Foxconn makes a moment of reckoning for electronics

Published:2012/4/12 2:50:00 Author:Ecco From:SeekIC

According to market research firm IHS iSuppli, Foxconn could be a "moment of reckoning" for the electronics industry similar to what occurred in the footwear and apparel industry in the 1990s,.

Foxconn, the world’s largest maker of electronic components, is headquartered in Taiwan, but operates a number of very large manufacturing facilities in China. The Fair Labor Association (FLA) issued a report last month detailing the results of a month-long investigation into labor practices at Foxconn. The FLA found the working conditions problem through Apple Inc. which is one of Foxconn’s largest customers. Workers in three Foxconn factories in China could work more than 60 hours per week and not be compensated with overtime.

Apple joined the FLA in January under mounting pressure from workers rights advocates. The consumers also concerned about working conditions at Foxconn in the wake of a string of suicides at Foxconn worker facilities last year. The FLA said it would monitor the situation on an ongoing basis to verify compliance. The FLA asked Foxconn to reduce working hours to legal limits while protecting pay, improve health and safety conditions and establish a genuine voice for workers.

According to IHS, the global electronics manufacturing business, consisting of electronics manufacturing services (EMS) and original design manufacturing (ODM) firms, generated $359.8 billion in revenue in 2011. The moment has arrived for electronics brands to ensure that their contract manufacturing partners are in compliance with FLA rules. OEMs will be forced to expand their operations that focus on supplier responsibility and compliance.

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