Foxconn admits labour violation at China factory

Foxconn Foxconn has previously been accused of having poor working conditions at some of its factories

Related Stories

Foxconn, the world's biggest contract electronics maker, has admitted student interns worked shifts at a factory in China that were in violation of its company policies.

The firm, which makes products for some the world's biggest brands, has been under scrutiny for labour practices.

It had admitted to hiring underage interns at the same unit last year.

Foxconn said actions had been taken to bring the factory "into full compliance with our code and policies".

"There have been a few instances where our policies pertaining to overtime and night shift work were not enforced," the company said in a statement.

Labour issues

The manufacturing giant is owned by Taiwanese group Hon Hai Precision and employs about 800,000 workers around the globe.

Foxconn, while not a household name in itself for many consumers, is used by most of the big technology giants around the world, including Apple, Sony, Microsoft, HP, and Nokia.

It first came under scrutiny for its labour practices when 13 employees committed suicide at its Chinese plants in 2010.

The incidents raised concerns over working conditions at its units in China and drew attention to growing labour strikes.

For its part, Foxconn responded by raising wages, shortening working hours and employing counsellors on site.

It also installed suicide nets to factory living-quarters at its Shenzhen factory.

Also in 2010, Foxconn temporarily shut down a unit in India after 250 workers fell sick.

And in May 2011, two people were killed after an explosion at a company plant in Chengdu.

More on This Story

Related Stories

More Business stories

RSS

BBC Business Live

  1.  
    TOBIN TAX FEARS 10:24:

    The introduction of a "Tobin Tax" - often referred to as the "Robin Hood" tax - could cost the City more than £3.6bn, The Times reports. The paper says the EU levy on financial transactions, which has the backing of 11 eurozone nations but is opposed by Westminster, "could cause serious knock-on damage" to London's financial sector.

     
  2.  
    RBS BONUSES 10:18: Via Email Kamal Ahmed BBC Business editor

    "There has clearly been a major clash behind the scenes between the government and RBS. It is unclear as yet where the idea to end annual bonuses for the chief executive and the chief financial officer came from - but it looks like a highly political move. After the departure of the former chief executive, Stephen Hester, over a clash on the future of RBS's investment bank, it is clear that the Treasury is still calling the shots."

     
  3.  
    RUSSIA RATING 10:06:

    More on that Russia debt rating, which comes from Standard & Poor's. It says further downgrades are possible if the situation in Ukraine worsens. Russia's BBB- rating puts it on a par with Azerbaijan, Bloomberg reports.

     
  4.  
    HONDA RESULTS 09:56:
    Honda logo

    Honda has reported its latest quarterly results. Net income more than doubled to 170bn yen, ($1.67bn; £1bn). Rising sales helped, but the results were also flattered by a weaker yen. Honda sold 1.2 million cars during the quarter.

     
  5.  
    RETAIL SALES Via Twitter Nick Bubb, retail analyst

    tweets: "Yet again, the ONS Retail Sales figures for March are inflated by mystifyingly high sales growth for "Small Businesses"... #ThePlanetONS"

     
  6.  
    RETAIL SALES 09:35:

    Retail sales rose by 0.1% in March, compared to February, according to the Office for National Statistics. Non-food stores saw the highest year-on-year increase since April 2002 up 9.6%. But the ONS thinks that reflects a very cold March last year.

     
  7.  
    ALSTOM 09:30:
    Montebourg

    The French government is concerned about the prospect of a takeover of engineering firm Alstom. In an interview with Le Monde, economy minister Arnaud Montebourg said: "the government expresses patriotic concern and watchfulness with regard to Alstom". The minister said he and the prime minister will meet the president of General Electric to discuss their concerns. There is still no confirmation of the takeover talks from either firm.

     
  8.  
    RUSSIA RATING Via Twitter Victoria Fritz Business reporter, BBC News

    tweets: "Russia suffers its first ratings downgrade in five years. Just one notch above "junk" status. Money pouring out of the country and investment stifled"

     
  9.  
    PEUGEOT 09:19:
    Peugeot

    PSA Peugeot Citroen shares are up more than 1% in Paris. The car maker reported a 1.9% increase in revenue for the first quarter. Unit sales (the number of cars and trucks) were up 7.7%. Earlier this month Peugeot's chief executive Carlos Tavares announced an ambitious recovery plan.

     
  10.  
    MARKETS UPDATE 09:15:

    Europe's major markets are lower this morning. In London the FTSE 100 is down 0.28, the Dax in Frankfurt is 0.74% lower and the Cac 40 os down 0.33%. The biggest loser on the FTSE is Tullow Oil, down 3% after one of its exploratory wells, off the coast Mauritania, found no oil and is being abandoned.

     
  11.  
    ALSTOM 08:58:
    V150 TGV train

    Trading in Alstom shares have been suspended by French market regulators. On Thursday shares surged after a report said that General Electric was preparing a takeover bid for the maker of TGV high-speed trains.

     
  12.  
    RBS BONUSES 08:50:
    RBS HQ

    RBS says that 77 people earn more than £1m a year at the bank, that's down from 95 in 2012. By comparison it also says that Barclays has 481 staff that earn more than £1m. At RBS "code staff", which are those who take or manage risk on behalf of the bank, earn on average £624m.

     
  13.  
    BAIDU RESULTS 08:38:
    Baidu website

    Baidu, which operates China's most popular internet search engine, has reported a 24% jump in quarterly profit to 2.5bn yuan ($408m; £242m). Sales soared by almost 60%. The company has been spending heavily to promote its products on mobile devices. As a result expenses jumped by 137% from the same period in 2013.

     
  14.  
    RBS BONUSES 08:27: BBC Radio 4

    BBC business editor Kamal Ahmed is on the Today programme. "It looks like RBS directors will be paid a third less than competitors and we will see if this affects the way the bank operates," he says. RBS, like other banks in the UK and Europe, wanted to raise the cap on bonuses. But when it approached UKFI, which holds the government's stake in the bank, it was turned down. The bank is also stopping annual bonuses for top executives.

     
  15.  
    INTEREST RATES 08:13: BBC Radio 4

    On Today, Andrew Sentence, former member of the Bank of England's Monetary Policy Committee, raises concerns over rising house prices: "We are getting near the point where we should be seeing a gradual rise in interest rates," he says. He's worried if the policy of rising interest rates is left too late "then homeowners will struggle".

     
  16.  
    RBS BONUSES 08:06: Breaking News
    RBS HQ

    More news from RBS this morning. It is scrapping annual bonuses for its chief executive and chief financial officer from 2014. They will still receive "long-term incentive rewards", entirely in shares and linked to performance criteria, but these will be given over a period of five years. The bank says the move is an effort to reward "long-term performance".

     
  17.  
    DIGITAL ADVERTISING 08:01: BBC Radio 4

    WPP chief executive Sir Martin Sorrell is on Today. He quotes some interesting figures on digital advertising. His company spends $75bn a year on it for their clients. Ads on Google account for $2.5bn of that. But Facebook is growing fast, he thinks adverts placed on Facebook could grow by 50% this year, to perhaps as much as $700m.

     
  18.  
    HEADLINES
     
  19.  
    RBS BONUSES 07:45:
    RBS HQ

    The Royal Bank of Scotland has given up on an attempt to get a 2:1 pay ratio voted through at its next AGM, which would have meant it could pay employees 200% of their salary as a bonus. In a statement in the company's annual report, the RBS board says it expected UK Financial Investments, which owns RBS shares on behalf of the Treasury, to block the decision, so they will try and pass a 1:1 ratio instead.

     
  20.  
    MORTGAGE RULES 07:37: BBC Radio 4

    Martin Wheatley, chief executive of the Financial Conduct Authority, is on Today, explaining his agency's new rules for lenders. He expects some "outlandish" questions to be be asked while banks get used to the new system. "Every bank is designing their own system" and "it might take time to settle down", he says. "The point is to lend what people can afford to repay."

     
  21.  
    TICKET TOUTS 07:29: BBC Radio 4

    MPs are proposing new measures to deal with ticket touts. Sharon Hodgeson, MP, says there is "industrial scale touting". "Huge quantities of tickets are harvested and then sold on secondary platforms," she says. Oliver Wheeler from the online ticket exchange Viagogo says the government should not intervene in a "voluntary transaction between two parties".

     
  22.  
    PARANOID PUTIN? 07:19:
    Vladimir Putin

    According to the Moscow Times, Russian president Vladimir Putin told an audience on Thursday the internet is a "special project" by the CIA. He also claimed the country's most popular search engine, Yandex, was under Western influence.

     
  23.  
    WILLIAM HILL 07:12:
    Gambling machine

    William Hill will close 109 shops this year. It blames the government's increase in the Machine Games Duty to 25%. As a result of the closures 420 staff are at risk of redundancy. William Hill says it will make "every effort" to redeploy the staff affected.

     
  24.  
    PHARMA STOCKS 07:08: Radio 5 live

    The pharmaceuticals market has been a hive of activity this week. GSK and Novartis swapped assets, and there are rumoured mergers, including a Pfizer buyout of AstraZeneca. Jo Walton, pharmaceuticals analyst at Credit Suisse, tells Wake Up to Money drug companies are facing pressure on prices, as governments try and buy more cheaply, and they are having trouble developing new products. The "easiest thing to do is to take capacity out," she says.

     
  25.  
    ZERO-HOURS CONTRACTS 06:59: BBC Radio 4

    Labour leader Ed Miliband will unveil plans to tackle the "epidemic" of zero-hours contracts in a speech in Scotland later. Shadow business secretary Chuka Umunna tells Today there has been a "rising tide of insecurity". He says that very often people are employed on zero hours contracts without even realising it.

     
  26.  
    FRIDAY BOSS 06:51: BBC Radio 4
    Nails

    The Friday boss on Today is Thea Green, founder of Nails Inc. The nail bar chain turns over £22m a year. The average spend is around £35 and women refer to it as "their little bit of luxury", which is why the business was not particularly hurt by the downturn, Ms Green says. She thinks of Nails Inc as a fashion company. This year's nail colour is floral, she tells Simon Jack.

     
  27.  
    GHERKIN GOES BUST 06:41:
    Gherkin

    The Gherkin is in a bit of a pickle (credit to Mickey Clarke). The London skyscraper, designed by Lord Norman Foster's company, has been forced into administration. That's because the strength of the Swiss franc left the building's owners unable to pay debts secured against the building (which were loaned in that currency).

     
  28.  
    MORTGAGE RULES 06:36: BBC Radio 4

    More from Peter Hill. He says mortgage lenders will want information on three areas: Committed expenditure, like other loan repayments. Basic expenditure - utility bills etc. The final area is more "grey". It is "basic quality of living expenditure" which could include broadband expenses. He does not think gym membership would fall into that. Only 2% are expected to fail the test - in good times.

     
  29.  
    MORTGAGE RULES 06:32: BBC Radio 4

    Peter Hill, chief executive of Leeds Building Society, is back. On Today, he says: "If a customer is reasonably well prepared, the mortgage interview should take less than two hours". Lenders are also expected to assess if a borrower could still afford mortgage payments if interest rates were to rise. But lenders are unlikely to test if borrowers can afford rates as high as 7%, as some have reported.

     
  30.  
    STARBUCKS RESULTS 06:28: Radio 5 live
    Starbucks logo

    Last night, Starbucks posted a loss of pre-tax loss of £20m in the UK. "No they didn't, of course," says Mr Urquhart Stewart on Wake Up to Money. "What they've actually been doing is funnelling revenues offshore back through the Netherlands again". The good news, he says, is that there are a lot of other places to get your coffee these days.

     
  31.  
    TOP MANUFACTURERS 06:23: BBC World News

    More from Boston Consulting Group's Hal Sirkin: "Low cost countries are not always low cost. Western countries are becoming much more competitive," he says. Mexico and the US are "rising stars". The UK, Netherlands, India, Indonesia are holding steady. But Sweden, Belgium and France are becoming less competitive. "Brazil is actually one of the highest cost countries on the list," he says.

     
  32.  
    TOP MANUFACTURERS 06:10: BBC World News
    Mini assembly plant

    The UK is the cheapest western European country for manufacturing - overtaking Spain. That's according to new research by the Boston Consulting Group (BCG). It looked at energy costs, wages, currency fluctuations and productivity among the 25 leading exporting nations. On World Business Report, BCG's Hal Sirkin says Mexico has lower manufacturing costs than China.

     
  33.  
    BARCLAYS 06:05: Radio 5 live

    Wake Up to Money discusses yesterday's Barclays AGM. The bank withstood a shareholder revolt on the size of its bonus pool, but the outcry from investors is "not very good news" for the company, says market commentator, Justin Urquhart Stewart. "The shock was that you had the likes of Standard Life saying we're not going along with this," he says. "At some point they [Barclays] are going to want to come back to the markets, and they'll need these shareholders to support them."

     
  34.  
    MORTGAGE RULES 06:00: Radio 5 live

    Tougher rules for potential mortgage borrowers come into force tomorrow. The Mortgage Market Review is designed to protect consumers from the kind of reckless mortgage lending that would leave them unable to make repayments. On Wake Up to Money, chief executive at Leeds Building Society, Peter Hill, says the rules will help ensure people borrow affordably, and that they can endure "a few bumps in the road".

     
  35.  
    06:00: Ben Morris Business Reporter

    Mortgage lenders will be obliged to ask tougher questions about applicants for mortgages from Saturday. More on that coming up, on the Business Live page.

     
  36.  
    06:00: Joe Miller Business Reporter

    Good morning. We'll have results from several carmakers later, but meanwhile, stay with us. You can contact us throughout the morning by tweeting @BBCBusiness or emailing bizlivepage@bbc.co.uk

     

Features

  • The Duchess and Duke of Cambridge and Prince GeorgeGorgeous George

    Baby steals show as tour reveals rise in support for monarchy


  • Kim Jong-un visits a children's campThe Notepad Men

    Who are the people who take down Kim Jong-un's every word?


  • Adam RushtonDead behind bars

    The story of one young man who 'couldn't believe he was lovable'


  • Donald Tusk7 days quiz

    What made Poland's prime minister become an internet hit?


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.