Apple Will Use Extra Cash to Improve Foxconn Worker Conditions

With over 1 million workers, Foxconn is a vital piece to Apple’s manufacturing process. Foxconn has been under a lot of controversy in the past months regarding worker conditions. It has now been confirmed that Apple is going to step in and use some extra cash to help split the tab on improving these conditions…

Foxconn executive Terry Gou recently confirmed Apple’s willingness to help improve the working conditions. It was not mentioned how much would be spent, or how the bill would be split, but I assume it’s going to lean in Foxconn’s favor.

According to Terry Gou via Reuters,

“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.”

Under Tim Cooks reign, Apple has willingly took action to improve the working conditions of Foxconn. They even contracted the Fair Labor Association to perform audits of the conditions back a couple months ago. Foxconn has also took part in these efforts by raising worker’s pay 16 to 25 percent.

I think it’s great that Apple is looking at the bigger picture here in terms of their manufacturers. They would be “between a rock and a hard place” if Foxconn workers decided to strike.

Source: Reuters

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