A Reuters investigation carried out over several months, revealed Foxconn had a deliberate but unwritten code that excluded married women from jobs at the iPhone assembly plant in Sriperumbudur.
| Relevancy for Prelims: Equal Remuneration Act, 1976, Discrimination, China Labour Watch, etc.
Relevancy for Mains: Dilemma over Investment attraction vs labour rights concerns,Factors that contribute to the exclusion of married women from jobs in India, etc. |
Recent Allegations
- Foxconn Overview: World’s largest contract electronics manufacturer. Known for discriminatory recruitment practices and workplace exploitation.
- Rationale for Discrimination: Perceived lower productivity due to family responsibilities.
- Belief: Married women have babies after marriage, leading to high absenteeism.
- Impediments: Family duties and jewelry worn by married Hindu women seen as hindrances to higher production.
- Foxconn’s Response: Denied allegations of employment discrimination based on marital status, gender, religion, or any other form.
- India’s Position: Aim to become an alternative hub to China in the supply chain for digital products such as Apple’s iPhone.
- Current Production: Apple, through Foxconn, produces 9 to 14% of its iPhones in India.
- Concern: Potential human cost involved in this transition.
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Background on Foxconn in China
- Production Share: Foxconn produces nearly 90% of iPhones in China.
- Known Issues: Shocking labor practices.
- China Labour Watch Findings (2020-2023):
- Work Conditions: Around-the-clock labor to meet impossible production targets.
- Discriminatory Recruitment: Excluded ethnic minority groups: Uighur, Tibetan, Yi, Hui. Rejection of pregnant female workers.
- Worker Interviewed: Nicknamed ‘Hunter’:
- Daily Tasks:
- Job: Attach a tiny cable to the back of an iPhone cover and screw it into place.
- Target: 600 phones, 1,200 screws per 10-hour shift.
- Conditions: Relentless pace, no rest or toilet breaks.
- Consequences of Falling Behind:
- Supervisor abuse.
- Loss of bonuses.
- Stoppage of overtime.
- Living and Working Conditions:
- Environment: Windowless conditions, compulsory living on campus due to pandemic restrictions.
- Worker Responses: Escape attempts (dodging guards, climbing fences), outbreaks of violence due to unbearable work pace.
- Sentiment: “iPhones are made in hell,” concludes ‘Hunter’.
Apple’s Diversification Strategy
- Opportunity for India: Apple’s shift away from China.
- Expected Impact: Cascading effect for new investment.
- Job Creation: 150,000 new jobs at Foxconn’s facilities in India.
- Government Dilemma: Investment attraction vs labour rights concerns.
- Investment Attraction: Companies invest in India for cost savings on wages.
- Foxconn’s Wages: $200 (around Rs 17,000) per month for assembly workers in Sriperumbudur.
- Comparison: 20 times cheaper than wages in California.
- Job Creation: Thousands of jobs in India.
- Labour Rights Concerns: Government Responsibility to protect citizens’ rights.
- Legal Framework: Equal Remuneration Act, 1976: No wage discrimination between men and women.
- Investor Responsibilities: Commitment to a basic code respecting the dignity of labour.
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Conclusion
India must balance investment attraction with safeguarding labor rights, ensuring fair treatment, and maintaining ethical standards in its growing role as a global manufacturing hub.
July 1, 2024
