Taiwanese electronics manufacturer Foxconn saw its profits fall to $509 million from $1.19 billion last quarter. Chairman Terry Gou said this quarter was particularly affected by Foxconn’s recent image problem. Improvements in wages, worker benefits, and education accounted for some of the loss, although new iPad and iPhone 4S manufacturing bolstered income last quarter.
As a reaction to recent popular criticism on various fronts, the company increased wages by 25 percent this year and is planning to open a hospital and language schools for its employees. → Read More
In the hullabaloo over Mike Daisey lying about meeting injured workers, the spotlight turned from actual employment problems in Asia onto the face of the orotund and penitent former colonialist. Now that the news cycle has passed, we’re no longer interested in the topic of Chinese manufacturing and, judging by the positive response to my April Fools’ post on Sunday, the world now understands assembly work to be a good if tedious form of employment.
But the problems Daisey seemed to fabricate do exist. He just didn’t do the legwork to see them. I’ve personally been to factories where OSHA is just a four-letter word and ISO standards are paid little more than lip service. And the factories I saw were relatively good and considered reputable suppliers by Westerners in town. After seeing these I wondered “If these are the good ones, what are the bad ones like?”
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After a highly visible meeting with Apple CEO Tim Cook, Foxconn’s founder Terry Gou announced plans to open a sprawling Foxconn factory in Guthrie Center, Iowa, essentially replacing the approximately 2,000 residents of that small town with workers from in and around Iowa. The company will hire 300,000 employees for the new factory, about 10% of Iowa’s population.
The plant will include dormitories for workers, multiple swimming pools and Internet cafes, and meal seating for 100,000 employees.
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It seems that noted firebrand Mike Daisey’s story – the one about the crippled, underaged factory workers who unspooled tales of woe and torture at the hands of their evil Foxconn masters at Apple’s behest – was at least partially fabricated. He was outed as, at best, a bad journalist and at worst a fraud. To be clear, he’s a monologist and playwright and had no business telling this story (just as he really had no business telling Amazon’s story way back when) but he, like so many creatives, riffed on science and technology for popular effect and got both drastically wrong.
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At over a million digital listens, “Mr. Daisey Goes To The Apple Factory” is This American Life’s most popular episode. That’s no small feat for one of the world’s most well-known radio shows. When it aired, it set off yet another firestorm of controversy regarding the ethics of Apple (and other large tech companies) using cheap Chinese labor through major manufacturers like Foxconn. Mr Daisey, who has been touring for years with a monologue about his visit to the factories there and the moral implications thereof, provided details to This American Life to put together what was really a powerful and attention-grabbing piece.
Unfortunately, in the words of This American Life host and producer Ira Glass, “We’ve learned that Mike Daisey’s story about Apple in China – which we broadcast in January – contained significant fabrications. We’re retracting the story because we can’t vouch for its truth.”
This week’s show will take a full hour to detail the errors and fabrications in Daisey’s report. → Read More
There are two sayings on the back of every Apple product: Designed By Apple in California and Assembled in China. These statements attempt to say that even though the products might be assembled in a different country, Apple is an American company — a fact Apple proclaimed loudly today with a new web page titled Creating jobs through innovation.
Apple has been under fire lately regarding its overseas manufacturing partners. Apple hired the Fair Labor Association to conduct voluntary audits of the final assembly partners, including Foxconn’s massive Asian facilities. But consumers and activists alike aren’t buying it. It’s a smokescreen, they say. Foxconn will just hide the children and give everyone a new pillow prior to inspector’s arrival. This has rightly put Apple on the defensive. → Read More
A local court in the Guangdong province of China has apparently ruled against Apple in its ongoing case against Proview over the iPad trademark, with the decision that distributors should stop selling iPad tablets in China.
The news is a step in the opposite direction from last week, when it looked like Apple was gaining the upper hand over Proview, with a court ruling in Apple’s favor, and new documents that seemed to indicate Apple legitimately bought “iPad” from the troubled Chinese hardware company.
But while that Apple China story continues to remain murky, another one is getting more light shed on it: amid the saga around working conditions at the Foxconn plants that make Apple devices like the iPad comes a new video of what life is like inside one of the plants that make them. → Read More
I was walking home last week and the entire street – and some of the sidewalk – was blocked by large fire trucks and a gaggle of firemen in full regalia. The ladder truck was already planted firmly on the asphalt, ready to send a stream of water soaring over nearby apartment buildings and more trucks were coming, clogging the one-way street further.
Convinced I was about to see an inferno, I tentatively crossed the street. I assumed I’d be stopped and turned away. Instead, the firemen joked and jostled on the sidewalk and I saw a contractor arguing with someone I assumed to be a building resident. The contractor must have been welding – you could still smell the flux and the smoke – and the resident was clearly concerned. → Read More
Thirty spokes meet at a nave;
Because of the hole we may use the wheel.
Clay is moulded into a vessel;
Because of the hollow we may use the cup.
Walls are built around a hearth;
Because of the doors we may use the house.
Thus tools come from what exists,
But use from what does not.
- Tao De Ching
There’s a carousel in a small Cape Cod town that we visited this summer and the kids rode it a few times. The carousel is quite old and quite handsome and it makes a great diversion of an evening. I’m reminded now of trying to take pictures of the kids while they rode the carousel. For a while I’d wave and try to get their attention as they roared past, their laughter dopplering around the edge of the curve, and then, after four or five tries I’d give up and just watch. It’s a wheel, an endless circle, designed to delight and enthuse and distract. → Read More
Foxconn responded to yesterday’s kerfuffle about the CEO of Foxconn, Terry Gou, commenting that he cared for “a million animals” – namely his employees. They said it was an off-the-cuff remark, similar to saying that managing is like “herding cats” as opposed to suggesting that Foxconn employees walk on all fours and root in the mud. Big difference, clearly.
The statement is below. I love the line “Mr. Gou’s comments were directed at all humans and not at any specific group.”
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While I suspect there’s a lot lost in translation here,Foxconn chairman Terry Gou made a wildly distasteful joke this week at the Taipei Zoo, saying (according to WantChinaTimes): “Hon Hai (Foxconn) has a workforce of over one million worldwide and as human beings are also animals, to manage one million animals gives me a headache.”
The comments came during a presentation at the zoo where the superintendant Chin Shih-chien gave a talk on feeding and taking care of his charges. Gou has apparently hired Chin to make recommendations and help Foxconn executives learn how to manage large organizations. → Read More
Shenzhen is a town of migrants. The estimated median ages is between 15 and 25 and the old and battered sits in wild contrast with the brand new. Even in the few years between my last visit and this one, the city has changed so drastically that I barely recognized it. The last time I was here I imagined the place as a cross between a favela and Blade Runner, high and low tech mashed together, the sharp tails of known carcinogens mixing with the soft end of Suntory in a highball glass and the scent of a young executive assistant’s Chanel No 5.
Now it’s mostly Suntory and Chanel, the carcinogens banished to the outskirts of town. There’s a boom in China, and Foxconn’s executives see a way out of many of the messes, real or imagined, that plagued the company.
Foxconn is pinning their future success on their employees’ future success. While this may seem like uncessary largesse, it is an interesting bet on the future of a working class that has been transformed into a middle class. And those workers, once forced by circumstance to stand for ten hours a day, are workers that no longer need or want what seemingly meager financial benefits Foxconn has to offer.
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The entrepreneur was fuming over the phone. He is arguably angry: he had heard of a company had just been raided on trumped up charges and I spoke to him one evening after he returned to the UK.
“Chinese people basically believe that their success in manufacturing is because Chinese people are so smart,” he said. “But why does the world get stuff made in China? Just one reason: it’s cheap.”
“That’s the advantage. And it’s going to be so easy for China to shoot that one advantage away,” he said.
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Driving from the Foxconn Factory, down the road from the main gate, we spotted a truck full of pigs in an open-sided container. They were huge, porcine pink, and surprisingly clean. They were still alive – but wouldn’t be for long – and they were, we could only presume, destined for the bellies of some of the company’s 400,000 workers.
As the truck trundled along the well-paved road, I flicked through the pictures I took of the Foxconn kitchen. It was something out of a delicious version of Hieronymus Bosch: huge cauldrons manned by men and women in white smocks, smoke and steam coming out of huge soup pots, the food flipped and tossed using shovels.
There, in the course of the day, nearly 400,000 meals pour out into the campus. There a cooker the size of two truck trailers cleans, cooks, and cools hundreds of pounds of rice, and some of those pigs (slaughtered off campus because that’s one thing the kitchen at Foxconn isn’t allowed to do) are stir-fried or stewed and sent out to one of the many campus cafeterias.
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At first I thought the birds in the trees at the Foxconn’s largest plant in Shenzhen, China were fake. They sang so sweetly that I was sure my hosts had planted speakers for my benefit – a sort of Potemkin aviary high in the branches.
The plant, called Foxconn City, is one of Foxconn’s 26 major and minor factories around the world. Built by founder Terry Guo in 1974, the City was the first of the many sprawling Foxconn complexes and covers three square kilometers. It is home to over 400,000 workers, many of whom live in university-style dorms on the Foxconn campus. It is reported to be China’s largest private employer and holds a place in the Western mind as the home to a new form of economic slavery, an eternal bogeyman that haunts the fever dreams of anti-techophiles. It’s also a place where thousands of young employees – some completing their degrees while they work through school, others simply trying to escape the grinding poverty of their home districts, and still others hoping for a leg up in China’s wild economy – come to assemble the items that surround us. Here they make our PCs, our MP3 players, our routers. Here they make our laptops, our cellphones, and our cameras.
In the past year, only one other journalist has been allowed past Foxconn’s gates to see the factory, which is why I thought they had brought the birds (or at least fake Bose birds) out for my benefit. What better allegory for the doings of a secretive, destructive force for evil than fake birds in fake trees? → Read More
Just two weeks ago it was reported that the relationship between Foxconn and Brazil regarding the proposed $12 billion production center there was on the rocks. Foxconn was making demands the government felt were overreaching, and negotiations were stalled.
Government officials and Foxconn representatives announced today that the plan was still underway, and the plant is ready to pump out iPhones. iPads will have to wait until December, which was the original deadline. → Read More
Earlier this year it was reported that Foxconn had decided it was going to try to diversity its global holdings by establishing an iPad factory in Brazil. Their reasoning seemed fine: the economy is expanding, there’s a tech-savvy populace, and the government, they figured, would be game for few little sweetheart deals to get the ball rolling. As it turns out, not so much.
“The project for a Brazilian iPad is in doubt,” said one Brazilian official, speaking on terms of anonymity to Reuters. Foxconn is “making crazy demands” and the Brazilian government appears to be unyielding on tax and funding. → Read More
It’s happened again: a Foxconn plant explosion has caused a large fire in Yantai. According to MICGadget the fire stemmed from “improper operation of workmanship on color spraying” which suggests a aerosol paint may be involved.
The last fire happened in May in Chengdu. This fire was at a plant that made PCs, laptops, and printers. It employs and, in some cases, houses 80,000 workers, many of whom were evacuated. The blaze lasted 30 minutes and there are no reports of casualties. → Read More
Foxconn is planning on replacing many of it’s hard-working human manufacturers with about 1 million robots, a number that, if you think about it, is a very telling comment on the current state of electronics manufacturing.
There are apparently 10,000 robots at the factory now and that number will increase by 300,000 next year. Foxconn CEO Terry Gou plans another million robots by 2014. The company currently employs 1.2 million humans.
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A Foxconn employee, Chen Long, died of exhaustion after working a continuous 60-hour shift in one week, stopping rarely to sleep and eat. The employee, who had previously fainted from exhaustion, died in a shower on June 24th.
Here is a rundown by MICGadget:
On June 24th, the day before Chen’s death, everything is normal. Chen got off work at 7pm, and went home for dinner. After having his meal, he went out with his girlfriend for some fun at the Internet bar, until 11pm. Chen got back back home for a sleep after the date. Next day, June 25th, Chen woke up at 11am, feeling dizzy and has no appetite. He reluctantly have a meal that includes instant noodle, chicken feet and fruity flavored milk. He only had a few sips of those food. Chen then felt strengthless and sat at home watching the television. At 5pm, the weather is hot and Chen went to the bathroom for a shower. After two minutes, Chen falls to the ground unconscious. His girlfriend quickly called the ambulance, and when the doctor arrived, Chen is confirmed to be dead.
San Francisco, CA
