Foxconn chief executive Terry Gou has confirmed that Apple will use some of its cash to help improve the labor conditions for more than 1 million workers in Foxconn’s Chinese factories. Devices like the iPhone, iPad, and iPod are assembled in these factories.
Gou did not disclose any numbers. Nor, did he elaborate on how the bill would be split. What he did reveal was that Foxconn had been spending “heavily” to improve working conditions following reports of worker mistreatment in its factories.
“We’ve discovered that this (improving factory conditions) is not a cost. It is a competitive strength,” Gou told reporters on Thursday after the ground-breaking ceremony for a new China headquarters in Shanghai.
“I believe Apple sees this as a competitive strength along with us, and so we will split the initial costs.”
Foxconn also assembles products for Sony, Microsoft, Dell, Nokia, Nintendo, and HP. It has already increased workers’ wages by 16 to 25 percent, and agreed to reduce worker over time by hiring tens of thousands of new recruits to improve working conditions for its staff. Foxconn was accused ill-treating workers, months ago.
This has been a big part of Apple’s focus since Tim Cook took over as CEO in August 2011. During his first few months in the role, Cook has already organized Foxconn audits from the Fair Labor Association (FLA), and visited Foxconn’s Chinese factories himself to meet with its workers.
However, it remains to be seen whether other companies working with Foxconn will be interested in helping out or not.
Source: Cult Of Mac