Foxconn stops payments, uses nets to curb suicides

Following a string of suicides at factories in China, Foxconn, the Taiwanese company that manufactures the iPhone, is to stop offering payments to the families of workers that kill themselves. The firm is also increasing wages, offering counselling services and installing safety nets in an effort to curb the trend.

Reuters

So far this year 10 employees have jumped to their death at Foxconn’s factory in Shenzhen, while an 11th worker killed himself in the north of the country.

According to Chinese media, grieving families had previously received up to 100,000 yuan (12,000 euros) in compensation – equivalent to about 10 years' work.

Foxconn, which also makes products for companies like Nokia and Dell, has been accused of overworking its staff. But company founder Terry Gou said none of the suicides was directly work-related.

Meanwhile, Honda said a labour dispute in the southern province of Guangdong is ongoing. Production will resume at two other vehicle assembly plants after a strike over working conditions ended.