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Labor auditor gives passing grade to Foxconn

Posted: 23 Aug 2012 ?? ?Print Version ?Bookmark and Share

Keywords:supply chain? labor audit? remediation plan?

Working conditions at three Foxconn facilities supplying Apply have notably improved, according to a verification report released by the Fair Labor Association. Back in February, the FLA commissioned independent labor monitoring organizations Openview and SCSA to assess factories in Guanlan, Longhua and Chengdu following a string of suicides of employees who were allegedly suffering from depression and high levels of stress. Recommendations were made and a remediation plan was submitted by Apple and Foxconn to address each issue pointed out by the group.

Upon the return of the auditors to the South China factories in late June, they noted that Foxconn has complied with most of the recommendations ahead of scheduled deadlines. The company has pledged to implement working hours that meet the legal limit of 40 hours plus an average of nine hours overtime per week.

Slashing overtime

Cutting back on overtime could be unfavourable for most workers who usually render up to 20 hours extra hours per week to earn more. Foxconn stated that is devising a better compensation scheme to address this issue. The company also took steps to advance worker representation through commitments related to union elections and unemployment insurance coverage for migrant workers.

International firms have long struggled with their operations in China since wages are considerably cheap and transportation whether by land or by sea are very accessible yet working conditions remain problematic. This ongoing FLA audit of Foxconn's facilities could have wider implications for other Western companies that have major Chinese supply chain links.

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