Case Study, Foxconn Technology Group (A) - Essay Example

Grace Pane 1/28/15 Assignment 2 HOBS ; Foxing Technology Group Foxing was founded in 1974 by Terry Go as Hon. Hi Precision Industry Company Ltd. Foxing Technology Group was the largest and fastest growing multinational company in the MS industry. Terry Go designed the factory and housing to exploit cheap land and labor in Sheehan, a major city in Southern China’s Gudgeon Province, north of Hong Kong, and China’s first Special Economic Zone. Mr.. Go demanded Intense loyalty, telling employees that the company’s benefit was more important than their personal benefit.

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He was famous for his our work day and leveled in discipline in his management team. More than 1,000 security guards were employed to keep order and shield the plant from outsiders. Mr.. Go created intense and brutal working conditions to keep product output at a peak, paying no mind to the detrimental effects his tyrannical working conditions took on his employees. Despite the meager pay and harsh conditions Foxing was one of the best places to work for low-skilled workers. The employees were provided with legal contracts, got subsidies for housing, meals and insurance, and could choose to live rent-free in company dormitories.

What happened at the Longhead plant in 2010 focused everyone’s attention on the conditions of low-skilled labor and migrant workers. Allegations of employee mistreatment appeared as early as in 2006, when the UK newspaper The Daily Mall criticized Apple for using Foxing, as a sweatshop supplier Only fans were Installed, so workers often felt suffocated during the hot and humid summer. A poor smell persisted and nobody cared about cleaning the common place. Workers referred to the dormitory as “the garbage dorm. ” On each floor, a public shower and restroom were shared, but workers were not allowed to wash their own clothes.

Instead, they were required to participate in a factory- managed laundry program to prevent them from consuming too much water. Security guards were on duty 24 hours in each dormitory building to make sure that workers swiped their cards to enter the buildings, so workers could not freely go to other dormitories or bring friends to their own places. However, security guards were not responsible for safety issues, and theft was rampant. Frankly it’s surprising that there were not more suicides caused from living in these conditions. The mental and psychical toll of brutal and dehumidifying living and working conditions in seductive too person.

Apple’s Foxing problem and Nine’s sweatshop problem both reflect the vast and often troubling differences In workplace standards between China and the U. S. Apple’s Issues with Foxing haven’t received coverage either of the scale or the intensity that Mike dealt with at the height of the sweatshop scandal. To be fair, there are important differences between the two. The conditions described at the Mike factories 20 years ago were considerably worse, even by Foxhound’s unpleasant standards. Also, Apple clearly learned some important lessons from how

Mike executives dealt with their Issues in the media. It took several years for Mike to equivocation and aloofness. More damaging was the company’s repeated insistence that, since the factories in question weren’t owned by Mike, Mike bore no real responsibility for the conditions there. Apple has been far more proactive in investigating working conditions at Foxing and making demands of its most important production partner. Regardless, both companies exploited the use of cheap labor in developing nations and unfortunately some workers paid with the ultimate price: their lives.