Cartoons

Hired in Henan

A year ago Foxconn was caught in a media firestorm, following a spate of suicides among its staff (see WiC63). One of its solutions was to move inland, closer to where many of its migrant workers grew up. A site was found in Henan. But there was uncertainty as to whether the firm – famed for assembling Apple products – could replicate the scale of its Guangdong contract manufacturing facilities. Well, the sceptics have been confounded. China News reports that Foxconn has managed to hire 52,500 workers for its Henan plant. This hiring feat is accompanied by another incredible stat – the less-than-one-year-old factory has already assembled $1.8 billion worth of exports.

But other news may be less welcome to Foxconn boss Terry Gou. According to the Financial Times the company’s cost per employee still rose (year-on-year) by a third in its most recently reported results – offering further evidence that the ‘Made in China’ model is less and less about cheap labour.


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