Deaths at Hon Hai Could Raise Questions for U.S. Companies (original title)

(Source)

The death of another employee at Taiwan-based electronics manufacturer and assembler Hon Hai Precision Industry not only casts scrutiny on the working conditions at its factories in China, but could also fuel concerns for U.S. companies like Apple and Hewlett-Packard that sell products made by Hon Hai.

An employee of Hon Hai died after falling from a building at the firm’s plant in southern China Tuesday, following several others this year, China’s state media Xinhua news agency reported. Most have been ruled suicides, although the most recent death and several others have not been classified.

The cause of the spate in suicides among workers at Hon Hai, which also is known by its trade name Foxconn, is hard to pinpoint. Statistically, the rate of suicides isn’t exceptional given the size of the company’s staff – it has 800,000 workers in China, about half of those in Shenzhen – and it’s unclear to what degree the wave of incidents is a result of copycat behavior as found in suicide clusters elsewhere or if there are other factors.

Critics have voiced concern that working conditions and long hours at the Taiwanese firm’s factories have added too much pressure on its staff, most of whom are young migrant workers. News Agency GlobalPost conducted an investigation last November uncovering the poor working conditions of employees at some of the suppliers of consumer electronics products. Hon Hai’s chairman defended the company’s practices earlier this week and said it is “definitely not a sweatshop,” the Wall Street Journal reported Monday.

Apple spokeswoman Jill Tan said Tuesday: “We are definitely concerned … but would like to emphasize that Apple is committed to ensuring the highest standards of social responsibility wherever Apple products are made.”

Apple conducts annual reviews of final assembly manufacturers to uncover any possible violations of its Suppliers’ code of conduct. In its 2010 Supplier Responsibility Report, it found that 65% of the 102 facilities it audited were paying the wages and benefits due to workers. But it didn’t say if Hon Hai was one of the suppliers that violated its code of conduct.

A Singapore-based spokeswoman from Hewlett-Packard said the firm has “high standards in place with suppliers to ensure workers are treated with dignity and respect,” adding that it “vigorously” investigates concerns about its suppliers’ practices.

Labor-watch groups have urged electronics makers to take a more active stance toward the labor practices of suppliers. A study conducted by the Center for Research on Multinational Corporations last May said that most codes of conduct of electronics makers, such as Apple, are insufficient. It also pointed out that though Apple conducts annual audits of suppliers, it doesn’t disclose who they are, citing nondisclosure agreements.