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Thursday, June 3, 2010

Steve Jobs says Apple is 'all over' Foxconn suicides


Steve Jobs, the chief executive of Apple, said he finds a string of suicides at Foxconn, the Chinese manufacturer of the iPad, "troubling". At least 16 people have attempted suicide at Foxconn so far this year, with 12 succeeding in killing themselves.

The company, which assembles iPhones, iPods and iPads for Apple, as well as working for HP, Dell, Sony, Nokia and Nintendo, said it has managed to prevent a further 30 deaths through its counselling service.

Mr Jobs did not offer any immediate solution to the problem. "It is a difficult situation," he said, in his first public comment on the suicides.

"We are trying to understand right now, before we go in and say we know the solution."

The reasons for the sudden spate of suicides remain unclear. However, the military-style working regime at Foxconn's Longhua plant, in which more than 300,000 people work, has been heavily criticised.

Workers are forbidden to talk on the production line, even in their short breaks, and many have complained of feeling lonely and alienated inside the giant factory.

In addition, the enormous demand for some products – including the 2m unit-selling iPad – appears to have placed an intolerable strain on Foxconn workers, who are quitting the Longhua factory at the rate of 15,000 a month.

On the production line, workers have routinely worked more than 70 hours a week – above Apple's own guidelines – to fill orders. Nevertheless, Mr Jobs insisted that Foxconn, which is one of Apple's most important suppliers, was "not a sweatshop".

Foxconn yesterday agreed to immediately raise the basic salaries of its workers by a third. Wages are expected to rise from 900 yuan (£90) a month to 1,200 yuan.

The company, which employs more than 800,000 workers in China but is originally Taiwanese, said the decision to raise wages was not a direct response to the suicides. It maintains that the spate of deaths is not work-related or above the average rate for young people, and that the suicides were mainly caused by personal problems among the victims.

Foxconn said the pay rise would help it to attract better-qualified workers at a time when there are labour shortages across China's manufacturing belts.

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