(Yicai Global) June 11 -- Hon Hai Precision Industry, the world's biggest electronics contract manufacturer better known as Foxconn, is investigating a factory which has been accused of breaching a bunch of labor rights laws.
The plant in Hengyang, Hubei province, which produces Kindles and Echo speakers for retail giant Amazon, under paid workers, abused temporary staff and failed to provide sufficient training, according to a report by American organization China Labor Watch and British media giant Guardian Media Group.
"We are carrying out a full investigation of the areas raised by that report," Foxconn said in a statement yesterday. "If found to be true, immediate actions will be taken to bring the operations into compliance with our code of conduct."
The Guardian and CLW issued a 94-page report covering nine months of investigation and blasting the factory's working conditions. 'Dispatch,' or temp, employees earn CNY14.5 (USD2.26) an hour and work as many as 100 overtime hours a month in peak times, it said, dwarfing the 36-hour legal limit. The firm also failed to pay time-and-a-half for the overtime hours, a legal requirement, and made some staff work for 14 straight days.
Furthermore, staff got only eight hours of training, a third of the time required by law, and the plant's workforce was 40-percent made up of temporary workers, despite a 10-percent cap.
The report surfaced just two days after a Foxconn unit, Foxconn Industrial Internet, debuted in Shanghai and saw stock [SHA:601138] soar 44 percent to CNY19.83. The allegations had little impact on its share price, which continued to rise today to close at CNY21.81.
Editor: James Boynton