Foxconn, a Fortune Global 500 giant and the world’s largest electronics manufacturer, made headlines in 2023 by announcing a shift to a five-day, eight-hour workweek in its Chinese factories – a significant departure from its long history of extended work hours and grueling conditions. While this decision was celebrated by labor advocates as a critical step toward improving work-life balance, it sparked a complex debate among Foxconn employees. Many workers had come to rely on overtime pay just to make ends meet, as their basic wages barely covered essentials like rent and food. Foxconn had long faced criticism for pushing its workers to the brink, most notably in 2010, when 17 employees in China attempted suicide by jumping from company buildings, resulting in 14 tragic deaths. Despite this devastating toll, Foxconn’s business growth remained unshaken. The company’s rise from a startup to the world’s largest electronics manufacturer is deeply intertwined with China’s massive influx of domestic migrant labor, where millions move to urban areas in search of better opportunities. This case delves into the reality of labor on Foxconn’s frontlines, exploring working conditions, compensation and living accommodations, as well as the far-reaching aftermath of the tragedies that shook both Foxconn and its clients, such as Apple. Beyond China, Foxconn’s global operations have faced similar scrutiny, and as the company expands into regions like India, it confronts new challenges. Cultural and regulatory differences further complicate its labor issues. This case highlights the critical tension between safeguarding worker dignity and well-being while meeting the relentless demands for productivity – whether in developed or emerging economies. As Foxconn continues to evolve and reshape its labor practices, the question remains: How can companies maintain profitability while ensuring the dignity, safety and well-being of their workforce?
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Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications
Research Information & Knowledge Hub for additional information on IMD publications