or Connect
AppleInsider › Forums › General › General Discussion › Foxconn and Apple will share costs to improve Chinese factories
New Posts  All Forums:Forum Nav:

Foxconn and Apple will share costs to improve Chinese factories

post #1 of 13
Thread Starter 
Apple and Foxconn will share the costs associated with improving labor conditions at factories in China where devices like the iPhone and iPad are built.

Foxconn Chief Executive Terry Gou revealed that Apple will be contributing to the improvements, at least initially, according to Reuters. He did not detail exactly how much Foxconn or Apple would be spending to improve working conditions, or how the costs will be split.

Gou said improving factory conditions provides Foxconn with a "competitive strength." He said executives at Apple feel the same way, which is why the iPhone maker is chipping in.

The comments were made on Thursday at a groundbreaking for a new 10,000-square-meter operational headquarters in Shanghai. The project is scheduled to be completed in 2015.

Foxconn has been facing criticism for years as some have referred to the electronics maker as a "sweatshop" where employees work long hours for little pay. The company has worked to improve its image, and Apple has encouraged those changes with a series of audits, including new independent reviews from the Fair Labor Association.

Tim Cook at Foxconn
Apple CEO Tim Cook touring an iPhone production line at a Foxconn plant in Zhengzhou, China.


In March the FLA announced it had found a number of violations at Foxconn, after auditing its facilities at the request of Apple. Foxconn responded by reducing employee working times and addressing various code violations.

But some workers who relied on extra pay from overtime hours became upset when those hours were reduced. That prompted the company to announce a "significant" wage increase in April in an effort to court and keep employees.

Apple's crackdown on supplier working conditions has had a ripple effect in the China, going beyond Foxconn, which is Apple's largest supplier. Earlier this month, AppleInsider detailed a research note from Topeka Capital Markets that revealed that TTM Technologies recently boosted employee pay in response to Apple's concerns over labor issues.
post #2 of 13

Okay. So what about the other companies that use them? They gonna pitch in? 

 

Frigging nonsense.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #3 of 13

So where does the "competitive strength" part come in?

 

I keep asking myself, "what would Steve Jobs do"?  I shouldn't. But I do.

 

Is this Apple *really* building "competitive strength", or is it just pandering to the media and clueless critics on a large scale?

 

Pandering can cost a lot of money. It can also cost you your innovative edge. 

post #4 of 13
I think Apple is gonna do whatever it has to do to keep it's leading edge...like any king would do. Go Apple!
post #5 of 13
Quote:
Originally Posted by rcoleman1 View Post

I think Apple is gonna do whatever it has to do to keep it's leading edge...like any king would do. Go Apple!

 

I agree.  What motivates Apple is business and they must believe this is good business.  I know I'm not qualified to doubt or question so I roll on and let history and success be the arbiter of wisdom.

post #6 of 13

Hey well, good for those employees at least, right?  Seems easy to comment on the sidelines but I cannot imagine their day to day difficulties.

post #7 of 13

So, are these groups who protested Apple for quick attention whoring going to come out with public statements commending Apple on this move? The same ones that specifically said Apple should pay the costs of improving these factories? Yeah, I won't hold my breath. 

post #8 of 13
Quote:
Originally Posted by Tallest Skil View Post

Okay. So what about the other companies that use them? They gonna pitch in? 

 

Frigging nonse

This could relate specifically to the factories where Apple products are manufactured. The article doesn't really mention if it's all factories.

post #9 of 13
Quote:
Originally Posted by Whitey Burke View Post

Why is it all falling on apple after all doesn't foxie have other clients that should help with the situation over there.

 

"Lead by Example", increase public admiration and respect, and thus in the long run sell more "politically correct" product to organizations concerned about their image. 

 

I'm not sure how to feel about this, though. 

post #10 of 13
I recall quite a few users on this site a few months ago clamouring for Apple to 'do the right thing'.

Has anybody seen a single post by any of those people in this thread now, giving any form of recognition for what Apple, and Apple alone, is doing?

If you ever wanted proof that it was all about tall poppy syndrome, and nothing about helping the helpless workers of China, then there you have it.

You pack of fucking hypocrites.

You know who you are.
post #11 of 13

Great to see Apple taking the initiative here. Hopefully there will be some attention placed on Foxconn factories making other companies products now and these companies will be pressured into improving things as well.

 

Almost makes me want to run out and buy an iPhone, but I will go for quality and get a HTC instead.

 

Maybe a Mac to replace my PC in the new tax year.

post #12 of 13
Quote:
Originally Posted by Nairb View Post
Almost makes me want to run out and buy an iPhone, but I will go for quality and get a HTC instead.

 

lol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.giflol.gif

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #13 of 13
Quote:
Originally Posted by Quadra 610 View Post

So where does the "competitive strength" part come in?

 

I keep asking myself, "what would Steve Jobs do"?  I shouldn't. But I do.

 

Is this Apple *really* building "competitive strength", or is it just pandering to the media and clueless critics on a large scale?

 

Pandering can cost a lot of money. It can also cost you your innovative edge. 

 I disagree.    A lot of what Apple is about is the brand and the image of the brand as hip, caring, innovative,  the company that "thinks different", etc.     Paying subpar wages to third world workers gets in the way of that image even if many of the complaints are not valid.    The history of U.S. labor has had many confrontations, union battles, violence, etc., but it never (to my knowledge) had workers threatening mass suicide.    One of the miracles of Apple is that people felt really good about buying their products and there's been tremendous loyalty (sometimes to the point of obsession).     A perception that Apple takes advantage of its workers (even if those workers are actually employed by Foxconn) does not help the brand.   When the brand is hurt, Apple loses competitive strength.          

 

If Apple and Foxconn together can get those workers to be happy about their jobs and the workers can earn enough to bring themselves or their families into the Chinese middle class, that's a big plus for Apple.   It's also necessary because China is probably the market where Apple is growing the most.     And it shouldn't really cost Apple that much money considering that up until recently, Chinese factory workers were reputed to make only about $130 a month, whereas even minimum wage in the U.S. would have cost Apple $1328 a month (including the employer's required social security and Medicare contribution) without any benefits whatsoever.   Throw in even a really cruddy health insurance plan and you're talking at least $1700 a month.  They can afford to throw a few more dollars to the Chinese workers.       

 

And I think happy workers increases your innovative edge because you're not spending a lot of time over these factory issues, giving you more time to manage innovation.   Would Cook have felt it necessary  to show is face at Foxconn in China if there weren't worker issues?

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Discussion
AppleInsider › Forums › General › General Discussion › Foxconn and Apple will share costs to improve Chinese factories