in...provided it isn't a well disguised knock-off)), and where the HELL is a full blown version of QQ for Mac (I hate the lite version...piss poor)
post #25 of 41
Does anyone in this forum want to throw me some venture capital? Because I have found THEE money maker of a niche in the land of silk & CCTV...There are NO honest to goodness gay bars to be found...unless you chalk up the speakeasy flavor...cm'on, who wants to be a real pioneer? Who's "man" enough?...tongue and cheek boys...don't get yer panties in a bunch...bring it Rambos of the forum in all your glory and righteous might.
post #26 of 41
Quote:
Originally Posted by TBell View Post

There are no manufacturers left in the US that could make Apple product. A factory would have to be set up. There are few people left in the US who know how to set those factories up.

Having been involved in the setup of a number of semiconductor factories in the US, I can say that I know a lot of people who could setup a much simpler manufacturing process as making consumer electronics.
post #27 of 41
Quote:
Originally Posted by Xiaohuzi View Post

Does anyone in this forum want to throw me some venture capital? Because I have found THEE money maker of a niche in the land of silk & CCTV...There are NO honest to goodness gay bars to be found...unless you chalk up the speakeasy flavor...cm'on, who wants to be a real pioneer? Who's "man" enough?...tongue and cheek boys...don't get yer panties in a bunch...bring it Rambos of the forum in all your glory and righteous might.

Good luck with that!
post #28 of 41
Quote:
Originally Posted by Bill-G View Post

Apple ensures that the factories they use pay fair wages and provide adequate accommodations. I'm not sure what these guys are doing.

And in other news Santa Claus and the tooth fairy were seen together at an Elvis concert.
post #29 of 41
Quote:
Originally Posted by Xiaohuzi View Post

Does anyone in this forum want to throw me some venture capital? Because I have found THEE money maker of a niche in the land of silk & CCTV...There are NO honest to goodness gay bars to be found...unless you chalk up the speakeasy flavor...cm'on, who wants to be a real pioneer? Who's "man" enough?...tongue and cheek boys...don't get yer panties in a bunch...bring it Rambos of the forum in all your glory and righteous might.

Your idea is a yuan for me....but I hope it bears a Fruit for you.
post #30 of 41
Quote:
Originally Posted by ruel24 View Post

This is pure rationalization. No wonder we ship jobs to countries like this. They exploit the workforce, and we rationalize it.

We need to boycott Foxconn products until they improve their labor practices! We are the ones funding the exploitation.
post #31 of 41
Quote:
Originally Posted by Bill-G View Post

We need to boycott Foxconn products until they improve their labor practices! We are the ones funding the exploitation.

Just testing my new .sig...
post #32 of 41
Quote:
Originally Posted by Bill-G View Post

We need to boycott Foxconn products until they improve their labor practices! We are the ones funding the exploitation.

Why pick on Foxconn, why not boycott all Asian, Latin American, and Eastern European factories. Also, include any US based sweat shops, especially the ones that use illegal immigrants.
post #33 of 41
Quote:
Originally Posted by Bill-G View Post

Apple ensures that the factories they use pay fair wages and provide adequate accommodations. I'm not sure what these guys are doing.

Perhaps feeling that the laws idea of 'fair wages and adequate accommodations' isn't. Remember these people sleep 6-8 in a room and use communal bathrooms. Some prisons aren't that tight.

As for the whole 'we didn't sell' stuff. Perhaps they didn't. One wonders if these pieces were in storage or perhaps were taken off the truck at a recycling center contracted to destroy them for FoxConn and sold by those folks.

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A non tech's thoughts on Apple stuff 

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post #34 of 41
90% of you here dont even know the state of china. But just some fact, that payment plus free food, drinks, health care and housing. And last time i checked, it was closer to 2000 then 1000 RMB.

Dont like it? They could move to other parts of china. There is millions of people in china willing to work for Foxcon for these payments.

P.S - While i would love to have them paid better, the reality is they are paid quite fairly. ( Considering their benefits. ) People from US are having fed too much information on China RMB undervaluation.
post #35 of 41
Quote:
Originally Posted by Bill-G View Post

We need to boycott Foxconn products until they improve their labor practices! We are the ones funding the exploitation.

And that would include Sony PlayStation, Nintendo Wii and quite a number of PC models like Dell, I believe.

Still interested?
post #36 of 41
Quote:
Originally Posted by ksec View Post

90% of you here dont even know the state of china. But just some fact, that payment plus free food, drinks, health care and housing. And last time i checked, it was closer to 2000 then 1000 RMB.

Dont like it? They could move to other parts of china. There is millions of people in china willing to work for Foxcon for these payments.

P.S - While i would love to have them paid better, the reality is they are paid quite fairly. ( Considering their benefits. ) People from US are having fed too much information on China RMB undervaluation.

Did you even read the report I posted?
post #37 of 41
Foxconn will need to hire even more engineers and workers, otherwise they cannot meet the local demand for Apple products in China.
Many more Apple stores will open in China and sales is surging.
Given a choice, would you like to work at Foxconn or at the Apple store in China?
post #38 of 41
Quote:
Originally Posted by Market_Player View Post

It's nice to see Chinese workers becoming somewhat Americanized when it comes to their attitude to improve their lives though better wages and grouping together against their employer.

On another side note, personally I could care less if they are protesting because foxconn is doing a little corporate restructuring, get used to it people... that's business !

I guess you don't give a shit about people committing suicide over these poor wages they earn a month.You call that trying to be Amercanized! Give me a break please.
post #39 of 41
Isnt it sad when the factory workers cant even buy the products that they make?

All these companies whose using Foxconn ( Sony, Dell, HP, Apple and many others) to try to gain an extra buck should be ashamed of themselves.

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"Like I said before, share price will dip into the $400."  - 11/21/12 by Galbi

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post #40 of 41
At least this is a step in the right direction for the
factory workers. They have to learn to stand up
for themselves is they feel that they are being
mistreated. Foxconn cannot afford to lose 7,000
employees. Training new ones will take longer and
cost a lot of dough.
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