A suicidal perspective

There has been an abundance of suicides amongst employees at the Foxconn factory in China which is responsible for making some of the most sophisticated Western gadgets, including iPads and iPhones. The blame for these suicides has been placed on the stressful working environment which has proved too much for those who have taken their own lives.

Foxconn has taken steps to be seen to be dealing with the problem. They have announced plans to provide more staff  benefits which will be directly linked to relieving stress amongst the factory’s employees. Their plan is to increase the leisure facilities which are available to staff. They are also recruiting counsellors who will be accessible by all staff.

However, they are also keen to distance themselves from liability. They have already asked all employees to sign a waiver which states that Foxconn is not to blame for the successful suicides of any staff members. The company is being proactive in a bid to avoid possible lawsuits from the families of those who have died. Given the insensitive nature of their response, though, they have faced a barrage of criticism in China for trying to cover themselves in such a blatant manner that they have effectively been forced to withdraw this line of defence.

There is a suggestion that the suicides have actually been planned as a result of the attractive ‘death on site’ bonus payable to the families of Foxconn employees in such an eventuality. Most employees earn the equivalent of £200 per month, but their families would receive a lump sum of £1,000 upon their death.  The cost of living is extraordinarily high in China and wages are very low.  This leads to working long hours, feeling isolated, morale hits rock bottom and desperation can set in. The suggestion is that individuals have made the ultimate sacrifice for their families. Reports have claimed that Foxconn is planning to increase the basic wage as a result.  Of course, they may also look to reduce the death in service benefit.

At present there is a never-ending supply of workers available to work for the newly-increased minimum wage. However, over-population in China led to the introduction of the one-child policy many years ago. Industry experts do not expect this pool of labour to reduce considerably in the coming years.

The introduction of a minimal pay rise by Foxconn will also put pressure on other international and multinational companies to follow suit since all too often companies base their production in China due to the cheap operating costs and cheap labour. Many  individuals working in electronics factories across China are experiencing ‘sweatshop’ conditions in respect of long working days and weeks, low pay, unsafe working conditions and discrimination. There is a code of conduct applicable to the electronics industry which is overseen by the EICC. Foxconn had signed up to this code of conduct and, as such, would have been audited and yet first hand reports suggest that the working conditions in the factory are unacceptable. Big name brands and suppliers will have to act by investing money in their associated workforces to ensure that working conditions are improved and wages are increased. Only then will change truly be effected in China.